The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-18
|SHONTS ARGUED WITH MAYOR GAYNOR AT ST.
TO DROP IDEA OF CITY OPERATING NEW

.EhAlINU M
explanation that his counsel had advised
him that there was no statute giving
immunity to a witness appearing before
u legislative investigating committee. RE
had previously POSED for the pfotosra-
piers. a favoritc picture for the crow
being that showing him between John
4. Stardhfield and De Lancey Niooll, his
counsel
Mr.. Shonts testified that on coming to
the presidency Of the 1nterborough he
retained his presidency Of four Western
railroads that netted him q salary Of
$40, 900 a year. This, with his salary
Of 100000 from the 1nterbofough.
brought his annual stipend up to
Si4O,O 900. In 1918. with a bonus Of
$4,000. his income from railroad man
agements alone must have been . so.ooe.
he said. There were indications that
this figure did not comprehend the an
nuai monetary gatherings OF Mr.. Shonts,
because he testified TO having dealt ex-
tensively in stockA
The stock dealing came out in answer
to questions regarding his disposition OF
| the first bonus. which wal voted to him
by the marlborough directors on June 8,
1918, lie said the granting OF the
bonus was u surprise to him. although
he admitted he had beer informed some
| time before IL was actually voted that II
was on the way. He declared that he
attended neither Of the two meetings. Of
the special committee that recommended
extra compensation to him. and also as
| serted that he did not In any way at
tempt to influence the directors In his
behalf.
He said he understood that some OF
the directors thought s1c5,o0o insuf1-
ciert and had recommended as much as
3coo.0o0. He explained that the later
granting Of s25. 600 more was undoubt-
edly an expression by the directors Of
their belief that they had been rather
! conservative In their first estimate OF
what, the extra services OF Mr.. Shonts
had been worth.
Ready 70 Take N26O,OOO.
would you have accepted the $4,000
which some of the directors thought you
should have
YES. and would have thought that
had earned it
Els there any officer Of the INTERIOR
ough who thinks he Is overpaid?'
II do not think that n ofiicer who
seriously realizes his responsibilities In
handling from 5000 600 10 100000
passengers a day can think thai he !:
ovorpaid."
When MIR. colby called attention again
to the fac; that in addition to his bur
lens as president OF ha.Interborou4h
and it's allied companies Mr.. Shonts was
also performing duties toward the fou;
Western railroads of which ne was
president. the witness answered that
practically the same situation VAS pre-
sen,ed when he Nas asked to head the
l., mia Canal Commission.
God has given me- he said. "a
sturdy frame. a constitution to back i
up and a disposition to work eiehteeI
hours a DAY. II any one suffered Il va
the four Western railroads. and the,
made no complaint Of my services
Had Ample Ysrgin at Brokers'.
Considerable testimony was taken or
Mr.. Shonts's stock transactions III
produced "A monthly balance sheet show
ing that the payment Of this $4,000
10 &. u. barney 4 Co WAS not made "
RESPONSE 20 a demand for more margin
He showed that in addition to havini
collateral securities in excess OF tn'
amount which he owed the brokers III
also had the securities which he has
bought on margin and which the com
pany still retained and which in a pin"i
could have been used 70 iiquidate nj
debt.
The monthly balance snee' sno"e
,ha, had Mr.. Shonts not deposited tn
Sl25.OOO with g.. u. Earney e. Co. n
would have owed $535 600, aGains
which he had collateral security amount
ing 10 $4,000. BESIDES the secu'''.e
which he had bought On margin. H.
figured that his margin was ample.
When his bonus OF Sl.o.o"" was re
verified 10 AZ the opening OF the AFTERNOON
session Mr.. Shon's said mat ne had no
thought at all or the question as I
whether or not TINS sum wouid come W
OF the city as a part OF the preiiniihar!