New-York tribune., 1910-10-05
WhippIe's Business Deals.

Considerable prominence is given in the
report to the affairs of the Fair Haven
Iron Ore Company, which Mr.. Whipple and
Barnet H Davis. one of his predecessors
in office floated in 1905 to develop some ore
deposits acquired by them in Sterling,
Cayuga County. Among those who sub
scribed for stock We're Ostrander, George
r. Finch and Walter {. Witherbee, opera
tors in AdirOndacks timber lands; James g.
Lyon state printer, and several employees
of the Forest, Fish and Game Department
including Colonel Fox, the forester Grant
E Winchester, foreman of the Saranac
Inn Hatchery. and ]. Duncan Lawrence,
deputy commissioner. In 1906 money for the
mining plant was raised on notes indorsed
by Witherbee, Ostrander, Davis and Whlp-
pie. Later operations were discontinued
and about $4,000 of bonds issued to pay
off the Indebtedness. Among the pur-
chasers were many politicians. OF these
transactions the report says:
The fact is that Commissioner Whipple,
early in his administration, formed ousl-
ness corporation which like all mining cor
porations, was more or less hazardous; ne
invested practically no money himself put
for the financing OF me COiR0raJb5on Ig aybon, as
Forest Fish and Game Commissioner, ne
was then having, and throughout his en-.
tire term has had, extensive transactions OF
a official nature When it became neceS-
Sary to raise money in the hope or SAVING
the affairs Of the corporation, the money 10
nav Commissioner Whipple's share OF the
assessment was raised by him upon notes
indorsed by George n. Ostrander, man
who had more dealings with the Forest
Purchasing Board than any other, ana by
m0ney loaned from Walter G. Wltherbee, a
man whose transactions with the previous
Forest. Fish and Game Commission had
he 0f and lnVGStlRA-
ton by the legal department under Com
missioner Whipple.
The inpropriety of Commissioner Whip
pies actions in this respect is self-apparent
The head of one of the departments of
state should have no business dealings
whatever with those persons with whom
ne has official transactions, and certainly
should not place himself under financial
obligations 10 them; neither should he asSo-
subordinate employees Of his office nor be
dependent upon their financial support in
his personal business dealings
Shortly after the appointment of Frank
l. Bell as special counsel, Commissioner
Whipple borrowed $1,000 from him. the
greater portion of which yet remains un-
paid The report states that it is under
stood that this money was borrowed from
Bell to take up the notes which Ostrander
had indorsed and to relieve him from obli-
cation to Ostrander. The commissioners
criticise the action of Mr.. Whipple in plac-
ing himself under financial obligation "a
Mr. Bell, whose services were under his
supervision. Commissioner Whpple testi-
fed that he has never permitted his busi-
ness relations with George n. Ostrander to
influence his official action.
High Prices for Land.
Regarding land purchases, the report
says that since January l, 1905, TO Febru-
airy l6 the purchasing board bought li7,-
II, ,sa5 acres of forest land in the Adiron-
dacks for Ss4s 900 54 OF this S10o. .S31 1913 acres
were purchased from Ostrander, at an aver
age price of Sc "a an acre; from other per
sons, &C. 69+O.S02 acres, at an average price ol
| 81 46 an acre. The report says:
The question as to whether or not the
state has generally paid exorbitant prices
for the Adirondack lands purchased for II
through the Forest Purchasing Board has
required extensive investigation As re
suit thereof your commissioners are SdtS
| fed that I'm the great majority OF cases
price has been paid largely i'm excess of the
market value of the land purchased
Speaker Wadsworth. member of the
! Purchasing Board. and Commissioner Whip
| pie both seemed to think that the land was
! approaching greatly in value. The Gov
| ernor's Investigators found that 1t was al
| most all hard timber land, with the soft
| timber all cut off. and that kind OF land
| they said, didn't increase in value. Tht
cost of getting the hard timber out of The
forests prevented its being cut I'm mos
| cases
| It also is stated that the abstracts of title
| furnished the Purchasing Board, especially
| those covering the lands sold by Ostrandel
| and his associates In almost every instance
| failed 10 show the consideration for th'
various conveyances shown therein. An'
| the report adds: Had such consideration
been set forth I'm these abstracts the profits
which were being made through the medium
of these sales would have been clearly dis
| closed. II is, however. quite possible tha
had this been done. the information woul'
not have reached the board. for the reasoI
that. as Commissioners Whipple clearly testi
| ies, the abstracts were never I'm any in
stance brought before the board or eX
amined by its members"
Some Titles Rushed.
| The work of John J. Inman, appointed
| by Mr. Whlpple as title examiner al S4O0
a year, Is criticised severely. The investi
gators comment that the titles presented b!
Ostrander seemed to go through with ;
speed not always justified by the abstract