The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-26
BIN. T. CONTROLS
CITY TRACTION,
HEARING SHOWS
Ring Keeps Control By
Shady Stock Voting
By RoRERT MITCHELL

The Transit Commission investiga-
ton Of the traction situation opened
its second hearing at 270 Madison
Ave. yesterday with its star perform
ers on the first part of the bill.
The Monday hearing revealed the
fact that perhaps as much as $3.50 Of
the |. r. 7. stock is in the hands of
Wall Street spectators who use their
power to elect their non stock owning
dummy directors. These directors use
their offices merely as means Of
plundering the company by selling
themselves coal, supplies and other
materials at exorbitant figures.
While the Monday hearing disclosed
the fact that the present traction
ring had no interest in providing
transit service to the people, the pro-
ceedings yesterday showed that by
means of corrupt and undoubtedly IL
legal voting of stock which in most
cases these spectators no longer
owned, they have perpetuated the
plunderbund now operating the tran
sit lines.
The second disclosure was a con-
firmation Of the fact that interests
closely associated with the B. NJ. 7.
now control the marlborough.
The first witness to be called was
Thomas L. Chadbourne, senior mem
Der Of the firm Of Chadbourne,
Stanchfield and Levy, attorneys for
banks, railroads and the Powers that
Be in general. Chadbourne came to
testify on his own request thereby
implying a willingness to furnish in
formation which was Immediately be-
lied by his reiterated refusal to re-
ply to pertinent queries as to when
the traction ring had acquired control
of the local lines.
Big Stockholders.
Questioning Of Chadbourne, which
occupied the major portion of the
short hearing, revealed the fact that
as the personal friend of Gerhard
Dahl, chairman of the B. NJ. T. Board
of Directors, he owned some $500
shares of stock in the Interborough.
His holdings in the B. NJ. 7. total
about 1900 shares or approximately
1919 of the entire issue.
Chadbourne proved more than
"tough customer" on the witness
stand. All questions intended to re-
veal the date or the method of build
ing up the traction ring were 're-
spectfully declined through advise of
counsel as being a delving into my
purely private business" Nor did this
gentleman bulge when the chairman
of the Transit Commission, John f.
Gilchrist, under the request of I'm
termyer, the commission attorney,
instructed him to answer the ques-
tions. The answer was the same: 81
decline to answer"
Terrible Punishment.
Untermyer limited at some steps
to be taken as a result of the refusall
Perhaps he meant to infer that Chad
bourne would be reported to the Grand
Jury-perhaps he might even be re-
ported to J. P. Morgan & Co., the
result will undoubtedly be the same
in either case.
Following the testimony of the dis
tinguished democratic politician,
Chadbourne, who is undoubtedly one
of the leading powers behind the
traction swindle, Horace M. Fisher,
was recalled to the stand. His I'M
comfortable session on Monday spilled
the few. beans which have thus far
rolled from the carefully guarded
traction table.
On Monday, Fisher was quite put
out by the cross questioning. On
leaving the stand at the time he was
asked by one of his colleagues in