New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-13
DIX SHIELDED 'D|SLOYA['
SALES AGENT Of PRISONS
Reuort Accusing Frederick H.
Mills. Whose Company Sold
Goods to State, Suppressed.
SCOTS REMOVAL limited
Suffers Publication of Report
Containing Charges Smacks
of Purpose to Dislodge
Superintendent.

albany. Jan PA belated report Of an
.,vestigation ordered by Ex-Governor Dix
- ,b. administration Of the Office OF the
lies and collecting agent Of the State
prison Department under Frederick H.
nils was made public tonight by Gov
.r,or sulzer. II declares that Mr.. Mills
,b,le working for the state organized a
.,,sts company known as the Hamlin
.,,nly Company, which sold goods to
state Institutions
Tho investigation and report were made
~ Iohn l. Mcmahon, of Rome, one OF
tho Investigators named by Governor Dix
"a inquire into the State Prison Depart
ment. Neither Governor Dix nor Colonel
Joseph F. Scott, who succeeded Cornelius
Y Collins as Superintendent of State
Prisons, ever made known the report hut
II is understood that Colonel Scott called
on Mr.. Mills for an explanation. MI
Mills was retained in office.
Governor Suffers action in making pub
lie the report is said by friends OF Colonel
Scott 10 indicate the Governors intention
10 bring about the retirement of the
superintendent because Of his refusal 10
remove George w. Benham, warden Of
Auburn Prison. and to appoint Charles F.
Rattigan, Of Auburn. a Democratic state
Committeeman and ally Of Thomas NJ.
OSBORNE to the place Mr. Benham is
Republican. The place Of warden pays
$500 a year and maintenance.
The Governors committee Of inquiry is
making further investigation into the af-
fairs Of the Prison Department.
Mills Not Loyal, He .ays.
Judge Mcmahon concludes his report by
declaring that Mr.. Mills has not been
Efficient in the discharge Of his duties and
loyal 10 the interests Of the state, which
h. is hired and paid by the state 10
s.-vc.' The report says, in part:
For many years Mr.. Mills has been con-
neCtCd with or has been the representa-
live Of many business institutions. selling
their output either on commission or on
salary. This services he performed foI
tho State Of New York seem to be the
smallest part of his business. The fac
tories IN the penal institutions OF the
state are able 10 furnish but very small
percentage Of the articles required by the
state ana its municipalities.
The institutions Of the City Of New
York alone require and can use at least
sixteen times the amount of the manu-
featured output OF the penal Institutions.
Under the law the manufactured artl-
clcS Of the prisons sell themselves ana
no effort is required upon the part or
sales agent 10 dispose of the entire out
put The sales agent. therefore, has prac-
tiCally his entire time 10 devote To his
own personal business and the making Of
money i'm addition to his salary and his
travelling and office expenses. which are
paid by the state.
Early in 1911. in addition To- his other
business activities and connections. MI.
Mills organized what he called IN, Ham
.u supply Company. fOr the chief puF-
uOs, Of supplying articles 10 the char.td-
p.~ Institutions Of the state. particularly
Us stat" hospitals He himself was the
Hamlin supply Company. lie capitalized
r.. employed a manager. filed a ceItIn-
cate iu the County Clerks Office stating
mat he constituted the Ham!iu Supply
Company, and al once began 10 sell goods
% tine charitable institutions at d profit.
The business office Of this company was
directly connected with and was part Of
the suite of offices one Of which he
called the office of the sales agent Of the
state.
For a yea following the organization
81 this company Mr. Mills did q large
business with state Institutions. prinCi-
paly with state hospitals His bills
which pa ssed through the LunaCy Com
mission amounted 10 several thousand
dollars each month He testified that he
made money by these sales. that the OBJ
Jet OF esta blishing the business was 10
make money. The amount Of the profits
On this business obtained by Mr.. Mills
,ould not be ascertained. He absolutely
declined 10 permit the books OF the Ham
In Supply Company, which showed its
dealings with the state, It's subdivisions
or its municipalities, to be seen.
The information that ] was able to OBJ
tain by an examination Of the vouchers
In the Controllers Office pertaincd only
10 his dealings With state hospitals
These vouchers show that in many In
Ill 81 l. =.
BY selling TO these institutions articles
which were manufactured by the prisons
Ind articles which were advertised by
him I'm the prison catalogues as articles