The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-16
Company's Head Expected
to Explain Subway
Commit cmts."
INTER NETS MERGER
OUTLINED
"PriOr Determination Ac-
count Also Shows $685.
286 Was Allowed.

rnterborouzh Rapid Transit Company.
Is expected TO appear before the Thomp-
son legislative committee this afternoon.
His appearance IL looked forward e by
the ohicials Of the company and by Of.
fcers Of the city and the Public Service
Commission who signed the dual con-
tracts as the opportunity to answer the
charges OF improvidence. short sighted.
nees and lack Of concern for the public
interest that have been steadily growing
under the questioning OF cambridge
Colby. counsel to the committee. during
the last two weeks.
A. for the testimony OF George "
stevens contract for elevated railroad
Improvement was favored by Mr.. Shonts
because the commissions to the engineer
Were 20 be used in satisfying certain
obligations which the Interborough's
president had incurred In procuring the
dual system contracts, the impression
prevails tina, Mr. Shont will deny that
he ever made such a statement. Gard
ner N. Lane. the former director Of the
company. who Is alleged to have given
this Information TO NJ. Young. is dead.
and J. l.. Morgan has already denied
that during 4 conversation with Mr..
Lane Immediately after the statement OF
Mr.. shonts II alleged to have been made.
Mr.. Lane made any mention OF commit.
ments and obligations to be satisfied.
Two OF the contentious which NJ.
o is expected TO make are that the
prior Gains of the marlborough on It's
net earnings are based In part on com.
putations covering two years in which
the company had spent "A great deal OF
money. years, therefore. during which
the profits Mere relatively small and
further that the terms under which
bonds were disposed OF TO j. L. MorSan
I Co. were not especially favor9bl, to
the bankers in view vi all circumstance
which had 10 he met.
The brief session Of the committee
yesterday Was concerned chiefly with
payments made 10 counsel over a num-
Der OF years ana with IN, items witch.
under the account designation OF prior
determination wen, To the Public Ser
vice Commission for approval.
Paid asO5, $50 TO Lawyer.
Horace NJ Fisher. secretary OF the
company. presented 4 table showing the
payments to counsel from 1905. the yer
In which III. lnt.rborough. Metropolitan
merger WAS made. down to February II,
1916. This table showed that the total
OF the fees paid TO counsel during tSat
period WAS sso5 $50.
r. +. J. Gaynor. auditor Of the com
pany. In explaining the prior determine
ton account. admitted that the $1:5.-
600 allowed to the company for admins
tration expenditures covered the bonus
Of el25. 600 Which She company awarded
TO President Shonts. lie also admitted
that this and other bonuses to Inter
borough officials were presented to the
Public Service Commission for approval
as items In the prior determination
o before the directors of the COM
pany had actually awarded them.
The list OF payments by the Metropoli-
tan Securities COMPANY, which was
taken over 10y the marlborough. to coun-
sci. a. prepared b, M. Fisher follows:
.isSs-Iuthre crava,h : Henderson.
persdorn. slosstcs; Henry u Maciona.
Ss'asos Lewuel r. ouigg SALARY, liss.
IS. James | Suarkenhush, $4,000; Elihu
Root .re,ainsr'. 5000
az, 300. cravsth Henderson & Il" Gers.
dorn ,tsli2?:a5' Hrnry Maciona.
30. on,Sr t,os, VIZ N%".!a .mnnS' ,,ost II
Edwin S-iton retainer, i.,;oo. james II.
,vuackehnn'h' ',,o'p RANKIN b.r'iett.
! W-'J' W,ii,cce Ifrs,,Iner Is Sco '
isos-Crai,th. Henderson 4 de Gers
dorm, ftl@5t ~. u - M.cdona, Sa,fes.
e YIN, "Itf 90, SS,S 'S,.bi ndrnts
say 4 Fuller. ,?;. 900 FRANKLIN Rartist,.
! $500 Harm r Russell f:7':l': Gug
Strmmslncr ' n,'r,ns"r q Matshs'!. 1919
lSl3S5,ss' Niroli. Anable. Lindsay 4 Fuller.
, Si:.3oo, william !. Wallace. i:5.:;o.
Mr. Fisher c<nl.in,J ,h,, thos, ,,eu.
covered Tho cxnenses al the ,eos merper
: taking In service. and disbursements
! There was none recorded for 1910 and
1911. and IN lol. the expenses of the
! uarxer consisted only Of a u,vncn, Of
I 4, l07 "a ia cr,yath henderson A. ,e
q, C;crsdorn
what" asked Mr.. Colby. "couId the
hear doing in 1907. when avm,n,s ~
more than $4,000 we're made to one Arm
of Lwy.rsy'
Made Several I.Oana,
-. '"' """s :" "A'
'eor
Dru .n"' n",e an,'n'ns % 40 WIN
o. $3.50
hsn"as -, @N'"'' w" VI" '"'e'
yy" ..., .a.
' $500; ~ VI u 'uni.
the new subway system would not be
READY Tor operation before February 10.
1918, tn, contract date, and probably