New-York tribune., 1908-07-07
LAND SCANDAL OUT
THE CITY LOSES $50 900.
Purchase of Property from Hurley
Back of Byrnes's Suspension.

Back of the suspension by Controller Metz of
| Thomas F. Byrnes real estate appraiser in the
Department of Finance, announced yesterday,
is the story of the sale Of some property to the
/ city on the recommendation of Byrnes at
price 80 per cent higher than paid for it
] two days before by William S. Hurley. Mr..
| Hurley, who is vice-president of the Borough
| Bank. acted through DR.. Z. Pender Porter, his
| physician, who took the part of dummy in
the sale to the city Controller Metz is said to
have known nothing of the inside of the affair
! until June 10 of this year.
AS result of this transaction the friendship
of years standing between Controller Metz and
| Mr.. Hurley has been violently broken and bit
| ter words passed between the two when the
| remarkable realty deal was under investigation
| before Mr.. Gallaher, Commissioner of Accounts,
and Mr.. Bruere, of the Bureau of Municipal Re-
| search week go yesterday.
Byrnes. who is the Democratic leader of the
| 18th Assembly District in Brooklyn,
pended Friday night, after the Controller had
gone over the preliminary report of the investi-
cation. The suspension is "pendng the COM
petion of the investigation" which is to be car
ried to the limit when the Controller and others
get back from Denver.
There We're twenty-five and eighth acres
in the parcel, which lies in North Hampstead
turnpike, between Jamaica and Flushing, and
the city paid S105,Oo0, or 81, ,746 10 an acre.
STATEMENT By BUREAU OF RESEARCH.
The Bureau of Municipal Research IN state
nent issued yesterday said:
The Bureau of Municipal Research is not in
terested in whether not Mr.. Byrnes profted
financially from this transaction It does believe
1t of the utmost Importance TO make clear to all
taxpayers that Mr. Byrnes made an unneces-
sarily high appraisal of this property; that a
city official he entered into negotiations with
who had not yet bought the property, while
refusing
trying desperately to sell it and who during
negotiations did sell the property at S55O0O and
that Mr Byrnes, in advising its purchase at
s105,000, either guilty of conspiracy to de-
fraud the city or was innocent of an imitation of
values 50 fragrant that his innocence proved him
grossly unfit to protect the city in purchasing
property
It is said that SO far competent evidence of
conspiracy has been brought out. Some Of the
witnesses before the Commissioner of Accounts,
who was called into the case because he has the
power of examining witnesses under oath. did
not tell any more than they We're obliged to.
Just at present C. n. Klemyer, a real estate
broker, who gave some interesting testimony
garding the negotiations for the property prior
TO its sale TO the city, is said be visiting sick
relative in Canada. He not put under sub
puna, because he had promised TO appear when
ever wanted. One afternoon he left his house
TO go to the hearing, but never arrived. Later
the Bureau of Municipal Research heard that
Klemyer had been called to Toronto. He is still
there, far is known by them. Mr.. Kle-
myers sister-in-law said last night that he had
gone Canada business trip and would be
back in few days.
ARTHUR ]. O'KEEFFE DRAGGED IN
Commissioner Arthur ]. O'Keefe, of the Civil
Service Commission, dragged into the in
vestigation. It he who, as Deputy Police
Com r1TyaiSS in chs of lXo nd
Queens. was asked by Commissioner Bingham to
pick out site for training farm Formerly he
was Superintendent of Sewers in Brooklyn. The
Bureau of Municipal Research, in its preliminary
report, says:
The conclusion is almost irresistible that when
Mr. Hurley invested $4,000 in the purchase of
this property from Mr. Logan and the people
who were interested with Mr. Logan he did so
only after making arrangements with city of
fcias whereby he knew that he would be able
TO turn the property over to the city at profit
He never knew OF the property until Mr. Logan
offered il to him That Mr.. Hurley should
make a profit of $4,000 in the of a few
days is in itself no offence but that he should
be able make such profit through informa-
ton and assistance given and rendered him
by city officials can only be characterized
positive outrage.
The city officials most intimately connected
with the purchase of site for the training farm
Deputy Police Commissioner OKeeffe and
Appraiser BErnes- 1t may be interesting as
furnishing a motive for the refusal of these Of
hcialS to purchase from Mr. Logan and their
subsequent purchase from DR.. Porter to note
that August 81. 1906 Mn. Hurley gave
Deputy Commissioner OKeeffe his note for s5,-
coo. Deputy OKeeffe explained that this
simply personal loan. for which he took Mr.
Hurleys note.
Mr. Hurley said that the loan and note were
a part of a older transaction. He explained
that in order the Borough Bank from
loss for advances made to Harry A. Rutan. n
tractor the security Of certain con-
tracts obtained by Rutan during the administra-
tion of Mr.. O'Keeffe as Commissioner of Sewers
of Brooklyn, for which advances Mr. Hurley n
sdered Mr.. O'Keeffe in manner respon-
sible. he fAIr Hurley had taken over the
tracts and assumed responsibility for their
pletion. Mr.. Hurley took these contracts over
in February. 1907. and lost account OF them
about $4,000 He testified that in the summer
Of 1906 he had reached the point where he could
not put any more money into these contracts
without embarrassment. and thereupon he sent
for Mr. O'keefe and said TO him. You have
got 10 come in and help. You ought not have
passed their bills (Rutan vouchers) at ali"
Mr.. O'keeffe responded with loan of So o0G
This transaction took place on August 81 1906.
and IL Is at least significant that MT Hurley
ia.tFrId he of