New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-03-15
'PriOrDeterminatiOnS
of $S,9OO,000 May
Be Wiped Out.
THOMPSON SEES
FORGERY CHARGE
p. S. Commission Named
in Action Craven Ac-
cused Over Payments.

The City Of New York yesterday
started suit against the Interborough
Rapid Transit Company, Alfred Craven,
chief engineer Of the Public Service
Commission. and the commission itself
for a recovery Of the bonuses paid TO
Intcrborough officials and any other il
legal payments that may have been
made in connection with the dual sub
way contracts.
Lamar Hardy, Corporation Counsel.
who brought the suit on behalf Of the
city at the instance Of Mayor Mitchell,
charges that these bonuses and other
Illegal and improper payments re a
fraud upon the City OF New York and
a waste Of the city's funds.
Forgery Indictments.
The city asks the Supreme Court TO
declare null and void the entire prior
determination claim allowed the city
and the Interborough By Chief En-
gineer Craven on October IA, 1913. The
total allowed at the time was $5900,
900. This includes not only work in
cidentsl to construction. but actual con-
struction on the Lexington Avenue sub
way.
Senator George +. Thompson, whose
committee brought out the facts on
which the suit is based, said that If
this suit is successful, indictments for
forgery in the third degree would lie
against certain Interborough officials.
and possibly certain men now or for
merly at work in the Public Service
Commission.
Forgery in the third degree is pun
ishsble by five years in states prison.
Making a false entry in an account or
account book Of corporation. '7ilfully
omitting 70 make a true entry N an
account or account book Of corpora
ton or altering or destroying any ac-
count or books Of account OF a corpora
tion is forgery in the third degree.
Mr.. Hardy announced last night that
the summons and complaint in the suit
had been served. John II. Campbell,
treasurer Of the lnterborough, was
served as the representative of the In
terborough; Mr.. Craven was served
personally, and George s. Coleman,
counsel to the Public Service Commis-
sion, accepted service for the commits
sion.
About ss,900,ooO at Stake.
Mr.. Hardy explained that the greater
portion of the determination OF $780,
600 may ultimately constitute proper
allowances. He said that the complaint
charged that the entire determination
was illegal and of no force and cf-
feet because the Interborough did not
file duplicate vouchers Of the items al
lowed it in the prior determination Of
$3.50. 600. The dual subway contracts
provide that all sums charged IN the
nrior determination TO construction can
be allowed Only after proper vouchers
are filed with the Public Service Com
mission.
The evidence adduced a. the Thomp-
son committee hearings showed that al
lowsnces were made by Mr.. Craven In
this prior determination claim in lump
sums This is charged in the com
plant, and II is alleged that they were
determined without ,retence 20 item
izstion or identification"
"The relief asked for" said Mr.:
Hardy. ais TO set aside this pretended
determination by which the INTERIOR
ourh received credit for large sums
and to compel Mr.. Craven TO make. IN
with the terms Of the con
tract. determination which shall not
include the bonus Of SlJ0,00O paid the
president. T. p. Shonts the bonus OF
$50 600 allowed 20 the lnterborough s
counsel. Richard Reid Rogers. and the
allowance TO T.. = J. Gaynor, the In
terborough's auditor. OF 10000
Mr. Hardy said that the action. II
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