New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-24
Rockaway Park
Deal Indictment
Expected To-day
Presentment Criticising
Certain Phases of City's
Purchases Probable

The grand jury which has been in
vestigating the purchase by the city
of the Rockaway and Dreamland Park
sites will make report to-day before
Judge Mulqueen, in Part |, General
Sessions. 1t was said yesterday that
the grand jury probably would file an
indictment. Ii was also reported that
a presentment, criticising certain
phases Of the purchases, will be hand
ed up.
The inquiry was suddenly taken be-
fore the grand jury last Tuesday as
a result of the unwillingness of Frank
Bailey, vice-president of the Title
Guarantee and Trust Company, to APP
pear voluntarily in District Attorney
Swann's informal investigation OF
charges against william II. Reynolds
and members OF the Board Of Estimate
Of 1913, filed with the District Attorney
by William Bullock, director OF lam
many's bureau of citv inquiry. Mr.
Bailev was then asked to appear before
the Grand Jury, and he promptly COM
piled.
REYNOLDS Tells OF Deal
Tho rrevious day Mr.. Reynolds had
testified before Assistant District AT,
tornevs Black and Kilroe that ne hau
disnosed of his two-ffths interest III
the Neponsit Realty Company on jury
& 1910. That was nearly thtee yea
before the city purchased the hocH-
away Park site from the NepohsiI 80
pany. He said he sold II 10 ram
Baiiey for $4,000 and TENN lhSetes.
in the Alert Mining Company ana s Sma'
Bailey gave him his check lot tne 80
600. Il was in relation 10 TINS 80
that Mr.. Black and Mr. hiIroe Tls"eu
70 question Mr. Bailey last luesuaE'
Mr.. Bailey did not produce tne cmroG
when he appeared before tne glaHu
iurv that day. He was a witness aB".n
ON " edresday, but 1t codlG no'
Learned vi ether he produced lhe
siraI CidcncC on that occasion. ,,
Corld rot be learned either rom vi,
Psilev or from the District At'oineyS
TLrtLcr Mr. Reynolds version OF IN"
,ale of his interests IN tne proper
was corroborsted by Mr.. Bailey OF oy
documentary evidence; ,.;o,;or
This phase of the invesusaliiom
reacncd an apparent climax yeSteI uay
wben william S. Coggswcli, 1oIhe'
chairman of the condemhatIon co,,
r,ission that passed on the Kocks"dy
award. Gas summoned before tne gram
iprv with all the records OF the com
Mr. REYNOLDS. on June 8, 1912, testl-
fed under oath before the condemns .t
ton commission. According 10
records he was asked:
Had No Interest, Said Reynolds
"Have you any interest in the prop
erty taken by the city for Seaside farH
a. Rockaway?' 1T
None whatever" was Mr.. Reynolds's
reply. , ATTAIN.
CORPORATION Counsel, who prepared the
appeal to the Appellate Diylsion on
tho award, also was witness with an
tho books and papers bearing on the
,ro,eac.ion Another witness yester-
dav was William NJ Greye, director
Of the Neponsit Company and OF the
Realty Associates, of which Mr.. Reyn-
olds is director
All the stock books OF the Neponsit
Company, the Title Guarantee and
Trust Company and the Realty Asso-
ciates the records of the County
Clerks Office in Queens, as we'll as the
private books and papers Of Mr.. Reyn-
Odds and Mr.. Bailey from 1905 20 the
present time. were subppnaed by the
district Attorney yesterday. IL was
understood that all these records were
laid before the grand jury.
The public records in Queens show
that Mr.. Reynolds testified before the
commission that $4,000 an acre was a
reasonable" average value for the
Rockaway Park site. William p. Rae,
a business associate of Mr.. Reynolds,
who was chosen as the city's appraisal
expert, testified that the land was
worth from $4,000 to $4,000 an acre.
The commission finally awarded $4,000
an acre Forty-seven Of the cas- acres
comprising the site, were purchased by
the Neponsit Company from the state
at 5000 an acre.