New-York tribune., 1916-02-16

stock loss. q matter OF bookkeeping"
replied Mr. Fisher.
but the company has actually lost
through the depreciation of its sceuri-
ties. hasn't i'll"
ayes. There was shrinkage, but tho
lntcrborough Consolidated Corporations
issued securities on the basis OF the ac-
duircd companies, and it wrote of the
losses"
f.. f. J. Gsynor auditor Of the com
pauy. was recalled 70 the stand. He
testified that the East River tunnel
from Old Slip. Manhattan, TO CLAIR.
Street. Brooklyn. the connecting link or
the new subway between the two hor-
ouGhs. will he finished probably before
She contract time February G, 1918.
The cost Of this work, he said. would
he abou; S22 100000.
"This. added 20 the s6S.o00.000 for
construction. makes SS0,000,000'" asked
Nr, Colby.
"Ycs." replied Mr. Gaynor.
"Yet Mr. Shonts and Mr.. Morgan re
fer 20 Il in their letters as s17,OO0,-
OOOc"
THAT was preliminary TO the actual
ity."
A table showing that the cost OF
equipment Of the new subway 70 date
mas been sl,165,S06.
Further testimony concerned The
S5S9 900 which the Public Service Com
mission allowed the Tnterborough 20
charge in is prior determination
claims This was for services on the
negotiations leading up 10 the making
o. the dual contracts.
City 10 Pay Alien Items.
Among these charges TO construction
in this account which the city must
ray-are included the bonuses for
Shont. and other officials, fees for law
ycrs. debt discount and deb. expenses
and interest on money. They were all
listed under an account called "alien
items" All these expenses were prior
20 The signing OF the dual subway con-
tracts.
Il notice that these allen items
amount 10 nearly 100000. How do you
account for that >" asked Mr.. Colby.
1t rather surprises me- said Mr..
Gaynor. debt discount and debt eX-
pense are the only items that we con-
S der alien"
What were all these payments for
"You had better ask Richard K. Rog-
ers. counsel to the company"
NO; I'm asking you
q I
As was shown last week, this S5S9,-
QO0 was allowed 10 be charged 10 con-
struction BY the Public Service Com
mission. The Interborough asked per
mission 10 charge Sl,532,000. but only
the smaller figure was allowed as
proper.
"is il no. fact the income OF the
lutcrborough will be less than IL - now
.l,o r.or c,thyvoys ara Nut
atom
"No, sir; ss matter Of fact the in
come Of the Interborough will be great
er then"
Mr.. Colby then took the witness over
the $3.50, 900 again, trying to find II any
of his superiors had ordered him TO
charge the Shonts and other bonuses
20 construction.
NO one told me how 10 charge
them" said Mr.. Gsynor. 81 did It my
self. in accordance with the resolutions
OF the board Of directors"
Delaney Nicoll. Mr. Shonts's per
sonsl counsel, arrived Yesterday on the
St Paul he said that he was return
ing from . six weeks visit 10 his wife,
who was seriously injured IN an auto
mobile accident in London. and that ne
had not heard OF the Thompson com
mittee's investigation until told OF II
by newspaper men, who met the ship al
Quarantine.
Il have had no communication with
Mr.. Shonts on the matter he said. in
fact, this is all surprise 20 me. A
far as | know there is nothing N Mr..
Shonts's Interborough dealings that mas
not been done for the benefit Of the
community. / DO not see where the com
mittee can find anything IN his actions
~ taxa execution to"