New-York tribune., 1908-08-27
REPORT ON COLER DEAL
urRLEY LOAN H4RD HII-
Result of Commissioner M'tcheFs
Probe Goes to Elder.

-
r,,rough of Brooklyn, by William > huiieS'
=. rresident Of the Borough Bank OF bfooh-
- inst after the Borough President had hur-
H -, tho navment of some $4,000
contract financed by Hurley, the follow
. statement is made:
re or the opinion that the close inter
lstion Of the public and private business u
- otrcial is fraUght with great danger 10 lhe
,Hr an service Whether the foregoing facts
P.e.itute an infraction of the law such as TO
co5er the persons involved liable TO punishment
.sa,efor is matter for determination 10y of1l-
ars other than the members of this commission
:. would appear however that a case Is pre-
ssnted which calls for action beyond the JuilS-
sicfion of the Mayor We accordingly recon-
r,end that the matter be referred for determine
~ 10 the authorities charged with power in
the premises
Assistant District Attorney Elder said last
;ght that he had received the report of the
commissioners of Accounts from the Mayors
orHce but had not read it. He said that If there
MAS anything in it that he had TO lay before
the grand jury he could not talk about the
charges in IT. He said that he would probably
leave the entire consideration of the report to
district Attorney Clarke who viii return from
his trip abroad on next Monday or Tuesday
When Commissioner Mitchell was asked yes
terday just what he meant by reference to au-
he said he did not care 10 he more explicit.
The facts in connection with the sewer con-
tract and the Coler loan were first brought out
in the preliminary report the acquisition by
the city al an alleged eXOrbitant figure OF
training farm for police horses in Flushing.
Since the filing of that report, says Com
missioner Mitchell in the special report of yes
terday. and in the course of our current exam
nation of the accounts and methods of the Of
fee Of the President Of the Borough of Brook
lvn we have made exhaustive inquiry INTO
the facts surrounding this loan, and while we
are by no means as Yet prepared TO render a
final report upon the department Of the Borough
President Of Brooklyn, tbe testimony and evi-
dence received in connection with this special
matter present a case touching the administra-
ton Of that department so grave as, IN our
opinion. TO make it imperative that we bring the
facts at once TO the attention of your honor
HURLEY'S INTEREST IN CONTRACT
The report states that on the evidence they
fnd that Mr. Hurley had financial interest in
the Knickerbocker avenue sewer contract, held
in the name OF NJ. c. Madsen- The Borough
President approved a voucher for the payment
of So. 16S 40 upon the contract on October 4,
1907 SOL 7s7 90 of the amount being the releas-
ing Of retained percentages The voucher was
approved. It says, before the final checking and
computation of the quantities and before accept
ance Of the work by the city. such payment
of retained percentages before acceptance of
the work being unusual
The warrant for the S2i. .16S represented by
the voucher was delivered TO Mr.. Madsen on
october 10 1907 On the same day Mr.. Hurley
lent 10 President Coler $1,000 to do which he
drew his check for that amount the Borough
balance
sia0 10, and the report says, it was with the
knowledge of President Coler that the check
was drawn against insufficient funds
To make good this check Mr.. Hurley obtained
from Mr. Madsen $4,000 of the $4,000 repre-
sented by the city warrant and deposited it TO
his account in the Borough Bank
The report also states that the evidence
showed that in the period Immediately prior TO
October 10 President Coler had endeavored
without success to procure through Mr. Hurley
loans Of from $4,000 TO $4,000 from various
individuals and financial institutions. Finally
Mr. Hurley had agreed TO lend President Coler
s1o000 of the money to be paid by the city on
the account Of the Knickerbocker avenue sewer
contract when it should be received Presi-
dent Coler understood that Mr.. Hurley
without funds sufficient to lend him $4,000 un-
less he should first receive the sewer contract
money.
COLER RUSHES PAYMENT THROUGH
President Coler made a personal visit to the
Controllers office. requested Deputy Controller
McCooev to expedite the Madsen voucher and
secured its passage through the hands of eight
officers and the delivery Of the warrant all in
one day.
The report also deals with the painting by
Bruce Crane which presented by Mr Hur-
ley TO President Coler. one of the occasions
when Mr. Hurley was urging expedition in the
payment of the money the sewer contract
&r Hurley testified that after many talks to
President CoIer on the subject he got the i'm
preston that there was a constant apparent
Intention" to hold up the payment
The value Of the picture has been variously
estimated. Mr.. Hurley said he regarded it as
an exceptionally fine example of Cranes arr and
that pictures of the same size by Crane had
sold for from $3.50 TO $500 Mr. Hurley's only
explanation Of the gift was: He IColerl ad-
mred the picture and I thought he would like
10 have it. / got the impression he would like
to have it, and l gave it 10 him He declared
the gift had nothing 70 do with the payments
on the sewer contract He admitted, however
That Mr. CoIer not intimate friend and
that their relations were almost entirely Of
Business nature
On the stand President Coler declared he had
not advanced facilitated the Madsen voucher
" payment in any manner except 10 say 10
deputy Controller McCooey that the payment
Vas all right. Asked his reason for making the
Fasn 10 President Coler. Mr. Hurley replied that
ne thought it be the best thing do under
fae circumstances" Madsen testified that Hur-
10y told him he had 10 do it; If not SUPPOSE
ne viii hold payment for another three
months Mr. Hurley contradicted Madsen, and
endeavored 10 explain the testimony by saying
hst Maesens knon.ledge Of English was not cf