The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-19
SHONTS ADMITS HE MENTIONED OBLIGATIONS;
WAY PAVED FOR ASKING BIG QUESTIONS TO-DAY

W. DIO NOLOA
we'll adjourn until tomorrow did
give up my sailing. We held a meeting
the next day and a subcommittee was
appointed"
rs that all YOU said to Mr.. LaneY'
That IL the substance of IT,"
The subcommittee never reported? ~
we had several meetings."
You were not a member OF the sub
committee?'
mo. but ! was called in. told them
that the Pennsylvania had retained a
contractor on a 800. 900. 900 Job on a 6
per cent. commission for plans n later
gave him a commission OF 7 per cent.
more for sSl. 100000 OF that 800, oOO, 200
proposition"
our record shows" said Senator
Thompson. that this was the only con.
tract made where a percentage Of the
construction cost was allowed"
II will say that I have always favored
commissions on construction cost. II we
had had that AT Panama we should have
saved Millions
Defines n ..sIush Fund."
At the opening OF the morning session
Mr.. Shonts IN reply to questions said
that Paul Morton brought him to New
York and that he talked with Thomas F.
Ryan as to his experience In railroad
management. In the course of the in
aulry as to his relations with Mr.. Nor
ton. Mr.. Ryan and Mr.. Whitney Mr..
Shonts was asked
What liz a slush fund ?"
Never having had anything to do
with one | don't know as I can define IT,
what does the word %connotev'
'Connote 4. good, I'm trying 10 figure
out "A meaning for IL 81 I can ansver"
Mr.. shonts. this ia no, a verbal dis.
cussion. VIVA, does a 's,,sh fund sur.
, yes, To you?"
"a funJ us,d for i,,pro,.r ,urcose."
WIS, A. aap.o'I. az
posss'y,
- no,,,, Id. a.. IA.
o,be, sida -, n,a'as,,,c, ~ S-o,, ~ ana
,hn,,n, go Ha."s "s'.s , a.
nn, 49, :" ," . .n.
~ '"'""' anu ! naa iunu wv 20
p,oaened you ana .old you you "ou'o ~
'onnpehsated II you came over TO my sue
anu Nielu'n 10 me. ! snouid cai' UNA
'unu a siusn tund'
You would consider the use OF such q
iund tantamount TO bribery
ies' SIR.
~ nv pnps ,wea mere q 'ons nns,us ~"
acquisition by Mr.. Belmont and the Of.
feet OF these early activities Of men now
In the marlborough on the preferential
payment to the company which must be
met out OF net earnings before the city
begins to share In the net profits of the
new trans, system. MIR. Shonts said he
did not ",ree at all with Duncan Mac.
lnnes thai II would be l94S before the
city began 10 get FINANCIAL returns from
the new system.
How did you first meet Mr.. Ryan
asked Mr.. Colby.
Morton asked me TO come here and
he introduced me to Mr.. Ryan"
When did you first meet J. +. Nor.
gan. Jr.?"
sometime after that. ! came here
IN 1907. ! don't think | met Mr.. Nor
gan until late in 1905. | had known
his father before coming here"
Did he suggest to you or did YOU
suggest To him the building OF the ne
subways|"
II suggested II to him"
When"
Early In 1903"
I'm what form did YOU suggest I "a
HIM
Il went to Sc. him"
What did YOU tell him ="
uo. "
'" ""'s""'
II am thinking Of whether mr. mn, .,
ought TO say something. was taking
an inventory about that time and II
wasn't very fiattsring to me. The con.
Germs over which ! had been put In
charge were going to smash and zen.
eral ruin was staring US in the face.
SAID to myself. Where can I 20" and
decided ! would go and see one Of thu
strongest houses | knew OF. said &c
mSsei' Ia go and see Morgan ! pu,
my nat on and went down to see hin
without saying a word to anybody
pid MI Ryan sugeest that you Sc.
MI MORGAN?
No. Mr.. Ryan has never taken an,
interest In our affairs"
IN ahswer to other questions he SAID
u was IA mistake for any one to sup,
iose that Mr' Ryan dominated the trac'
non situation or sought to use the In,
,eroorougn Tor his purposes. lie salt
ne nidh' know whether Mr.. Ryan was 9
~,','Nn"'"er III the lnterborough or not
ou' 'hat ne d'd Know that Mr.. Ryar
owned some OF the underlying securities
"n',"r thompson wanted TO know VIII,
Mr' Mofeah mad No much 10 say abou,
'"e '"'trp'roushs Affairs, he not beins
Il u,.e.tor elmer.
va -"r' Morsahs money that ",
-. us'hs ana ne had a right to "A,
80 VT Shou'd DO with it," said Mr.
'"on'H'
~ hau more power than YOU did
VI course ne did. because he had tho
"ou? W 'o'h'
~ you SPEAK 10 any one else abou'
'",".''"s the ihttroorough?
No uh'Ii atter had reached ar
"sreetneht WIN Morgan & Co. and ther
I rrte,red II 70 the board OF directors