The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-03
Bullock Wants Comptroller to
Explain $4,000 Payment
to Subway Contractors.
SEES TRAIL OF TAMMANY
Cites Public Service Boards
Protest That $4,000 Ought
to Satisfy Claim.

settlement by Comptroller Charles l.
Craig of the claim OF the Intercon-
t'nental Construction Company for
3a2s.ooo for alleged damages arising
out of delays In furnishing plans for
the completion Of parss Of the Eastern
Parkway subway.
This Is the claim which Comptroller
Craig settled despite the protest Of
the Public Services Commission, Com
\ missioner Whitney writing that any set
Element In excess OF $4,000 would be
| tantamount to making a gift OF the tax
payers money. Director Bullock in
his report finds that the claim was So
/ lected by the Comptroller from some
nifty or moro other claims that were
pending and rushed through to an award
despite the reports of the engineers OF
the Public Service Commission that lit
tie II any damage accrued to the con-
tracing company.
Mr.. Bullock also processes to see the
hand of Tammany In the matter and
wants to know why Comptroller Craig
appeared In person before the commits
sion and argued against the forfeiture
Of the company's contract He declares
that James @. Shaw. an official Of the
Intercontinertal Construction Corpora
tion has had intimate business relations
with James z. Gafrney, business associ-
Charles F.. Murphy.
Mr.. Shaw is manager and director Of
the Upper Hudson Stone Company and
his name was mentioned In the investi-
CATION by District Attorney Whitman
Of contracts for work on the Catskill
Aqueduct 1t was testified that Shaw
received "a boatload of stone" from
Gaffnsy. The ''boatioad of stone
turned out to be package of s41.260.
According to statements made then
aqueduct contracts were sold at a fiat
rate OF per cent. and Sf1.250 was
per cent. Of the contract awarded to the
Pittsburg contractor.
Secs Hand of Tnmmanx,
Mr.. Bullock's report follows in part:
High Tammany connections are
found at almost every step In
Comptroller Cralgs settlement of
the claim in question. These are
of men who for many years have
banded themselves in various COM
proxies or otherwise for the ex-
ploitauon of public contracta- Sew
eral Of them thus have amassed
millions.
The Intercontinental company
was represented in the settlement
by Frederick l. C. Heating of
attorney for other companies and
for individuals in the contractors
ring. In George b. McClellan's first
term as Mayor he held office as
Commissioner Of Licenses. When
Mcclellan broke with Tammany
Hall in his second administration
he appointed John n. Bogert in
place OF Heating. In 1906 Heating
was doomed for District Attorney
on the Tammany ticket
Heating has acted In conjunction
with James A Lynch as counsel
for the Bradley contracting inter
ests, the Gaffney interests and the
Steers interest. all closely affiliated
with the Tammany contracting ring
Lynch is an intimate friend OF
Thomas F, Smith. secretary of Tam
many Hall, having shared law Of
flces with him at 81 Chambers
street
Heating and Gaffney have been
friends for many years Gaffney
amassed a fortune in the New York
Contracting ana Trucking Company,
which excavated the site OF the
Pennsylvania Station. His chief
partner in this company was John
J, Murphy, the brother OF Charles
f. Murphy.
Protests of more than n nomi-
nal award were made by the Public
Service Commission to Comptroller
Craig. AS result OF expert re-
ports made by the commissions en-
gineering stan Commissioner Whit
ney made known to the Comptroller
that any award should not exceed
$4,000. The Commissioner as
serted payment of more than this
would be a gift of the taxpayers
money
Dates. Not Damages, Involved.
THE Comptroller, however. in
awarding the s32s. 1000 upset all the
procedure In such matters of the
Department Of Finance. The facts
in the case show him as appearing
before the Public Service Commits
sion practically as an advocate for
the Tammany allied Intercontinental
Corporation. In order to push set
tlement he made preemptory de-
mands on the Public Service Com
mission. He limited, as letters
written by himself show. the prob
lem of settlement TO a question OF
dates and not OF actual damages
otherwise sustained.
He withheld knowledge OF the
claim from the Public Service Com
mission for four weeks. Then It was
only by accident that the commits
up the question OF settlement,
learned even OF the ciGim's exist -
ence. He failed 90 inform the COM
mission of the settlement finally
made by him, of the advance pay
ments he had arranged: 1t was only
through demand upon the attorney
for the corporation that the conf
mission found out about the settle
ment and about money already paid.
TIT az
one of nfty-two totAlling $21.79T,-
433.15, against the city on account
OF subway contracts. Some OF these
claims were more than two years
old. Comptroller Craig picked the
Intercontinental claim out of the list
of fifty-twO and rushed 1t through,
making the first payment within less
than three months after the filing OF
the claim in his office.
why did Comptroller Craig give
this particular claim a preference?
Why did he leave the Public Ser
vice Commission In ignorance for
four weeks of tho existence of the
claim arising from one OF the said
commissions contracts? Why did
he leave 1t 10 accident for the COM
mission finally 10 learn OF the ex-
istence OF the claim? why has
Comptroller Craig not informed the
commission to this day OF the set
Element arrived at ana OF moneys
paid and TO be paid on account OF
one OF the commissions contracts!
Why did he appear before the Pub
lie Service Comm ission?"
nritish Cruiaer nrenLa n.xxu