The New York herald., 1921-12-02
|. R. 7. MEN MEN REFUSE
TO WAIVE IMMUNITY
And ARE DISMISSED.
e of Z Directors Appear at
Transit Hearing, but
Fail to Testify.
BELMONT ON DEFENCE
Insists Company's Credit
Might Be Impaired by
Testimony.
CRITICISES COMMISSION
CRITICISES COMMISSION
Thinks State Body Aims to
Hurt Standing Of Lines i'm Or
der to Get Them Cheaply.

Six of the seven directors of the
Interborough Rapid Transit Company
summoned by subpoena to testify be-
fJre the Transit Commission ap-
peared at its hearing yesterday morn
Ing. Under advice Of counsel they,
one and all, refused to sign waivers
of immunity. AS the commission de-
clined to interrogate them concern
Ing swollen dividends, shrunken as
sets and other phases of the corpo-
rate management from 1917 to 1919
except under waiver of immunity the
witnesses were dismissed.
Their leaving the. examination
room marked the close Of q sensa-
tional incident for the time being
1t did not occur, however, until after
there had been lively exchange OF
views, bristling at times with evi
dences of heat, between August Bel
mont, chairman Of the Interborough
board Of directors, on the one hand
and George McAneny chairman, and
Clarence J. Shearn, special counsel of
the commission, on the other.
Directors who appeared in person
were Mr.. Belmont, Edward ]. Ber-
wind, chairman of the Interborough
Rapid Transit executive committee;
Brig.-Gen. Cornelius Vanderbilt, Nor.
gan J. O'Brien, Daniel g. Reid and F.
de Courcey Sullivan. They entered
the examination room attended by
De Lancey Nicoll and John G. Mil.
burn of their personal counsel.
CuyIer Stands with Others.
flames J.. Quackenbush, general
counsel OF the Interborough, also was
present to protect the interests OF the
com pany, and explained that T. De
Witt Cuyler, the seventh director SUBJ
ponaed, had sent word from Washing
ton that he would accept service on
MS return to-day. When counsel as
sured the commission, however. that
Mr.. Cuyler stood with his associates
in refusing to waive immunity and
in their general attitude he was ex-
Cused from attendance.
Though Mr.. Belmont was not inter-
rogated he was permitted to make for
the record a voluminous statement, in
which he defended his position and
that of his fellow directors, all of
rx-h< ha ratd 20
by thimble rigging" methods in the
stock market, had suffered severe
financial losses his own the greatest.
Mr.. Belmont rebuked Mr.. Shearn.
Turning toward the commissions
counsel he shook his finger in en-
phasis and said in a voice tense with
feeling:
Your sweeping assertion of the di-
rectors being interested in gambling In
connection with the property. / think,
was uncalled for and should have
awaited this examination. You made
the statement, and / wish to repudiate
II so far as am concerned"
The banker referred feelingly to his
own pioneer work in behalf of the
first subway and spoke with bitter
ness Of the abuse and criticism that
had been his reward.
"Company's Credit Involved"
MIR Belmont insisted It was not per-
sonsl considerations or fear of the con-
seouences Of their acts on the part or
hin, and his associates that caused them
TO refuse q waiver OF immunity. They
were prompted solely by a recognition
of their responsibility In maintaining so
far as possible the credit of the cor
pora tions of which they are the chosen
representatives.
The traction financier further made
the flat assertion that he believed the
commission sought to deprsciate the
credit Of the Interborough in the hope of
acquiring II for the city under the COM
missions plan, las easily and cheaply
as possible"
Mr.. Belmont seemed somewhat ner-
sous when lrs mounted the witness
stand and was sworn. Later. as he
launched into his defensive statement,
he was more at ease and frequently
emphasized his points by gesturing
freely with his hands. His five fellow
directors, who had no port other than
that OF spectators. sat in a group near
the counsel table. listening intently.
Cen. Vanderbilt. who was suffering
from a cold. coughed at intervals and
often applied rumpled handkerchief to
his lips
MIR. Shearn. in opening the proceed
ings, told his witness the commission
desired to question him especially con-
r~rring the declaration OF dividends by
the 7. r. T. and the Interborough Con-
soidatcd 'at periods when. as II appears
TO the commIssion, n very serious ques-
tion arises whether the dividends wsre
not declared out of capital"
Now" said Mr.. Shearn, "inasmuch
Continues on Page Nine.