The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-26
tanker PUT HAND IN CITY'S POCKET
;OR MILLIONS OF TRANSIT PLUMBER

Continued from Page OQe)
on company. The Interborough had
aid 5ss per cent when it had bor-
owed the money from this same
anBng house.
Generous City!
Here was an additional rake off!
he city in the meantime was allow
1g the Interborough per cent for
8 investment. Through the so-called
Preferential guaranteed earnings pro-
ision under Contracts Nos. and 4,
he city as matter Of fact paid the
ompanies this interest, at the maxi
mum percentage.
Was this all? Not at all!
The gentlemen who put over the
teal for the traction trust received
heir reward. 1t has already been re-
ated how Richard Reid Roger, coun-
cl for the marlborough, received the
Jonus of $4,000 for his part in the
'rame-up. Theodore P. Shonts, presi-
lent of the Interborough, received two
bonuses, one Of $125,000 and another
IF $4,000, making a handsome total
IF $4,000. Timothy S. Williams,
hen president Of the B. r. r., re-
Feived a bonus Of 100000. His
alary, which before the steal had
)een a paltry $4,000 per year, was
.hereupon increased to $4,000.
Shonts, who previously had been try
ing to make ends meet on mere
$4,000 per annum, was promoted to
the less trying wage Of 100000 an
nually.
Nor was this ALL
Under the contract, the INTERIOR
ough was allowed 100000 for the
so-called Steinway Tunnel for which
the marlborough had neither exact
franchise rights nor legal claim of
any sort. For this pretty piece of
triclery and outright theft thanks is
again due to the same George Nc
Aneny then chairman of the Board of
Estimate.
As for the &. NJ. T., as may be ex-
pected, this company was not left out
entirely in the cold. First of all there
was allowed it something like 81 ,000,-
goo for land used to connect the sub
way and elevated lines at Fifth Ave.
and Seth St., Brooklyn. In addition
there were numbers of other parcels
Of land not including the contribution
Of the bonus to the president of the
concern, Timothy S. Williams, who
received the previously stated $780,
600 together with the increase in
salary.
But even these royal rake-offs
we're as small change to the revenue
exacted by the Morgan firm. This
concern which has its long fingers in
overyones pockets was not content
with the trick of selling mortgage
bonds worth 1000 at an initial profit
of 10 as previously stated; it was not
satisfied with Withholding the money
from the marlborough and charging
interest for not passing on this
money; it too had to receive a bonus
and a percentage.
In the first place, Morgan received
SO Of all money raised through his
firm; secondly the firm received
cold cash bonus of $500,000-a clean
half million of dollars!
The foregoing is something of the
picture as it appears to one who
obtains sort of birds eye view Of
that period when professional hold
up artists joined with the more re-
spectible financial bandits to form a
Plunderbund Of unequaled audacity.
That their form of plumber was made
legal" is but another proof that they
are essentially social parasites.
The testimony already revealed be-
fore the present transit hearings in
which it was shown that the ring op-
crates the subways, not for service
but for plumber is scarcely astonish-
ing in the light of the above facts.
The original booty captured by this
gang just as is the present toll, was
under the preferential" guaranteed
earnings provision in the contracts
charged up and paid for by the city,
) tums running into the tens Of mil
H&ns.
The next article will reveal how
this gang was perpetuated by the
appointments of Governor Miller,
how it HAS maintained its hold to the
present day.