The New York herald., 1921-12-01
'1917-19BOard Members
Called After Refusal
to Respond to
Request.
FEAR SUITS BY vENNER
August Belmont, Berwind,
Vanderbilt and O'Brien
Are Subpenaed.
IMMUNITY TO BE DENIED
Shearn Sarcastic at Breach of
Faith of Men Who Prom
ised to Help.

Members of the Interborough board
OF directors who served during the
fiscal years from 1917 to 1919 having
refused. under advice of personal
counsel, to appear for examination
before the Transit Commission yester-
day, subp9nas were issued, returnable
this morning. to compel the appear
ance OF August Belmont, chairman
Of the board; Edward J. Berwind,
chairman of the executive committee;
Brig. Gen. Cornelius Vanderbilt, Dam
lei G. Reid. r. De Witt Cuyler, r..
DE Cou-sey Sullivan and Morgan J..
O'Brien.
Edward Hutchinson, Transit Com
mission inspector, was pressed into
service as subpoena server. He re-
ported before sundown that he had
succeeded in serving subpenas on
Messrs. Belmont, Berwind, O'Brien
and Vanderbilt. He said Mr.. Reid was
not in his office and was reported to
be i'll at his home; that Mr.. Sullivan
was trying an action in Connecticut.
and that Mr. Cuyier. who usually
spends Tuesdays and Fridays in his
Office In this city as head of the
American Associs ton of Railway Ex-
ecutiyes, was absent in Washington.
Gen. Vanderbilt could have had no
direct part in many of the acts under
investigation for the reason that dur
ing much Of the period concerned he
was with the army in France.
The directors based their refusal to
appear voluntarily as witnesses on the
assertion that 'fhe practical result of
the investigation, as it is now being
conducted. is to encourage the hostile
attacks of Clarence II. venuer, a no.
torious speculator in lawsuits"
Wants Waivers OF humanity.
This statement and the recalcitrant
attitude of the directors were resented
by George McAneny, chairman of the
special counsel, attacked the action OF
the directors as "a gross breach OF
faith" Concerning their official acts.
he said. he would ask them no dues-
tons unless they first signed waivers
OF immunity.
In response, James l.. Quackenbush.
general counsel to the Interborough,
said:
"None Of these gentlemen viii sign
any waiver of immunity. I am au-
thorized to make that statement"
Should any or ell of the men respond
In person this morning TO the subpoenas
issued they will be sworn in turn and
asked BY Mr.. Snearn 10 sign immunity
waivers which he had ready for them
yesterday, without treating them to what
Is eolloauiaily known as IAN immunity
bath" Mr.. Sncarr. II he should desire
tc do so. can force them to disclose on
the records their reasons for refusing to
testify and for refusing to sign the Inn
munity waiver.
Mr.. shearn said publicly that if these
mon were innocent OF stock jobbing in
connection with their offIcial acts he had
supposed they would welcome the oppor-
trnity to place themselves right before
the public.
The statement read by Mr.. Guacken-
bcsh In behalf OF the directors was pre-
pared by a group OF prominent lawyers.
counsel 20 several OF the men concerned.
with whom they had been in conference
on Tuesday. Four of these lawyers
were John G.. Milburn. Morgan J.
O'Brisn, De Lancey Nicoll and Albert
Boardman.
ounckenbush Answers.
When the Transit Commission con-
vened in the morning at 40 Lafayette
street Mr.. Shearn In a resonant tono
called:
"Mr. August Belmont
That was the signal for Mr.. Quscken-
bush to arise and address the connmis-
sion. All its members were present.
Mr.. Quacionbush said:
"I have communicated the invitation
OF the Transit Commission to appear In
person for examination to the gentle
men who as directors voted for the divi-
dends declared by the Interborough
Rapid Transit Company In the fiscal
wears 1917 to 1919. They met, not only
The present board OF directors but those
who had resigned from the board. I
file with the commission a statement on
their behalf"
Reading from q paper Mr.. ouacken-
hush continued I'm response. they beg
" state that they have no disposition
10 question Che motives OF the commits
sion or Of its counsel but they respect
fully submit that the practical result OF
tho investigation, az II is now being
conducted is to encourage the hostile
attacks of Clarence II. venner, a no
torious speculator in lawsuits and
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Continued on Page Seven.
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