New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-30

BROOKLYN. acted as guide for the upstate
nsrtv on its arrival in the Criminal
Courts While the members or 'he
canal BOARD we're seated in semi
circle about Mr.. Whitman's desk In MS
nrivate Office for conference before
going into the grand jury room. james
c. Stewart, accompanied by his brother
Alexander Stewart, and Almuth c. VAN
diver. member OF the law firm of O'Gor-
man. Battle & Vandiver. counsel for
Stewart arrived and were ushered into
the room.
II was determined that the grand
Jury would not have time 10 examine
Stewart. so he left the Criminal Courts
with HIS brother and Mr.. Vandiver for
his Office. subject 10 telephone call by
Mr. Whitman.
The Secretary OF State was before
the grand jury a short time. When he
came out he said 10 newspaper men that
at first he could not recall the Stewart
matter until he looked up the Canal
Board records. His attendance at the
meetings was perfunctory, he said, and
HIS action at all times was guided by
the recommendations OF Peck. Bensel
and Attorney General Carmody-ex-
cept, he said. an matters Of state land
grants for power sites" Those matters,
he explained, he always investigated
himself
kennedy's Feelings Hurt.
Kennedy was before the Jury nearly
an hour. II was reported that he was
sharply questioned about the affairs Of
his Office IN relation TO deposits of
funds in New York banks. and on being
asked what was the largest bank IN the
state was unable 20 answer. At any
rate. Mr.. Kennedy left the grand jury
room in high dudgeon and declined TO
speak a word with the reporters who
saiuted him.
Lazansky said his testimony did not
throw any light on the records Of
the board" Before going into the
grand jury room Peck submitted to
Mr.. Whitman for publication volumi-
nous report OF the advertising and
awarding Of the McGovern and Stewart
contracts. His examination by Mr..
Whitman IN the grand Jury room was
not confined to this report.
AS a result Of the long secret confer
ence between Mr.. Whitman and Stew
art. IL was rumored last night that the
District Attorney now has sufficient
evidence on which 10 base an indict-
ment against James f. Gaffney for an
attempt TO obtain money under false
pretences.
This means that Stewart must have
furnished additional details to Mr..
Whitman regarding the nature OF the
representation" made by Gaffney 70
the contractor when he prefaced his
demand for the $4,000 by asking
Stewart about his state contracts. The
presumption is that Stewards solicitor
represented that the Canal Board
would award contracts on his bids for
a certain sum Of money which was TO
he paid 10 him.
Thomas Hassett, former secretary TO
tho Board Of Water Supply and one
time confidential secretary to c. Cor
don Reel, was indicted for attempted
grand larceny and attempted extortjon
10y the grand jury in Decembed on tes-
timony Of Anthony c. Douglass. former
Mayor Of Niagara Falls. who told the
grand jury that Hassett took him
down 10 a Church street cafe and left
him there while he HassetD said he
was going TO confer with the Water
Board at No. 1G5 Broadway.
When Hassett returned. Douglass
said. he told him that those fellows
upstairs" wanted $4,000 to award him
the "siphon" contract on the aque-
duct. Douglas declined TO pay Has
sett the money The contract went to
T. A. Gillespie & Co., the highest bid
ders.
Members Of the Water Board told
the grand jury that Hassett had no
standing or influence with the board.
The award TO Gillespie is still under