New-York tribune., 1920-01-30
Big Big Financiers
May Be Called
In l.R. Z. Quest
Board Is Told the Expense
of Financing Loans Was
Sl7,523,9 94l; Value of
the Assets Is Questioned

The Board of Estimates traction in
vestgation yesterday took twist in
the direction of Mayor Hylan's charge
that the lnterborough employees strike
OF last year was part of conspiracy
to force an increased fare from the
city. The charge was dropped by the
extraordinary grand jury recently on
the ground that there was insufficient
evidence.
Edward +. J. Gaynor auditor of the
lntcrborough Rapid Transit Company,
testified that the Interborough spent
more than $4,000, 900 to break the strike
Of 1916, which lasted several weeks,
but that, so far as he knew. no con-
siderable sum was spent to combat the
labor trouble of LAST year. Corpora
tion Counsel Burr asserted that the
leader Of the employees gave the strike
order over the Interborough telephone
from lnterborough headquarters, and
also posted the order on the Inter
borough bulletin board
Three l. II. Il. Men Summoned
District Attorney Swami said last
night he had issued subppnas for
three men who resigned from the en-
ploy of the lnterborough Rapid Transit
Company on Friday last They are
David w. Ross, who was a vice-prcsi-
dent of the company; Frank j.
Delaney. who was chief clerk in the
purchasing department of the company.
and Mansfred fuhrcr, former assistant
to the vice president Of the |. R. T.
These subp1nas are returnablc
to-day. There was much mystery
about the purpose Of this move. Mr..
Swami making no statement other than
saying he had information which, if
correct, warranted an inquiry.
for R. r. Mcdonald and w. G.. Straight,
uperintendcnts Of economy for the
company. These men are still CON
nected with the |. x. I.
The fact that the other three had
quit the company was brought to light
in the transit inquiries. Mr.. Swami
indicated that he was on the trail Of
something important.
Big Bankers to Be Called
Yesterdays session at City Hall
brought out the admission by Mr.
Gaynor that the total banking aud
financing expenses in the flotation Of
all the Intcrborough loans and bond
issues amounted to Sl7,523.941. In
connection with this financing and
other phases Of the traction inquiry il
is almost certain that members of the
lirm of j. p. Morgan G. Co.. John D.
Rockefeller and August Belmont will
be asked to appear and testify.
Corporation Counsel Burr declared
that S5O,O00,000 worth Of Intcrborough
securities, carried as assets on the
books of that corporation, were not
really assets, but investments in out
side securities, many OF them Of doubt
full status. These. he showed, included
a $7,0OO,0OO deficit incurred in the
construction of the Belmont tunnel,
S6,0Oo,0OO for acquisition of leases and
$ll 100000 invested in the Subway
Realty and Queens CApnty Railway
companies.
MIR. Burr spent a large part of both
morning and afternoon sessions get
ting material from a prospectus Of the
lntcrborough used as propaganda in
floating the last INTERIOR ~sh loan.
He was able to get the admisso on from
hours of examination in detail, that
statements in the booklet were mis-
leading"
SlS,S72.070 Surplus Possible
Wood ID. Loudoun, Deputy Commits
SlOucT VI ACCOuIilS, tHt IlSt WllutSS,
said he had made an independent in
vestigation, and had concluded that
if the lnterborough had confined it's
dividends to 7 per cent basis between
l90l and 1919 it would now have a sur
plus on hnnd of S4S.S72.070. Approx
matcly the same figures were given
the day before by Mr.. Gaynor, for the
company.
Commissioner Loudoun testified that
an investigation Of the Manhattan Rail
wav Companys records showed that
the Rockefeller General Education
Board held 20,27s shares, the Rookie
fcller Foundation, 10000 shares; the
Rockefeller Institute for Medical Re-
search, 6,35G, and the University of
Chicago, 5,400 shares.
+. H. La Guard,a. President of the
Board Of Aldermen, wanted to know
<No,Jin,,1J an puuc fx,