New-York tribune., 1916-02-19

about Mr.. Ryan's dominance, but I
/ don't see any of IT, He has always
been one Of the mysteries TO me-"
"Mr Morgan had more power than
you in lnterborough matters ?"
"He was a banker with the money 10
/ loan. He had bankers power. can't
understand how these ideas as to Mr..
/ Morgan and Mr.. Ryan exist. II will
shock some people when say Mr.. Ryan
never asked me to do a thing. His in
/ torest in our company amounts to ST.
/ 200. .000."
you took Mr.. Belmont with you to
I Morgan & Company.
YES"
"The record shows" said Mr.. Colby.
AN ascending note OF dominance by
/ Mr.. Morgan in the company's affairs
and not a dissenting voice"
"If Morgan & Co. had any domina-
tion over the lnterborougn or desire to
/ dominate US IL was never manifest TO
me-" was the emphatic retort Of tho
witness.
Letter of Traction Deals.
Here Mr.. Colby introduced letter.
written by Mr.. Shonts, dated Septem-
Der IL. 1910, to the late Andrew Freed
man, telling Of the visit TO Morgan &
Co. The latter, marked private and
confidential, read:
Dear Andy:
Mr.. Belmont and ! spent a couple
OF hours with the people on the corner
Yesterday. They annO~nced that they,
the National City and the First Ma
uonal banks, were prepared TO get un-
der the lnterborough securities and put
representatives Of each institution on
our board, and become publicly identi-
fed with the property.
They are willing to loan US $50 .0OO.-
600 now required for financing the ele-
waited Improvements and extensions
and on May ! next loan us 500 900 0OO
required to take up the per cent
notes now outstanding and TO sell s52.-
100000 per cent bonds at a price "a
be agreed upon for fixed commission
10 themselves.
While the terms proposed for the
loan are high, they claim the price we
VIII get for the bonds when sold. be-
cause OF their united backing and SUD-
port, Will probably be such as to more
than compensate for the rates they are
forced to charge Us on the notes at the
present time; besides, having the per
manent advantage and protection Of
their association with US will always
help the property.
"Augy (Belmont) was rather Of the
opinion that we had better 20 on and
trade with the Public Service Commits
sion without making positive provision
ior the money, thinking we might make
"a little better settlement with these
gentlemen later on. ! not only doubt
the wisdom OF our closing with the Pub
/ lie Service Commission until we are
fuily financed, but also doubt our abil-
lty to make better terms than those
promised
For, as you know, this combination
not only makes the strongest financial
group in the country, but probably in
the world, and think they fully realize
their influence and power.
90 not think IL prudent 10 write
more than is contained in this letter
and wish very much you could be with
US, for believe the situation is such
as to require the earliest and most
careful consideration"
Mr.. Colby asked Mr.. Shonts what the
/ things were that he thought not pru-
dent to write in the letter. The witness
said he did not know. lie thought they
might be little details. Pressed for a
more definite answer, Mr.. Shonts
+ thought 1t might be that he did not
want TO put In writing that he kept
August Belmont, who was chairman Of
the board OF directors at the time. in
the dark concerning his negotiations
with Morgan & Co
There was considerable time spent in
going over the relative worth of the
dual subway and the city's tri-borough
subway plan, which Mr.. Shonts caused
70 vanish into thin air as the result OF
his four hours talk with Mayor Gaynor
on the lawn OF his ST. James home.
Mr. Shonts said that the $1,000 paid
TO Mirabeau L. Towns, the friend Of
Mayor Gaynor, was for several talks he
had with him over the subway situa-
tion and the part he played as courier
and companion on the st. James trip.
The witness denied that he influenced
the appointment of Edward +. Mccall.
who was made Public Service Commits
sioner by Governor Sulzer.
Weren't you elated over his appoint
ment" asked Mr. Colby.
I'VE haven't been highly elated with
any one there yet"
The witness said the policy Of the In
terborough with respect TO the Public
Service Commission was 10 get along
with II by observing the law and insist
ing on the recognition of their consti-
tutionsl rights