New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-07-12
MIR. BALDWIN AND MR.. CLARK
FINANCIAL RELATIONS OF THE PAIR
A RATHER CLOSE INTIMACY EXISTING BETWEEN
AN AoUEDUCT COMMISSIONER AND ONE
OF THE coNTRAcroRs-MR MCULLoH
MAC ruxu won nc To SAY ABOUT

A
AN AoUEDUCT COMMISSIONER AND ONE
OF THE CoNTRACroRs-MR. M'CULLoH
HAS FEW WORDS TO SAY ABOUT
SECRET MEETINGS
II would be impossible for any fair investfga-
! tion of wrong-dong in this city to
be completed without involving the
County Democracy The State Senate
inquiry is no exception to this rule. as was shown
yesterday when it revealed the fact that inc
treasurer of the Adueduct Board. Christopher y.
Baldwin. had been engaged while in his present
official position in financial transactions OF an
extended and peculiar character with Heman
Clark. John O'Bren's partner in the Aqueduct
work Mr. Baldwin himself admitted this on
the stand insisting Of course. that in all his
relations with the contractor there was nothing
dishonorable or even improper. Nevertheless, he
.9ve his testimony on, these matters under pro-
test, and only when directed to do so by Senator
Hendricks who took the chair in the absence OF
Mr. Fassctt.
| Mr.. Baldwin's associations with Mr. Clark ex-
tended over several years and involved great
deal Of money. Together they purchased Peoria
and Decatur Railroad bonds worth 100000 and
larger amount of stock in the Evansville ana
Terre Haute line. This was done after MIR. Bald
win became an AQueduct Commissioner and MIR.
Clark became an Aaueduct contractor. They
were also associated in the purchase OF big block
of Louisville and Nashville stock which resulted
disastrousy: in the directory of the Mount Morrls
Bank, where Governor HIPS notes were dis
counted. and in obtaining large loan from the
Continental Bank. furthermore Mr. Baldwin con-
fessed that he was silent partner
in the firm of Rathbone & Co..
brokers' to whom Mr.. Clark used to
pay in commissions as much as $4,000 year
An attempt was made to prove that Mr. Clark
ultimately became member Of this concern, but
the witness protested that the contractor was
never anything more than customer
FINANCIAL RELATIONS WITH Mr.. CLARK
| Mr. Baldwin and Secretary McCulloh. of the
l. Commission. the two witnesses examined,
but the testimony of the Commissioner was by
far the more important At the time OF his
appointment as an Aqueduct Commissioner IN
1884 by Governor Cleveland. Mr.. Baldwin said
that he was president of the Louisville and Nash
| vile Railroad. lie had met MIR. Clark the year
before. but the contractor did not become di-
rector in the railroad until Mr.. Baldwin resigned
the presidency. All their financial operations
were subsequent to this time. Before resignng
the witness said that the company had repudlated
the course he took in purchasing from the ROAD
certain of its outstanding securities for the purpose
OF keeping up the price OIL Jhe SuOck 1ne conpany
| lost 81 ,00O0 900 by this operation
Q-Enorts then made TO compel you 70 make gooo
this loss, they mott Ayes sir.
oAnd this was before you advised to go to Europe
for your heathi Alt was.
o-General Bristow your counsel, advised you to go
abroad, didn't he
Mr. Baldwin (angriy)-Do you mean, sir, to insinuate
that Nj Clark helped get out OF the Louisville and
Nashville matterl We'll, sir say that 1t is fase-uttery
| false.
.bo Al
my share with the other officers Ny share was up In
the hundreds OF thousands paid In cash. notes cneeks
and good collateral Yes, Mr. Clark was then director.
My cousin Mr. Woodward, OF the Hanover Bank loaned
me s25OO00 get this accommodation 1t was necessary
to sell fifteen or twenty shares Of Mount Morris BahX
stock These were bought by Mr.. Clark
Q.-After your return from Europe what did you do
Al became special partner OF Rathoone g Co. MI
Clark at times heavy Spectator Ills COMMISSIONS
| to the house $4,000 the first year.
OIL. your name that of Mr. Clark jointly on any
paperf A-No sir but we had one business paper tran
I sacton about year ago 1 bought with him $4,000
worth OF bonds which now held by the Continental
| Bank awaiting division.
| NOTHING TO SAY ABOUT THOMPSON.
Ex-Judpe Spencer had bought stock with Rath-
bone & Co., Mr.. Baldwin said, but Clark had
nothing to do with this transaction. After some
further testimony about his operations with Mr.
| Clark, the witness was asked about the Aque-
duct contracts He declared that he never knew
about the formation of the firm of O'Brien d
! Clark until after the bids were opened. Clark
had told him that he going to bid for the
work. but he never explained why he took
OBricn for partner Clark never asked for
any favors from him. The witness differed from
Mr. Dowd in his rccollections OF the secret IN
formal meeting OF the Commissioners at which
it was agreed to divide the entire work between
O'Bren & Clark and Brown, Howard IL Co.
II x-in oil tbn ~ nv
firm, but Lie could not say what influenced him
in his votes 1t was seriously talked of giving
the work to the peoples syndicate, but its bid
of S13,OOOO 900 was considered too high.
Mayor Edison favored this syndicate.
The witness was asked how Hubert o. Thompson
voted in the meeting.
"Oh, Thompson is dead he replied; let the
dead be buried, and let every other answer Tor
Mr.. McCulloh said that the first meeting was
held on October 20, 1884 great many BIDS
were opened at the time. but all were rejected
| The second lot of bids was opened on December g.
| They were referred to the Chief Engineer. Five
of these, including O'Brien * Clark and Brown.
| Howard & Co, bid for the whole work All the
Commissioners were present at this meeting.
S. Hastings Grant was the Controller. The bids
were finally awarded on December B. Clark got
the contract by vote Of Nessrs Spencer DOVE;
to O'Brien IL Clark. although Brown, Howard &
Co. bid Ss5.s55 less This was done for con-
| venience in doing the work For tne same reason
| Section was given 10 OBrien Il Clark although
| Brown, Howard * Co.'S bid was $4,000 lower.
| Between December 3 and | 0 the Commissioners
decided to give all the work to O'Brien d Clark
and Brown. Howard 81 Co
WHY THE MEMORANDUM PADS ARE MISSING
After luncheon Mr.. McCulloh again took the
stand and Mr.. Nicoll began the examination The
letting of the original contracts was taken up. lie
mentioned the firms besides Brown. Howard d Co.
and Bricn & Clark that bid for the work. The
powerful syndicate referred TO, he said. consisted
Of Gustav Schwab, Alexander Il. Orr: Samuel Il
Rabcock David BOWS and other we'll known CAPT
talists and represented 81 100000 The witness
kept the account of the proceedings of the Com
mission on memorandum pads which have been de
stroyed They not destroyed however. by
order of Judge Spencer or any one else While
going out of the room at recess Mr. McCulloh said
Mr. Mclean, the contractor, had charged him will
destroying the pads by direction of Judge Spencer