New-York tribune., 1919-01-08

haitian Borough and the Corporation
Counsel will do that"
Did you indicate to the members of
Your board amy kind of hopeful indica-
ton IN respect to a solution of the
situation?" 2"
81 just told them the facts, just as I
have been telling them here"
DO you recall whether you ever dis
cussed this possible arrangement with
the city officials that was to apply to
all the transportation companies, to
the bankers or any repres sentatives of
the bankers?"
II think that | mentioned it sener-
ally once to Mr. Morgan. did not go
into it eXhaustively. think | told
him generally what was going on. OF
course, ! did not know what would
como from it, that we were cooperating
IN all good faith, trying to ascertain
Just what his ideas applied to us would
be-
What was the amount of the sccuri-
ties of the Interborough Company that
the bankers sold during that period Of
time ?'
Round numbers. $4,000 ,OOO-s33,
900 900 and aftcrward $6,0O0,0 600"
What WAS the impression you gained
AS to Mr.. Burr's attitude on the sub
Ject of a receiversh ?"
ne impression ] gained from Nh
Quackcnbush was that his attitude was
that possibly that WAS the only solution
OF this transp sportation ianglc that was
through receivership."
Of all the companies ~
'Ot all the companies"
Burr Questions Shonts
Shonts, the direct examination being
! llnlshed, was taken in hand by Corpora
'lon Counsel Burr, who asked the wit
ness TO tell how the "Subway Sun y
ELEVATED Express" and Green Travel
cr the three publications edited bv
Nhonts, were used to air alleged diff
cultles OF the lnterborough and as prop
aganda for an increased fare.
u lie cllclted the belief of President
9honts that transportatio companies
IN the city could not be run at a profjt
IT the average length of the haul was
over 1lVe miles. but that trains would
not have to be filled to "saturationn in
tion. P''po''-
Taking up the financial end Of the
lnterborough and New York Railway
properties, Mr.. Shonts declared that th o
rentals paid were not excessive, as was
generally believed, because of tho vast
improvements put INTO these leased
rlncs after they had been taken over
iot opSIdJlOn.
Whitney and Burr Clash
u mere was a sharp tilt between
1na'rman Whitney and Mr.. Burr at
'nlS point on the subject of secret ne
&oNatlons. Said Whitney,:
ny dldn you, at that same occa
sion when you appeared before the
colAn'Sslon as an attorney, tell the com
mission of the modification and tho
baI fol,
regard to tho protocol that had been
prepared which involved the whole
snatter?" ''''e
at was in the clouds. Nothing def
mite had been arrived at, and you know
from your own vast experience that
hothlng definite concerning that proto-
col could have been done until it had
inc llnal approva of the Public Service
and the Board Of Estimate. And We
were sitting down as lawyers around a
table to talk about it and we had a
series OF conversations for discus
sions"
"At tho same time, if you had been
successful in those negotiations it
would have made idle the entire pro
ceeding here" said Whitney.
here was no guarantee it would be
successful and as a matter of fact
has not been successful So. why
Burr replied.
Quackenbush Resents Query
Mr.. Quackcnbush, who was present
as Shont's legal adviser, hared up in
resentment at query of Commissioner
Herveys with regard to the manner in
which the negotiations and the exist
encc of an agreement had been brought
to light He declared that he WAS act
ing for his client in its business with
an authorized city authority, and had
only sought basis on which they could
discuss the relief of the transportation
situation.
That this situation had been brought
about solely by the war was stated bv
Shonts sn the ground that $4,000, 900 in
expenses of material had been added
since the last contracts were made. in
1913. -
ut is always our policy when times