New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-05
Democratic State Treasurer
Charged with Holding Up
Two Corporations.
GRAND JURY ACTS
ON CAMPAIGN GIFTS
Stories of "Sandbagging"
Told by Owens and Van
Alstyne Are Believed.
"BAGMAN" IN SAME NET
Dale Engineering Company's
Check Causes Finding of Sec
Ond Bill Against Him.

Arthur A. Mclean. Democratic state
Treasurer for the last ten years, was
indicted twice yesterday for accepting
campaign contributions from two New
York State corporations. The indict-
ments were based on evidence given by
Harold V. owens, secretary-treasurer
Of the Dale Engineering Company. OF
Utica. and of Matthew Van Alstyne.
treasurer Of the Shaughnessy Construc-
ton Company, of Albany. Mclean ac-
cepted contributions Of these two cor
porat tions of 500 and $1,000, respec-
lively. in the 1912 campaign.
Section ~ of the General Corpora
tion law says:
ANY person who solicitS or know
ingly receives any money or property
in violation of this section shall he
guilty of a misdemeanor and punish
able by Imprisonment in penitentiary
or county Jail for not more than one
wear and a fine Of not more than
81 600"
Previous phrases Of the same section
set forth that no corporation should
contribute, pay or agree to pay any
money or property for or in aid Of any
political party, committee or organ
! ization.
Fowler Again Indicted.
Everett p. Fowler. Murphy's upstate
"bagman," now under indictment for
eXtortion in the case of Seneca p. Hull
Cortland County contractor, was in
dlcted again yesterday 10y the same
grand fury under Section - and on the
evidence OF the Dale Engineering COM
pany transaction. This corporations
500 contribution" was solicited by
Fowler. according to the evidence Of
Owens
The grand jury heard also one Wit
ness in the case against Thomas Bas.
sett. who was secretary and confiden-
tial man for State Engineer John \.
Bensel
District Attorney Whitman's investi-
CATION into campaign fund graft and
the "sandbagging" Of contractors has
resulted so far in five indictments:
the two found Yesterday against Nc
Lean and one against Fowler; previ-
Gus Indictment Of Fowler FOR cXtortion.
and one found last week against James
*. Mcclure for attempting 10 solicit
n 81. 600 political campaign contribution
from the Union Oil Company, Cali
fornia corporation.
The evidence in the Dale Engineering
Company case was clear and brief. and
| its vital points had been outlined at
the open sessions Of the John Doe in
ouiry. owens testified that he sent
$500 check of the corporation. dated
| October 81, 1912. 10 Arthur \. Mclean,
as Democratic state treasurer, at No.
! West saith street. owens swore that
Fowler had solicited that contribution
and had. IN fact. attempted to sand
bag" the corporation for $1,000 The
Utica man produced also the regular
receipt Of the Democratic State Com
mittee for the SiO0 contribution, MADE
out 10 the Dale Engineering Company
In the Shaughnessy Construction
Company ease the evidence was slight
" more roundabout. Matthew van
Alstvne. treasurer of that corporation,
who incidentally was Democratic can
didate for Mayor OF Albany at the last
election. testified that he had sent a
Graft Of $1,000 from the corporation 10
| Arthur \. Mclean. at No. | West 34th
street Van Alstyne swore that ne had
purchased the draft with check of
the corporation for $1,000, and he pro-
duced the United states Postoilice reg
istry receipt, addressed 10 the Shaush-
messy Construction Company ana
signed by Arthur 4. McLean' per r..
] Burke. This contribution was dated
october %, 1912.
Course Of Checks Traced.
Harley j. Hotalng. of the CONNER
cioI National Bank. Of Albany, testified
70 the receipt Of the $1,000 check OF
the Shaughnessy company, and the is
suance of a draft for that amount on
IN. Mechanics and Metals National
| Rank oil tIllS Guy. AitAdllu'l
OF that bank. testified 10 the receipt Of
the draft through the Clearing House
from the Fourth National Bank, and
Robert IL. Vanderbilt, of the Fourth
National, testified TO the receipt of the
draft from Arthur A. Mclean, with his
Endorsement as Democratic state treas
urer. Vanderbilt also testified to the
receipt In the same manner of the Dale
Engineering Company's $500 check.
Jose f. Pidgeon. Deputy Secretary OF
state. testified as to the incorporation
of the two companies concerned in the
day's Developments and John ].
Murphy, a record clerk in the State
Highways Department, testified that
the two companies were engaged In
work on contracts for the state at the