The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-01

Ex-comptroller Edward VI. Grout,
once n law partner Of the late Mayor
Gaynor. annoyed the Thompson lcgisla-
tive inuuircrs considerably yesterday. II
was plainly apparent to those who have
followed the committees progress In the
last week or more that his testimony
was expected to dovctail. scnsationally
perhaps, into the recent trend Of the
inquiry. The questions Of Senator
Thompson and the committees counsel.
Frank Moss, eubstantiated that theory.
But the suave difectncss of Mr.. Grout.
his quiet, frank replies, his calm. un-
RULED attitude. except Tor a brief tilt
NJ the examination that might have
proved interesting to the committees
preconceiyed theory of his activities for
the Peterborough in the dual subway
contract negotiations.
Mr.. GrOut went into details about his
services to the luterboroulh during
June and July, 1911. for which he re-
ccived $t1.5OO. S7.a00 less than his bill
asked. lie aided, he SAM. in formulate
ing the plan by which the marlborough
secured "A preferential dividend on what
ever Investment the company had or
would have in the subways. Senator
Thompson remarked that 1880 was
quite an amount of money to get for
Mr.. ,;routs services: in fact. twice the
salary Of a Borough President. Mr..
,;rout agreed with that deduction. hut
he maintained his services we're worth
II. and when he saw that the Senator
was bent on similar comparisons. Mr..
! ,irouf rctortcd
Eyes. And it's a good many times
the salary of "a state Senator. but that
doesn't enter into the question at all :"
circuit Made q stipulation.
The committee seemed particularly in
terested In Mr.. Gront's assertion that
before he agreed to accept II retainer
from the marlborough to take charge
~ the subway negotiations bet ween the
company ami the city he stipulated that
President Theodore l.. Shonts should
not press his objections acainst the u.
L. rs proposed entrance into the sub
way field In Manhattan. Mr.. Circuit
said he believed the Il. X. T. should
share in the Manhattan subways: that
that was his sole reason for making
the stipulation with Mr.. Shonts. The
latter assented. he explained. aud Mr..
Grout accepted - retainer from the
company of 10000 and went TO work.
The former Comptroller also pr~iuced
his office memoranda of his consultation
with city officials and PETERBOROUGH
officials. principally Mr.. Shonts, the
late Andrew Freedman. Auditor T. r. j.
''"!,"r anu rranN 'ie"le!' "hi'" .S' w
=" W Su"w"! as,ee'''n' Inc "e''o
pou.ah ''up on 'ulS ~. i'li'
Mr.. t.rout was retained by Mr.. Shonis.
4 ta saStft.I 81 t1a n. Of AdV.xl
~. 'S'l"'"' al 'hc Susses''oh W H"ui,"
rr'e""a'n, !uS' prior I" the IepoI' ,nt
.rn "o."us" : .cs'"sn.' .''"'s. ~
n.":.o' 90 -"
committee ne p"rs"naiiH saw inc mem
hers OF IN" BOARD OF Estimate ana the
r"o'' "'lNlV' 'oln''sH''n ~
iort 10 arr'Ne al some paSls vi n.s"'la'
.on 49, ~ 10y ~ , :,
u.s." o.t"s - ~. ~,
this dircrt,"i'' leadins up u" me N..r"'
~. .u'' Ixan. a., -,
.onceln.u; VII" "nS 80, ~
Two 'a'eI ny 'he noa," ny
mayor ''".""r a"u
CAST Noleo aeai'S' u ~" pr'poS.,'"l
A.. -, as 10 ,ho,,.h, q, womb
sa'" Mr' ''ou,, a I've 'ousn WYNN
"heh ne ceaseu "' "'e''"'o""'
..o..
"eco"''"~e" w"
The witness said he WAS especially
concerned in securing for the INTERIOR
ough a preferential dividend on its in
y.s,ment of \ or q per cent. Mr.. Grou'
stroye for the higher figure but ii wa
ultimately reduced to s.16 per cent
When he had finished his review OF hi!
connection with the subway tranSactjors
Mr.. Circuit WAS asked 10y Mr.. Moss, how
he got into them in the first place.
81 understood replied Mr.. Grout
chat Mr.. Freedman recommended me Il
Mr. Shouts. II was "A surprise. Mr.
l p.nr.r,nan called me up and asked m
l ia call on Mr.. Shonts. We had "A Ion,
talk about it,"
} WAS ANYTHING said about any par
ticular member of the Board OF f-st1
"No They all were mentioned
wasn't 'hc pIooap'c "''''"'' W w.
~discusstu' uo,
No. because '"'e WV
$ ICONS AT lna' .'ih'' .,,;,,l. ,
the Pi"o"'t N
Mayor faNiior or JIM, '.' |
A CAST mehtloile"' '" ""st"''e ~
your previous ~
faynor' u,h u.yo
NO. MY "HN"'"','" an,
Gaynor Was twenty ts"'' ''' ~"
A lasted "nlE LOT a !t''. ~ -,
= Mr., ,'rout d'n'u 'nat w. Nv ""
coh'ersa'I"" WIN ~ 81 al,
y ley, VINO nEureh III 'he "no"'S ,~'t vi
- MiraDeau L. towns - - ", ,i
. shld ne hin hut n""m 49, ~, "a
III ~Ih'erporous" ar..,tn
e same time or ABOUT am! Tn ns"L,
W ttlt MI. TItfhiiihii "''' -