New-York tribune., 1921-12-01
Directors Say Late Devel-
opmcnts Make Possible
Action io Wreck Com
pany if They Testify
Refuse to Sign
Immunity Waivers
Constitutional Rights May
Seal Lips To-day; Fear
Suit for $4,000. 600

The Transit Commissions investiga.
tion e the Marlborough Rapid Transit
Company stra,k an unexpected snae
yesterday.
Seven direct ors Of the company who
were 20 have seen examined regarding
the labyrinth of Interborough financial
transactions during the fiscal years
1917 70 1912 suddenly refused to ap-
pear before the commission They of.
fered the p'ra that eleventh hour de-
velopments II the inquiry would make
possible litif alton having for its pur-
pose the wrecking of the company II
they were - testify.
Prohers Issue Subpnnas
Charging the directors with "gross
ts"ach Of faith" and with attempting to
svsie explanation for their actions
which have been brought into question,
the commission summarily issued sub
penas demanding their presence this
morning.
Named in the subpnnas were August
Belmont. chairman of the board; F. J..
berT'nd. chairman of the executive
committee; Morgan ]. O'Brien, General
Cornelius Vanderbilt, Daniel G.. Reid
I. Dewitt Cuyler and F. dec. Sullivan
Mr.. Belmont, Mr.. Berwind. Mr.
0'Brien and General Vanderbilt were
served yesterday afternoon as they
we're leaving the Office of Horace Nj.
Fisher, secretary of the Interboroueh.
Inc process server was unable to find
Dir. Reid and learned that Mr.. Cuvlsr
and Mr. Sullivan were out of the city.
The situation in which the directors
ind themselves, as result of the sem
sational disclosures made by. the com
mission. was given significance by the
statement CT James l.. Quackenbush,
general counsel of the Interborough,
that they would not sign waivers of
immunity demanded by Clarence J..
Shearn, special counsel of the commits
sion.
Directors Stand on Rights
,sIn view of i! .jissG...,;ta sts.nds it
was believed yesterday that the direc-
tors would do nothing more than make
formal appearance to-day and take ref
uge behind constitutional rights, thus
blocking the aim of the commission
to procure the full inside story of the
Interborough's financial methods from
the lips of those in high responsibility.
According to the rules or the COM
mission a subp@naed witness who re-
suses to answer questions is liable to
prosecution for misdemeanor.
The unexpected crisis in the investi-
cation came after Mr.. Shearn, casting
an inquiring gaze over the hearing
room. called: August Belmont!" z"
There was no response.
Mr.. Quackenbush, who several days
70 gave the assurance that the di-
seceors would "cheerfully respond" to
.as invitation Of the commission, arose
ahd slowly read a statement, which he
said had been drafted by Delaney
Nicoll ST., Morgan ]. O'Brien, John G..
Iilburn and Albert Boardnan, per-
sonal counsel of the directors. lie
then read:
"In response, they beg to state that
they have no disposition to question
the motives cf the commission or of it's
counsel, bit they respectfully submit
that the practical result of the in
vestgation as it is now being con-
Quoted is to encourage the hostile at
tacks Of Clarence Il. Venner-a no
torous speculator in law suits and
professional litigant who masquerades
under the name cs the Continental
Securities Company, the General In
vestment Company and other aliases
upon the credit of the company and in
directly to aid in his efforts to bring
about a receivership and wreck the
company.
New Suit Threatened.
"Venner now has, in his cam
paign of litigation against the COM
pany, six suits pending for this pur-
pose and to gain advantages over other
note holders, and he threatens to com
mence q new one tomorrow against
these very directors to recover S10,000,-
Continued on page eIpht)