New-York tribune., 1920-02-05
City Officials
Join i'm Attack
On He dley
Fare Must Assure Service,
Says |. II. T. Head, Who
Declares Company Has
Pawned "All 1t Had'
Day of Lively Tits
Hedley Receives Dividends
on so Shares of Stock but
Does Not Know Amount

Frank Hedley, president of the In
terborough Rapid Transit Company,
bore the brunt of an attack by three
examlners-Mayor Hylan, Controller
Craig and Corporation Counsel Burr
at yesterdays session on the traction
inquiry before the Board of Estimate.
Mr. Hedley, who was the only witness,
was put through a severe examination.
James l.. Quackenbush, counsel for
the lnterborough, served as bumper
between witness and inquis itors, and
succeeded in lessening the force of
some of the blows The Mayor ques-
toned Mr.. Hedley at length about the
dividends the company had paid in re-
cent years, and at several points in
the examination objected to the ap-
parent lack OF attention on the part
of the witness, calling on him to "look
me in the eyes"
In questioning Mr.. Hedley as to
whether the holders of the 5 per cent
bonds of the Interborough could under
any conditions hold the city liable to
pay the face Of the bonds or the in
LcTeSt, Vie NAY OT ItSculcu MR. I1eutcy 3
seeming Indifference.
Mayor Demands Attention
ooh, look at me, Mr.. Hedley, and
just answer the question frankly"
said the Mayor
at bores me to keep my eyes on you
all the time, sir" replied the witness.
II look at you most of the time, but
look around the room sometimes"
uaI
ley, because 1 want to see the color
of your eyes when you answer the
question: said the Mayor.
Mr.. Hedley declared he had no OBJ
jections to looking at the Mayor, or
to the Mayor looking at him, but ad-
mitted that he had forgotten what ques
tIon had been directed at him. When
informed, the witness said le did not
know whether the city could be held
liable or not
The Mayor reverted to the ques-
ton of dividends.
"If you have any idea that you can
distribute enormous dividends to the
extent of millions of dollars,' he said,
think you can extract it from the peo-
pie, you are mistaken as far as | am
concerned"
Looking for Help, Says HedIey
I'VE have paid no dividends this year
and have no cash in the bank" said
Mr.. Hedley. eve are looking for help,
not condemnation"
You are looking for a new pawn
shop" interrupted Comptroller Craig,
and you come to the Board of EST
mate"
"We have pawned everything we
Int to J., -,
president. II went to the stockholders
around the first of the year, and ask, d
if something could not be done, put
nothing came of it.
Comptroller Craig charged that the
lnterborough had violated its contract
with the city in failing to conform
with one of the most important provi-
sions, which he said was that deficits
shall be cumulative and carried for
ward The Comptroller declared that
the directors of the company should
have reckoned with these conditions
when they were passing out dividends
in 1913.
Mayor Hylan Interrupted 10 say that
in the light of the great profits of the
company in the past. the ''protiteering
stockholders" should go into their
pocket books and make up this com
paTatlVcly SMdil ueuCll ui Yo,UUU,U ,UUO
claimed by the Interborough."
Wants Fare to Meet Service
Mr. Hedley declared that the public
should pay fare that would assure
service The Mayor asked the witness
if he was prepared to open his own
pocket and pay back some of his divi-
dends to help meet the deficit. Mr.
Hedley answered in the negative.
mo, you wouldn't do that" said the