The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-21
SECRET
SUBWAYOFFERS
ARE REVEALED
ShOnts. GaynOr and Wilcox
Conferred Before st.
james Visit.
LATE MAYOR READY
TO BIZ ARBITRATOR

1nterborough. had dls'icul;y Yesterday
| getting what Frank Moss called the
'association hbrcs' OF his memory wo,h-
Ing along the lines that The Thompso Oh
legislative committee desired. but never
thele~s the committee succeeded ~
spreading on It's record details of the
subway negotiations iha; surrounded the
visit OF NJ. Shouts to the late Mayor
Gaynor's home al - James ana tie
Mayors subsequent attitude to'ard tAc
1nterborough.
The committee learned % another cor.
ference between Mr. Shonts ani Mayo,
C;aynor. In which former Chairman Will
cox of tine Public service Commits ioa
! participated, OF April 10. 1919. nv.
days before the ~. James visit. At
this conference. which was reported IN
| the minutes OF the fnt-rborough exc
! cutive committee the next day. Mayor
, Gaynor offered to act as arbitrator he
tween Mr. Wilcox ard Mr. Shon,-.
| whose subway negotiations We're about
! to break up Tn" executive committee
| held a special meeting two days after
the G;aynor- wi iilcox -Shonts couf.reu,.
To this meeting Edwin Hawiey. an Ia
terboroush director. and DE I.arcey
Slcoll were invited by President Shunts
| unW,ey Visit n persOnaI One.
| II will be recalled that when Miraheau
l.. Towns took. President Shonts down
TO ~. James to see Mayor Gsvnor ,sl
April ~ the party went tweuty-iiv.
miles out of their way to stop u; IN.
! home of MIR Hawley ~ Babylon Presi-
dent Shonts explained yesterday that his
memory had been refreshed abou, that
detour by John ". Campbell. treasurer
Of the fnterborough. another member Of
the party. who told Mr. Shonta since
that they vent to Babylol because Mr.
Shonts's daughter wanted to go there
! on that Sunday afternoon.
: Followin. thai testimony Frank Miss.
counsel TO the committee. read the
minutes OF "a meeting Of the executive
committee Of the 1nterborough on Aprii
%. at which proposed extensions and
third tracking OF the Manhattan elevated
) ss0sds we're considered. The proposed
contract To John r. stevens for this
work was the contract by which ac-
cordinR to the memorandum ~ ,iardi-
ner NJ Lane. Mr.. Siprts expected To
cancel certain Commitments and OH
liEations' he had incurred w he sub
way negotiations The a." third tracking
contract finally was 10, tp the r \
Gillespie Company.
Other ositstanding points III the testt-
rnony yesterday were these:
ON March 22. 1910. the day after
President ShoIts presented to Mr. Will
cox the so-called unsigned Offer of the
lnterborough to build the subways with
private capital. the Ii,terhoruugh board
Of directors voted extraordinary powers
ha -
the subway negotiations which President
Shonts testified he brought down "a
date at that meeting. Subsequently, on
March 23 and on March IS. two more uI .
signed propositions were drawn eribody .
ing corrections made on the March 80
proposition. President Shonts explained
that these negotiations fell through be-
cause the executive committee believed
Mr.. Wilcox was playing "a foxy game
which would leave the lnterborom,h n
competitor OF the city In subway oy,era-
ton And bankrupt the company
Freedman Letter Introduced.
A hitherto unpublished letter OF ,he
late Andrew Freedman TO A. J. County
assistant TO President Peters OF the I.oni.
Island Railroad. dated July &c. 1871. wa.
introduced. II appeared from this letter
that although the Mayor q few days be-
fore had bolted an interborouyh agree.
ment on the subways at the metropolitan
Club. he was privately in favor OF the
Interborough.
Two other letters to Mr. Freedman
one from President Shonts and the othc,
from August Belmont. were read into
the record as tending to show that Mr.
Freedman was carrying on ns.otiatiors
of his own In connection with the sub
ways
|
Mayor Mitchell and Comptroller Pren.
dergast were the first witnesses at YES.
terday's hearing. They were called IL
testify about their knowledge of tn.
Shonts unsigned "oner" 10 which 'hf
committee has attached d great signifcancc
as showing that the Int. borough was
ready az Ia back as Marcr 20, 1910 I,
build the subways at Il saving Of si6j..
900. 600 to the city. Both stated th,t
they had not seen copy Of the letter
but that terms similar to those EN-,
bodied In It had been discussed by Chair.
man Wilcox. Neither knew tina, such
a proposition had been submitted In
writing.
Mayor for CITY Ownership.
my recole ctlon." said the Mayor
"is that Mr.. Wilcox was very frank
don't remember all the details
stood for city ownership and city build
Ing Of subways l was not interested
In building subway extensions with In
terborough money. J. don't believe In 1t
didn't believe that any one In the Boa re
Of Estimate or the Public Service Com
mission believed In IT,"
Comptroller frendergast said that Mr.
Wilcox had informed him OF nesotia
|, tions he WAS carrying on with Presiden
Shonts early In the spring OF 1910 an,
that In March. 1910. Mr.. Wilcox tol,
him that the negotiations were of. Mr.
Prendergast said that when he anG
Mayor Mitchell Joined In their report o
January s, 1911. In which the unsgn",
letter was referred to. but not specin
caliy, they did not know that "such N
ofer had been formulated In writing
Mr. Wilcox attended the hearing al
day.
president ShOnts. the days only 9TH.
witness, was questioned at length abou
, mis- unsigned letter to Chairman WIN
cor. He said Richard Reid Rogers
General counsel to the Interborough. die
, fated its terms on basis OF memo
, randum prepared by Mr., Shonts. whicl
WAS presented as an exhibit. This wa
dated February ~. 1910. The memo
randum proposed that the compan,
divide with the city the surplus earning
arising from the new extensions, whic|
Continued on Lost Page.