The sun., 1903-05-16
CIRCUIT INCUBATING A SCANDAL
.DtuN iBLE PIECE or THEY
rH,'" IN THE ARMORY hoard.
Tha,', what the Comptroller Calls N-lie
Alleges That the Boards Secretary
Let Contracts to His DrOther Under
Another Name and Bought Had Coal
I'm strike Tinie-Bit OF Feud with Wells

cannon report around the City Hall that
ro, the best of feeling existed between
ro,nurroler Grout and President Wells
,f the Tax Depart ment The Tax Com
mi,.iorcrs. headed by Mr.. Wells. succeeded
IN killing Mr. CIRCUITS bill providing for the
ray,nnnt of taxes in january instead Of in
,be fall They have also uniformly op-
nased other plans made by the Compt roller
for changing other systems, which Mr..
Grou, thought out of date, in the Tax
Office. Hence the warm feelings between
the departments.
Mr. Wells is the chairman of the
Arr,ory Beard Bills cent to the Finance
Department from this beard and from
the Tax Department have recently been
closely scrutnized by the Comptroller's
auditors and this inspection has brought
about discoveries concerning the affairs
Of the Arnory board. Mr.. Grout has
handed over papers summarizing these
discoveries to the District Attorney with a
request to ascertain If there are grounds
for action by the Grand Jury.
Mr.. Grout talked about this yesterday
particularly about certain coal purchases
made by the Armory Board last winter.
In the course of the talk Mr.. Grout init
mated that he was engaged on a still greater
scandal Just what this WAS he refused to
tell
but il, most damnable piece of thiev-
ery and will result at the very least in the
removal from Office of a public official, "
said he
Mr. Grout left the impression that the
official involved was one in high place
a departmental head, however, Assistant
District Attorney Marshall Clarke. who has
charge of the whole matter submitted to the
District Attorneys Office by Mr.. Grout,
doesn't know of it.
Mr. Clarke intimated yesterday that the
only name of a public official appearing
in the papers in his possession was John
P. Gustaveson, the secretary of the Armory
Board.
The records in the auditors department
show that there are two grounds OF CON-
plant against NJ. Gustaveson. One relates
to coal purchases during the strike and the
other to orders given for repair work in the
armories As to these repairs 1t is asserted
in the papers that contracts worth between
5000 and 5000 for carpentering and other
repairs were given to the firm of Henry
Day h Co. This firms Offices are at 7s4
East lssth street. in The Bronx, where secre-
tary Gustaveson and President Wells and
also Aaueduct Commissioner Ten Eyck for
whom Mr.. Gustaveson is said to do private
secretarial work, all live.
The Comptroller called on Mr., Clarke
Yesterday and then summoned MIR. Day
Of the firm before him. The man who has
been doing work for the city under this
name admitted after good deal of ques-
tionng that his name was really Henry
G. Gustaveson, and that he was a brother
of the secretary of the .Armory Board,
Secretary Gustaveson said afterward that
the supposed Day was his brother but that
he had failed In 1893 and had started in busi-
ness again under his wife's name.
There is nothing unusual in that, said
Mr.. G,ntaveson. AThousands of peopls
who become Bankrupt begin business again
under anQfher name to avoid embarrass.,,
ment un4 they are IN a position to pull
\ am not afraid Of any vestigation
Of the orders given to Day 4 Co. In every
ease where the work given out has been OF
any value there has been competition.
In one case bids were asked for the con-
Battery. A man named Frank Muhlfeld
offered to do the work for 1878. my brothers
hid was $3.50. Mr.. Muhlfeld got the contract.
Now, if there was any basis for these insinu-
atoms OF crooked work. wouldn't it have
been easy for me to shave down my brothers
bid by about $40
As to the coal purchases Mr.. Grout is 80
certain that the city has been imposed on
that he has refused to pay the bills. He
said yesterday that he would not pay until
he was compelled to by the courts. Mr..
Grout asserts that through Mr.. Gustaveson
coal which contained 20 per cent. of dirt
was bought for the armories. that this coal
would not burn and that 80 a ton was
charged the city for IT,.
When the coal bills were held up Mr..
Wells asked Mr.. Gustaveson to inform
him by letter how he came to buy such
during the strike he had applied to large
dealers for supplies and couldn't get any.
A man named Lewis obt aimed an option
on some, SO Gusta veson alleges, by going
10 Curtis & Blaisdell and representing that
he was acting for charitable organization.
hut Mayor Low heard Of this and declared
that however much the armories might
need coal he would not consent to purchase
it by such subterfuge. Lewis got other
coal later by different means. and this was
the coal purchased. The Mayor and Mr..
Wells, 40 Gustavcson says, sanctioned the
purchase.
That is Gust aveson's side Of the story.
The reports supplied TO the, Comptroller
say that the coal was not only bought at
an e1orbi'a1t price but tina! at IT was was almost ,,
was advised by his experts not to pay the
hill A.. P. Weinberg, the coal inspector
Of the Finance Department. declaring that
there was no difficulty in obtaining such
coal as could be used in the armories, and
submitting letters from dealers to prove it,
Assistant District Attorney Clark said
that he had had no time yct to examine the
facts presented by the Comptroler's Office
and didn't know IL there was anything
indictable in the charges.
TWAS recalled yesterday, when 1t became
known that the Comptroller was investigat,
ing Arrnory Board matters, that Mr.. Wells
i really tho active head Of thatdepart ment..
When the coal bills were first questioned,
Mr. Wells went to the Comptroller and
spoke his mind freely on the subject, not
only TO Mr.. Grout but also TO Chief Auditor
Mckinney
!, is related that MIR. Wells, In tho course
Of very animated discussion, turned on
Mr.. Mckinney. who lives in BROOKLYN and
said:
You can't dictate to me. l know you,
YOU are McLaughlin's candidate Tor
COMPTROLLER"
Mr.. Mckinney retorted that he int ended
to examine closely not only. the coal biils
but other bills coming to him from the
Arnory Board. Comptroller CIRCUITS hint
Of great scandal is said TO be the result OF