New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-09
The Thompson Committee
Traces Flow of Inter
borough's Gold.
MORGAN'S S500,000
FEE FOR WAITING
Delaney Nicoll Paid for p. S.
Inquiry That Hadn't Reached
the Company.

The Thompson committee continued
its exploration yesterday Of the I'M
derground golden stream, the head
waters OF which are the Golfers o. the
Peterborough and its outlets the
pockets Of favored officials, outside
lawyers and others.
To date sI,025.454.s3 actual cash has
been traced from its source. and that
the Interborough's Golfers were
emptied Of millions more by other
channels, as yet only suspected, is the
belief Of Senator George F. Thompson,
chairman Of the committee.
In the midst o. the revelations yes
torday Of the moneys paid to outside
counsel BY the marlborough, Balm
bridge Colby. counsel to the committee,
established these two facts:
That about the time T. P. Shonts.
president OF the marlborough. is al
legged 20 have said he needed 100000
20 pay off certain commitments and
obligations" $4,000 was awarded q
Richard r. Rogers. Of counsel to the
Interborough, by the board Of direct
ors. because "he handled all legal mat
tiers in and about contracts for con-
struction Of new subways .
without employment Of outside coun-
sell"
That the Interborough has large
legal staff Of its own, costing from
S275 900 to 100000 a year.
The committee is hoping 70 get some
explanation from Interborough officials
regarding this apparent discrepancy.
Light Sought on Morgan Payment.
The investigation into the employ
ment Of outside counsel followed an
other search into the records Of the
Interborough TO throw light on the
$500 900 given 10 the syndicate headed
by J. p. Morgan Co. for its resdi-
ness 20 stand by for three yesrs 70
furnish s1O5,OOO,OOO 20 finance tho In
terborough when the contracts for the
dual subway system were made.
II. VI. Fisher. secretary Of the Inter
borough, when recalled TO the stand
admitted that the 100000 was paid
under q contract which lspsed before
the dual subway contracts were signed.
The supplementary agreement be
tween the lnterborough and the Nor
gan syndicate was entered into IN
April. 1912. A letter from J. P Morgan
& Co. 70 President Shonts stipulated
that the agreemen: was 70 be "de-
psndent on the legality and constitu-
tionality Of the dual contract being
confirmed by the courts"
II was soon after this that the Ad-
miral Realty Company's suit TO test
tho validity Of the contracts was start
ed in the courts.
Nv was also required by Morgan &
Co that the proceeds OF all BONDS
sbould remain on deposit with Morgan
Co. until withdrawn for purposes
described in the bonds 2" asked MI.
Colby.
"Yes." s.id Mr.. Fisher. -,
Another stipulation WAS that Morgan
& Co. stood ready 70 divide with the
marlborough all received I 1 ponus - -
excess Of a price Of e6. But none OF
the bonds SOLD at near that price. The
total issue of bonds as outlined by the
agreement was sl60,000,OO0
Bond Proceeds on Deposit.
The Interborough bonds pay . per
cent. The proceeds Of the bonas are
6enos,.ed with Morgan & Co, who pay
oniv 2n per cent Interest on the &C
count. A table prepared by Miles Daw-
son. Actuary for the committee, was vas
read into the record, showing the
amount Of lnterborough bond sale
money OF deposit with the Morgan frm
in tho last three years. Ihe total
/ yearly average was computed 70 Ve
/ S7s .664S07. The interest on this at y