The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-24
Brokers Hold Most of
Traction Stock
Continued from Page OneJ


cant fact will be explained later.
The hearings we're opened promptly
on the appearance of the three tran
sit commissioners, Chairman John r..
Gilchrist, Leon G. Cooley and Charles
G. Lockwood. Untermyer, special
counsel for the commission, who is the
main figure in the hearing, began
with the reading Of long prepared
statement calculated to set at rest
anyone who might presume to ques-
ton the propriety or the intention Of
the proceedings. The commission
would listen to all and view all evil
donce impartially. The commission is
in search of and will appreciate light
from every direction.
His statement further laid down
method Of procedure for the later
hearings which consisted Of five main
principles:
First, the various interested com
panies would record themselves as be-
ing part to the hearing.
Second, each witness of these com
panies to be called would appear as
an individual.
Third, the commission counsel would
examine witnesses.
Fourth. the company counsel might
then question the witness.
Fifth, only one counsel would do the
Questioning.
Following the reading Of this state
ment by Untermyer. former Governor
Nathan I. Miller rose to present the
position for the B. NJ. T. He began
by stating that the hearings were
welcome" to his client and that they
would cooperate" in spirit of the
utmost helpfullness" and more to this
effect destined for the stuffed ears of
the people.
Fight Probe Of Control.
Presently he came 10 the point: The
B. NJ. T. would fight all attempts to
investigate the stock transactions Of
its lines, matter which they would
maintain is not not pertinent or re-
levant" to the inquiry.
The B. NJ T. which is known defin-
itely to be the controlling company Of
all the city transit lines, as was pre-
dicted in The DAILY WORKER. will
seek to prevent all delving into its
shady methods.
Following this was statement By
James L. Quackenbush, counsel for
the marlborough, who did not deign
to present his company's position in
the matter but only objected to the
waiver of immunity which Untermyer
demanded Of each witness. This point
was left hanging in the air, so to
speak, but it appears that witnesses
will be under some persuasion to an
swer though there is nothing now to
compel testimony
Who Owns ]. r. r.?
The first witness called was Fl. NJ.
Fisher, secretary of the In
terborough Rapid Transit Company.
Fisher is hard boiled chestnut, typ
ical of the Interborough. He had hard
ly been sworn in before Untermyer
began cross examination intended
to reveal the real owners Of the In
terborough stock.
Fisher had a trying fifteen minutes
in seeking to avoid the answer to di-
rect questions. Old Sammy Inter
myer, himself quite familiar with the
internal affairs Of moro than a few
concerns seasoned to put his hand on
the sore spot in every instance.
Then the information came out: The
stock of the Interborough is held by
about $4,000 stockholders who own to-
gether about $4,000 shares. This
seems pretty widely scattered own
ership. But the first few questions
on this subject revealed the fact that
only about 5000 shares of the total
$4,000 were owned outside of Wall
Street. That is, about SO per cent of
the stock and hence Of the voting
power of the company is in the hands
of the brokers in the financial dis
trict. The full significance of this
revelation viii become clear in rela-
tion to the second fact disclosed.
Untermyer then devoted himself to