New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-11-23
Real Overshadowing Crime, ,
He Says, Is Spreading of
Propaganda OBTAINING and
Threatening City Officials
Also Assails marlborough
Stockholders of Company
Got Excess Profits in For
mer Years, He Declares

An attack by District Attorney Swami
on the 1nterborough Rapid Transit
Company and its policies was the only
development yesterday in the extraor-
binary grand jury's investigation of
the city administration and Mr.. Swann's
Office.
Mr.. Swami declared that as soon as
he began inquiring into the INTERIOR
ough's plea for an eight fare and
statements made in 1918, when j. P.
Morgan floated $33, 100000 note issue
for the road, and T. P. Shonts, then its
president. predicted a rosy future on
the basis of fve-cent fare, his posi-
ton with the extraordinary grand jury
became impossible"
Mr.. Swami further charged that
while he was in the "midst of the
discrimination of Frank Hedley,
then vice president of the lnterborough,
the extraordinary grand jury, without
a moments notice, filed into court and
said they wanted private counsel as
signed to Them"
Commenting on the Almirall panels
charge of an "overshadowing crime"
Mr.. Swami said:
"The real 'overshadowing crime is
the spreading of insidious propaganda,
OBTAINING and threatening public OIL
Gals, with the apparent intent of in
timidating them from performing
their legal duty" His statement con-
tinues:
with q fve-cent fare, free from
ertangling alliances with other roads,
enues that should satisfy any reason
able person. In order, however, to
monopolize the transportation business
of Manhattan as tar as possible, they
took over the operations and assumed
the burdens of other roads. They were
duly warned of their risks, but disre-
garded the warning.
The city is no partner to these
overreaching contracts, but insists
that they operate the Subway for the
five cent fare agreed upon. which pays
the Subway a profit. The real point is
tina tthe stockholders Of the INFERIOR
ough have heretofore received excess
profits. Would there be an injustice
in asking them to turn back a part Of
these excess profits in lean years? Or,
after having gathered in the excess
profits in the fat years should they
call upon the public to pay an extra
fare in the lean years, despite the fact
tina their contract calls for five-cent
fare at all times?
"All of the marlborough stock re-
ceiyed these excess cash profits, but
not all of tie marlborough stock rep
resents cash paid in or invested. viii
the Interborough deny that the net
earnings already received have equalled
about three times the amount of the
cash paid in for the stock? And will
they deny that they turned over s4,-
signment of two contracts, and will
they deny that they gave $500 900 of
their stock, then selling at 5000 per
share, to gentleman to pay him for
the worthless City Island ne-hore line
for which he had just paid $32 900, and
all of this stock has since earned 1877
per cent net profit; and will they deny
that this line for which they gave
their stock worth 100000 to one OF
their own directors was soon there
after discontinued, and that nothing
remained but two streaks Of rust with
out now a right of way because OF
non-use y"
Governor Smith, still at the bed
side of his mother in Brooklyn yes
terday, disposed of neither the jury
request for the Attorney Generals aid
nor Mr.. Swann's plea for another
Grand Jury.