The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-16

was ri easier and cheaper way TO Build
the subways than with the company's
own money!"
II don't think co." said Mr.. Nor
gan. II think you are approaching this
matter from the point of view that the
marlborough thought 1t would be
cheaper for 1t II the city used city money
in the new subways. That was not the
situation as ! understood II. The In
terborough thought IL could not put all
its money into sideways II the city was
TO ne its competitor on lines built par
allel only 900 feet away. MIR. Davi-
son and ! saw Mr.. McAneny in the
summer OF 1910 and asked him II the
city had money enough TO build the
subways without calling for n Inter-
borough money. Mr.. McAneny said he
thought not. Therefore the question
arose why cannot the city and the In
terboroueh get together and supply the
capital Jointly"
GaynOr's Reversal.
Didn't YOU know" asked Mr.. Moss.
that there was a deliberate attempt
on the art of certain prominent per-
sons TO minimize the city's financial
! power and to cast doubt upon its ability
TO furnish sufficient capital to build
subways?'
II do not think there was"
Did you know that close to the
period Of the letter OF March 10. 1910.
1.-The unsigned offer Of marlborough
money! there were several meetings be-
tween Mayor Gaynor and Mr.. Shonts?"
~ find in my files memoranda of the
statistics that Mr., Shonts SHOWED to
Mayor Siaynor and I presume he told
| M hnf \ do mot racalt that ha Aid
Mr.. Moss dwelt upon the theory that
Mayor Gaynor was hostile to the Inter-
borough w to March, 1910. Mr.. Morgan
said he had never discussed the traction
subject with Mayor Gaynor. As to
whether their points OF view were well
known to each other Mr.. Morgan said (:
II don't know what his reason was
flor c%hanging1. recall no description
from Mr.. Shonts Of What his relations
were with Mr.. G%aynor."
Did Mr.. Shonts ever tell YOU how
he had accomplished the change OF at
titude on the part OF Mr.. Gaynor?"
Il don't recall. but ne showed me
tho statistics and figures he submitted
TO the Mayor
Then you think II was the heures7"
II think IT was the figures that rom
WINGED the Mayor. But X you mean
to ask me II II was dollars besides. I say
no. That IL the implication In your
question"
II find many people read things into
my questions that are not intended"
said Mr.. Moss.
Perhaps o will change the form
OF your question"
Nc II Is pregnant. Now. DO you
know what a the marlborough con-
fdence. as against the public officials
who had expressed enmity. to put
In a proposition much sitter than III
previous ones"
Il presume they had GOOD business
reasons. In every case my only ques-
tion was: Is this proposition You are
putting W safe for the bondsT I was
not concerned with the policy OF the
city officials. I was not a director
Of the Interborough-merely financial
adviser. I felt that Mr.. Shonts was
city"
Not Hts Affair.
Didn't II ever occur to you that the
policy Of dealing Will the city was
one you might be interested in?"
NC. 1t vas not my affair. I was
not consulted about that and I don't butt
into other peoples affairs. The one
thing tina; was important TO US was
whether the transaction was safe and
credi;abie. The way the I%nterborough
approached the city oficials or con.
Quoted themselves In working out ar
ARRANGEMENT was no affair Of mine"
DO you know o the preferential
got imp"
IT you want my guess I should say
In order TO provide private capital which
the enormous plan required. I DOM
know who proposed t."
Then Mr.. Moss took UP the third
tracking subject. Mr.. Morgan remarked
that he had testified fully as to that be.
fore. As to the Stevens contract, Mr.
Morgan testified: ~ told Mr.. Shonts
that I understood Mr.. Lane and Mr.
Read were disturbed by the contrac,
and that tho board did not approve oil
II that they thought Il would harm the
bonds and was extravagans to the com.
pany; that they should not Eive II tc
Stevens at 10 per cent. Mr.. Shonts as.
sured me II would o he given to Ste.
vens unless the whole board approved
He also explained why he wanted to give
the contract to Stevens"
When the afternoon session begar
Senator Thompson took time to correct
tho impression that he had said Mr.