New-York tribune., 1916-02-17
NO RETURN PROBABLE
FOR NEXT 81 YEARS
Shonts. Absent Yesterday, tx-
pected to Tell To-day About
S2.OOO.0O0 Commitments.

will remain as originally estimated
S5s.OOO,0OO.
The city's burden was computed
from figures given az Yesterdays ses-
sion o. the Thompson committee by
Duncan Machines. chief accountant in
the auditing bureau OF the Finance De-
partment Of the city.
Nr. Machines, who was the only wit
ness before the committee yesterday
testified that the Interporough's dencit
would be from s12.O0o,OOO TO $4,000
coo. This will have 20 he made up by
The city. There will also be another
$4,000. 900 that the city Will have TO
nav. he declared This will be the
charge o. the Public Service Commis-
sion for It's engineering and superVl-
sion OF the dual subways.
Instead Of the city participating IN
the earnings Of the new subways a few
wears after their construction. 1t Will
be al least 1884. or thirty-seven years
after opening, before New York Will
begin sharing in the earnings, Mr. Mac
lnncs said.
Theodore r Shonts. president OF the
Interborouch, who was 10 nave gone
on the stand yesterday, was excused
until to-day A large crowd was on
hand eNDecting TO hear him examined
regarding the S2,OO0,OO0 commitments
and obligations that he is credited with
having said he incurred iu the dual
subway negotiations.
Defends Prendergast.
Sir. Machines, who mas the entire
history of the dual subway contracts
at'his finger tips, defended the action
Of his superior. Controller Prender-
east. and the other members OF the
Board Of Estimate who signed the con
tracts on behalf of the city.
The witness. on being sworn. told o.
his long service with the city, rlsnE
from the rank Of expert accountant 10
his present position. lie was then
asked about the original dual subway
contract, known os the 1911 plan, and
the one that was finally signed by the
city and the transit companies N 1913.
II think there was very little dir.
ference between thc two plans said
Mr.. Machines. except tnat the lel
plan contemplated a per cent retura
on all Of its capital, new and Cd, ant
the 1913 plan gave 81 preferential Of
S6.335.OOO on It's old capital, and per
cent on its new capital; in other words
p difference Of One-quarter OF ! per
cent in favor Of the new plan. | might
even 20 further and say the now con
tract provides that the Interb0rough.
f..- La Hrrrorr UnrflA
tnue 10 pay rental 20 the city even
after the bonds on the present subway
were amortiZed.'
The witness said the lnterborougA's
statement of S48.O00OO Of invested
capital had never been analysed. This
work. he said. was up to the Pubic
Service Commission lie said he ana.
lived the 1913 contract the ono final. .y
signed from he standpoint Of the
city.
@You spent considerable time on it" 90
asked Mr Colby.
"Ies. 7 spent mOnny a weary night
and Sobboth afternoon on it, said the
witness, in his Highland Scotch drawl.
"You have read that the INTERIOR
ouch officials who worked on these con
tracts received bonuses for their zeal
and pertinacity"
les slr'
uld YOU receive bohus
NO sir.
you pursued your work with zeal
and pertinaclty|
81 don't know about the zeal. but ]
had TO pursue with pertinacity."
S12,OOO.OOO Debt in 1913.
IT, ,,.;.,.,,. ,.t, asa .h;. ,,.orl, ,.5o,
me "l'heSs' VINO ulu thls "0rK uHGei
p,.,il,.-., tN'.:ela ~. l'a,,e,k =.
49, r-to-I,r,,,,,.b, - - asli
i..'-.' 'O- o'''' ~ Da' y
~ ,.,,.1.,e., ,'-'','.. 70 ''o ~.
f' .'.ur w per .cu'
~ s,Sd a't,5 fo~ IN ~ Dor oo,,.
H. r.;5 .t.+ ..,'.,.-..,5 - 90
4roiio, pr,-4..@..', nj .t., ~ -,
bc,s of ,bc RosrJ o@ ti,ooto tba. +ho
citv's nsr-icinat,or ~. tbo moot. "s tbo
lnterborouch be NOT confined 10 the net
revenue. as the contracts provide but
be extended TO the gross earnings.
How long do you estimate it Will
De before the city begins to participate
IN tne new new subway earnings 2"
IN lVIo made computation that
:. "Oulo 9e 1875" II We began operat-
f ,s '.iS subway on January /, lSl be
s;rS;r.. ' sO.'S "ogiu nave cleared up ITS
aitero5 .i... 1D''g "'lu interest charges. But
rerioS SD,.g ,.,..u OU.u'.'oss nave put back that
H. ~ c;,, qoi1o teW years. Even after
Interest cbors,ouP ~ ''a 1il"Hlng Iund and
and 26-lOO per cen, on ,te ,"'v - 70 Ee1 .
10 mt II on , 1o,.l1 ~. . ''o ~, Slileh'
ough. But il is nov, o,i5on. i.'eto0I- !Hei .,
city will not begin tbis ,.','e .' .''e
in 1888 In fact. i'm iq4S he city NH NH
be Sl2.OOO.OOO behind" wy Will
Answering question of So,a,o,.