The sun., 1919-05-09
VANDERBILT GAVE
WHITMAN LAW JOB


llef
"well. did the Governor express him
self" asked Mr.. Moss.
mot very much. He nodded his head.
II was favorable. think he was favor
able in our face and pulling under the
table the other way. He did not make
a very strong imprt ssion on me-"
II. b. Weatherwix, president OF the
state Electric Railway Association, tee
tified that the. Cover 1or in 1918 had told
him he thought omerhing might be done.
but that later the Governor said the bill
drawn could not be passed because n
| decision of the Appellate Division OF the
Supreme Court in the Quinby case had
held that franchises granted by local
authorities represented contracts as TO
fares that could not be changed by the
Legislature.
Nicholas II. Brady OF the Brooklyn
Rapid Transit Company and lighting in
terests produced before the committee a
letter written by Richard H. Burke in
regard to his meeting with Senator
| Thompson at the Republican Club on
March 16 of this year. Burke said
Thompson held there was no chance for
the passage of the CarsonMartin bill
and that he knew Gov. Smith would not
sign 1t IL 1t did pass The Senator was
| represented as having made suggestions
as to other legislation and as being will
ing to aid In any way. Mr.. Moss asked
Mr.. Brady, much to the amusement of
the witness. whether there was any code
in the letter.
c. G. NJ. Thomas vice-president of the
Consolidated Gas Company, denied the
story OF Burke that he had offered to
furnish 100000 for Thompson to open
Il trust company in Lockport lie said
| that the firm Of whitman. Ottinger and
Ransom had been retained by the Con-
| solidated Gas Company and affiliated
interest in connection with its recent
suit to overthrow the constltutionality
| OF the S0-cent gas law. The total re-
! tainer given to the firm was $500. bur.
| he did not imagine that this was all
| that they would get before the suit was
| completed. 1t had nothing to do with
any "slush fund" and was not in the
remotest degree connected in any way
| with the efforts Of the transit companies
| to get increased fares.
Ex-Gov. Whitman lie slated 20 appear
! before the committee to-day for cross
examination by Mr.. Moss. who Is re-
| ported TO be ready to giver the former
| Prosecutor of New York county a most
| thorough grilling. Mr.. Moss was at one
| time an Assistant District Attorney un-
der Mr.. Whitman. whom he accused of
treating him unfairly.
What will probably be the star feature
OF the entire investigation will not be
| put on, however, before Mr.. Moss has
| recalled Mr.. Brady and Mr.. Thomas for
the greater part OF which went to Ivy l..
| Lee. the publicity man, and for expenses
| of distribution. 1t had been planned to
| raise $4,000 this year Probably more
was spent in 1917, when as many as fifty
| educational bulletins were sent all over
| the State. The money was assessed upon
the various street railway companies in
| proportion to their gross earnings.
some further light on the Burke letter TO
Mr.. Brady. Samuel A. Beardsley will
also be cross-eXamined before the Gov
ernor goes on, and Harlow c. Clark.
treasurer OF the State Electric Railway
| Association. will be examined as to the
| cost Of propaganda work done for an In
| creased fare and as to just where the
| money came from. In general way It
was testified yesterday that in 1918
| from $500 to $4,000 was spent
| Mr.. Quackenbush was the last witness
yesterday and in compliance with his re-
quest was allowed to make his state
ment with little interruption. He said
| he had not been present mt the meet
| ing Of the directors OF the Interborough
when the question OF retaining Mr.. Whit
man came up. Mr.. Shonts told him
Thursday, March 81. he had Just had an
interview with Gov. Whitman and Judge
Ransom. the former Governors partner
who was formerly counsel of the Public
Service Commission. As Mr.. Ouacken-
bush had entire charge OF the matter OF
fares Mr.. Shonts told the lawyers he
wished they would talk with the Inter
| boroughs general attorney.
The 10000 Retainer to whitman.
On Friday. the 2sth, Mr.. Whitman
telephoned TO ask II Mr.. Shonts had
| spoken to Mr.. Quackenbush. He said
| he would like TO come over and see the
latter, who replied he would not stand
| on ceremony. but would go over to the
Whitman offices. This he did Mr.
Quackenbush described that meeting as
| follows:
Tho Governor stated TO me that he
and Judge Ransom had had a talk the
day before with Mr.. Shonts He said
of course I want you TO understand that
I do not mean to go behind your back
In regard TO employment with your COM
pany' I said, Governor. you need not
waste any time discussing that. Mr.
Shonts told me yesterday afternoon
he had arranged to retain your firm and
| that he had said that your firm would
work in conjunction with me and that
Is all satisfactory
| "well.' he said, you know I also
talked with Mr.. Shonts about the ques.
ton of a retainer and he said: I"
rather think 1t would be proper for me
TO have q retainer without waiting &c
| render a bill for services actually per.
| formed I said That Is satisfactory
| TO me. I am further inclined to think
that is good law procedure. In YOU
particular case l think It is advisabl,
because a man who has been IN impor
tant public office has an asset which hal
| a diminishing value-it Is more valu
able in the beginning than 1t become!
| later on
This was all in the spirit OF goot
! humor, somewhat facetious, perhaps. OF
| my part. Well ne said. 7 said some
thing to M. Shonts about 100000
said: That settles that part of it
HE said Y also told Mr.. Shonts that
Of course I could not do anything that
| would have to do with legislation at AL
bany or anything that might BIO regarded
in the nature OF lobbying. but that Judge
| Ransom had wide experience with rate
questions in the Public Service Commits
| sion, and / had considerable experience
! with public matters l had a great
many friends throughout the State, and
that in any way that I could be ser
viceable wanted TO be. and Judge Ran
som wanted to be-
He wanted to know what the sltua.
ton was. He said: I understood that
some OF the gentlemen in the Legislature
have objections to the bill, which have
been told about and he wanted 10 know
II could advise him as TO who they
were, and told him what my informa
ton was as TO some OF the members Of
the Legislature who had objections tc
the bill and what their reasons were fol-