The New York herald., 1921-12-02

. the city unified system and did at one
time carry 1t to quite a greater extent
almost than there is prospect of doing
now. But when II was done by this cor
poration II was called a monopoly and
condemned. When ii Is suggested by
your commission it Is called an excel
lent move.
III we made mistake I'm measuring
our cloth that is another matter. But
to impugn our motives is something that
we feel ought to be disposed Of by a
tribunal where the procedure Is fair to
U.S. have been before these ex parte
Investigations and we have no protection
whatever
Now I feel so clearly myself that
my conscience is perfectly clear in the
matter that personally l should not OBJ
ject. even at risk of being misrepre-
sented or having an unfavorable record.
But we cannot waive immunity. because
We stand In the attitude OF trustees.
| If you attacl, our management, our per-
sonal characters and what we have
done. you attack the credit OF the cor
poration."
Tells of Credit Troubles.
With the permission of Chairman
| McAneny to talk as long az he wished,
| Mr. Belmont here embarked on pro-
tracted narrative of the financing OF the
| subway enterprises and their inception.
I Those who had constructed the first SUBJ
way. he said, were believed to have
reaped too great an advantage. Abuse
| began to pour on them through the
press, and the Elsberg bill was passed,
refusing the use of the citys credit
| and making future transit enterprises
| wholly dependent on private capital.
| With the management under the per-
| sistent abuse of the press, with the
| commission under fear OF the lash in
vestors would not put their money into
it and for five years nobody was able
to expand the city's transportation
| facilities.
Mr.. Belmont and his associates, he
said, were on record before the commis-
sion as being ready to build the East
and West Side subways under what is
known as Contract No. l..
"But we weren't allowed to build
those lines Mr.. Belmont asserted. III
| this company had been treated fairly.
that is in the same sense of believing
in it's purpose, it would have succeeded
at the time-before 1s05-in doing what
! has now been done nine or ten years
afterward. Facilities would now have
| been sufficient. But they didn't let us do
| IT, and now we are abused for not
doing it.
"The company is always abused for
crowding which is due not so much to
! insufficient equipment and inability to
! put on much more as it is because ex-
! pansion has been postponed too long.
| But the spirit in which the subject is
] approached to-day is that this property
should be taken from an Incompetent
dishonest and speculative management
first, and then taken away from invest
ments made in good faith at a valuation
far below-I am sure Of it-any it will
| be possible for them to accept don't
mean accept, but possible for them to
approve. And that Is the reward"
'ThinfbIe Rigging Limited"
AS for speculation, Mr.. Belmont said
the bulk of the people who invest in such
corporations do it in good faith What
went on In the market was not different
from what goes on in speculation in other
securities. and there had never been any
| great activity 'Tf it were possible for
Mr.. Shearn TO prove this 'thimble rig
ging' and speculation. the witness said.
''he could prove it only on very limited
scale"
! 1t never had been intended by any di-
! rector to refuse TO appear before the
commission. They allowed themselves to
be subjected to service in the usual
form, he said. But" he added scorr-
fully and shaking his finger toward the
press table. IT read In the papers this
morning that we were served just as
though we were nabbed. each OF u.s. as
we came out Of our meeting. Instead OF
that we left the table to go out and re-
ceive It.
That is only small indication OF
the spirit We have to meet. The attitude
80
exanining-allowm me. / have TO say it
is always that we are wrong until we
have proved ourselves to be right. 1t is
| Just the reverse in a court.
"1 frankly feel that IN the interests
of the city you want TO acquire this
property as easily and cheaply as possi-
BILE. You are perfectly justified In doing
that Perhaps you might call II your
duty to get Il as cheaply as possible,
and to DO that you must present 1t in
the worst light possible"
Speaking of suggestions OF impairment
OF capital. Mr.. Belmont said IL was 70
such implications the directors COM
municahon referred as furnishing ma
terial 30 Clarence II. Venner.
II was at this precise psychological
moment Mr.. Nicoll excused himself. say
ing he had just received word that he
was wanted in Justice Burr's court,
where the redoubtable venner was maxi
ing motion for judgment on pleadings.
His clients were left I'm care Of Mr.. MIL
burn and Morgan J. OBrien.
Refers to Hedley Testimony.
Mr. McAnony again addressed Mr.
Belmont:
"I think you arc in error In your state
nent that all these matters have been
reviewed before. ] have seen for in
stance. no previous reference to the fact
that at time when enormous dividends
were being paid the company was so
clearly approaching a condition where
its surplus would be exhausted almost
within the year or two in sight.
Mr.. Hedley testified he would have
had none of his difficulties had there not
been a declaration OF dividends In cx-
cess OF the per cent. that, if you will
pardon me- almost good faith required
! to have been accepted as limit"
The chairman said the present COM
mission, perhaps, is not entitled to
] ft,,o vrel uyith nIa Aaop,foY ~.,t.-