The sun., 1919-05-09

clueu ana tne various interVieWs nhu
been held.
do you remember that Gov. Whitman
testified that on March 20, when he met
Senator Thompson he had not yet been
retained by your company" asked Mr..
Moss. Had yos mat In mind when you
gave carefully the dates which you have
given7"
"I am not having my memory affected
in the slightest degree by what Mr..
Whitman or anybody else said" de-
clared Mr.. QuackenDusn sharply with
faint trace cr smile on his face. 1T
know perfect well what l am talking
about. dates l?cluded."
Mr. Quackenbush then produced the
correspondence he had had with Mr..
Whitman, beginning with the letter OF
April 1, signed by the latter personally
and asking for the check
The check was sent the same day with
a letter enclosing clipping from the pa
pers that on that day printed the stories
OF "slush" funds and dough bags" IN
Albany. Mr.. Quackenbush wrote that
he had been directed by Mr.. Shonts to
ask him (Mr. Whitman} what ought to
be done about the stories. When pro-
duced to be marked In evidence It was
hospital
shown that the check had been deposited
man. Ottinger & Ransom and been paid
on April through the New York Clear
ing House. A receipted bill was sent
back by the firm made out: ITO retainer
for advisory professional services in con-
nection with rate matters, 10000"
Mr.. Whitman called on Mr.. Quacken-
bush to say that he had had talk with
Senator Thompson, but nothing occurred
that would Justify the articles sent to
him by the Interborough attorney. Later
he told the same thing to Mr.. Shonts.
When he got a letter from the Whit
man firm asking for a copy of the opinion
of Judge Mayer continuing the New
York Railways receivership, Mr.. Quack-
enbush called the attention OF the firm
to the fact that they had been retained
simply by the Interborough. which could
take no part In the rate matters of the
New York Railways After being told
that the opinion was wanted as a matter
Of general information. It was sent on
April "A. which, Mr. Quaokenbush said,
completed the file OF transactions with
Gov. whitman or any of the members OF
his firm down to the present moment"
Attorney for the Interborough then
returned to the efforts to get legislation
in 1918 and read n letter from Speaker
Sweet enclosing a bill that he and other
legislative leaders had drawn to meet
what Mr.. Quackenbush had described as
desperate situation.
Speaker Offers to Help.
"If you think this will meet the ap-
proval OF your associates" wrote the
Speaker. Il shall be glad to undertake
to secure favorable consideration for 1t.
Kindly confer with Mr.. Choate and such
others as you elect and advise me
promptly
This bill would have permitted the
Public Service Commissions for the pc
Rod OF the war and six months there
after to permit the street railways to
charge cent fare. Senator Elon r
Brown made some changes in this draft
bill at conference the railroad men
had with him at the Fort Orange Club
in Albany. The same night Mr. Quack-
enbush showed II to Senator Thompson,
as chairman OF the Public Service Com
nittee OF the Senate. to see whether he
agreed with its phraseology before in
production The bill was printed that
night, so It could be presented to the
Legislature in proper form the follow
ing Monday night. Then It was decided
TO wait for the decision in the Quinby
case. That changed the situation and
the bill was strapped. It came back to
the original QuaCkenbush idea. which
Mr.. QuaCkenbush saw the Governor
| and Judge Ransom, then counsel for tho
Public Service Commission. at the st.
Regis In regard to the court decision
and the Pratt bill. Governor Whitman
said he would not send an emergency
| message, as It was too late
81 said believed that from the view
expressed by the President pro tenn Of
the Senate and the Speaker OF the As
| sembly that something could be done"
! Mr.. Quackenbush testified. THE Gov
| ernor said: All right, you introduce the
| bill. l won't send an emergency mes
sage. You won't need one. You have
| got the whole week"
| Mr.. Quackenbush waited for the bill
| TO come out Of the Rules Committee of
| the Assembly. When it did not come
he saw Senator Thompson, who told
| him. as already stated, that the Cover
nor did not want II to come out This
information, he said. checked up with
what came from other sources
Gen. Vanderbilt said he had first
| spoken 10 Mr.. Whitman about the posi-
| bility OF his firm acting for the Inter
borough at some social affair at his the
Generals house. They frequently met
| socially. This was late In February or
| early In March. Mr. Whitman said he
| thought they could do 1t. Then Gen.
Vanderbilt went to Mr.. Shonts and this
| is what he said, according to his testi-
mony yesterday:
| II have been away for over year and
a half and find the condition Of affairs
In your company in very. very bad state
so much so that we are threatened with
n receivership. 1 represent as n di.
| rector other security holders. and 4,
seems to me that 1t would be n good
| thing to get I'm some new legal and
technical advisers, l also found that
| there seemed to be considerable differ.
ence OF opinion between the city authori-
ties and the company. and there should
be some means of more close coopera.
tion between the two in regard to ar
Interpretation of the contract
Il said have seen It stated in the
papers, l believe. that the city Intends
to take the suhways and TO force then
INTO receivership, and then to increa sc
the fares. and that does not seem to me
fair or just on what is my Interpretation
OF the spirit OF the contract. l further
stated II we have n receivership there
Will be innumerable lawsuits.
| Il said ! have looked around. have
given the matter considerable thought
and have thought over several law
yers and several technical men, and ]
| found that Gov. Whitman has in his
| firm Judge Ransom. who was formerly
counsel for the Public Service Commits
sion. and who Is therefore fully compe-
tent. more competent than anybody ]
| can think of. on the question of rates
and to bring about closer cooperation
| that is the substance of what l said"
Did II occur to you. Mr.. Wander
bilt," asked Mr. Moss. that this very
man, Judge Ransom. had been in n po-
| sition OF hostility to the Board OF EST