New-York tribune., 1916-06-23
Lawyer Intimates Banker
Kept 100000 From
City Island Deal.
PRENDERGAST AGAIN
ON WITNESS STAND
Controller Tells Thompson Com
mittce of His Connection with
Land Company of Depew.

August Belmont accused Frank Moss
Of asking insulting questions during
his examination as witness before the
Thompson committee yesterday. Mr..
Moss reverted to the City Island Rail
road deal which Mr.. Belmont had eX-
planned at length at a former hearing
and intimatcd that the witness "got"
Sl,5O0,000 out Of the transaction.
81 consider your question an insult"
Mr.. Belmont replied heatedly.
Senator Thompson whanged his gavel
and both men cooled Off.
"Mr. Moss has made implications
which are nexcusable." shouted Mr..
Belmont. zone hundred thousand dol
lars was given by US to John B. Nc
Donald. who built the first subway. and
nothing else was paid to anybody
Mr. Belmont declined 10 express his
personal opinion as to combination
Of bankers. including J. p. Morgan e.
Co. and Kuhn, Loeb e. Co.. having got
what they wanted by deceiving the city
authorities in relation 20 the financing
Of the dual subway contracts for the
operating companies, as Mr.. Moss sug-
gested.
Prendergast Recalled.
At the afternoon session Mr.. Belmont
was questioned regarding the failure of
the marlborough Metropolitan Com
pany. which was formed 70 take over
the bankrupt surface lines. The wit
ness said if there had been approval Of
the company instead of hostility TO it
at the time the city would have re-
ceived more through consolidation than
by breaking II up, and the surface lines
would have been giving free transfers.
Controller Prendergast was recalled
yesterday 10 explain his interest in the
Lands Company, Of Depew, y. Y, a real
estate developing concern, of which he
was found 70 be secretary and general
manager. Perley Morse, accountant for
the committee. was permitted 20 make
an examination Of the Controllers bank
accounts and those of his wife and
children, and came across the Lands
Company matter.
1T appears that you have an interest
in this company" said Senator Thomp-
son. (which, up our way. we would call
New York Central concern" Mr.
Prendergast replied that down here
we would not call il that"
The witness told Senator Thompson
that no members Of the Vanderbilt
family were interested in the company.
lie explained that he had received
from the company s6,l95 since he had
been Controller. In 1911 he received
s4.378, owing 70 fire which destroyed
some buildings on the property and
for which the insurance was collected
Did you have anything 70 do with
the fire >" asked Mr.. Belmont. VINO mas
temporarily given way 10 the Con-
troller in the witness chair.
Held No Stock.
THAT is a question decline 10 an
swer," replied the Controller, laughing.
81 don't know who set the fire, but his
name shall be blessed
Mr.. Prendergast explained that he
had been appointed receiver for the
"Depew Improvement Company" in
1902 and that the LANDS Company
had been formed in 1906 10 take over
its property. william II. Hotchkiss
was its president, Henry b. Anderson,
Of the law firm of Anderson & Ander-
son, treasurer, and the witness became
secretary and general manager, al
though he held no stock. Mr.. Ander-
son, he said. held one share. and among
the other stockholders were Vincent
Astor. Chauncey VI. Depew. senior and
Junior: Emory l.. Ferris. Nicholas Bid
die. Moses j. Wright and Frederick W.
Whitridge.
"Some class" the Controller re-
marked after going over the list Of
stockholders.
Mr. Hotchkiss and he, the witness
said, were TO receive one-half of one
third of the profits from the sale OF
any Of the property. Asked to go into
more detail as 10 what he had received
from the company. the Controller said
"Tn 1910 I received s5l714, in 1911
s4.37S.22, i'm 1912 S314S3, in 1918
s362.Oj. in 1914 S59l.33, in 1915 S5l93
and in nothing"