The New York herald., 1921-12-01
Continued from First Page.

professional litIgant who masquerades
under the name of the Continental Sc
curities Company, the General Invest
ment Company ana other aliases, upon
the credit of the company and indirectly
to aid in his efforts TO bring about a re-
ceivership and wreck the company.
"Venner now has. In his campaign Of
litigation against the company. six suits
pending for this purpose and to gain ad-
vantage over other noteholders. and he
threatens to commence a new one on
December /, 1921 (to-morrow). against
these very directors to recover $10,-
100000 because of the declaration of
the dividends In question
This makes II necessary for them. in
the interest of the properties which they
administer for themselves and others, u
decline to appear voluntarily as wit
nesses at the hearings now being con-
Quoted by the Transit Commission.
"They feel that the effort to create
sentiment against the company. to mini
mize the value OF its properties, which
have been honestly and efficiently man.
aged against great obstacles and diffi-
culties created by war conditions. par
ticularly in the prices Of labor and ma
terials, and the unjust attacks upon the
management require In justice to them
selves and to the properties that they
should not voluntarily assist in render
ing such efforts successful"
"Mr. Quackenbush,' said Chairman
McAneny, "I think IL possible that the
gentlemen whom you represent in this
matter misconceive the purpose of this
Inquiry. | think that possibly they have
distorted view of the duty of the
commission at this moment. The conf
mission is engaged in the laying out of
I ha a
plan for the reorganization of this dis
tressing situation. The details Of that
plan are familiar to the public.
'It Is palpabiy true that In order TO
enable us to proceed rightly and with
full information, We must know the
financial and operating conditions OF
each of the companies with which we
deal. We have reached this point in the
investigation of the affairs of the Inter
borough company without prior knowl-
edge on our part as to what might be
disclosed. We have been impressed,
might say amazed. by some OF the mat
ters that have been brought forward
here. We propose to press them abso-
lutely to conclusion. IN so far as the
gaining of complete knowledge upon this
subject is concerned.
1--WE have no desire to embarrass the
administration of any of the companies
We are quite determined, however, that
| L. shall be made clear to the public that
the private management of these quasi
public affairs. when it takes directions
like the se Is not to be tolerated. II there
be any way through the use OF the
power Of the State. as represented In this
commission, to put an end to such con-
d.tions.
"Our purposes are entirely peaceful
| necessarily so, in the sense that thesf
properties are in the hands OF private
owners under leaseholds that the Law
will respect. But there ought to be nc
doubt about the public interest in their
affairs, the right of the public to clear
information the right of the prblic to
a solution that will end not only the
physical difficulties under which TINS
system is operating. but any species o.
financial control that permits the dis
| sipation OF the reserves OF the company
! TO the great disadvantage OF the pubic
that depends upon its service.
Now we are not prerared Tor 2
moment to say that matters that have
been brought forward here are TO o'
taken entirely at their face valve.
may well be that there are explanations
that ought to be put on our record, ex-
plantations that may convince to Ger
tain degree: but we think the company
and its directors can less afford 10 resi-
under the imrutation of the story tha'
: has been develored here than 10 acceNl
the risks Of litigation at the hands o.
any one, particularly at the hands or q