The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-18


Mayor because Of the situation that
arose from the fact that Mr.. Gaynor
took Office IN January !. 1910. and that
all Of his administrative colleagues had
been elected on a platform pledging
them to the municipal ownership OF
transit lines. Mr.. Shonts went to Mayor
Gaynor to say that II hat was the
attitude Of the Administration, the In.
terborough could be counted out OF II.
since It did not believe In municipal
ownership and would not be a party
to any scheme for developing the city's
transit facilities that was favorable to
the municipal ownership idea. lie ex.
plalned to the Mayor the %company's
feAn regarding socialistic tendencies
and save him the reasons for opposing
them. Proposed subway routes were
outlined inc discussed. Mr.. ShOnts told
Mayor Gaynor that II vas proposed to
name the new Fast River tunnel the
"Gaynor tunnel"
THAT was tany. I suppose said Mr..
Colby.
The witness smiled and Mr.. Colby
went on reading from the memorandum.
Coming to the statement that Mr..
Shonts sought to impress upon the Mayor
the LANCER that the city would lose
money n It embarked on any scheme Of
municipal ownership. Mr.. Colby said:
You were extremely solicitous for
economy on the part Of the city"
W are now. As the largest taxpay-
ers In the city We are interested In hav-
Ing the city save all the money it can"
"!And you felt the same way when
you presented to the Public Service Com
| mission for Its approval a bill Of si.532.-
0oO for preliminary expenses in conncc-
ton with the new subways"
Eyes. sir. That was a perfectly proper
bill"
Defends MIG Bonuses.
And the same with respect to the
bonuses 10 you and Mr.. Rogers for your
extraordinary services?'
YES. sir. That was a proper charge.
I challenge you 10 show me where In any
large work a proper charge for the pre-
liminary work OF any construction enter
prise does not go into the construction
cost"
memorandum. laying emphasis on the
statement OF Mr.. ShoiNs TO Mayor Gay
nor hat In the event the city built It's
own transit lines the company would he
willing TO operate them with the under
standing that profits were to be divided,
but that losses. II such occurred. were 10
be borne by the city. Mr.. Shonts stated.
according to his memorandum. that the
city could absorb a deficit annually OF
5000. 900 or 3d. 900. 900 and still no,
go into bankruptcy.
I'm other words" said Mr.. Colby.
you had a: that time canvassed the
city's capacity as a defci, absorber"'-
ION the very plan which We were op-
posing. We always opposed the tribor.
nilDh ptup No xlu,ANv npnnSeI tho dflA
plan and We spent large sums Of money
in the public press by public advertise
ment opposing IT,"
Mr.. Colby then continued reading tho
memorandum as follows:
! said TO the Mayor that 1t looked TO
me. although did not like 20 ascrib.
motives. that this independent subway
idea WAS the product OF an idea which
developed in the minds Of the comhnis-
sion when II first came into existence.
when II was popular TO i!ght the Inter-
borough and when II might have been
a popular thing 10 create All indie
pendent system. forgetting that the
Interborough's subway liz the ci;y's
own proposition and anything hat
would help the same would help the
city.
The Mayor said 10 ne that I might
understand tina II they commenced
this system Of city construction they
would have TO continue IL. stated
that ! did not understand that fully
and that we had nothing to say in re-
gard to the wisdom of that policy: the
city seemed TO he embarked on II and
the public seemed to be educated up
70 the belief that this IL the wise thing
to do. and II We objected We would sim
PLY be misunderstood. and tina mas
-, IN sA.,. Aal latlal 49, a. AZ .,~
could do would be TO gracefully with
draw.
Limit 10 : Cent Lines.
further said TO the Mayor that
there vas a limit 10 the amount OF
transportation you can sell tor ) cents
and hat that limit had been reached
and had a great deal TO do with the
bankruptcy OF the surface lines and
that that limit would be reached and
bankrupt other lines and that II would
be we'll to keep that thought in mind
when planning the indiscriminate on
| struction OF the subways.
. Il couldn't write a better letter tina
that to-day" commented Mr.. Shonts a
=. Mr.. Colby finished reading.
what are people TO do when III
, limit Of transportation Is ched go
II think il will he "A great many year
before the limit OF transportation /
: reached after all the new lines are com
!, pleted."
/, us il true that you sent a o OF thi
memorandum to J. =. Morgan, Jr., on III
, day after YOU prepared II or on IN
day after you saw Mayor Gaynor"'
II don't remember"
1 "In md in your file a letter to j. 7
!, " Jr, Does that refer TO tn
: memorandum
= well. II may have been, 7 ION, re
I menb"r. This doesn't show Niat WI
enclosed. whether II WAS n resume q
= the whole thing" aid Mr., Shouts. +,
feIr.ng to the letter shawn 10 him.
Put 1t was either a resume or III
. whole thing?'
Yes
I'm other words, YOU reported to NJ
4 Morgan Immediately after your inter
view with the Mayor
Yes
e In answer 10 questions from Senate
Thompson Mr.. Shonts said that all of h
negotiations with J. L. Morgan a G.
2 respecting subway matters were cot
Quoted either with j. y. Morgan, Jr. ,
= with ~ l.. DAWSON.
y >iRms waiver NJ hmm unity.
ON taking the stand at the start ,
the morning session Mr.. Shonts readll
e signed a waiver of immunity. making II