The evening world. Newspaper, November 18, 1921, Page 4

{0 SES OA nee Vee ay ie eetiagie Cg nN ae tht a a 5 ee centage ty io 4 ENDS PAID LR. 7. THREE ~ TIMES STOCK COST eens estment of $21,620,060 Netted $65,625,000 in Sixteen Years, : : : jp aaienaintaniabs HINT AT CONTEMPT SUIT Refusal of Company’s Audito- i Answer Arouses Anger > fof Transit Commission. Shtisfied that the Trensit Commis- | giog is determined to delve Into the ve depths of Interborough Rapld ‘Transit Company finances, officials of the latter company, it was learned to-fay, have made up their minds to “put all their cards on the table” whea the sessions are resumed before the. commission next Monday. Sipce the Commi nas reserved tinal decision vn iis & all@red contempt of & Gagmor, veteran auditor of the com- pany, and ts virtually looking upon MrSGaynor as a recalcitrant witness, he fhas been advised by James L. Quackenbush, counsel for the Inter- Dorgugh, to be less evasive, When he resgmes the witness stand Monday it is @xpected that the traction com- pauy's financial expert will be more biust in his answers. @ Commission's counsel, former Bugreme Court Justive Clarence J. Shera, will take up consecutively the finances of every associated com- pany in the Interborwugh group. He wiliggo into both sides uf the balance ehost of these subsidiaries in an ef- fortto bring to light for the public's 0) tion the true financial status of te Interborough's wrporate con- ns. Quackenbush took occasion to ion in his remarks, Clarence J. er, Interborough minority stock- » Who is trying through court to have a receiver appointed 16 road. simply want to say that I trust the commission and counsel will ber that thero js a certain gen- Mamed Venner in this town, he is very much interested in very facts, and that I am en- @eaforing, as well as I may, to oppore Dis Activities in the court for the pur- pos¢ of ruining this company,” Mr, Quabkenbush said, in concluding his BY. “Eknow that Judge Shearn does not to make a record here that will it Mr. Clarencs Venner. Of Mr. Gaynor must be somewhat cautious in making his answers,” which Mr, Shearn replied: je truth will never assist Mr. ‘Venper, and all I am after is tho truth. I do not expect to draw any conglusions or charactorizations about solvpncy or insolvency or anything of ‘the Bort from Mr. Gaynor, but I was very anxious to demonstrate the sig- mifigance of the accounts, [ think it has? been demonstrated, but 1 think ‘that It ls due from Mr. Gaynor and You can measure our joys’ clothing by the same standard you measure oug men’s—we make it our- selves. long trouser suits, youths’ suits—the right thing for ev¢ry boy 214 or older. Have you seen our junior Narfolks for boys of 3 to 10? ity smart with their -pleats and sewed on The white insert and shields for if ys band holidays are extra touches that always appeal to mothers. Down-to-date in price and up-to-date in style. Boys’ furnishings, hats and shoes of the sort we like to have worn with our clothing. f Rocers Peet COMPANY wisn se anne Fifth Ave. at 41st St. 20% PAID TOI.R. T. INVESTORS 3 YEARS; 7 YEARS OVER 10% Transit Commission’s Counsel Re- veals Huge Returns on $21,620,000 Stock. The full extent of the dividends declared by the Interborough Rapid Transit Company during recent years was brought out yesterday by Counsel Shearn at the resump- tion of the traction hearings. Since 1904, up to ana including 1919, the last year dividends were declared, $65,625,000 was paid in cash to shareholders for stock which cost in cash only $21,620,000, or one-third of the return they re- ceived over a pertoa of sixteen years, The list of dividend years, in- cluding 1915, 1916 and 1917, when 20 per cent. was paid yearly, fol- lows: Year ending Tate Amount. $700,000 2,362,600 2,887,500 3,150,000 3,160,000 3,150,000 3,150,000 June 20. -| your company to this commission, upon reading over the questions, which he will have an opportunity to; of dividends i! read over between now and the next session, that he give a direct an- ewer.” “I should advise him now, if you ore going to proceed, to answer ‘yes to your question, and I will answor ‘yes’ for the company. ‘There is no question about that,” said Mr. Quack~ enbush. The question that Mr. Gaynor re- fused to answer was: “If your account on the asset side includes among the assets stocks to the extent of millions of dollars which are In fact worthless, then so far as that {tem !s concerned the ac- count does not truly set