The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-04
HYDE'S AID INDICTED
IN GRAFT INQUIRY
KellOck Accused of POcketing
Contractors Cash Held
Up at Albany.
DELAYS DOE HEARING
kerbaugh to Testify To-day
Refuses to Waive Immunity
on .JerOme's Advice.

Two indictments charging grand lar
ceny were found by the graft Investigate
ing Grand Jury yesterday against Samuel
X. kellock. a dealer in automobile sup
plies at 1928 broadway. who was for
eighteen years an employee IN the office
Of former City Chamberlain Charles II.
Hyde.
The testimony offered In this case con-
WINGED the Grand Jury that payment of
State claims, whether legitimate or not,
may be expedited by the employment of
the proper persons.
In this case two claims we're paid after
the contractor TO whom they were due
had sought vainly for year and eight
months to get his money. one payment.
which had been held up as penalty
against the contractor. was paid In
little more than month after a friend of
Patrick T. McCabe, Democratic leader OF
Albany. had been engaged AS counsel by
a man who had no right to the payment.
William Henderson. "A contractor at 5O7
Fifth avenue. was the chief witness. lie
testified that In May, 1871. he got con-
tract to build laundry for the state
Hospital for the Insane at Central lslip.
/. |. The contract called for an expen-
dlture OF $1,000 and Henderson needed
money TO get the Job started He said
that he consulted William A. Larney and
took him in on the contract because he
believed Larneys acquaintance with pub
lie men would he OF assistance to him.
Helped Fight On Tammany.
Larney had been secretary to Fire
Commissioner Francis ]. Iantry and was
let 20 BY Fire Commissioner Nicholas
Hayes after Mayor Mcclellan had en-
listed Larney in his fight on the Tam
many Hall organization. At that time
Larney had an office at 81 Chambers
street on the same floor with Hyde.
Henderson told the Grand Jury that
Larney took him 10 see kellOck in HlNe
office and that Kelock lent him b'iuo.
This WAS in July, 1911. For security
Henderson made TO Kellock an assign
ment OF such moneys AS would be due
him from the state and h" told the
brand Jury that by December Of that
year he had paid back all of the Sl,4o"
Two of the checks paid To- kellock shoe
tn. Endorsement OF Charles II, hyde
Henderson said he asked Kellock for the
assignment after the Anal payment ana
tina, Kellock told him 1t was tucked away
In his office somewhere and Was not
readily available but that he need have
no fears OF any advantage being taken or
It.
Two PAYMENTS were still due Henderson.
one for s72l.6s, which was not disputed,
and another for sl,5ss, which the treas
urer Of the State Hospital refused To
honor on the ground that II was Withheld
as "A penalty for improper performance "i
tn. contract. Henderson didn't demand IN"
sTelGS at that time. hut put his case IN
the hands Of stephen j. St.lw"ll. the for
mer senator from The Bronx. who IL now
In Sing Sing,
Kellock, lie Says, Got His Money.
Nothing came OF Stilwells efforts and
in July, 1913. Henderson wrote to :.
Louis Schnitzer. state Hospital treasurer,
and said he was willing TO take his
$72l.66. leaving the larger claim for future
adjustment.
To his surprise. he testified he was in
formed that the s72l.66 had been paid In
the February preceding To Samuel h. KEEL
lock. he having hled an assignment with
the State Comptroller to cover the claim
Henderson said that kellock denied hay
ing received the money.
Assistant District Attorney William II.
Enforce covered this denial yesterday hy
presenting the check OF the state iiospi-
tai treasurer on the New York National
Bank Of Albany. Mr.. Schni,zer testified to
his signature. on the back the check was
indorsed by Samuel X kellock as as
signee Of William Henderson. The second
Endorsement was by William \. Larney.
Miss Ellen Whalen. who was formerly
employed by Henderson and larney, but
who Is now Ia Larncy's Office. testified
that Larney gave her the check and that
she got Adolph Gundermau. n baker At
Sixth avenue and Twenty-siXth street, to
cash II.
In November. 1919 Henderson again
wrote to Schnitzer and told him that he
had heard that kellock was trying to get
the &l.6ss still held up as penalty.
Schnitzer wrote back that on August :
he had paid the claim 10 George r. KEEL
ley. an Albany lawyer. who Is described
as zone of Paddy McCabe's right hand
men,