New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-11-10
FRAUD IN HIGH PLACES.
HOW THE TAXPAYERS ARE fLUNDhhf'D'
= ECONOMY SAID TO BE THE REASON WHY
- .rurs AWE NOT uNMAsKED.

arnoxoMyn SAID TO BE THE REASON WHY
MORE THIEVES ARE NOT UNMAsKED.
Co,uorstion Counsel Clark is SATISFIED that
Oh. invexreation into the affairs of the DOCK
D~par<ment by Commissioners Holahan ana Barker.
Of the Bureau of Accounts, has started a ieao
which il followed up vigorously Will unearph
REGULATION and pilfering that has defrauded the
city of many thousands Of dollars. The organized
robbery Of the taxpayers had been long an open
secret among city officials, and had lasted Tor
so many years that it had come to be regarded
as q semi-legalized means OF subsistence with
a choice ASSORTMENT of petty politicians and
hanzers-on of the Dock Department
MI Clark said yesterday that in his opinion
nothing but most unsparing investigation which
would lay bare the names and methods of both the
great and small thieves, followed by punishment
of the offenders and restitution to the city treas
ury of what had been stolen, il possible, would
break up the combination. The two days eX-
animation to the leasing of single pier had
shown the existence of a ring OF politicians whose
main object was the plumber of the city. Inc
evidence showed that precaution or serious
effort had been made by the sworn officers OF inc
municipality to protect it, as far as the case
Of this pier, No. So East River, was concerned
On the contrary, the business seemed to nave peen
done with view TO help, instead OF to hinder' tno
peculators The testimony taken by the comniis-
kioners on Friday, under his own SUPERVISION MAUI
10 appear that at least two other piers were oelns
used TO make revenue for other people beside inc
taxpayers. If the leases OF every pier ana ouii>-
head on the waterfront were carefully inquired
into Mr. Clark predicted that some startling
facts would be unearthed.
Commissioner Edward Z. Barker, alluding to the
Dock Department investigation, said yesterday tha'
he believed the surface only had Deen Scl ;Sti
If we only had the money 10 push .his inr 4Gad
CATION IL ought to be pushed, MI ba>et "uue"'
I'VE could show up something which would MAKE
the taxpayers Of New-l ork very gra'cluI 10 .iie
Commissioners of Accounts But economy ID INC
watchword in the city government, ana our or
propriation i. insufficient TO the work when
Is expected of us in a big town like this, where
SO many paid officials think they are nc cet "
make all they can while their chances h'sG -,
Mr. Barker was sure however, that even WlVI
the limited means which the Bureau possessed
many angular transactions regarding per ocUup" a
tiOn would be made public during the eonlihs
week. The Commissioners wished to contradict tue
statement of ex-JuStce Kelly that the presenC
Investigation Of the illegal methods Of ie Sdr
piers was simply for the purpose OF helplhe oor-
poration Counsel Clark TO bring SUIT Tor qainages
against Thomas O'Bcien and the people who ha nay,
been occupying Pier No. 50. East River MT. Olark
action was simply a coincidence. As, howeYer'
both the Corporation Counsel ana tle Co .antc
soncrs of Accounts wrc working IN thg r 1 S6
of the city, he could not see that MT heLy my my
any reason to find fault. II the eX-Jus uce anu
bis friends without guile, as they aSS Sii
they had nothing TO fear from elthef MI OleiA
or the Bureau of Accounts.
Ex-Justice William II. Kelly has made the FOLLOW
ing statement in regard to the case.
Early In 1887, william L. smythc. formerly OF Al,
bany brought letters of introduction 70 me, ana askfu
IN his hsP Zee bSsne. II he had bid for the pier per
sonay, he would have been outbidden by some OF toe
$1,000 wear for the lease which knocked down
70 me As Mr. Smythe found it nconvenent 10 pro
cure bondsmen, not having lived IN TINS cIy I Rng
had the lease taken out In the name OF Ihomas
oBnsn, client of mine, and got Charles Boyie AM, ana
Kaufman Wourms 10 become suretiss Both OF uleni
were qualified to do one being real estate owner
and other the owner of largo business and having
besides other sources OF income. MI smythe ran ms
business for year or two and in the winter dealt
cut ron The outer end Of the PiSr Of s1 ts
tho DSS sy SsRe eSssod M whass
rates BY ia. In the suit r5 ths f. has re been
Marshal has not been able s to p, ses nGGe 44
u sut. nave refused to cause the lessee to be
served with a summons because 1t Is my duty TO pro-
tect my client
FxState Senator Joseph Koch. the Excise Commits
soner. could not be found yesterday at his home
No 706 MadisOn.ave., at his law Office, NO 40
Broadway. or at the office Of the Excise Board
in Rond. st He was OBriens attorney in the suit
for an injunction against the Dock Board
I Sergeant Cram, one of the Dock Commission
srs said that he had held his office for less than
n wear. and therefore was not familiar with the
facts about the leasing of the pier IN 1857 lie
added: o-,.-...
u tia statement of Smythe before the Commission
arc Of Accounts that Pendergrast the Wharhneer han
an assistant named McCarty who offered iof S3Vo
10 have the pier rebuilt IS true there VIII Re uTeo S
Tor MIR Pendergrast, for when came into ONCE oa
him emphacally that he must not have an assisIan,
as that was against the law Inc DOCK CoHH f;
es are not responsible for the acceptance OF SureeS
who are rot worth any thing for the Coltf9er a
nroyes or rejects all bondsmcn | thlnK lhe Guy
Viii lose nearly $4,000 by the affair, If nothing can
be recovered from oBrems DOE os viii be for the
damage to the pier which was due 70 inc e IS 6o
failure keep it in repair, as he bound hmse 70 40
Edward V. Loew, who was Controller at ule
mime that o Briens bondsmen were accepted, when
seen at his home No. 20 West Fifty -seventh-st;'
yesterday afternoon, sand thai he had no recS Ef
lection of having approved the suretles. VI
course" he went on, " it is possible that dld,
but | had SO many similar cases that 90 not
remember this particular one II, NOVEL;, u,d
the requisite property, l should have accepted
them, il had no reason TO doubt theiS oaths
President Post, of the Dock Board, said:
The investigation by the Commissioners Of Accounts
has been going on in the Department for several
months and 1t has every aid from the Dosk boal9 d
and Ipe have lust written the commissioners that
are willing and DESTROYS of aiding them III SVara
Eject - present Board, If It does any. previous
board Mr.. Matthews Is The only CoInmsSiSnsr VINO VINO
wa then president / believe. There was no reason
at the time that know Of 10 6eeye that there ee ~ss
Of dock property were leased at that
sale by auction. and the CheTy-st. pier
" mt at the upset price Of $1,000 a year;
There is no opportunity at such time with several
hundred bidders 10 know that any combination ~, is
being made for securing property Furthermore ule
record does not show as has been said that more yes
sells sent 10 this pier 10 be berthed than " any
9th
O'Brien. claiming TO he O'Rrien, signed the
lease In the board here. When j became Prsl-
dent insisted the repair of the pier according 10
The terms Of the lease. This not done Ex-Judge
Kelly, accompanied by O'Brien came 10 see me ana
pleaded for delay on account Of poverty and sx-
pense. granted short time. and al the end OF that
time insisted on the repairs. I told them that ]
would annul the lease. Kelly refused. the parf
of his client, 10 make repairs give up the lease:
said that II the Board attempted pos session
there would be trouble as there were gy,od many