The evening world. [volume] (New York, N.Y.) 1887-1931, 1914-06-15
NEW HAVEN Joker
SADDLED BIG BILLS
ON NEW YORK CITY
Corporation Counsel lnvesti-
eating Secret Deal of Railroad
and Tammany Officials
NEW SCANDAL OPENED.
Clause in Contract Shifted All
Cost6 Changing Grades.
From the Company.

Corporation Counsel Frank L. Polk,
acting in behalf OF the city. 10 prspsr-
ing . move that promises to reveal
the secret arrangements between the
New York. New Haven and Hartford
Railroad Company and city ofYiciais and
Influential politicians at the time when
Charles 3. Melisn. president Of the
company. was paying out millions Of
dollars on the westchester Railroad
deal.
Papsrs ars being prepared In ne
Corporation Counssrs once to ask
the courts to declare null and void
. certain contract entered into b.
tween the city and the New Haven
Railroad Company In 1901 relating to
terms ana conditions governing
changes Of grade and railroad Inn
provsmsnts In the Bronx. There had
been banding for some time important
questions caused BY proposed I'm
provemsnts in the Bronx on both the
New Havsn's main line and the new
Wsstohsstsr road. Eventually q con-
tract was signed In which . CLAUSE.
now most important, was that the
railroad company ahould bear the
cost and damages ocoasioned by
changes Of Grade in its line when
the change was made by request Of
the company"
This CLAUSE proved to be . joker.
for later somebody IN authority took
good care that the company never
had TO make requests. The city oblig-
insly changed the grade Of it, own
streets and the railroad company
had merely 10 adapt itself 70 the new
conditions. No requests were nsoes-
sary. because the city's streets. not
the railway line grade. were changed.
There u still considerable vAgueness
about the dates and details OF these
change Of Grade transactions in the
Bronx. which requires much digging "a
get Strengthened out. Through all the
events runs . tangled thread Of fran
ohiss applications. Tammany con-
tracts. purchases Of westchestor and
Portohester stock and finally the
slush fund payments by Prssident
Msllsn through the late Inspector
Byrnes TO unknown holders Of due
billie" Corporation Counsel Polk II
having the record sifted and the trail
of scandal that Mr.. Mellcn only par
TALLY revealed 10 to be opened up.
A decision handed down few days
ago by the Appellate Division Of the
Supreme Court II the starting point
Of the new action. Property owners
in tho Van Nest section OF the Bronx
have suffered heavy damages by rsa-
son OF changes In grade Of streets
notably OF Rosedais. Walker and Bay
chester avenues-in order TO bridge
over tho railroad tracks. Not only
was private property damaged. but II
was made to bear the cost a. we'll.
A test case brought by Abbott p.
Brush against tho railroad company
resulted in an award OF 500 damages,
Tho Appellate Division held that tho
law required changes In railroad
grades to be passed upon by tho State
Railroad Commission, a" IL was az
the time, and later by tho Public
Service Commission. and in this case
no such consent was asked or given.
The railroad company maintained
that its agreement with tho city.
passed upon by tho old Board OF
Estimate and Apportionment. was
sufYiciept authority. The court In the
Brush case having based Its decision
Technically upon lack of approval Of
the state Railroad Commission, the
city government purposes to attack
the original agreement between the
CITY and tho railroad company. which
lies at the bottom ~ the whole trans
action.
The CORPORATION Counsel has dis
covered that everything was done to
help the railroad company and 10
throw the burden OF cost upon tho
nroperty owners. The cftys en-
rine.rs made map. approved by
proper authority. establishing new
Grade lines for street designed to At
nicely into the plans OF the New
Haven company for its six tracks
and elimination Of grade crossings
II was not necessary for the com
many 10 change the grade az it's
tracks in places. There was no need
10 request permission and thereby
bear the burden OF costs. The city
was accommodating.
Mr.. Mcllen. In his testimony before
the Interstate Commerce Commission
relating 10 passing out 5000. 900
shares O' New Haven stock. then
worth sl.50O.0o0, through Inspector
Byrnes for worthless Westminster
stock and due bills, said:
"Our people were unwilling to
make immediate exchange and
said that this situation should re-
main in statu quo until such time
as certain needed notifications
in the franchises, certain htiga-
ton then pending and certain
acts which were OF Questionable
validity were validsted. ! made
. list Of all the things ! thouaht
were desirable TO have corrected
and I said ! would hold tho stock
until they wero corrected. They