New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-16
Decided There Was No
Other Way Out" Says
District Attorney.
EITHER HAD TO BETRAY
FRIENDS OR HIMSELF
Evidence Tended to Show
He Used Office to Aid
Tammany Men.
HANDLED VAST SUMS.
Was to Have Been Asked About
"DisCretiOn" with Which tic
Deposited States Money.

Deposited States Money.
The unfortunate man probably de
cided there was no other way ont
said District Attorney Whitman last
night. when asked about john J. Ken
nedy's death. There is nothing more
I can say in the circumstances
Mr.. whitman had learned OF the
state Treasurer's suicide on his way
from Washington. whence he returned
for tho graft inquiry to-day. II which
Kennedy was TO he a witness.
The state Treasurer. active IN Demo-
cratic politics from the time Of lis
start as Buffalo saloonkocpcr. faced
the alternative OF admitting his ass"-
iation with James X. Mcclure ard
Charles F. Murphy. jr.. IN the use ot
state funds in the bonding business OF
these two men or of having the trans
actions in his office exposed.
At the time when nc cut his throat he
one calling him before the grand jury
and the other making him a witness
in the John Doe investigation. II was
the loss Of his self possession as :hs
time appros ched for his ordeal thar
overbalanced all other thought, and.
as friend expressed il. something
must have cracked in his brain.
Danger Was to Himself.
II was learned yesterday that Ken
nedy, first Of the members Of the old
Canal Board TO testify before the grand
jury, placed himself at the mercy of
District Attorney Whitman when he
testified in the inquiry into the part
nership of Mcguire and Murphy
While his testimony was wanted in re-
gard TO the awarding Of barge canal
contracts while he was in the board.
his chief importance as a witness lay in
his own danger and in the opportunity
II gave TO induce him to tell more of
transactions than he admitted know
ing.
KENNEDY first appeared before the
grand jury on January %, and was
closely ouetioned about deposits Of
FUNDS OF his office in New York banks.
Then he returned to Albany and But-
falo and remained there until February
6, when he was asked 70 appear again.
Instead Of so doing. he lodged from
the Albany office. and II was not until
several days later that process server
was able TO reach him. At that time
he explained that he did not wish 10
neglect his business unless advised 10
do so by his lawyer
To be Asked About $150,000,00
Kennedy's troubles arose from his
willingness 10 oblige MS political
friends. rather than from any great
motive Of personal gain. He was so
"obliging" that when he was TO have
appeared before the grand jury he
would have been asked about the dis
position OF almost S15OO0O.000 in his
two administrations as State Treas
urer. He was the weaker member
caught between the opposing motives
Of maintaining the confidence OF his as
sociates and of disclosing his transac-
tons TO the grand jury.
The profitable and monopolistic bond
ing business in which James h. Nc
CURE. now facing trial: Charles +.
Murphy jr.. the Tammany Lead
er's nephew. and Kennedy's own
son. as John j. Kennedy & Co.,
OF Buffalo. was that which Kennedy
helped by the manner in which lie
made deposits Of state funds in the
various state repositories. He was to
have been asked particularly what mo-
tives aside from that OF safety. gov
erned the selection Of the banks in
which the money was deposited. The
purpose Of this inquiry was 10 learn
what connection existed between the
business OF. providing bonds for the
banks receiving the money and tne
designation of the favored institutions.
Said He Had Quit Firm.
Kennedy established the firm Of john
!. Kennedy & Co. OF which his son is
now a member. but when Kennedy was
i'm New York 10 testify before the grand
Jury he denied that he was any longer
connected with il. He had resigned.
he said. while he was in the State
Trea asurer's Office
i, was lucrative occupation which
Kennedy turned over 10 his son. Osten-
slblv the agents for insurance and bond
ing companies in reality commission OF
per cent OF the amount OF the stat de-
noslt was charged TO the bank for which
the bond was furnished. John j. Ken
nedv A. Co. MCGUIRE a. Co and the con-
Germ in which Murphy's nephew was
heavily rested got a large share OF II.
The latter two, as IL was explained De-
fore the John Doe Investigation, divided
"nfty-ffty" On these commissions.
When District Attorney Whitman OBJ
taired possession OF Kennedys bank ac-
counts the State Treasurer first realized
sSA