The Birmingham age-herald., 1912-06-01
H. r. DOUGHERTY
 GIVEN HEARING Expected Sensation Does
 Not Develop ". J. BURNS TESTIFIES Atlantic City Councilman Declares He Is Glad-Dougherty Admitted
 to Three Thousand
 Dollar Bail

Atlantic City, N. l.. May S1.-City Councilman Harry F. Douglerty, ar rested on a charge of having accepted bribe of $500 for voting for the pas sage of an ordinance providing for a concrete boardwalk along the beach front designed to cost a million dollars or more, was given a hearing today. He pleaded not guilty and was held in s3000 ball for the grand jury.
 The hearing was expected to be sem sational. but few developments were brought out. William F. Wahl. citi- zen who made the complaint against Dougherty, said he obtained the infor- nation on which he based his complaint from William J. Burns. the detective.
 Mir. Burns testified he had been sum- moned here to investigate alleged corrupt acts and dishonesty in civic matters. He began his investigation in April, 1911, and continued until August when he evolved "a fake boardwalk scheme to catch cer- tain officials. One of his operatives, pos ing as MT. Harris" a New York con tractor, became familiar with council men, offered several of them $5000 each to pass the ordinance providing for the
  count Later, Burns said, these council men were informed of the trap into which they had fallen. According to his story. all but one of them confessed and re- turned the bribe money Dougherty, he said, refused to give back the money or to confess and was arrested.
 Smiley, a Burns operative testified to installing a telephonic device in the hotel of William Mala, one of the councilmen, who Is said to have confessed. by which two stenographers took down an interview between himself and the councilmen at which the payment of the bribe money was arranged.
 Councilman Samuel Phoebus. former owner of big hotel. who Is said to have been the first man to break down under questioning was in Burns room today. Phoebus talked freely about the case.
 T feel better than I have felt for months he declared. 'I am thankful have got this thing off my chest. 1 only did what practically everybody else in council did at one time or another"
 Asked to confirm yeports concerning n job" in which other city officials are said to have been caught, Phoebus de- clared that he knew only of the garbage plant and the sewer transactions.
 T know they are working on these two things" he added, and have evidence against the men they want As far as the paving jobs and the saloon hold-ups are concerned, have as yet not been asked for any details. I blame my downfall and that of my colleagues on the fact that 1t has been generally understood that councilmen who served without direct pay must get theirs out of the contracts and ether jobs. It seemed so easy to take this money that 1t was hard for any man to refuse. It got so that anybody who wanted anything saw sombeody.''
 Phoebus said he had given. evidence against men higher up'' to the detectives but declined to discuss it's nature. Gus tave Kessler. one of the city councilmen, who are said to have confessed today, said:
 What is printed about this matter is substantially correct. There are some things about my admissions that would like to change, but this Is in minor re- spects.
 Kessler is said to be worth quarter million dollars.