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Mr. Hedges. Yes, you are the first man ever escaped.

Mr. Garrison. May I ask your Honors what has become of the applications made by me as Receiver of the surface lines in Brooklyn of which I am Receiver, and of the elevated and subway lines in Brooklyn of which I am Receiver? What has become of those applications? Has any action been taken?

Mr. Craig. Well, they are here before us now; if you had your X-ray eye you could see them right here.

Mr. Garrison. I am simply trying to find out the technical situation. They are still under consideration?

Mr. Craig. They are here right now.

Mr. Garrison. You have not taken any action as yet?

The Chairman.— We are taking action.

Mr. Sullivan. Action has been taken sending it to this inquiry. That is the action that has been taken.

Mr. Garrison.- Well, I had not been advised of that as yet.

Mr. Sullivan. And it is here for consideration.

Mr. Garrison. I had not been advised of that.

Mr. Craig. If there is no other business I move we adjourn. The Chairman.- Tomorrow afternoon at 2:30 we will take up the question of terminal markets.

Mr. Craig. This hearing is adjourned until 10:30 next Wednesday morning.

Whereupon, at 3:50 p. m., the hearing was adjourned to Wednesday, January 21, 1919, at 10:30 a. m.

BEFORE:

JANUARY 21, 1920

BOARD OF ESTIMATE CHAMBER, CITY HALL
NEW YORK CITY

HON. JOHN F. HYLAN, Mayor;

CHARLES L. CRAIG, Comptroller (absent);

HENRY H. CURRAN, President Borough of Manhattan;
FIORELLO H. LAGUARDIA, President Board of Aldermen;
EDWARD RIEGELMANN, President Borough of Brooklyn;
HENRY BRUCKNER, President Borough of The Bronx;
W. AUGUSTUS SHIPLEY, Acting President Borough of
Queens;

CALVIN D. VANNAME, President Borough of Richmond;
By JOHN E. BowE, Acting President.

APPEARANCES:

The Mayor presided.

WILLIAM P. BURR, Corporation Counsel;

JOHN F. COLLINS,

EDGAR G. KOHLER,

JOSIAH A. STOVER,

JOSEPH A. DEVERY,

WILLIAM S. BENNETT,

DR. JOHN BAUER.

JAMES L. QUACKENBUSH, Interborough Rapid Transit Com

pany;

RALPH MARTIN,

CARL M. OWEN,

ALFRED A. Cook,

HENRY L. STIMSON,
MR. HOBBS.

The Chairman.-- I might say the Comptroller's office just notified me that he was unable to get out today on account of a very bad cold, and the doctor has ordered him to remain at home, so we will proceed with the hearing.

Mr. Riegelmann. I do not like to go ahead without him. The Chairman. Yes. Call up and ask him to send a representative to the Board. His Deputy is coming over, Mr. Hahlo. Mr. Burr.- Oh, yes.

Mr. Riegelmann.- We can go ahead without him.

The Mayor.- Surely, but it is better to have a full Board. We expect Mr. Hahlo over. We will go right along, Mr. Burr.

Mr. Burr.- May it please your Honor and Members of the Board: You will remember that the special object of the inquiry today is to ascertain the actual monetary investment for the equipment of the first subway under Contract No. 1, by the contractor, John B. MacDonald, or by him and his assignees, and the Interborough Rapid Transit Company; that is, to ascertain the extent to which funds of the investing public supplemental moneys supplied by the City of New York for the construction and equipment of original subway under Contract No. 1.

After that, to ascertain the actual monetary investment of funds other than those supplied by the City of New York in the construction and equipment of the Brooklyn Extension of the original subway under what is known as Contract No. 2.

Now I will begin by calling Mr. Fullen, of the Rapid Transit Commissioner's Office, to prove the contracts. Mr. Fullen.

WILLIAM G. FULLEN was called as a witness and, being duly sworn, testified as follows:

Direct examination by Mr. Burr:

Q. What is your official position, Mr. Fullen? A. Assistant Counsel to the Transit Construction Commissioner.

Q. And how long have you occupied that position? A. That position, about four years.

Q. Well, with the Rapid Transit Commissioner only since his appointment? A. No, with the Public Service Commission also. Q. And have you charge of the records of that Commission, or any part of them? A. Oh, yes, yes.

Q. You have been asked to produce here copies of the original contracts, or the original contracts, 1, 2, 3 and 4? A. Yes.

Q. And the papers accompanying particularly the proposals for construction under Contract No. 1. Have you done so? A. I have.

Q. Will you produce them? A. I have Contract No. 1, dated February 21, 1900, between the City of New York acting by the Board of Rapid Transit Railroad Commissioners, and John B. MacDonald, for the construction of the railroad therein described. Mr. Burr. I ask to have that marked in evidence.

The Witness. This also shows, may I add, the modifying agreements to Contract No. 1 which were enumerated in this volume.

Mr. Burr. Mark that in evidence.

(The volume was marked Exhibit 1 of this date.)

Q. Those supplemental agreements are to April 15th? À. And the added ones to the last modification.

Q. Have you any other paper relating to Contract No. 1? A. The minutes, the original minutes as certified by the Old Rapid Transit Board to the Public Service Commission under the provisions of Chapter 429 of the Laws of 1907. I have those original minutes here which were so certified.

Mr. Burr. We will mark those also.

(Three volumes of printed minutes marked Exhibit No. 2 of this date.)

Q. What other papers have you brought relating to Contract No. 1? A. Contract No. 3, the contract dated March 19, 1913, between the City of New York acting by the Public Service Commission for the First District, and Interborough Rapid Transit Company, in so far as it modified Contract No. 1.

Q. Have you that paper with you? A. Contract No. 3 is here, yes.

Mr. Burr.- Mark that also.

(The contract was marked Exhibit No. 3 of this date.)

Q. Have you brought the proposals of John B. MacDonald?

A. The proposal of John B. MacDonald is printed in the minutes of the Board of Rapid Transit Railroad Commissioners.

Q. What page? A. In Volume 3, for the meeting of January 15, 1900, at pages 862, 863 and the following pages.

Q. Have you brought Contract 3 now modifying Contract No. 1? A. Only in so far as it modified Contract No. 1.

Q. Well, you had better produce the contract in full. A. Contract 3 (producing document).

Q. Yes. A. Do you want that now?

Q. Yes. A. Contract No. 3, with all the modifications to and including modifying agreement No. 7, which is dated June 3,

1918.

Mr. Burr.- Mark that.

(The document marked Exhibit No. 4 of this date.)

Mr. Burr.- Did you mark the proposals of John B. MacDonald separately in that volume?

(The proposals, at pages 862 et seq., were marked Exhibit 5 of this date.)

The Witness.— I have also produced the Contract No. 2, with all the modifications to and including the last, dated July 29, 1919.

Mr. Burr.- Mark that also.

(Contract marked Exhibit 6 of this date.)

Q. What other paper have you produced? A. I have also produced copy of the certificate dated March 19, 1913, granted to the Interborough Rapid Transit Company by the Public Service Commission for the first district, for extensions to the elevated lines, the Webster Avenue line, Eighth Avenue and 162nd Street connection, Queensborough Bridge line, and West Farms Subway connection, together with a modification of that certificate dated May 22, 1914.

Mr. Burr. I ask to have that marked also.

(Certificate and modification marked Exhibit Nos. 7 and 8 of this date.)

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