New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-21
THE MINUTES MADE PUBLIC
MAYOR BOODY GIVES THE GRAND JURY TIES.
TIAIONY TO THE PRESS.
srRoNG CHARGES BY WILLIAM J. GAYNOR AID
OTHERs-THE COMPLAINT OF THE UNION


bert @. Rhodes was foreman-upon which that body
made presentmcnt In the Court of Sessions severely
e,ns,ring the Mayor and Aldermen OF the city for
granting street railroad franchises unfairly and
Illegally and expressing regret that they could not be
indicted. The prcsentment was made while the
Mayor in Chicago visiting tie Worlds Fair.
The Mayor was not precluded from publishing the
minutes OF the testimony, and he handed copies to
the newspaper reporters yesterday. The testimony
covered sixty typewriter pages. 1t includes the evi
dence given by william j. Gaynor and Edward NJ.
Crout, Of the Union Street Railway Company, whose
ser for the franchises given to other companies was
r.iecttu that Of Aldermen Thomas and IIeaney, who
opposed the grants made of Corporation Counsel
Jenks, and Of p H. Flynn, the head OF the syndicate
controlling the Kings County and the Nassau Electric
Railroad companies to whom franchises in about
thirty miles OF streets granted.
f. NJ. GRANT ON THE STAND.
In the inquiry into the matter which led to the
finding OF the prcsentment the Grand Jury first sum
noned f. W. Grout. attorney for and secretary OF
the Union street Railway Company. lie rehcarset
the history Of that corporation, going back TO It's
first application to the Aldermen for franchise for
. street railroad in Union.st I'm June. 1892, when
an offer OF fair compensation 10 the city was made.
and the franchise given to another company
without compensation. The Mayor vetoed the reso-
lutions and they were passed over his veto. Then
. suit brought in the name of taxpayer and
the grant Of the franchise was annulied.
While this matter pending the Nassau Electric
Company asked for franchises In The same street
and in others. and the Brooklyn City Company made
IN offer Of $3.50 900 for the franchises In these streets
Later tie Aldermen granted franchises In certain
streets to both companies. and the Mayor vetoed The
resolutions after Injunction prevented his APPROX
ing them. The Union Street Company then pat III
petition for franchises in large number OF streets,
Offering 10000 for in union-st.. and $4,000
unc for ftoza in florS nd IN no
Informed regarding any better offer. and for an op
pcrtunity 10 compete. Subsequently these offers
were amended 10 $4,000 a mile for the two miles
In Union St, and $4,000 a mile in the remaining
streets aggregating s276OOo. There was 10 quorum
Of the Aldermen present June L. when the
amended petition presented. On June ID the
Aldermen adopted resolutions granting the franchises
asked for by the other companies the percentage
plan compensation. giving the Union Street Company
no opportunity compete.
Alderman Heaney next examined. He said
that he opposed tho granting Of the franchises on the
ground OF the length of the report, which he wanted
laid for week for consideration. and also be
cause Of the manner in which the compensation
computed.
CONDITIONS FOR THE FRANCHISES.
William J. Gaynor. of the firm Of Gaynor Crout
e. De Fere. counsel for the Union Street Railway
Company, next summoned. He gave a history
Of the applications OF the Union Street Railway Com
pany TO the Aldermen and the action taken. lie
then examined follows:
oThis franchise granted. certain conditions, to
railroads you familiar with these conditions A
Yes
DIN your Judgment those conditions susceptible
of being modified changed perverted so a. not to
give the cy the benefit it il entitled tot A-Not only
matter Of opinion. but beyond doubt.
o.-It be perverted that the city shall not
receive what It Is supposed % b" entitled to? A-Ihe
percentage i based the receipts from the com
pany then received By it, t. make IL
still pulling. H. would BE- very to II
the percentage be the total fares. The total
receipts the Heights Railway Company guarantees 10
the capital stock Of the Brooklyn City Com
Iany which si2 900, which Is 81 200 900 year
which would be about $50 q mile under this resolution
o-Is this company that you represent actually able to
fulfil the promises IL niade7 Ayes. l had $500 600
at my disposal When offered $50 900 mile TO the
Common Council l said them 1--WE ready TO 90
higher than this il there is anyshigher bid" had un
limited money.
Q-Woud any harm have leen done TO the city II the
Mayors approval had been left open until the end Of the
ten days he Is allowed by law, ANo; but hink good
might have come IT, would then have had time
get Injunction; ha1nt time even 10 20 10 the
court.
ON your opinion these men were clearly guilty Of
violating interests OF the city AThcy have violated
two plain sections the Penal Code. They the
trustees city ana judge Cullen has held that they
bound receive offers for these franchises and they
are bound DO it openly and in good faith.
c--What are those sections Al can get You them
Judge Cullen held before that IL criminal Chcnee
C-Ts jury is enNious To get At 'he fact
Al could draw you Indictment that would get at the
facts
THE MAYOR PARTICLES CRIMINIs.
o-Does the action Of the Mayor in signing these
buttons apparently against the interests Of the city mike
him a party action OF the Board Of Aldermen A.
HE action of the M0or. knowing that We had been cA-
eluded from the competition, makes him portieeps
crImins
.nv cfl A, At
cne Is no. more guilty other You cant make
ySo bits Of cherry. section III Of the Penal Code
SAYS public officer PRISON holding pubic trust
employment. upon whom any duty is enjoincd by law
who wiullv nealecs perform the duty, is guilty OF
u,iaieneanor,' That cannot be made palmer The
duty upon them Of hearing these things openly and
they refused it, That section any neglect
10 perforn, n duty. Here Section I5i: Where any
duty Is enjoned by public officer any prison
holding public trust employment their wllfu omission
rcnorr duty where any such special provision IS
mao, IL punishable mlsdemeanor Thre Is another
section that have mind that cannot put my finger
Oh Just
o-You can say OF your personal knowledge that you
know Of the request having been made for opportunity
bsi Oh franchises and that request was denied
Ayes sir.
o-To the Aldermen and Mayor! A-Both
C.-Yon know that IL such All opportunity had been |
granted TO your company IL would have been pcaSd 10
lidi Ayes; they anxious to bid
o.-Ihc franchises were passed on Monday and the
Nav, scr,d ,,em ON Frldayg A.-Tfey passed
Moncay and Mr. orout asked for bearing and hearing
was had at O'Clock Thrsday and the Mayor signed
ire resolutions Friday.
OPPOSED BY REPUBLICANS
Aldcrmay +. p. Thomas QRepub'icnh'' VINO oppo'eu
the resolutions adopted by the Comr on Counch anu
approved by the Ma, or, testified tia' " "oc""s '"
the Railroad Committee Of the Aldermen was heia u
nec hefore the adont,on OF the resolution pos'"i
card informing him OF the meeting had reached MS
hons. an hour after he left il In the hprihe a' III
e,d o,,y cho,c.d 70 hear OF the meeting. lie pro
tested at the regular meeting of the Aiaer"'eh "'''s
the passage of the resolutions. He WIS 'ie" "a
smined'as follows: 49, ...,.,,
o.-On what grounds did you pio'ese, -, d1d n,t
~. ,s &c., :. ax amin. them a. thoroughly rs wouio