New-York tribune., 1919-09-19
E. Spencer Baldwin Flushcs
Under Examination i'm
Hearing ON Activities of
State Industrial Agents
Asked Suspects Names
Former Boston Professor
Resents Suggestion He
Knew of Irregularities

The inquiry into the graft ring in
the office Of the State Industrial Com
mission took sensational turn yes
terday during the examination at the
City Hall of +. Spencer Baldwin, who
was Professor of Economics at Boston
University, Boston. until his appoint
ment in 1914 as manager of the State
insurance fund OF the commission.
Miles M Dawson, counsel for Jere-
miah F. Connor, special commissioner
appointed by Governor Smith to in
vestigate alleged graft in tho commits
sion, asked questions of the witness
which caused his face to crimson.
Mr.. Baldwin protested the sugges-
ton that he had tried to obstruct the
investigation or had tried to shield
grating employees. He also protested
that he had not entered into arrange
mcnts with William A. Herman, one
of his subordinates, who has confessed
his part in the graft, to have Governor
smiths Investigators shadowed by
private detectives. He admitted that
lump sum settlements, through which
ignorant injured workmcn were vic
tlmlZed, were contrary to the spirit
and intent Of the Workmcn's Compen-
sation Law. He placed the blame for
this on John Mitchell, chairman of the
comm sson, who died little more than
week ago.
Have you anything In writing which
would bear out your statement that
the late Chairman Mitchell recon-
mcnded to you that lump sum settle
mcnts be made ?" asked Mr. Dawson.
"No," answered the witness.
1T is rule in law, Mr.. Baldwin,
sation with man now dead is not
admissible. But do you think that the
full responsibility was upon yourself
as manager of the insurance fund for
having permitted this lump settlement
evil to arise within it?"
II do not think that the full respon-
sibllity was upon me or not. | am
not disposed to evade any responsible
it. All up the line there were com
missioners, deputy commissioners and
other councils before whom these
things were going on"
These lump sum settlements, it was
stated at the close Of the investigation,
ran from $1.500,000 to $2,O0O,OOO an
nually. One-sixth of these claims,
approximately, were settled out of the
state insurance fund
Four Others Involved
Neither Mr.. Dawson nor Commits
s;oner Connor was prepared to say
just when the graft began, but they
admitted it was in full operation for
upward of year and hat in addi-
tion to the two subordinates of Mr.
Baldwin,, Herman and Harry Jacobson
already involved, they had information
pointing to four others who are Of
fcals of the commission, one of whom
it was said, is high placed
The first tilt between Mr.. Dawson
and Mr.. Baldwin occurred when there
was introduced in evidence letter
written by the witness to Commission
for the names of employees under sus-
pcion.
Mr.. Dawson asked:
OH think it was not your purpose
to avert the investigation ?"
absolutely not. My purpose, let me
state for the record, was to relieve
from duty at the earliest possible mo-
ment any employc who had been unfit
for such scrvicc.'
The letter, Mr.. Baldwin explained.
was written after he had heard rumors
that some of the men in the depart
mcnt were under investigation. Her
man and Jacobson, he said, were men
toned among those suspected.
WAS MIR. Herman on his vacation
during the two weeks ending lost Satur-
day (when the letter was writtcn)) %
ole was"
did you make any attempt to COM
municate with him during that period %
II asked Mr.. Herman, or requested
my secretary to request Mr.. Herman
to come in to see me-"
'Did you send or cause to be sent