New-York tribune., 1920-01-22
[. II. L. Paid
Dividend of
l7% i'm 1918
Continued from page I

continued from page
and as recently as the fiscal wears 1918
and 1919
Isn't it true that the Interborough
pa1d l871a per cent in dividends in six
teen years and as high as 90 ner cent
IN one year," the Mayor asked.
That's true" replied the INTERIOR
ough auditor.
wasn't dividend paid on INTERIOR
ough stock in the fiscal year 1919 %
the Mayor persisted.
Yes; PA per cent in the first quar-
Corporation Counsel Burr here stated
mat the company dividends had been
l! per cent during the fiscal year 1918
ana per cent for the first six months
OF the fiscal year 1919.
what was the net income NJ tha
Int terborougn for the fiscal year 1882"
Mr.. Burr inquired.
c me net corporate income was S4.-
oo1 'a9o92, Mr.. Gaynor replied.
ana 1or the previous fiscal year?n
1T was $685., ,S5s.52."
II Per Cent Dividend in 1918
"What were the dividends for 1918 %
per cent"
i want to call this state of facts 70
your attention." Mr.. Burr said to tho
members m Of the investigating board.
In spite Of the fact of only 81 600 900
income for 1918, or half that Of the
previous year, dividends of more than
$1,000 600 above net income were de-
clared."
Turning to the witness, Mr.. La
Guardia asked:
proceeding ?"
The only explanation I can find"
Mr.. Caynor said slowly, "js that al
though the dividends were not earned
IN that year they were earned prior
to that" - '''
"Wasn't a surplus put aside during
the period when the high dividends
were being paid:" Mr.. La Guardia
asked
"Yes, twenty millions" replied the
What was done with it,"
Queens County Lines Saved
Eleven or twelve millions we're spent
Tor the clectrifcation and third-tracL
ing of the elevated. The balance was
advanced to the New York &; Queens
County Railway Company SO that it
could continue its operation"
wv asn't that company insolvent ."
at would have been if we hadn't
loaned it money from time to time. ."
Mr.. Quackenbush explained that tho
Inter borough owned 32,04S of the 81.
ooV shares Of the Queens company. and
mat the transaction was "ta!ling money
from one pocket and putting it into an
other' He justified the payment to the
Queens company on the ground that
this service to the people of Queens
would have been cut off long ago with
out the subsidy
Mr.. La Guardia requested that a list
OF the stockholders of the New York (,
Queens company be introduced at the
next hearing, and this was promised by
Mr.. Quackenbush. Mr.. La Guardia
promised TO scrutinize the list CLOSELY
to find just why the lnterborough took
suc! interest in the affairs of the
Queens system.
sl,c00,o00 From Holding Company
! Mayor Hylan questioned Mr.. Caynor.
bringing out shat the Interborough had
balance Of S292, 900 during l9lS-19
after meeting interest and sinking fund
and other charges.
NV asnt this sum used to hcin paw
The leases on the Manhattan Elevated
to know.
at went into the general treasury"
the witness replied. "The subway lines
fell very far short Of meeting all fair
charges. however,"
The Mayor got confirmation of the
TACT that the lnterborough Rapid
Transit Company had to borrow Sl.-
100000 recently from the Interborough
Consolidated Company. the holding
corporation. although The latter wa. in
the hands OF trustee in bankruptcy.
IF the lntcrborough Rapid Transit
Company had saved some Of thc 137
pc! cent it gave in dividends during
the last sixteen years, it wouldn't be
in this fix today commented the
Mayor "Don't YOU think the people
who got the dividends ought to como
forward now and help the company
out? Don't you think the stockholders
ought to 60 into their own pockets in
stead Of the company going into the
pockets OF the people,"
Mr.. Quackenhush agreed with the
Mayor on the misfortune of being
caught without a surplus fund, but
said that the European war, which
could not be forescen, was the real
cause. AS to the suggestion that the
stockholders who got fat dividends
come forward now, the Interborough
attorney said that this was impossible
legally, that the stockholders had
changed largely since the decline in
the value of the securities, and that
this aid would only be postponing the
crisis to another day
"If or April 1, or on July /, our in
come shouldn't meet our demands, how
ever" Mr.. Quackenbush added. "I
should hope that our present stock
holders would help US out. They can't
do anything for what happened in the
past"
isn't it correct that the INTERIOR
ough has paid S65, 100000 in dividends
in the last sixteen years? % the Mayor
asked.
"i'll take your word for it, the IN
terborough attorney conceded.
Horace NJ. Fisher. secretary Of the
lntefborough testified that the services