The evening world. [volume] (New York, N.Y.) 1887-1931, 1920-02-03

HOTEL BELMONT.
Mr.. Gaynor testified that the In
tcrborough loaned $4,000 at s per
cent for the construction of the
Hotel Belmont in 1902 and 1903 and
that the loan had never been repaid.
The deal was made through the Sub
way Realty Company and the Hotel
Belmont Corporation. IT was test-
fled that "a long term lease"-the
witness could not recall the exact
number Of years--had been made
whereby an annual rental Of S125, 600
is paid by the Hotel Belmont Com
pany TO the Subway Realty Company.
Practically all the Subway Realty
Company stock is now held by the
lnterborougn, MIR. Guynur said.
An unsuccessful effort was made
to show that August Belmont was a
member Of the Hotel Belmont Cor
poraton at the same time he was ac-
! tive in the big deals Of the Inter
borough. MIR. Burr promised more
questioning along this line.
prove that the taxpayers, through
money loaned one OF the INTERIOR
ough subsidiaries, have materially
helped finance the erection OF the
I Belmont Hotel, which cost 81, 500, 900
| and is now estimated 10 10 worth
at least $5,OO0,OOO.
The Belmont Hotel is owned by
the Subway Realty Company, $1,S0O,
/ 900 Of whose S2,OOO,OOO capital stock
is owned by the marlborough Rapid
Transit Company. The remainder is
owned by J. p. Morgan and others.
Explaining how the Interborough
came to construct the Belmont Hotel,
/ Auditor Gaynor said that in laying
out the Fourth Avenue subway 1t was
necessary to make a sharp turn at
I2d Street. The most economical way
to accomplish this was to purchase
the property, he said.
Where did you get the money to
make the purchase" asked Mr. Burr.
The subway Realty Company is
a corporation Of $1,000 600 capital" re-
piled the Auditor.
Where did you get the actual
money with which you acquired that
land at 42d Street and Park Avenue ?
Didn't you get any money from the
city Of New York for real estate pur-
poses?"
I'VE did"
How much"
off hand ! couldn't say. But !
think it was about $1,000 OOO."
] Mr. Gaynor was asked to lmmedi.
ately furnish full data on the city.
advances.
How the Interborough paid out
bonuses totalling S2,9G4,S37 and how
bankers expenses. Of $l7,523.gOl
were increased by $4,000 paid to J.
p Morgan & co. for holding them
selves in readiness to supply funds"
was told by Auditor Gayuor.
1t was brought out also that the
InterborouEh kept sums on deposit
with Morgan & Co., estimated by
Corporal Counsel Burr at from
$40, 900, 900 to SSO,OOO,OOO, and re-
ceived interest thereon at the rae
Of only IL per cent.
The bonuses paid Theodore p
Shonts ain recognition OF his efii
cheney and services in negotiating
contracts for the subway exten-
sions," under Contract No. ;. were
included in the list on Jan. ., 1913
Mr.. Shonts received 1926, 900, and or
Aug. %, 1914, he got SOS, 900 more.
An item Of $4,000 was credited t.
Mr.. Gaynor 'dn appreciation OF hi.
services" as auditor.
"Coasting" bonuses paid to motor
men for saving power in the operation
OF trains cost the Intcrborougf
S6s SOL. These bonuses were paid from
Sept, 1910, to Nov. 80, 1919. The othel
bonuses were paid between 1905 anC
l1917.
One item of $1877S4 was charged :,
one months extra pay for the chair
man of the board OF directors and tn,
\ general managers and one-bal
months pay to employees who refused
to go on strike in 1905. Another item
OF $2O,6 was charged to an ext,-s
DAYS pay for the employees during IN,
Hudson Fulton celebration.
In 1911 the Intcrborough pait
Christmas bonuses TO its employee.
amounting 10 $4o,Sl5.
Other Christmas bonuses were paiC
as follows: In 1912, $41,237: 1918
$I2,Ol9; 1914, $45,03l; 1915, $4S.g2l:
1916, $4O,49S; 1917, $50,S05. A total ot
$l,012,386 is charged for an extra
strike allowance paid TO the men who
remained loyal during the strike o
1916, and bonuses amounting to 81.
2O5,121 were paid TO the employees ir
1917.
Richard Reid Rogers receivcd
bonus uf $4,000 for his services il
connection with construction ant
\ equipment contracts.
, Concerning the 100000 paid TO
Morgan & co. in 1911, Mr Gayno
denied that II was a bonus, bu
admitted the bankers received tn,
half million for holding themsclvc
in readiness" to supply funds whicl
they were not called upon to supply.
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