The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-25

memorandum prepared by Mr.. County
"Perso.aI" Letter 70 Gaynor.
why Is 4, marked personal? p
II usually send such documents under
personal cover because II was not mean,
for general distribution. 1t vas not q
finished project"
Were you dealing with the Mayor as
Arbitrator
NO. often send documents like
that"
Did you send a draft OF that
memorandum TO Mr.. Wilcox
II dont remember. Why I sent IL to
the Mayor ] don't know except that u
might have been at the suggestion OF
Mr.. County. because MIR. County and Mr..
Rea had talked with the Mayor"
Mr.. Moss found attached to the Shonts
letter TO Gaynor a letter containing n
similar memorandum SEN from Chair
man Wilcox to Mayor Gaynor a month
later. on February rs.
Isn't IL q fact" asked counsel. that
the letter 10 the Mayor from Mr.. Will
cox on February 2s founL It's way to the
Mayor from o on January ?7?"
II don't think So replied MIR. Shonts /,
II think they were W different PROPOSE
lions"
Rea and seth Low l~mterestea.
Mr.. shonts explained that along abou.
that time the subway negotiations
reached a head through the combined
forts OF Samue! Rea, Seth Low, Henry y.
DAWSON. J. =. Morgan and Morgan J.
OfBrien. MI. Shonts denied that the
confidential letter to Mayor Gaynor on
January 90 was the foundation laying
Of the successful subway contract with
the I~nterborough.
Il asked you the other day." asked
MIR. Moss. turning TO another line OF
inquiry. III you didn't advise Mr.. Nor
gan Of every step you took In the subway
negotiations"
"l'rom the time they FIRST became our
bankers I kept them in touci, with the
situation" answered the witness.
Didn't you tell him about the PROPOSE
ton of March 90. 1902"
NO. because II was not a proposition.
! never made a proposition To the Public
Service Commission without making pro-
vision for financing IT.
Were Morgan Il Co. willing TO back
the marlborough m March =: for a
proposition TO use private capital in
financing the s~ubways:"
shonts and Noes Clash.
Mr.. Sihon,s did mo- remember distinctly
ard Mr.. Moss declared
YOU make your memory suit the pur-
pos. don': you?'
"I'll appeal TO the chairman from such
a remark. I challenge you to call atten-
ton 10 any conflict in my testimony on
the stand. although I haven't had n
chance TO read II over. ! have recalled
things later that I could not recall ~
first. but no corporation or individual
has been any freer in opening up its
books and things TO you tnan my COM
pan You hav. no right TO make a
statement of that kind.
Then what did your directors say on
the morning of March %. 1910. that
made you back out Of the agreement;
reached at Mr.. Willcox's house on the
night before:
There was no Z ement."
'Who we're the directors and what dill
they say?'
"All the directors were Of one m,nd On
II. They said they would not vote any
money, and I agreed With them TO build
all our normal extensions and leave open
the acknowledgements Avenu line for
the city 10 build in the middle OF our sys-
TEN a comp+ ting line. That was the
splitting point"
They didn't say that on March ca
retorted Mr.. Moss.
How do you know asked Mr..
Shonts.
Uiscuasiom Not On Minutes.
Well. did they
III you're testifying 60 ahead"
''is there any record of that discus
SION"
NO"
mot a word of that discussion in the
minu.es"'
II can't help that"
Didn't they say there WAS any easier
way"
NO. they did not" Mr.. Shont ex-
plainei that he Uas MOI, willing to put
through. the March .. offer unless d
proper distribution OF the Broadway
Lexington avenue line was mad. 80 that
II would not compete with the INTERIOR
eNtcr sions.
Mr.. Moss then read into the recon- a
letter from Mr.. Shonts TO Mr.. Morgan
dated March II. 1910. enclosing a menu
orandum dated March 10 reviewing for
Mr.. Morgan the results o! conferences
TO date with Chairman WILCOX and ask
ing Mr.. Morgan for suggestions. Mr..
Shonts denied that he Mas then dealing
with Mayor tiaynor privately through
Freedman, County or anybody else.
Directors Behind Committee.
Mr.. honts stated that the directors
would stand behind my proposition III.
executive committee made. Mr.. Moss