New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-10


.rb.r, was also ar ten, that -hc Wit
-o,l3 no. ovnloin. r.aoiur: S2.75C
r., Constitutional Convention.
Tho witness was then asked to pro-
luco a statement show0c the rumbol
~ bonds issued and SOLD uD 60 fcbru
arv This. when produced. showed
that Si60957.OOC was the amount %.
thc total authorization and tina. bonds
orcrooatinq Sf5443l.C0O had been de-
,'sg,'1 icsVin '.'s Balance Of s6.I26.ooO
How ma1v bonds sold" asked Mr..
Colby.
S14SG5s. 900" replied Mr.. Fisher.
"Thev were sold through Morgan &
90 %"
YES
selling them A. q3'e would bring
s12S qo5. 5SO?7
yes"
This sum was placed 10 the Inter
borouch's credit in the Morgan firm,
st2 and 81. per cent There is some
thng over >3 ,.. 10 'n ne, NJ, o,'-r-
crs Of the bonds get o., per cent on
their investment When inns had been
established Mr.. Colby said:
IN view Of the fact that there is
between S50,000,00O and >6o,OoO.O0O on
deposit with Morgan Co., mas any
REPRESENTATION been made by the Inter
borough TO Morgan 4 co. That IN view
and the outstanding bonds. the Inter
borough IS losing heavily -.
"No, sir; not that know o. re-
piled Nr. Fisher
you pay 81 100000 year 10 carry
$4,000 .O00?' suggested Senator Ihomp-
SON.
Eyes sir"
The witness then explained that the
amount Of bonds that we're taken each
wear by J. =. Morgan & Co. was com
puted on The theory that the subway
Would be completed in four years end
ing 1917, but that delays will postpone
its completion 20 the summer OF 1918.
"Has the lnterborougn any nnanciaI
reason for postponing the date OF the
completion of the subway asked Mr.
Colby.
absolutely none said the witness.
nj. Nil. t..o-os, crou
De'"! .""N'
But while these delays 90 on the
interest mounts up
"Yes."
and this rising interest charge is
charged 10 construction ."
"Yee"
80 that on these excessive interest
CHARGES the citv is holding the bag?'
"yes"
ohio interest given 20 Morgan & Co.
IS CHARGED 20 construction and in turn
is charged 10 the CITY
81. tboro any check snv limit. 10
these extravaeances and improvidences
If ,.o,,r' evnonditures o"
.Our evner5.tures are limited 10 the
cor+rsc+ work "
.A,d ,o,,r ALLEGATION 10 fixed NJ SIS
ooo 6o0 o.
aye
"Ard # Va, snerd $4,000 900 or
en- 0oO oO0 Tor things theoretically
LID co,e.r,c+ion mat loss must be
so, L,. az ci+,, D"
~
an CO.. .ha. .ho rn+orbo,ouch
q. E-aro,,Il,. b., nos+non-
uUcs Nv. 49, 80 - ~. b,,t ~,
LIZ WI. DO ~. +Loso mounting
Ie ~ - ~ +ba+ Tho Tn+erborougb
IaIo,,s cor,nieting the Lexington Ave
nelayS con, ~ S''''s '''' LEAN WI
~. rLo~o .,.o no do
ls,s ~ no. eec+ione"
cera+or Taorneon bore in+errupted
tho examination 10 ask
IN. a.. p.,bl:c co~,ico Cororie
.;o.- ,.,la,....5 tbat .boso ;r+ores+
cbar,,o. o~o cI.,.,,d i,' tho wo,. Won do
r,..h. 5o
81 nros,,,,o .l,,,. 10 % esiJ NJ, Fisher
City's Liability Limitiess
T. was branch, ont that while the
citv stands annarentIv only commit cd
to nav sometbirr over $50 600 .oOo
+o,v.r3 tho building of The subway tn.
fact is that its liability is Gmitless
Here q table showing the amount Of
interest paid ON the various accounts
10 Wacn ne 9o"a sales arc az sS S1e oia 20
On The special account. which now
bring, . per cent, the interest at times
las been under that. On all the other
accounts 2ig per cent is allowed
"Thcn the loss must have been more
than $1,000 90 to the .terborough. "
said senator Thompson. "Nho gets the
difference botveen tho 81. ner cont al
lowed on deposits and the 81, which the
bonds bring
THE bontboldcrs," said Nh Fisher.
Z. j. j. Gaynor was called TO the
stand He is the lntcrbOrOugh's audi
tor. who received ID bonus of 10000.
Answering question, he said the
100000 paid TO Morgan Co was cred
tied % "othcr suspense account. lie
described this as an account created by
the Public Service Commission i'm 1910,
20 which ia charged an expenditures
which cunnot be properly classified a.
the time they are made lie said about