The evening world., 1920-01-28
|. R. 7. BORROWED
WHILE DIVIDENDS
WERE S2O,OOO,OOO
Floarct Loan of S47,OOO,OOO
on Claim 1t Was Short
of Funds.
BIG QUEENS HOLDINGS.
Seventh Ave. Subway Equip
ment Cost Raised Without
Warrant, Is Charge.

Between 1918 and 1917. while the
IuterbUrough was claiming that IT.
was short Of funds and obtained
permission from the Public Service
Commission to noat a loan OF
$47,OOO,oOo for equipment cost under
Subway Contract No. 3, the new Sew
enth Avenue line, it distributed more
than $4,000 900 in dividends This
was admitted to-day by TIdward f.
Gaynor, auditor of the Gntcrboroush,
at the Board of Estimates investtga-
ton of that system.
Corporate nCounsel Burr, In Cross
examination Of MIR. Gaynor, called at
tention to the fact that the original
estimated cost of the equipment
which the marlborough proposed in e
stalling under Contract No. 3 was
only $22. 1000, 900 This amount was
without just warrant raised 20
$4,000, 900, the Corporation Counsel
contended, the $25, OOO,O 900 additional
cost being saddled on the subway
and thereby on the taxpayers Of the
city on the ground OF war prices.
THE contract for the $22,00o,Oo0
equipment under agre cement No. was
made in 1913" Mr.. Burr argued we
were not at war in 1913 and 1914,
Why wasn't this equipment obtained
in 1913 and 1914? The Auditor OF the
Intenborough says there was a sur
plus Of SlS,OOO,OOO, and there was
more than $4,000 900 in dividends.
In the face OF this the INTERIOR
ough application for the right to
charge higher fares says the situation
is 'supremely urgent and that we
have stripped ourselves OF practically
every dollar and are nod in debt, and
that we have got to the end Of our
| resources.
II protested against the issue OF the
additional $4,000 900 worth Of notes.
Contending that it meant negligence
on the part of the marlborough to
purchase materials before our partici-
patton in the war. and that it would
not DO Just to deduct this sum from
the revenues Of the new Interborough
subway"
The Interborough's total invest
ments in Queens lines amounts to
$26, 600, 900, company o;cials testified.
Mayor Hylan brought out that il
cost $34S, 900 for power on Queens
lines and that the tital revenues on
the hne did not exceed $1,000, 900 in a
given year. The Interborough sup
piled the power but none of the OFF,
cials could remember what price per
kilowatt was paid. InterborouRh OFF,
| cials could tell what the total OF
! bankers commissions for the flota-
/ ton Of various securities amount to.
When the inquiry was resumed there
was a three -cornered row in which
Mayor Hylan, Alfred A. Cook, repre-
senting the trustees in bankruptcy OF
the .Interborough Consolidated, and
| Job f. Hedges receiver OF the New
York Railways Company. were the
principals Mr.. Hedges said as the
New York Railways Company was IN
a bad financial way ne wanted the in.
vesugaton OF that company taken up
as he understood Mayor Hyian lait
claim TO having exploded the Inter
borough's claim for an eight-cent faro
Mayor Hylan denied the request
you are not going to mix us up
Mr.. Hedges" warned the Mayor
you traction fellows are nll in the
same pot, and you know H."
But we use a different kind OF
| liquid" retorted ME- Hedges,
Il believe you asserted, Mr. Mayor"
said Cook chat the SPAS 900, 900 repre-
rented pure velvet Whether or not
eh5S Is true the present situation will
not be relieved by announcements
that there L. o lot Of velvet" He in
sisted he had a perfeca raght - bt
heard, but the Mayor deCaded he had
@O~ ..-.- -,- a-.r,--'----. $1,000 ----.---