New-York tribune., 1921-12-03
Hylan Upholds
Transit Board
In /. II. T. Probe
Evidence Obtained by Com.
mission Should Go to
Prosecutor for Use of
the Grand Jury. He Says
Inquiry To Be Pressed
Directors Refusal to Speak
Does Not Detract From
Subordinates' Testimony

Mayor HyIan, whose statements con-
cerring the Transit Commission in the
past have questioned it's authority,
motives and intentions, gave out an
otter statement yesterday, in which
he tacitly acknowledged the good faith
and possible success Of the commis-
sion's inquiry into the affairs of the
Intertorough Rapid Transit Company,
aud suggested that ''the Transit Com
mission ought to submit it's evidence
to the District Attorney, so that he
can present it to the grand jury"
II will ask the Corporation Counsel"
he said, "to pernse the minutes of the
transit hearing with view to ascer-
tanning if there is not some way that
the City of New York can obtain lega!
redress for the loss Of returns on it's
investments of almost $300,000,O00 in
the subways.
"lt seems to me that the high-handed
and frenzied financial manipulation OF
the Interborough directors has tended
to delay and postpone the day That
the city can realize some return on
its subway properties"
Craig Indorses Mayor
Comptroller Craig backed up the
Mayor with this statement:
"The directors OF the Interhorough
ought to be treated according to law
There should be no distinction or dis
elimination in their favor. The Dis
trict Attorney should examine the facts
and if a crime has been committed
those responsible should be prosecuted.
l. L
have been victims OF .Ie directors
market manipulations are alert to their
own interests they will see that their
losses are made good t. them by the
directors whose Illegal actions were re-
spcrsible for the losses"
The Transit Commission had no
comment to make on the statements of
mayor Hylan and Comptroller Craig.
District Attorney Edward Swami and
Assistant District Attorney Joab Ban
ton were reported out Of the city.
Investigation To Go On
The refusal of the Interborough di-
rectors to testify unless they were re-
lieved from signing waivers of i'm
munity, it WAS said. would not prevent
the commission from completing it's
investigation of the transit company.
While the directors escaped personal
examination by do6ging behind the
barrier CT constitutional rights,
Clarence J. Shearn, special counsel for
the commission, has contended that
heir attitude has not detracted from
the value of the testimony of subordi-
nate cficers cf the company and the
cold facts of tho minute books of
meetings Of the directors, already in
evidence.
Next week the commission will re-
sume the IHterborough probe, carry
ing out Chairman George McAneny S
7arting word to the directors on
thursday:
eve shall continue to use whatever
gemedy or means we have at our COM
mand through the exercise of the
lack.'
Correction by Hedley
Frank Hedley, president of the Inter
borough, issued a statement yesterday
to correct an error in reports of pro-
ceedings in the Supreme Court on
Thursday in the action of Clarence II
on which the Interborough defaulted
interest last September. The state
ment follows:
Counsel for the Interborough Rapid
Transit Company was reported as say
ing in court, upon the argument OF
the action of Venner against the COM
pany, that $50 ,000,0 ,0o0 of the S3S 200, 600
issue of notes has been renewed for
another year and tho remaining
s2,0000G0 was being paid off. What
was said to the court was that the re-
manning S2.000,000 was being deposited
for extension at the rate of $4,000 to
$4,000 a day
"N<ot single note has been paid an1
the company has no funds to pay any
Of these notes. They must be extended
If the note-holders desire to avoid q
receivership OF the company in the
near future"