The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-17
Knew He Would Hove to
Tell Of Murphy's Inf1u-
ence in Treasury.
OBEYED ORDERS. OF BOSS
District Attorney Told Murphy
Picked Banks That Got
State Deposits.

DISPATCHES To THE Sun from Buffalo
ssyins that tho friends Of State Treasurer
John J. Kennedy are speaking Of him ~
a man who would rather die than squesl'
6rtve at the core Of his reason for ending
his life. Is that reason was revealed here
and IN Albany yesterday.
me purport of such information a.
could bs cleaned from those IN a position
10 know is that Kennedy faced the choice
Of being indicted for perjury or turning
'vqueaier" and chose death AS the only
solution of the problem.
Kennedy knew that unless he retracted
statements made by him before the Grand
Jury on January - he would have stood
Fable 10 indictment to-day. The object
Of calling him In the John Doe proceedings
scheduled for yesterday was to give him
an opportunity to set himself straight.
Feared 90 Retrsct In Public.
Kennedy feared to make such retrac-
ton IN public. He knew that II would be
followed by questions that would have
laid bare his intimate connections with
those ut the heed Of the Democratic ma
chine He knew that II he told OF these
connections he would expose the men who
ia given him political prefernent. the
men whose company he had sought since
the day he entered politics as ward
leader in Buffzlo.
Kennedy knew that a man qualified TO
spsak had informed n representative of
District Attorney Whitman that the state
Treasurer accepted orders from Charles r.
Murphy in designating banks ~ deposi-
tories. fur tbs States 31so,o00.0eo just
40 Es nAmittsdly accsptsd orders
from state ENGINEER BensS and
Superintendent Of Public Works Peek In
voting A a member of the Canal Board.
There 10 no suggestion that he benefited
personally by what he did. but he would
have been inundated n the conduct OF
hands than his own.
District Attorney Whitman's investigs-
toss had been told that every bank which
received state money was approved by
Mr. Murphy before Kennedy named It.
They heard directly from kennedys rep
resentative that he felt under such obliga-
tons TO the State Democratic committee
that he would do nothing unless orders
came from some one in authority there.
sou Named In Report.
Bank, In which State funds are depos-
tied pay per cent for the use OF the
money. They are able to lend the money
to others at from 4 to s per cent. some
BANKS have taken the position that they
we're unable to take the state funds At
such q high rate Of interest. and when
Mr.. Kennedy sought Repositories for the
sb3.00O,OOO recently acquired through q
bond issue he was forced to send out cir
culars asking banks to accept the depos-
~ All Of the money was placed within
few days.
Il Was reported In Albany that Mr..
kennedy's son took an active part In
bonding the banks which took the money.
Kennedy had testified before this In
formation came 10 the District Attorney
that he never urged bank to have Its
bonding done by b. particular concern. He
had testified that he did not know that
Charles F. Murphy. IT., the nephew OF
the Tammany leader, represented the
United States Fidelity and Guaranty Com
psny, concern Of which Kennedy had
been the resident vice-president In Buff
falo
The thing that shattered Kennedy
nerves was the information conveyed "a
him that Mr.. Whitman had documentary
EVIDENCE that would absolutely disprovs
these assertions by Kennedy.
/. whitman Hal other os~stions.
Had Mr.. Kennedy admitted that his tes-
! timony was not true he would have been
asked n n was not true that during the
lsst fourteen months ne had deposited no
state money with any bank unless that
bank had the approval Of Mr.. Murphy.
Charles y. Murphy. Jr., was Frequently
In Albany soliciting bonding business for
the company which he represented AND
the District Attorney would have tried
10 show that Kennedy was made 10 feel
that his political future depended upon
h.s obeying sugsestions brought TO him.
Mr., Whitmsn's investigators In Albany
were prepared TO show that Kennedy
could not have denied tho influences
brought 30 bear upon him without max
ing himself liable 10 charge Of perjury.
Because Of the death OF Mr. Kennedy
and the setting In motion Of the Assem-
bly, graft Investigation there was nc
John Doe hearing yesterday. Nineteer
contractors from various sections OF thu
state had been subpGnacd. They wer'
told to return on Friday, when the hear
lrgs will be resumed.
1Le Grand Jury will meet again to
say 10 consider the payment OF sr,:s'
by Patterson h Co. OF ptttsburg for ~
spueduct contract State Engineer JohI
Behsei, who WIS chairman OF tn
Board OF Wstsr supply, which awarded
The contract, will be tho principal Wit
ntss Mfr. Bensei was sutpGnssd IN, ~
bsny last Wednesday Mt the same tim
hat state Treasurer Kennedy vas sub
pVnaed. Eflf N. l's' sf