New-York tribune., 1919-03-03
$185,142 Tube
Refund Will
Be Demanded
Good Government Bureau to
Start Suit on Eastern
Parkway Subway Claim;
Tammany Hand Charged

The Good Government Bureau an
nounccd yesterday its intention of
starting a Taxpayers suit to recover the
$lS5, ,ld2S4 paid by Controller Craig in
part settlement Of claims the Inter
Continental Construction Corporation
brought against the city and to prevent
the payment of S201 1866 more. The
bureau intends also to ask the District
Attorney to inquire into the entire
situation, giving tho following reasons ::
blowing public controversy in
December between Controller Craig
and Public Service Commissioned
Travis II. Whitney, the statement re-
pcatedly was made to William Bullock,
director Of the bureau, that men power
tul IN Tammany Hall and forming a
contractors rang were interested in Ad-
Vanclng the claim, and that among
mem was one of the foremost public
officials of the state"
The Mr. Bullock who now announces s.
ms intention Of hunting the scalps of
Tammany Hall contractors ring is
the same Mr.. Bullock who up to a few
months ago headed an investigation bu-
reau sponsored by Fourteenth Street
ana was esteemed to stand hign in the
favor of Tammany.
Charges eliminate Relations"
He asserts that James G. Shaw. as
slstant treasurer and heavy stock kholder
IN the Inter Continental CORPORATION.
has had intimate relations" =" with S,I'f'
James l.. Gahney, contractor and for
mer partner of Charles f. Murphy's
brother, John j. Murphy
hlgh lammany connections are
found at almost every step in Controller
Cra1g's settlement of the claim in oues
tlon,D says the statement given out bv
the Good Government Bureau. "These
are OF men who for many years have
banded themselves in various com
panles or otherwise for the exploita-
t!on OF public contracts. Several of
them thus have amassed Millions"
In thumbnail sketch of the Inter-
Continental Construction Corporation
Mr.. Bullock says it was incorporate d
april ., 1918, with a capitalization of
5000, consisting of fifty shares. Fred
erlck L.. Hartigan, Austin w. Andrews
and Arthur II. Faust were the incor-
porators and at first the sole stock
holders. certificate filed Nav 25
1871, IN Kings County, where the main
Office had been moved two years be-
tore, showed that the capitalization had
increased to 100000, in 500 shares. of
which James G. Shaw held 800. Shaw
was assistant treasurer; Hartigan
president; Andrews, vice president :;
Faust, secretary, and S. K Colby, treas
urer. Hartigan, Andrews and Faust
from sole stockholders appear to have
become mere dummies, Mr.. Bullock
charges.
Says Craig Rushed Claim
CONn ftor 70 ;ocO,oor,+;o,,
pany obtained two subway contracts.
One was on the Brighton Beach line
and has been completed. The other, a
$2,75O,0O contract, was on the Eastern
parkway subway and was awarded
June 3, 1915. 1t was in connection with
this contract that claim for 81 O38,-
1918 was filed with Controller Craig
by the corporation September 20, 1918.
The corporation claimed it had per-
formed work for which it had not been
paid; that the city had increased costs
by delaying the delivery Of plans; that
the Public Service Commission had
changed the plans arbitrarily, causing
further expensive delay, and that no
compensation had been allowed for
sheeting and timbering left in place
by the corporation.
"The lnter-C Continental claim,' SAYS
the statement. "was one of iifty-two.
totalling $21, ,737 ,433.15 against the city
on account Of subway contracts. Some
Of these claims were more than two
years old. Controller Craig picked the
Inter Contine claim out Of the list
of ffty.two and rushed it through.
making the first payment within less
than three months after the filing of
the claim in his Office"
Mr. Bullock asserts that the Public
Service Commission was not notified of
the claim and accidentally discovered
October II, 1918, that it had been made
and the Finance Department had set
the next day for a hearing. In writ
ten report to the commission c. V. V.
Powers, who heads it's adjustment di-
vision, said that Deputy Controller
Louis II. Ilahlo had told him that the
hearing was being conducted along
rather different lines from the usual
procedure in connection with claims"
The commission held a hearing in
the matter October 80 and two days
later was notified by Controller Craig
that to prevent further delay he had
directed that a process be served on
the commission for the production Of
evidence November a. On January 2,
1919 the commission learned that the
claim had been settled and the first
payment made December 13, 1918.