New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-31
TUBE SLUSH FUND
OF $4,000 MELTS
Signal Firm Head Shows
That Money Bought Pat
emf on Speed Control.
CADE TELLS OF TALK
IN WOODS OFFICE
Commissioned Left Opening for
Persuasive Eloquence on
Contract, He Says.

Rumors that 5000 "slusn" fund
figured in awarding the sl,5O0.000
signal contract in the Fourth Avenue
subway proved 20 be nothing more
than rumors az yesterdays session OF
The Thompson committee.
v. W. Salmon, president Of the
General Railway Signal Company.
which received the contract from the
Public Service Commission. produced
contract showing that the $4,000
was for the sale OF the Simmer speed
control system. he also placed in
evidence cheeks showing that $50 800
OF the sum had already been paid TO
the Simmer Auto Railway Signal Com
pany, the owners OF the patent.
Mr. Salmon said that on his advice
his company bought the patent OF
September 8. 1914. About three weeks
previous. he explained. his company
had been invited TO bid on the con
tract. Two days after Salmon's com
psny bought the patent the bids were
opened BY the Public Service Commits
sion
"On September H." said Mr. Salmon.
~ asked leave 70 submit a proposal
based on the speed control system.
Representatives of the other bidders
were there. Two days later ! went
over the merits Of the Simmer system
with Chief Engineer Menden OF the
Municipal Railways Company B. X.
t. and my own chief engineer. Mr.
Menden seemed impressed and said he
would ask the Municipal Railways
Company TO entertain a new bid based
on this system
Tells Of Talk with Wood.
The Municipal Railways did make
this request of the Public Service Com
mission, and, as a result. the Sl,500,O0O
contract was awarded 10 Ssimon's firm.
John T. Cade, vice-presdent Of the
Federal Signal Company. 10 whose
company the contract was first award
ed. but which lost It after the bids
we're ordered reopened, told how Pub
lie Service Commissioner Wood called
him into his private Office when the
Federal Company had won the Centre
Street loop contract and while bids on
the Fourth Avenue contract were still
pending.
Merton f. Lewis, counsel for the
committee. asked the witness 20 re-
late the conversation he had with Com
missioner Wood.
There was no one else in the room.
The door was closed. Mr.. Wood said
to me: This is "A very important con-
tract that is going to be let
Then the witness related various
questions that Wood put to him, so
that he Wood could be satisfied that
the Federal Company could carry
through the contract if it was award
ed to it. All these questions were an
swered satisfactorily by Cade. When
this was over. Wood said 10 Cade-so
the latter testified:
Have you any other reasons TO ad-
vance why this commission (the Public
Service Commission should be favor
ably disposed toward you"
as that what he called IT," inquired
Counsellor Lewis, amid laughter.
"Yes," said Cade, "he was giving me
every opportunity TO use my persuasive
cloquence.'
What do you mean by persuasive
eloquence ?"
"Well, had | convinced Wood that
financial benefits might accrue TO him
| would not have been kicked out Of
his Office" answered Cade.
Met Woods ex-Partner.
"Did Won tell Mr.. Penshaw that Com
missioner Wood gave you an oppor-
tunity to give him money"
yes"
He said he left Woods office with the
impression that he would see Mr.. Wood
again. The next day, he testified
Wnlara c. Banks, Woods former
partner, called him on the telephone
and made an appointment TO see him
at 1 Dey Street.
THAT was saloon; but all the sig
nal men used TO call it Bsnks's private
Office" added Cade.
Cade admitted that he told Banks
who told him that he had "a great deal
Of influence around here"-that he
would help him in whatever way he
could if the Federal people got the
contract.
81 gave Banks TO understand al
though | did not mean it, that there
would be financial remuneration in II
for him." said Cade.
Mr.. Cade was then excused. Salmon
began his testimony BY telling how he
engaged Sidney &. Johnson. ousted
from the Union Switch and Signal Com
pany.
johnson came to Rochester and
asked me for job said Salmon. lie
told me that at special meeting OF
the board OF directors on July 10, 1914,
he was asked if he had disbursed
money in getting contracts. He said
he replied: yes. | paid il at times
and in places and to persons as ordered
by nv superior officer, who is now
here They asked him 10 tell where
and to whom he had paid money to get
contracts, and he refused, saying his
superior officer was present and could
tell if he wished"
"Who was his superior officer? %
asked Mr.. Lewis. "Was il Colonel
Prout. the president of the Union
Switch and Signal Company" -.
Eyes" said Salmon. 81 asked him II
he had ever corrupted any public officer
or any one in getting contracts. lie
said no, but that he had carried mes
sages and that he was Disguised with
that kind Of business and hoped he
would not have 20 do that kind OF work
with US. told him he would neither
be expected nor permitted to do such
things"