The sun., 1908-05-05
JEROME INQUIRY HAKESUP ICE
HACNEILL REPORT PUT IN As
EVIDENCE or CONSPIRACY.


Of the so-called independent ioe companies
in this oty, while on the witness stand
before Commissioner Hand yesterday In
the proceedings against District Attorney
Jerome refused 10 tell II he had ever met
with ice dealers representing the American
Ice Company and fixed the price Of ice TO
consumers This question was asked by
Franklin Pierce, lawyer for the King oom-
mittee who had called Kiroe as a witness.
Mr.. jerome interrupted when the question
was asked to say that he believed the wit
ness should be warned that II he admitted
this he was .Rying himself liable to criminal
prosecution. Mr.. Pierce r5tc-ted that Mr.
Kilroe being a lawyer was perfectly COM
petent to Judge that for himself
"As member OF the bar said Commis-
sioner Hand "he knows enough to claim
hs privilege, and II he doesn't youssha mt
claim II for him Mr.. Jerome
Mr., Kilroe said he would claim privilege
first because he had acted az counsel for
the Doherty company and many things had
been impaired to him In q professional
capacity. But he wasn't counsel all the
time, and the Commissioner directed him
10 answer.
do you refuse" asked Mr.. Pierce, 'on
the ground that 1t might tend to incrimlnate
or degrade your
Il will plead that, said the witness, and
he was excused.
The report Of John r. NIAoNeill. an expert
accountant, on facts disclosed by an exam
nation Of the American Ice COmpany's
books. was put In evidence ut yesterdays
hearing This Is a copy Of the report which
disappeared from the Attorney Generals =
Office in Albany The report had been
used as the basis Of an action which At
torney- General Mayer had begun against
the Ice company as q monopoly few days
before he retired from Office in 1905. When
Mr.. Jackson, the present Attorney General,
undertook TO prosecute the case he could
find neither the report nor important memo
randa connected with it. although Mr..
Mayer declared he had left them in the
office MacNell had a copy Of the report;
but with the memoranda missing jackson
made new investigation Of the ice COM
pany's books. This report 10 relied upon
chiefly by the Attorney General in the Grim
inal investigation which he has started.
| The report was introduced In evidence be-
! cause IL had been called to Mr.. Jerome's
attention, but was never demanded by
him.
/ MacNeill quotes President 0ler c: the
! ice company "a saying that the American
/ Ice Company owns or controls all the ice
| houses In Maine from which ice is shipped
| 20 any extent outside the State. or the
| Hudson River ice output 40 per cent. in the
season Of 1906 1909 was owned by the Amer
! lean and 8 per cent. more by ice companies
in which the American owns more than
one-half the stock.
The report says that the American has
contract with the Mountain Ice Company.
/ the largest in New Jersey and Pennsylvania,
/ which excludes the Mountain from praCti-
! cally all Of Brooklyn and prevents it from
selling ice In that borough TO any COM
petitor Of the American. The American
also has contract. according 20 the report,
! with the Berkshire Ice Company, tho largest
in the Berkshire Hills excluding that COM
pany from the trade in Mount Vernon aud
! New Rochelle and the town Of Pelham.
Mr.. MacNeill estimates 81 per cent.
profit by the company on total sales to ice
dealers and an 81 per cent. profit on wagon
! sales.
! The report contains list Of fifty so-called
independent companies and the expert
gives samples Of the contracts that exist
| between some Of these independents and
the trust. The contract between 2. X,
| Doherty and the American provides that the
latter shall sell 10 Doherty about e.. 800
tons Of ioe a year az 8j cents a ton, with
provision for additional payment by
Doherty in the event Of any increase IN the
regular bridge price. Then follows this
7 agreement
Second party Dohertyl also agrees that
he will not during the term Of THU agreement
directly or indirectly, through or b. himself
or others or through or by uny corporal on
or corporations. and whether as principal
agent. servant or employee, engage In The
| ice business and whether A. wholesale OF
retail In the city Of New YORK as now con-
stituted except With the written consent OF
the party Of the frat par had ard obtair I'd
in each instance
NlacNeill gives it rs his opinion that an
or.jhcal shortage wAs created by tho Ameri-
can Ice Company in 1909 to raiSo the Price.
Tho minutes of the Grand jury for .iar
1908, which investigated ioo unior M.
Jerome. we're produced on an Ordor from
JudYe U0salsky Mr. Jerome objected Ia
the form OF the order and he ives sustained
Nv Commissioner Hand, who rc.uAed Lo
receive the minutes. These were the minutes
that had been In tho hands Of the Attorney
General, and show that Mr., jerome recon-
mended that no indictment be found against
the American Ice Company but that some
indepepdent dealers De prosecuted. ~
the time Mr. Jerome said publicly that
the only evidence Of conspiracy bore "0
the Independents and not on the Tn
The Grand jury indicted nobody.
Mr. Jerome wanted Mr.. Pierce 10 cal
somebody TO verify the minutes.
Il want everything from the Gus tody oI
the Acknowledgement Of this State to be
proved as 10 It's accuracy before | admit
it. he said.
One Of Nj. Jerome s assistants demonstrated
with him, but he refused to recede. liz
said. however, that he would consent e
the minutes going in provided the At
torney-G General would consent TO the intro
duction Of the minutes OF the last Grand
Jury which investigated ice for him. Tn,
upshot was that MIR Pierce sent for Deputy
Attorney q General James W. Osborn,
10 verify the minutes, but before he go
there il was adjourning time.
The minutes will be introduced to-day
Judge Rosalsky also signed an order direct
ing the District Attorney 10 file the minutes
of the last November Grand Jury, which
took testimony in regard TO the Wall anc
Cortlandt street deal. The order wa
opposed by Assistant District Attorney
Smyth. He had no objection 10 having
them sent to Commissioner Hand. in ac
cordance with an agreement which haC
been made between Mr.. jerome and Mr.
Pierce.
They will be filed with this court, where
anybody who wants to can see them sale
Judge Rosalsky
But they weren't The minutes are IL
Mr.. Jerome's possession and he didn'
file them. He says the order made by