New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-02
Scorns S2,OOO,000 in Under
selling Light CO.-ThOmp-
son Hints Agreement.
PATENT ROYALTIES
STILL PUZZLE HEDLEY
Railway Manager Says He Keeps
No Books Gun Hill Realty
Firm Under Fire.

How the marlborough company will
ingly gave up the opportunity to make
from $4,000. 1000 TO S2,5OO,OOO n year by
selling its surplus electric power Mt a
rate far cheaper than sold by the Edison
company was brought out at yester-
days session of the Thompson commit
tee.
Frank Hcdley, vice-prcsident and
general manager of tho Interborough
was on the stand NJ the time. Nv
series of seemingly innocuous dues-
tons about electric power Senator
Thompson and cambridge Colby. coun-
sci to the committee, led up 10 the
most important development of the day.
Did tho plan fall through because Of
an understanding between the INTERIOR
ough and the Edison company" asked
Mr.. Colby.
Not that know Of" said Mr.. He'd
ley.
MIR. Colby. who did not seek TO hide
his incredulity, asked If there
was any sphere of influence recog-
nized by the two companies. Mr.. He'd
ley replied he knew of none. lie said
there had been several conferences
over the plan 70 sell the surplus power,
AT which I. z. Shonts. Samuel Inter,
myer. the late Andrew Freedman and
the witness attended.
Mr. Hedley testified that he did not
know how much money the forty pat
cnts ne owned brought him annually.
lie said he kept no books or memo
randa. Twenty-six OF these patents,
he admitted. were now in use by tho
mterborough and the elevated roads.
An idea OF the large royalties some
of these patents carry may be CLEANED
from tho following record produced by
the witness after the noon recess:
For stepless car patents, Sll,OOO TO
Nr Hcdlcy and a like amount 10 Mr..
Doyle for the two years ended No.
vcmber II last; from the Westinghouse
Air Brake Company he and Doyle re-
ceivcd $500 each IN two years Tor
safety appliance royalties; from the
Intcrborough and the Manhattan kle-
waited he and Doyle received Sl2.363.f5
each In awards" for use OF the coast
ing clock for thirty months; for ms
anti-cllrlber dtvice he received S2,'9O
from the Interborough In three years;
from the Railway Improvement Com
pany IA transit supply corporation IN
which he is Interested. he received
S14.S27 in the three years ended last
October: he and Doyle received from
the same company S4S2.50 each from
September % - December II. 1918.
Doesn't Know He's President.
Mr.. Hedley said he owned lS7 shares
Of stock in the Computing. TabulatIng
and Recording Company, which sup
plies the Interborough with coasting
clocks at $3.50 each. The stock he
purchased for $4,000. lie owns bonds
i'm the company for which he paid
$4,000. This. he said. he did not re-
gard as . large holding.
Mr.. Hcdley testified that he at ono
time was practically the owner OF the
Railway Improvement Company. and
while Interested in 10 forbade IT TO
quote figures 20 the lnterborough.
Andrew ! Pizzini. Of the Hotel An
sonia. was then called. He said he first
met Mr.. Hedley six years ago, when
he was employed "a sales manager for
tho Railway Improvement Company
This company was formed originally
BY Mr.. Hedley 20 put his patented
streetcar devices on the market.
Mr.. Puzini testified he bought 500
600 Of the stock. which was held by
Mr.. Hedley and Mr. Doyle. paying SlO,-
600 cash and $4,000 in notes. This
transaction was completed after the
Thompson committee started It's inves-
tigation year ago. The stock now
pays 80 per cent dividends He denied
there was any agreement between him
and the sellers Of the stock for its
repurchase. He also testified Hedley
and Doyle knew the stock would pay
dividends when they disposed of it.
lie then told how he paid $4,000 five
years ago for one-eighth interest in
the Gun Hill Realty Company az Mr.
Hedley's suggestion. Hedley, ne said,
ran the company, and owned one
fourth interest in it. The property
some 200 acres, is on the line OF the
proposed subway, and a station is be-
ing built on the property.
"Where is the Gun Hill Realty Com
pany's Office" asked Mr.. Colby.
In Mr.. Hedley's Office, l65 Broadway,
7 think said Mr. PiZZini.