New-York tribune., 1919-01-10
Not a Dollar
Anywhere,' Says
B. X. t. Official
Quackenbush Brought to Hi
Feet at Suggestion There
Are Any Hidden Funds
Fare Raise Plea Heard
Lawyers Salaries Increase
From $4,000 in 1916
TO S234,O0O in 1918

Suggestions that the New York Rail
ways Company has "a large sum Of
money" hidden away while it is asking
for an increase in fares, provoked a
controversary at the hearing before
the Public Service Commission yester-
day on the company's application for
permission to charge higher fares.
The hearing was resumed at the
point where it was interrupted several
days ago, when President Theodore P.
Shonts and James l. Qnsckcnbush,
attorney for the company, were called
to explain the negotiations they had
had with Mayor Hylan and other city
officials
Edgar J. Kohler, Assistant Corpora
tion Counsel, in examining Frank
Samuelson- auditor for the company,
suggested that an inquiry should be
made to ascertain if tnerr was not "a
where among the assets Of the New
York Railways Company" This brought
Mr.. Quackenbush to his feet
1--WE have not q dollar anywhere" $"
he said eve are in as bad a condition
SIS any poor debtor ever was, and as
to this talk of a reserve fund or a
capital surplus. all have to say is we
would like TO find IT."
Know of Single Dollar
"Well, / have heard said Mr.. Koh-
Ter, that a very large sum OF money
was paid 10 the New York Railways
Company"
@Do you knp wof 3 single dollar
that is availablee'' e'' asked lIr. Quack-
bash
a have seen figures showing q set
tlement made by the Federal govern
ment and they showed that large sums
of money went to the company
~That is bunk and intended for
newspaper consumption- Z wopldn't
knew something about them"
II didn't say anything about n hid
den fortune" retorted Mr. Kohler ~
only said that large sun had been
paid to the company"
You don't know what you arc talk
ing about We haven't got secret
fund of any kind"
Did not Judge Laco1nbe. Of the Fed
erai Court, in settling uD the receiver
ship of the company in 1915 pay
large sum into the treasu1ye'' asked
Mr. kohler.
Yes, and it was spent months ago
yaid Mr. Quackenbush- The SUE, re-
ferTed to was $4,000 600, which Mr..
Quackenbush said had been used to
pay off obligations
Mr.. Samuelson then was examined
by Godfrey Goldmarx, counsel for the
commission
Gives List of Rentals
The witness was asked what items
had been deducted from the gross in
come of the company foT the nine
months ending september 80 last He
gave long list OF figures representing
rentals, Interest payments and various
operating expenses These were gone
over in detail by counsel. the witness
explaining how the figures were ar
rived at and what relation ench set of
figures bore to the gross income
Mr. Samuelson was asked what sal
aries the general officers OF the New
York Railways Company were paid. He
replied that the president got $50. coo,
the vice-president and general man
ager $4,000, the secretary $3.75O and
the auditor $3.50 In answer to a
question CT Commissioner Hervey the
witness said the president and vice
president also held similar positions
'"ttu -t-- 1AlE-DCiDugE GIpaG transit
Company, the Interborouen Rapid
Transit Construction Company, the In
terbcrough Consolidated Corporation
ard the Rapid Transi. Subway. Con
sfruction Company. He said some Of
the clerks in the general Offices DO
Joint work for the various incorpora-
ions and each company pays its share
of their salaries.
sifioatior Ccsfr Qi.o
The itern Of salaries and expenses"
Of attorneys, it was shown. had in
creased from S179, 900 in 1916 to s234,-
600 in 1918. Mr. Quackanbuza ex-
planned that there had been no increase
IN the salaries Of the lawyers employed
~ the companies, but that the increase
was due to litigation growing out Of
the strike which began in 1916
1t was decided TO prepare an estI-
mate OF what the financial condition of
the company will be On June 80, 1919,
baslng il or receipts and expenditures
OF the last few months and making al
lowance for possible accidents and
other irregular expenses This is to
lie compiled by Mr.. Samuelson, aided
by accountants of the Public Service
Commission.
The hearing adjourned to Tuesday
morning at 1890 o'clock