The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-11
PUT TONEOVER'
ON SHONTSFEE,
SAYS WHITNEY
Didn't Know Bonus Was
Included in admin
istrative Expense"
DEL|E INTO B. Il. T.'S
CREDIT OF $1.OOO.OOO

w HltH"N OF the t'uDiic service Coininis-
sion. as ne expressed 1t at yestcrday's
session of the Thompson Legislative com
mttcc. that IN regard TO the bonus o;
N5o.00O awarded to President Theodore
r. Shonts the Interborough Rapid Transit
Company 'pu, one over" Oh he commits
sion. MIR. Whitney said /. was his IN.
preston that the commissio ion lid rot
know this amount was included - Id
ministratiye expense" IN the much dis
cussed prior determination account
mission as a bonus
Tie committee concerned itself chiefly
yesterday with further inquiry into the
Shonis and other bonuses. leading up
near the end OF the day TO the trait Of
the w. Il. r. bonus of 100000 to Col.
Timothy :. Williams Senator George +.
Thompson also held a pro;racted execu-
tive session OF his committee 10 con-
slider its preliminary report to tho Legis-
lature. senator Thompson announced
later that the committee had considered
three plans lcokin.; toward a more con-
sisten. policy In regard TO the cons,ruc-
ton OF the city's new transit systems.
Public Hearing Friday.
Theso plars contemplate the transfer
o. subway construction work from the
Public Service Commission to one OF
three bod!es--to the Board Of Estimate.
20 II board composed Of the five Borough
Presidents. which wouid guarantee to the
outlying borouxhs a fair representation
for the transit extensions therein. or 20
an entire'y new board 10 ne composed of
a -.
pointed by the Mayor. the Board Of
Aldermen. or the state. and confirmed
hy the Board oF Estimate
There will be a public hearing OF
these plans next Friday. conducted by
the committee. with "A view 10 hearing
every one Observation-Disclosures. public
service corporations and city officials.
II will he AN all day session. and II the
coroners court room In the Municipal
Building is not large enough for the
gathering Senator Thompson will ad-
journ TO the Aldermanic Chamber IN
the CT" Hall. Meanwhile n sub-com-
mit;ee will confer with the Mayor and
Borough Presidents and work on the
draft of tho preliminary report OF the
committee. which Will bc presented 90
the Legislature early the following week.
In trailing the d. r. r. bonus 70 Col.
Williams coursel Frank Moss spread
Secretary Whitney. that the Municipal
Railway Company. n subsidiary OF the
Brooklyn Rapid Transit Company, re-
ce!vcd from the city credit OF $1,000
GOA for "A right OF way through the
companys cut at Thirty-eighth street.
Brooklyn. which reduced the Brooklyn
Rapid Transit Company's contribution
10 subway construction from sl3,5OO,00O
to sl2.500.000.
Adn,its city Was Loser.
Mr.. Moss also tried 70 show tina, in
~ doing the city abandoned route
orieinally laid out through Fortieth
street and that the destructive and
constructive work necessitated by the
change to the Thirty-cighth street route
cost nearly sI.o00.o00 more.
Secretary Whitney admitted in answer
to Mr. Moss's question that tine city go.
the worst of the ThIrty-eighth street
deal. hut he explained that there were
~ the time half a dozen unsettled mat
ters and that tho 1000. 900 credit al
!owance was one Of the matters settled.
Mr.. Whitney said he did not know what
the give and take" Of this proposition
was. He denied. however, that the
bonus of 100000 TO Col. Williams was
discussed in connection with the Thirty
eighth street transaction.
Counsel Moss also got into the res.
ord. In consideration Of the testimony
OF Mirabeau l.. Towns and Mr.. Shon,s
about IN" visit TO Mayor Gaynor and
the stop on the way TO see the late Ed
win ;. Haw.ey. AN lntcrborough direc-
tor. three checks drawn by The late An.
drew Freedman on the National Rank
of Commerce 10 the order OF Edwin $.
In reading the checks Mr..
Moss called attention to the dates they
bore and the fact that the visit OF Mr..
Shonts Mr., Towns and John c. Camp
bell to -. James was on April -, 1910.
Two Of the checks bore the date Of Jan.
uary 90. 1910. and one the date OF Feb
ruary 3. 1910.
The hrs, check was drawn by Andrew
Freedman To the order OF Edwin :.
Hawiey FOR $lOe.500 and deposited in |
the National city Bank. On one side |
was the notation "On account Of 5000
nter-Met." The second OF IN. same
date bore the same names for S62j and |
the words on the side, Charged to nc.
count Of 5000 Int"r-Me," The third. |
dated February B. the date having been |
changed from February 2, was for 500
900. with the words on the side Account |
of Inter-Met tas." All were indorsed !
Edwin :. Hawley,"
uJOOt NOOW Ou UO0Os.
Did you know" Mr.. Moss asked Sec. !
rotary Whitney, that any Of the !
amounts allowed by the engineering de- /
partment in the prior determination ac- !
roun, included the bonus to Mr.. Shonts |
Of Sl25,OO0 or $l5O.O00""
mo, SIR" answered the witness.
"Or any bonus to Mr.. Gaynor re- r. |
J. Gaynor. auditorl?"
Il think | knew of the payment to
Mr.. Gaynor and Mr. Rogers Richard |
Reid Rogers. general counsel to tho In
and one or two others be-
cause the amounts in prior determlna-
lion were matters of discussion between
Inc Interborough and tho engineering
Mr.. Whitney said he must have known
NJ the Rogers bonus OF $4,000. because
n was discussed by the Commissioners
a, a series OF conferences. He said no
minutes Of these conferences were kent.
but that Judge Mccall and Comml Missioner
Milo X. Maltble he remembered az mar
Iiclpating in them In particular. Com.
missioner Maltbic filed objections to the
Rogers bonus at first. but withdrew hIs
pbtections later. The witness did NOT
recall any grounds tor allowing $50. 900
10 Mr.. Rogers except the reasonabieness
Of the amounts filed with the commits
sion. The amounts. he said, were handled
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CoxttHSsd on Lost Paes.