The New York herald., 1921-12-08
N. F. BRADY DEPENDS
DIVIDENDS OF B. R. 7.
Continued from First Pase.

Continued from First Page.
Shearn. lin view OF the fact the re-
ceiver was appointed on the day this last
dividend was collected, as though the
b. II. 7. was in such need OF money that
the receivership was delayed until the
checks could be put through"
There wasn't anything in that" re-
piled Mr. Brady. THAT is just CO
incidence"
"Do YOU agree with Col williams
that failure to decla re dividends In
1917 would have affected unfavorably
the minds OF bankers 60 whom YOU have
10 look for financing improvements?'
1T might have. The bankers buy
our securities only to pass them on t.
the public. and II the public lost faith
in the earning power of the company
they might refuse to buy
THE declaration OF dividends was
reflected In the price of the stock from
time TO time?"
The witness said that was true 'to
some extent"
Had stock at Receivershfp.
II think now ought 10 give you the
OF portunity Of saying whether or not you
were trading actively In y. r. T. stock
during 1917 and 1918" so ia Mr.. Shearn.
II never traded much in 1t. ] bought il
aud ! sold it, but I held OH to most OF
IL and had practically all of my stock
a. the time of the receivership,"
And you had a good deal OF II. didn't
you?" Mr.. Brady admitted that he had.
He did not think that In 1917 he had
any large blocks OF p. r. r. deposited as
collateral for bank loans.
our position then H." asked the eX-
looking bad early in 1917. and although
cost OF labor and materials was mount
ing and taxes were mounting and you
were In difficulties in the matter OF the
Ana ancing OF these s57.000.00 Of notes
that, so long as you had earned the divi-
dend you felt you would not be justified
in disseminating il in 1917 on account OF
the effect It would have on investors
minds. on the company's ability to
fiEance future requirements and6Dn ac-
count Of what Col. Williams has called
your moral obligation to stockholders?'
''That is correct" assented Mr.. Brady
Criticises Transit Plan.
Before Col. Williams left thu witness
chair in the afternoon he responded to
the commissions invitation TO express
his views on its tentative plan for the
reorganization and unification OF al
the city railways and delivered the most
severe attack on that project that has
vet been recorded. Its proposals. ne
said in a written statement pre- Jared b.
him. were In part indirect and in som"
respects objectiona BILE. The city, as
lessor under the plan. he thought, would
lack adequate representation IL SUPER
vsng operation and would have ONLY
one half. or at best four-sevenths. OF the
authority in directing the holding COM
pany 10 which are to be relegated tn:
properties in which the city itself nom
inally holds title.
The holding company or board of con-
troll as projected he further attacked a.
usurping the powers OF the three prospec-
tive operating units. This feature ne pro-
nounced Illegal as well as open 20 serious
objections. Like Frank Hedley and Job &C.
Hedges, Col Williams assailed the seven
membership scheme for the board OF
control. three members to be named by
the Mayor. three by the operating com
psnies and they TO choose the seventh.
'I cannot imagine any more ingenious
arrangement for producing wrong re-
suits" said the veteran head of m.
3. r. r. system. 'As practical pr po-
sition it seems to me you have invcnte
o scheme which could not help but work
curt disastrously. IT would depend en-
tirely on the personnel. But where you
have got three men appointed by the
present Mayor the seventh man to be-
appointed--and collusion between one o.
your three groups OF railroads and these
three men the Mayor appoints--you lave
the possibility OF something wrong there
that would be awful to contemplate.
"shearn Unsophisticnted."
Suppose they were bad men and
should want 10 make several hundred
thousand dollars a year on the side, that
would not be very difficult task for
them to do under cover of the law, even
il the fare payers did have 10 pay a
little more. The purchasing OF supplies
presents only one of the opportunities
for graft--if there is that disposition
the buying OF coal and all other sup
plies
Why would you anticipate" asked
Mr. Shesrn. that this body. even if il
be. as you call II. a political body to the
extent of four OF Its seven members.
would deal with the supervision OF these
In a corrupt Manner
Judge. have known you a good
many years and I did not think YOU
were so unsophisticated." retorted Col.
WliliHHiH dIfllu Ecucth hi w NY
I cannot conceive" the witness con-
tinued, "of any greater opportunity for
private enrichment and political ma
under the guise OF law"
So that his criticism might be con-
structive Col Williams presented plan
of his own which he thought far superior
to that Of the commission. He would
have the railway companies convey title
In their properties to the city at once
and be paid therefor in seml-annual In
stalments at fair valuation and within
y specified time. Until the city shall
have fully paid for the properties ne
would have II lease back the roads to a
corporation named by the sellers. This
lessee, subject TO a board of control con-
sisting preferably OF not more than three
members. would operate the lines and
turn over net profits to the city.
DfsIfIxes Pooling OF Receipts.
Col. williams also would have n pro-
vision for increased fares. II necessary
He argued that one of the benefits Of
his plan would be TO eliminate feature
OF the commissions plan providing.
through n uniform fare and O pooling OF
receipts, for the support of the weaker
by the stronger OF the operating COM
pa nicE.
Tire coloners suggestions provoked
spirited controversy in which he and the
chairman OF the commission and It's
engaged for more than an hour.
Mr. Shearn assailed with especial bitter