The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-15
CITY SUES TO
SAVE BONUSES
ON SUBWAYS
marlborough. p. $. Men,
hers and Chief Engineer
Made Defendants.
ASKS RECASTING OF
PRIOR DETERMINATION

A suit IN equity was started by tho
city yesterday through Corporation
Counsel Hardy to set aside the prior
determination allowances to the Inter
borough under the dual subway ron
tracts az "a fraud upon the city OF
New York and u waste of It's funds.
The action Is aimed directly to exclude
from this accoun, the 1nterborough
bonuses Of $500 to President Theo-
dore z. shonts. $4,000 to Richard Reid
Rosers, general counsel. and $4,000
10 Il. r. J. Gaynor. the company's au-
iitor. bu, the city asks for "A new de-
termination Of all the items charged
u construction costs and which total
q $500, 900.
The defendants named In the COM
piaint, which was served late yesterday
afternoon, are the lnterborough Rapid
Transit Company. Chairman Oscar 5.
straus, Public Service Commissioners
Henry W. Hodge and william Haywood
aud the commissions chief engineer
ALFRED Craven. who approved OF the
prior dete rmination" charges on Oc'o-
hsr II. 1913.
The city petitions for a new and
proper determination on the part OF
Mr.. Craven. or other 2e CONS acting In
nj. stead. and asks that the Public Ser
1T. ,-.. r..,ra,r.j marina.
WIZ -
Dontly from regarding ~ o'huNis y" III.
div .the ourportcd determination Of the
.s..., ,,,.u r,,y.r,
"
Service OF the Guy $ sui' was "eVep'eu
late yesterday afternoon By Mr.. Craven
-..a,.u, n, c.,ry. coleman chief
- 49, un,
coehsei 70 'he .uoI'o 500 nm. 80.
IN penai' OF tns ne',peIs u,u'
fA'heu, anu y. oo". ~
urer OF the ih'e'ooroosn'
-
ossee os IscA "' 'o"e"'
The basis for the c.ty's suit 10 this
The city holds that while the greater
u0,tIon of the 'rpriur do rmination''
Allowances may be proper charges. the
entire determination is illegal. null and
yoid. because duplicate vouchers of the
items allowed 10 ~. Interboroush as
Sons,ru,,ion wers no, a,ed with IN. com.
mission AS provided in the contract. and
o q many improper And unlawfu! AL
lowanccs are concealed in the account
Mr.. Hardy pointed out tina: the allow
ances were in lump sums. without pre-
tence to termination or Identification"
1T IN my strong and earnest hope
0aid the Corporation Counsel, that IN
the new determination which con
adeItly expect the Court will order moi
alone all the moneys paid to MessB,
Shonts. Rogers and Gaynvr will be ,x-
cluded but also a large number Of other
taais 49, resating a larger sum Of
money"
In this connection II was stated "A, the
office Of the In~terborough tina the
amount 0! prior determination" costs
expenses incurred prior to the signing
a ehe subway officially al
lowed under contract No. ) IN behalf vi
the ln~terbofoug,. AS shown IN the de-
Termination made by thief Engineer
Craven on October ~. 1919. was oil,
$327.405.ol, as agains. similar allow
ances to the city amounting 10 &l.26l..
3S3.O7. The total If all allowances mad.
u the l~nterborough was S5ss,ass.02 y, blu,
part Of this sum was apportioned to Il
third tracking.
Bonuses Not Al Included.
n. A.. .. - 49,,
:" 80 no",Ne.' ne
a., Az ,,s 80
~ y. p..ssne '..'on, uo' on ~ '"'
THOMPSON legislative committee unor
watch the suit In equity is predicated
showed thai OF the ShOnts bonus only