New-York tribune., 1905-04-20
MAYOR CRITICISES OAKLEY
GROUT ON CONTRACTS.
,Ta5riry Says astoria job Was Not
Giuen to Please Murphy.

,he star witnesses in the legislative lighting in
,estigation yesterday. The Mayor was on the
stan6 less than half an hour He said that Com
missioner oakley spoke 10 him about signing
The lighting contracts last spring. but that he
had expected 10 be consulted further about
them and than Mr.. Oakley's final signing OF
them was great surprise TO him. Fe thought
that DIT. Ga siey had acted in good faith. The
Mayor said Inc city was committed 70 a public
ughting plant. and that ii would be in operation
some time next year.
Il may not sees il in operation said the
Navor 'as my term ends on the las; daY of
December ~ This year, but my successor will
see il in operation before The end Of next year"
Later he said his words about his term end
ing had no special significance. 1T would not
have sounded well for me TO assume that
10 b. renoninated and elected" said be
controller Grout was on the stand both in
-be forenoon and in the afternoon. Senator
Stevens did not ike the way he answered the
Questions qua by Nj Hughes counsel TO the
rour,itfce Al recess he said To newspaper
men. ..Tha oscillation and vacillaton Of the
Controller are remarkable. The idea of his say
,rr that quoted utterance was his opinion
.rf that date' leaving the inference that il was
matter or little consequence whether he
ebanced his opinion or not Il seems he has
rbe-red his opinion mauv times. He may
change il again this afternoon. reserviHg unto
himself womau's privilege OF changing his
mind ,yhanever re wants to-.
II is expected that Charles +. Murphy; his
brother John J. Murphy. head Of the New-York
Contracting and Trucking Company: Alderman
lanes r. Gaffney and Commissioner oakley will
he called 10 The stand to-day.
PAYMENTS To MURPHY AND GAFFNEY
All the members OF the committee were on
hand Yesterday when the session began. Be
fore hearing the officials. Mr. Hughes called
Lewis b. CAVITY. one of the Consolidated Gas
Conpanys vice-presidents and the secretary of
the Astoria Heat. Light and Power Company
who said his company up 10 date had paid the
Murphy-Gafney company S'i26N" all told on
six contracts. The oompanys contract with the
Murphy -Ganney company ON the Astoria plant
was produced II recitcd that the contractors
were 10 excavate the sites and lay the founda-
tions for two holder gas tanks. The eXcavatnS
was not 10 cost more than S200009 and the
contracting company was 10 furnish ali tools
labor. machinery and material for the work
under the general supervision of the chief en-
glneer az the Astoria Light, Heat and Power
Company
Mr. Hughes called attention to the fact that
While the contract was dated September Il it
was not accepted by the gas company until No
=.
IN The hands Of gas company officials during
thar tine. There was no competitive bidding.
He produced four other contracts, made with
the Murphy concern. one related TO filling in
and grading ground at Astoria The cost was
between $4,000 and 100000.
why did you choose that company" asked
Mr.. Hughes.
We looked around and found they had the
most suitable plant" the witness replied.
Did YOU know their capital was only $4,000
and that all their equipment was covered by
chsttel mortgage
Il did not know it,"
Did you not enter into this contract with tne
Nev--York Contracting and Trucking Company
because you knew it would be agreeable 10
Charles F. Murphy"
''sIot ar all"
WIN you swear you never said that?'
7 do swear it."
Or. James z. Bennett, treasurer Of the Astoria
Llgnt Heat and Power Company and Of the
Consolidated Gas Company, asked if he
knew q any investigation into the financial
standing Of the New-York Contracting and
Trucking Company previous TO the awarding
a. the Astoria Contract. He said he did not
know Of any He said the S450.OOO Astoria con-
tract was merely one Of seventy-nine, all in
volving The expenditure Of S6000000.
CIRCUIT AND LIGHTING CONTRACTS.
Controller Grout. the next witness. told Of the
hold up by the lighting companies and Of his
decision 10 pay a percentage OF the bills rem
dered. He said he first saw the contracts for
1900. executed by Mr. Oakley on october %,
on November 10.
IT struck me that the signing Of those con-
tracts would make il very difficult for the city
10 defend its position in refusing 10 pay the bills
for lighting in 1903 he said. Il did not even
know il was in contemplation TO sign them. I
had gained the contrary impression from Mr..
Oakey's communications to the Board OF Es-
innate"
Did Mr. Oakley confer with you before exc
cutting those contracts"
He did not but then there was no reason why
he should The matter Of the contracts was
quite within his jurisdiction and was outside Of
mine"
Am / to understand that Nj. Oakleys action
in signing those contracts was satisfactory to
youc" asked Mr Hughes.
y havo not said so. ] DO not think that Mr..
Oakley obtained an ideal result. but they the
best contracts the city ever had. You must un-
derstand that there was no real competition,
and that the only possible competition could
come from the erection by the city Of munich
pal lighting plant
OAKLEY SURPRISED THE MAYOR.
Mayor Mcclellan who came next. said he
surprised when Nc learned that Commissioner
Oakley had signed the lighting contracts for
1904.
Then, ] assume. YOU did not advise him 70
sign The contracts" asked Mr. Hughes.
Most assuredly not"
] sent for Mr. Oakley and asked an explsna-
ton" the Mayor said ia response 10 more ques-
tons He told me he had secured a practical