New-York tribune., 1921-12-02
All Subpenacd Directors
Reject Immunity Waiv-
ers; Transit Board Hints
at New Turn to Probe
"Must Get What We
Lack -McAneny
Belmont Defends Asso-
ciates and Declares He
Got Subways for City

The door to the personal motives and
policies of directors of the INTERIOR
ough Rapid Transit Company who
voted dividends in the alleged non
earning period from 1917 to 1919, which
the Transit Commission sought to open
in its exploration of the city's traction
maze, was definitely closed and barred
yesterday.
With the seven directors summoned
by subpoena steadfastly refusing to
sign waivers of immunity and the com.
mission equally as insistent that it
would not automatically grant an i'm
munity bath to them by questioning
them in the absence of waivers. this
line OF investigation into the secret
realms of high finance came to an
abrupt end.
Belmont Makes Statement
The directors were dismissed by the
commission after August Belmont,
chairman of the board and financial
pioneer of the subway system, had
made lengthy statement in defense
Of himself and associates, and had told
of the difficulties that confronted the
company as result of "unwarrantcd
abuse"
Through Mr. Belmont and counsel the
directors held to the contention made
Wednesday. when they refused to ap-
pear willingly, that their examination
would afford an avenue for further
legal attacks against the lnterborough
In dismissing the action of the di-
rcctors. George McAneny, chairman of
the commission. said:
"Wc think that the invoking of what
in preseut-day practise has become
little more than technicality as a
reason for their failure to testify is
unfortunate. We shall be bound to
continuo TO take whatever remedy is at
our command to secure what we lack
Seven Directors Defiant
Mr. Belmont occupied the witness
stand for an hour and fifteen minutes.
Opposite him. across the counsel table,
Sas his fellow directoys-E. j. Bcrwiud,
chairman of the executive committee;
Morgan j. OBrien, General Cornelius
Vanderbilt, Daniel G.. Reid and Il. dc G..
Sullivan. T. De Witt Cuyler, the seventh
director summoned, was reported to be
in Washington, but counsel announced
his attitude was in accord with that OIL
the others.
The chairman OF the Intcrborough
board wes perfectly at ease, at tunes
illustrating his remarks with gestures,
extending his hands and lightly strk-
ing the rail of the witness box TO give
emphasis to his words. Occasionally
ne spoke sharply and with apparent re-
sentmcnt. Among tho financier's strik
ing statements were these:
IF you do not ask me questions here,
because you do not wish to give me
immunity. that is your fault"
The sweeping assertion that the
directors were interested in gambling
in connection with the property is un
called for and repudiate it,"
How City Got Subway
If it had not been for my individual
work and risk in the beginning New
York would not have had a subway for
number of years"
ITO have such imputations as have
been made here is not very much of
reward for the sacrifices"
Nobody is any more anxious for the
success of the commissions undertak-
ing than the lnterborough directors"
There is nothing connected with
thus company that can be newly dis
closed ny this inquiry, except to give
1t new form that would discredit US
TO the public"
"The credit of this corporation was
attacked through various Investigations
and its ability to borrow the money
necessary for its expansion was seri-
ously affected
III 1T were possible for Mr.. Shearn
70 prove 'thimble rigging and specula
Iioh he could prove it only on a very,
very limited scale"
Crowd Attends Hearing
Inc hearing room of the comniiss ion
AZ AZ az Lafayette Street was jammed to
ehe doors before the arrival of the
suDpGnaed directors. In addition to the
transit men who have been following
the inquiry, there we're many specta-
TORS VINO came solely for the purpose of
gilmpsing the unusual array of men of
h'gn finance at a public Investigation.
hepreenting the directors as per-
sonar counsel were De Lancey Nicoll,
sohn ssohn G. Milburn. Albert Boardman and
morgan j. O'Brien. Mr.. Nicoll de-
nounced the practice of requiring wit
ness TO waive immunity as an illegal,
oppressive and vicious proceeding, un-
sanctioned by any statute or court.
speaking for his immediate client, Mr..
oef"ind. Mr. Milburn declared the sign
Continued on sage six)