New-York tribune., 1921-11-30
Directors Obtain Delay
Until To-day to Con-
suit Counsel ON Legal
Status Before Testifying
l5-Cent Fare Rate
Revealed by Hedges
Public Pays 1925, 900
Extra on Surface Lines:
Bus Plan Flaws Barred

On the plea that they had found it
necessary to consult personal counsel,
in view of the question raised as to the
legality of financial deals of the Inter
borough Rapid Transit Company, the
examination Of the traction companv's
directors was yesterday postponed by
the Transit Commission until this
morning.
The stage was all set for the appear
ance of August Belmont, f. j. Berwind
and other directors to explain the va
rious stock transactions which have
been under fire, when James L. Quack-
enbush, general counsel of the COM
pany, made the unexpected request for
delay. Mr.. Quackenbush informed the
commission that. as he did not become
general counsel until after the death
of Theodore P. Shonts, he could not
proceed in connection with questions
OF corporate policy taken on legal ad-
vice OF his predecessor and now being
aired by the commission.
Legal Tangle Feared
II feel,p said Mr.. Quackenbush,
speaking earnestly, "that the directors
who might be subject to civil liability
as result of their transactions are en-
titled to the advice of their own private
counsel. If any action should be taken
against them, such as that threatened
by Clarence H. Venner, l would be in
no position to represent them, as nv
business is to represent the corpora
tion."
Another reason for asking that the
examination be deferred, Mr.. Quacken-
bush said, was the fact that the ad-
journad meeting of the stockholders
and the regular meeting Of the di-
rectors were scheduled for yesterday.
These meetings were held, but no state
ment was given out by. the company.
The. directors who are to be questioned
to-day passed most of yesterday in con-
sultation with their personal lawyers,
it was said. In addition to Mr.. Bel
mont and Mr.. Berwind, among the first
to take the stand will include Daniel
G. Reid and Guy Tripp,
Agreeing to the postponement, Mr..
Shearn said he wanted it clearly un-
derstood that Mr.. Quackenbush was in
no sense responsible as counsel for any
Of the transactions disclosed He
added: ut seems to me that, in view
of the situation in which these di-
rectors find themselves, it is only fair
that they should have the opportunity
to consult with their own attorneys
before being examined" George Me-
Aneny, chairman Of the commission,
said he was of the same opinion.
Stock Dealings Shown
With the program for yesterday up
set, Mr.. Shearn devoted the morning
session to placing in evidence, through
Fred w. Lindars, chief accountant of
the commission, figures showing the
alleged manipulation of the INTERIOR
ough Metropolitan preferred and COM
mon stock, Interborough Metropolitan
collateral trust bonds and INTERIOR
ough Consolidated preferred and COM
mon stock.
In the afternoon the commission re-
sumed the investigation of the finan-
cial and operating conditions of the
New York Railways Company. calling
as witnesses Job E. Hedges, receiver
of the company, and Frederic T. Wood,
secretary to the receiver and assistant
in operations.
Mr.. Hedges, in philosophical and
humorous vein, gave his views on the
commissions plan for a consolidation
of the city's transit lines. He agreed
that the plan would eliminate the stock
jobbing element and accomplish econ
omies and better service, but, like
Frank W. Hedley, president of the In
terborough, he questioned the compost
tion of the proposed board of control
to handle the financial management of
the unification.
This board, according to the plan, is
to be made UP of three members named
by the Mayor, three named by the Sc
curity holders and seventh to be
selected by the two groups or the COM
mission in the event of a deadlock
Warning by Hedges
"With everybody guessing which side
has picked the odd man." said Mr..
Hedges, "the thing will be plunged into
state of rough and tumble politics
in the beginning, and we will have a
mess of it. With three men always
voting alike and three men thinking
they were going to vote alike and not
always doing it, you would have a
board of three running the city, and l
am speaking now regardless of the
tcontnued page fourteen)