The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-02
Mayor Instructs Hardy to
Get Testimony and
Protect City.
ROGERS AND CRAVEN
MAY FURNISH CLUE

AHA AuA AtJA vi
1Ao Thompson legislative committee
resumed yesterday its efSorts 10 ind out
mere about the bonus Of $4,000 which
IT, directors Of the lnterboroueh Rapid
Transit Company gave to President
Theodore p. ehonts In JunA 1918. for the
extraordinary services ne performed in
connection Win the dual system con-
tracts. This was declared to BE- preiim-
SnaSy to the testimony Of Richard Reid
Rogers. general counsel for the Inter
borough. who II expected to testify to-
day.
How closely the progress Of the
committee in uncoverins the
6ookkeeping methods Of the INTERIOR
eugh IL being followed by city onicials
was indicated In . letter which Mayor
Michel sent on Tuesday evening to Cor
poration Counsel Lamar Hardy. The
Mayor says:
In the course Of the investigation
conducted by the Thompson legislative
committee certain statements have
been made concerning bonuses paid by
the marlborough Rapid Transit Com
pany to its officials, and the Sugges-
ton has been made that these bonuses
may have been added to the cost Of
construction Of the subways under the
dual contracts. Tho suggestion has
also come out Of the sessions Of this
committee that other charges rave
A>-.. a. Ia. 49, Nar
which do not properly belong there.
Obviously any charges Improperly
made to this account would work to
the detriment of the city. since h
company receives certain preferential
allowances upon It's own investment
In construction before the city receives
anything upon it's W investment.
viii you. therefore, please obtain an
ofhcial transcript of the minutes of
the Thompson committee and cause "A
study thereof To be made with y view
to determining whether any improper
charges have IN fact been made to the
construction account n whether
there is a basis for contesting such
charges In the interests of tho city.
1t IL established that Mr.. Shonts got
che money, II Is also established that
Chief Engineer Craven of the Public
Del WtCc SOlfiIIlicStOH hpDIoNeb IL pa IIltIt
Of 3l35.0o0 to the marlborough BY tho
city. this amount being all that he left
Of An unitemixed bill for $l,532.O 900 which
Mr.. Rogers handed to him as the expen-
ditures OF the company on administra-
t!on previous to March 81. 1913. The
$4,000 was part Of s33s.7?s.45 allowed
to the company BY the city for expenses
In connection with the new subway sys-
tenn before the contracts were signed.
II vas testified yesterday by E.. F.. ].
Gsynor. auditor Of the Interborough.
that the bonu was never certified 20 Mr..
Craven for his approval. So far AZ the
records of h Public Service Commas
sion show. there Is not now n never
has been anything that shows on the
face OF II the appreciation of Mr.. Shonts's
services by his directors. The fact that
Mr.. Craven allowed just $4,000 for adj
ministrative services and allowed II be.
fore the marlborough directors realized
their obligations to MIR. Shontsr compile
Gates the situation. Mr.. Rogers and Mr..
Craven may be able to throw light Oh It
shows Voucher for Bonus.
Mr.. Gaynor produced his voucher for
the bonus yesterday and also "A copy Of
the document which he furnished TO Mr..
Rogers when he was preparing 10 SUBJ
init to the Public Service Commission
for It's approval the prior determine
ton account AZ the account was known
which included the expenses Incurred by
the PETERBOROUGH previous to the signing
OF the contracts. This account includes
the bonus to Mr.. Gaynor and the bonus
TO Mr.. Rogers. which was given at the
same time MIR, Shon,s received his. but
no item designating $4,000 as remu-
neration for Mr.. Shont's extraordinary
services appears.
This statement sale Mr.. Gaynor.
covers in detail the items in other sus-
pense and the amount is s7Oo.OsS.5s
under the heading, proposed subway
routes"
lis this part OF the evidence submitted
to the Public Service Commission and
on which prior determination WAS
based"
at is the statement / gave TO Mr..
Rogers. general counsel OF the conf
pany."
WAS the memorandum OF Mr.. Rogers
10 Mr.. Coleman. chief counsel for the
Public Service Commission, based on this
data"
o that and on a statement OF which
] now give you a copy"
Does this statement and the ITEM
h8Co "llN was Ntu JuSl
prior to II include all the items aggre-
eating sl.532,000"'
'.No."
what else is there
'The H.532,oO0 is II subdivision of the
last exhibit"
Have you a copy Of the statement
which Mr.. Rogers submitted to Mr..
Coleman?"
mo. ] didn't know that it was sub.
Uitted."
Mr.. Moss explained that the committee
has possession OF a copy OF such a state
ment, but that 1t does not cover In de-
tall what the charge OF $~l,532.00 was
made for. showing only that this amount
was spent for administration prior to
the signing Of the contracts.
~ nave no knowledge of such q state
nent." said Mr.. Gaynor. Those are
the only ones which I prepared"
You are aware that Of the Sl,53o,-
900 asked for, S125,0 900 was allowed"
YES"
Doesn't Know Items.
DO you know what the items az
gregating thai amount were"