forth the condition of your company?” “L cannot answer that question,” the witness replied. His refusal to answer, he explained, was because he could not state that the stocks go in- cluded have depreciated in value or are worthless without an Inventory of the company in which the stock wan held. The extent to which the Interbor- ough proved a bonanza to investors was shown in a table of dividends presented by Mr. She rn. In the years from 1904 to. 1919, Inclusive, this table showed, $65,625,000 was pald to stockholders ‘in dividends, whereas the total cost in cash of all the stock of the road was only $21,620,900. In rther words, the stockholders during that period received three times over the cost of their holdings in divi- dends. Continuing this line of inquiry from Frederick W. Lindars, chief account- ant to the commission, who testified ‘Wednesday, Mr. Shearn brought out that during the years 1915, 1916 and 1917, the Interborough paid to its stockholders in dividends $7,000,000 yearly, although the earnings of the company were not sufficient to meet the dividend requirements. “To pay these dividends the company exhausted its cash resources, and in| addition borrawed approximately $2,- | 600,000 on short term notes,” Shearn added. "Since discontinuance i 400,000 ished coatings. Smart Coats with Beaver Collars 38.00 Trimly built along “tailored lines. Mannish weaves—some with squirrel or Krimmer col- lars, too. Entirely silk lined. SquirrelCollarsand Cuffs on these Cozy Coats 50.00 Built on the slim tailored lines that areas youtful as they are smart; fashioned of soft fin- Women's Coats—Second Floor Misses’ Coats —Fourth Floor Important Sale News for both Womenzand Misses Cloth and Silk Frocks Women's Frocks—Sixth Floor additional on short meet Its interest charges.”” Mr. Shearn asserted that this proved that payment of the! term notes to ment “out of surplus huge dividends THE EVENING WORLD, FRIDAY, NOVEMBER 18, '1921. must have been accomplished by pay- instead of out of earnings, but if there was no sur- plus they were paid out of capital,” “ Sizes 7 to 11.. Sizes 1114 to 2. Sizes 6 to 8. 8% toll. eA 47-51 W 34"St. NewYork Newark Store ~ 649 Broad St. HOOKID HOES FOR BOYS AND GIRLS 160% Leather, From Toe to Heel and From Upper to Sole Quality Considered. the Least Ex- pensive Shoes tor Children to Be Had Anywhere. TAN GRAIN LEATHER GENUINE CALFSKIN Black Tan $4.45 25 5.35 5.95 6.35 For Children. .$4.35 1}4to2. ForN NoConnection With Any Other Establishment in the World BROADWAY-FIFTH AVENUE New Coats for Mid-Winter At New Low Price Levels For each week, indeed, each day. brings newer models and greater values to our coat departments. most recently arrived are these four—for women and misses Coat of Marcella and Beaver Below Wholesale Cost Scores of our newer winter models reduced for imme- diate clearance. A triumph of value and variety. 17° Poiret Twill, Canton Crepe, Crepe Satins, Velveteen $175.00 worRThH ‘THIRTY-FOURTH STREET Among those Tailored Coats with Leather Buttons 25.00 Gray, blue, green, brown colorings. Staunch tailoring. Smart lines; wearing leather buttons of self color. Bolivia Coats with Squirrel Collars 65.00 A severely simple model that conforms toeither thestraight- ' line’ or bloused ° silhouette. Wearing ‘a large adjystable collarof dark, natural squirrel. $3.55 + $415 BOYS’ 5th- AVENUE AT 35th ST. MADE \ CLOTHES FOR BOYS REEFERS (Button to neck style) BLUES AND FANCY MIXTURES. *1 350 We personally select the materials used in Best-made clothes .. and none but the best will do! Every detail of every step in the making is supervised by our own experts—from the cutting to the final pressing, and from the inner lining to the buttonholes! Safe-guarded thus at every point, Best- made clothes can’t be anything but the best! CHILDREN’S BATH-ROBES *3°° Warm, cozy blanket cloth in various colors Sizes 2 to 8 years Best & Co. IT MAKES LITTLE DIFFERENCE WHAT YOU NEED— 5.00 formerly up to 8.75 This sale provides an excellent opportunity to secure Christmas gifts distinctive in appearance cnd excellent in quality. These bags, unique in shape and fashioned to provide the utmost their user, have been taken from our convenience to regular stock and marked at this low price for one day only. A choice of Silk Duvetyne, plain or fancy Chiffon Velvet, Pin Seal, Morocco or Ooze Cowhide may be made. Some are equip- ped with inside framed compart- ments, others with purse and mirror. (Main Floor) FIFTH FLOOR