New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-09-12
Union Head Says Road
Has Paid Bankers SlO,-
100000 in Few Years.
MORE THAN SUM
MEN NOW SEEK
Shonts and Whitridge AS
sailed in "Public Must
Pay" Reply.

Asserting that the strike situation
was eminently satisfactory TO those IN
charge, william B. Fitzgerald IN
formal statement last night answered
the assertions of the company managers
that the public would have to pay the
cost of the strike by calling attention
10 disbursements made by the Inter
borough in negotiating the new subway
contracts.
AS far as the general situation IS
concerned" he said, "the conditions are
perfectly satisfactory. Recruits are
coming in from the surface, elevated
and subway lines. To-day we pulled
2OO-193, to be exact-off the elevated
and subway, and most of them were
motormen.
Tells Partners Facts.
Eve believe some facts should be
called TO the attention of the public,
seeing that it is TO become partners IN
the operation of the subways':
"Interborough officials are bitter be-
cause the unionizing of the road com
nelled an increase in the wages OF en-
ploves a few cents a day each. here Is
what the marlborough paid j. +. MOT
gan & Co. in few years: oo,l
sold sl7O,000,00O bonds at 921?.
Morgan sold them to syndicate, includ-
ing themselves, at 96i2. Morgsns I'M
mediate proft 3 per cent, or S., 100000.
Morgan bought 100000 bonds at
o6 - and made an average of per cent
profit, or s2S0,000.
"Morgan's participation in syndicate
profit. at least 100000.
morgan uses marlborough money
left on deposit and pays pa per cent
interest. Morgan's net profit at least
per cent, or SO, 100000.
marlborough paid Morgan for get,
ting ready to finance its share OF dual
contracts $3.50, 900. Half of this comes
out Of the city treasury.
Paid Underwriters s25o,ooo.
"Interborough paid to underwriting
syndicate, composed of Morgan & 20.
and two other firms, S25O,OOO. Morgans
share one-third, or ss3,333.
"Interborough paid Guaranty trust
Company 10 acl as tiuo'SS W
"Interborough paid Winthrop e.
Stimson. counsel of Guaranty Trust
COMPANY, to examine trust deed $4,000.
"Interborough paid Francis Lynde
Stetson. private attorney for Morgan &
Co. for examining mortgage underlying
bond issue and for share in subway
negotiations that resulted in sacrlhce
of city's interest in dual contracts,
S5O,O79. .oooo
Here is approximately slo,oOO,oOO
out of the pockets Of the people
10 Morgan, his associates and
agents as one result Of the sub
way deal The increase granted to
all the men will not equal this sum
in ten years. And Morgan and his
traction associates aim 10 destroy the
union. In testifying before the Fed
eral Industrial Commission Mr.. Morgan
said if longshoreman could not get
more than SO week he wasn't entitled
to more. Interborough employees are
trying TO get only living wage from
Morgan and his associates.
Advocated Eight-Hour Day.
"Interborough directors we're warm
advocates OF the pl lHSlplc Va thS N'e"N
hour day when they granted bonuses
to President Shonts, Counsel Rogers
and Auditor Gaynor after the subway
contract was put over on the city IN
recognition of this valuable piece OF
work these bonuses were voted:
president Theodore p. Shonts. $780,
600; Counsellor Richard Reid Rogers,
$4,000; Auditor B. f. j. Gsynor
$4,000
"Shonts's salary is 100000 a year
Western railroads while drawing pay
from the marlborough. His bonus is
equivalent to a year and half's extra
pay because he worked overtime dur
ing the three years of subway negotia-
tions. Mr.. Rogerss salary is 100000
a year. He received extra pay for
year and two-thirds for helping Mr..
Shonts. Mr.. Gaynor's salary is $4,000
director Belmont testified that
Shonts ought to have received a bonus
of S250000. How much profit is there
in the contract for the PETERBOROUGH?
Says Shonts Rested.
"The bonuses are supposed to be
COMPENSATION for overtime yet imme-
QlatelN AFTER lNe HteOblnNiVHS WIZ WI
cluded Shonts went TO Europe for va
cation and stayed there few months,
and he made many trips to Atlantic
City and other resorts pending the ne
gotiations. The families of the subway
workers sweltered in the city. Why
weren't bonuses distributed to the men
who do the real work of operating
trains and producing the motive power?
Frederick w. Whitrdge, who is
trying to restore the finances of the
looted Third Avenue railroad by exact
ing high tolls from the public and
squeezing the employees, is a reaction
airy Of the worst kind. He is OF the
type OF Bourbon driven out Of France
in 1889. Mr.. Whitridgc whines be-
cause it is charged that his letters
cordemning the union sound like
Shonts's writing. Does Mr.. Whitridge
think that he is innocent Of the
charoe9 Does he believe he il fool