The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-04
Richard Reid Rogers Says
He Believes He Earned
Amount He Got.
MAY QUESTION L
TO-DAY o L

Richard Reid Rogers. general counsei
for the r~nterborough Rapid Transit
Company. and La Roy T. Hardness. as
sistant counsel to the Public Service
Commission. who drew the dual system
contracts. explained to the Thompson
legislative committee yesterday how the
Allowances for pre-contract expenditures
IN the part OF the marlborough were
determined.
II developed during the examination
Of Mr.. Rogers that he knew the OF
$780, 900 voted to him by tho Inter-
borough directors was to be paid by
the city. and also that when $4,000
was hxcd upon as a proper charge
for administrative expenses on the
psrt Of the marlborough he was aware
that this wa the exact amount OF the
bonuses granted TO President Theodore
r. shonts. lie could not recall whether
he mentioned what was In his mind
NJ that time to George $. Coleman. chief
counsel for the Public Service Commis
sion.
Mr.. Hardness said he knew nothing
of bonuses. either for lesal or admins
trative expenses. and he asserted agar
and AGAIN his belief that none OF the
bonuses granted was charged to the cos
Of construction Of the new subways.
Mil Covered salaries.
One Of the points most clearly devel
--~S ks cha taati,nnnv uaa that th,
bill for administrative expenses put II
BY the marlborough. which totalled 81
$4,000, was the total of the salaries
paid to administrative officers. such tota
being meant to be the basis for n set
Element with the commission. while thu
bill for legal expenses. totalling $4,000
did o represent the total of salaries
paid TO legal officers. but special pay
ments, either to regularly employed
counsel or payments to outside coun
sci. In other words. II appeared tina
the basis for q settlement In one cas'
was a regular payment and in anothe
case the basis was the sum of severa
extraordinary payments.
Mr.. Hardness testified that he disre
sarded the basis for a settlement o
legal allowances as put before him b.
the marlborough and suggested the al
lowances on the basis Of the regula
salaries which counsel received. thu
working on the same principle on whicI
Mr.. Rogers. Mr.. Turner and Mr.. Cole
man settled what should be paid 70
administrative expenses.
Clarence F.. Shuster. assistant counse
to tho committee. asked nan question
Of Mr.. Rogers. Mr.. Hardness and ais
Of Alfred Craven On the matter O
vouchers submitted to prove the Inter
borough's claims. He read into tn
record Article XXNI. Of contract No. ;
which 10 as follows:
mo payment. credit. compensation o
concession OF whatsoever character hav
Ing in any way to do with the cost O
construction or the cost of equipmen
shall be determined to he part of III
cost OF construction or the cost u
equipment. unless the lessee. upon MAX
ing such payment. credit, compensate
or concession. shall forwitb Tie VII
the commission a duplicate voucher
credit slip or other original evidenc
thereof. The commission may froi
time to time Thy resolution evidenced b
entries in its minutas) relieve the Jesse
from the obligation to file such voucher!
credit slips or other original evidence
to such extent as it may deem advis
able"
No Vouchers Produced.
Mr.. Craven admitted. when he wa
examined at the morning session. tina
no vouchers OF any kind were produce
before him AT the time he determine
hat allowances should be made to III
marlborough for p~re-contract expend
lures n that he had no evidence
n OF the services having been pei
H0Rmeh AYcant tho Sfatarpanf from IN
marlborough company that was laid be
fore him by his assistants.
When Mr.. Coleman was asked VIII
no vouchers had been required in az
cordance with this provision Of the col
tPacts he said he believed the prov's.o
was meant TO apply only to payment
made for work done after the contract
we're signed. Asked II the spirit of tn
provision. which had been dra wn befoI
the "prior determination account can
before him, did not imply its applics
ton to those allowance he said ths
he WAS not giving any opinions q
spirits.
Mr.. Rogers. having first describe
how he look up with MIR. Colema.
.. L. Turner and Mr., Hardness Il
matter Of what allowances should
made to the PETERBOROUGH for its pr,
contract expenditures. said the probe
before them was to determine no
much should he allowed for dinereI
kinds OF services and low thes
amounts should be distributed as amor
the subway. the elevated lines and II
extensions. the three divisions OF Il
- contemplated improvements. lie sa'
ne presented no vouchers at the confc
ence, II being understood that the a
countants OF the commission were
verify all claims from the books ar
vouchers In the office of the Interbo
ouGh. He was then asked what "A,
thority there was for assuming tn
these pre-contract expenditures We
legally chargeable against the city.
Mr.. Rogers explained that before Il
contracts were signed it was assume
that such allowances would he ma,
and that when the debt limit of tho ci,
vas being examined and engineers hs
estimated how much tho new trans
system was to cost he had suggest,
that to their estimates must he add,
an estimate OF ~pre-contract eXpend
tures. The theory that such allo,
ances would he proper was exemplia,
later In the contract, which provid,
that such allowances should be mad
III said that therefore when he In
his claims hefore tho representatives
the commission no question Of the rig
II charge something for prc-contra
expenditures was raised
Discussion nm Claims.
sion took place on the claims for sc
cheering and superintendence' NJ
"le1al expenses and coming to I'M
~AlonnNpo nUltrIin4 Tor nvaV,l,.n a.