New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-05
InterbOrOugh Head
Got Bonus on Dual
System Contract.
FREEDMAN, DEAD,
PROPOSED 1T
The Thompson Committee
Seeks Slush Fund Trail
in Firms Books.

Theodore P. Shonts. the 100000 Q
year president Of the lnterborough, re-
csived sl50,Oo0 from his company FOR
Special and extraordinary services
performed in connection with the dual
system contracts with the city, Il was
brought out at yesterdays hearing OF
the Thompson committee. Two other
employees OF tho Interborough received
a total Of 100000 for the same sort OF
services.
II was in negotiating these contracts
that Shonts Is alleged TO have told one
Of the Interborough directors that he
incurred Certain commitments and
obligations" which would require s2,-
600, 900 TO pay of Mr.. Shonts is re-
ported to have made this statement
when he tried TO put through con
tract which would have nettcd his
friend John +. Stevens s2.000,000.
While testimony regarding this bonus
was being brought out Miles Dawson,
actuary and expert accountant, who
acted as the right hand man OF Justice
Charles Z. Hughes. OF the United States
Supreme Court, In the insurance inves-
tigation. was examining the books OF
certain firms in this city in the search
for "slush" fund estimated at from
81 800 900 TO 100000.
Criminal Charges May BE Made.
II the hopes o. members Of the COM
nittee are realized, many prominent
public officials and eY-public officials
some OF them master minds in the al
fairs Of Tammany Hall, will De facing
criminal charges.
The two other employees of the Inter
borough besides Mr.. Shon;s who re-
ceived bonuses for their work IN con-
nection with making these dual system
contracts With the city were Richard
r. Rogers, counsel, who received
$50. 900. snd L. +. J. Gaynor, who got
$4,000
One phase Of the Shonts $4,000
bonus that interested the committee
considerably was that the first pay
ment OF this bonus was in the form
Of check for sl25,OOO, which Mr.
Shonts cashed the day he received It
at tn. Guaranty Trust Company. This
was June 5. 1918. He received the bal
ance in q check for $4,000 on April
y, 1914.
Fisher Tells OF Bonus.
The testimony concerning the bonus
10 Mr.. Shonts was given by II. NJ
Fisher, secretary OF the Interborough
Questioned about the meeting st
which $4,000 more was awarded
Shonts. the witness said there was
some discussion that Mr.. Shonts had
not been sufficiently recompensed.
"As recollect. come one-l think
Mr. Freedman (he is dead brought
up the subject, and said he thought
Mr.. Shonts should have been voted
5000 900 or $3.50 900. think the board
then voted $4,000 additional
NJ. Snonts has been subpenaed to
appear Monday. 1t is ssid he will be
asked 20 sign a waiver OF immunity
before testifying.
A subpoena server Of the Thompson
committee reported TO the committee
Yesterday that he was unable to hnd
T. A. Gillespie, the contractor who re-
ceived half the contract for third-track-
ing the 81" roads that Shonts tried TO
obtain for Stevens. 1t was said at Gil
lespie's office that he was in Florida.
An effort to get the books Of the
Gillespie company met with opposition
from Mr.. Gillespie's representatives.
They objected especially to the pro-
duction OF the cash and check books.
Finally subpoena duces tecum was
issued for all the Gillespie books.