The sun., 1917-10-16
FOUR NAMED IN
WATER GRAFT
City Employees Accused by
Wallstein Of Taking Brides
to Remove Meters.

After an investigation covering a
period OF nine months. Commissioner
OF Accounts Leonard NJ. wailstein late
last night submitted a report to Mayor
Mitchell In which he states his belief
that bribery and corruption exist In the
office of the Water Register. Water
Register Nelson 7. Henry 3 specifically
charged with lack OF administrative abil-
iiy, but is not connected with the In.
stances Of graft cited.
In the report which fills twenty five
typewriter pages, evidence Is submitted
tending to show that four m nor officials
Thomas F. Bannon. chief clerk l.. f.
Hermes. In charge Of the permit d.v.-
sion. and Inspectors C. f. Vail and p. J
Hannan---were involved In cases where
bribes were accepted for the removal
OF water meters from hotels. thereby
saving these hotels hundreds OF dollars
annually. The Commissioner asks that
charges be preferred against these four.
Evidence upon which the report Is
based was furnished chiefly by Joseph
Lewis. former employee Of the de.
partment. In January. 1917, when he
hrst gave information Of the alleged
corruption. he was under indictment for
grand larceny OF funds Of the depart-
lnent. Later he WAS convicted, but sen.
tence WAS delayed. Though this delay
aroused storm OF protest Commis.
sioner Wallstein defended It on the
ground that the mans services at the
time were invaluable in the investiga.
ton.
a specific instance cited by Lewis ir
his affidavits IL that of the Berkley
Hotel. 40 West Seventy-fourth street
where Ernest G. Chown is man.
ager Lewis says the hotel gave $45t
, for the removal of water meters. "Sev.
erar" hotels are spoken Of. but only
this one is mentioned by name.
Mr.. Wallstein's summary OF finding.
says:
wit, the possibility Of reducing tn,
expenses OF n hotel several hundred dol
lars annually by the removal Of tn.
water meter. with the lack of clea,
definition as to what constitutes q
hotel. and with the apparently perfume
! tory control exercised by the Wate,
Register over the subord mates who pas.
upon applications for removal OF me
tiers both the temptation and the oppor
| tunity for obtaining favorable deci
| sion in return for bribe have beer
constantly present.
Bribery Indicated.
"Chief Clerk Thomas F. Bannon and I.
F. fiermes. In charge OF the permi
ulEisIon, nave clearly Deen dereltCt II
| recommending inconsistent action upol
| the same state of facts in several in
stances where application WAS mad
for the removal OF meters. and from
the evidence obtained there Ia ason
able ground to believe that In at leas
| two Of these cases their final recon-
mendations were Influenced by the re
ceipt of a bribe.
| ITO assist Bannon And Hermea in ar
riving at their final recommendations I,
certain Of these cases Inspector c.
Vail rendered reports which tho evi
dence now at hand shows TO have bee,
| contrary to the facts. and Inspector r
J. Hannah rendered similarly false re
ports In certain other OF these cases.
| "The Water Register. although pro
Tossing the greatest willingness to co
operate In this investigation, In fac
failed to cooperate and took active step
tending to hamper the investigat ton"
| Wallstein's recommendations are:
| Charges should be preferred agains
| Thomas F. Bannon. L. f. Hermes. p.
Hannah and c. T. Vail upon the ground
above stated. and tho evidence agains
them should be- transmitted to the Dis
trict Attorney for such action as h
may deem warranted"