The sun., 1919-10-01
STATE AID IS HELD
ON BRIBERY CHARGE
Abraham Bernstein of Indus
trial Commission Staff Is
Arrested.
REsULTOF INVESTIGATION
Is Said TO Have Received 1926
From Workman to Insure
Compensation Award.

Abraham Bernstein, chief accountant
Of the State insurance fund of the State
Industrial Commission. was arrested at
the Grand Central Terminal last night
by Detective Russo of the District At
torney's staff and locked up at Police
Headquarters on "a bench warrant. Ac-
cording to Detective Russo, Bernstein
was charged with accepting bride.
The indictment was returned yester-
day afternoon to Judge Rosalsky in Cen
eral Sessions and an Immediate search
for Bernstein was made. At the offices
of the Industrial Commission 1t was
stated that Bernstein was In Albany on
business connected with that depart
ment and would return on night train.
The detective was waiting for him.
Bernstein is charged In the indictment
with having received s125 from James
Polanzo, who received an award Of $645
as compensation for the loss of an eye
while in the employ of Wendell g. Evans.
a laundry company of 131 Twelfth
street, Brooklyn, in August, 1918. The
allegation was made by Assistant Dis
trict Attorney Waugh that Polanzo's
claim was fraudulent, as he had lost the
eye in an accident during a previous en-
ploymert. 1t was alleged that after &C.
cepting the retainer" from Polanzo
Bernstein paid over s4166 to William A.
Hermann, a claim adjuster, for the In.
dustrIal Commission.
Bernstein's arrest is the first to result
from the investigation of the Bureau OF
Workmen's Compensation. He told tho
police his address il 5000 Twentieth ave
nue.. Brooklyn.
Testimony adduced yesterday by Miles
NJ. Dawson. counsel and actuary for
Jeremiah +. Conner, special commits
sloner appointed by Governor Smith to
investigate the management and opera
ton of the State Industrial Commission,
dealt with the relations between the
State Insurance Fund and the group of
policy holders known as the window
Cleaners Group" Evidence was brought
out in the course OF the examination OF
several witnesses tending to show that
a bond filed with the State Industrial
Commission to secure premiums due
from members of the Window Cleaners
Protective Association never actually had
been signed by the association as
principal. and that a surety company
that was understood to have guaranteed
the bond had repudiated the arrange
ment in a letter to the commission.
The bond filed to secure payment OF
premiums in advance of the amount OF
50 was that charged for every 800, the
payroll of the assured company showeo
was for $4,000 The amount Of pre-
MUM due, 1t was shown, is now in ex-
cess of S23, 900.
+. Spencer Baldwin. manager OF the
State Insurance Fund, in reply to a
question from Mr.. Dawson, admitted that
there seems to be some question OF the
validity of the bonded security
Other testimony, much of It of a con-
flict'ng character, brought out yesterday,
dealt with the alleged presentation OF
automobile tires TO employees Of tho
fund by officials of the Window Clean
ers Protective Association.
Adolph Schwartz. president of the
window cleaners organization, declared
that the desirnbility OF making some sort
OF n present to officials OF the fund had
been made TO him. He testified that he
authorized Louis Frankel TO purchase six
tires; that he was reimbursed for the
outlay of 1897 by the association, AMI
that the tires were delivered to an up
town garage where Manager Baldwin
and a DIR. Williams, n former medical
adviser OF the State Industrial Com
mission, who has since died, kept their
cars.
Manager Baldwin on being recalled
said that he had no knowledge of where
the tires came from. He declared that
he acquired three of them from DR.
Williams. for which he had paid in full
before DR. Will!ams's death. The HI,
vestigation will be resumed to-day.