New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-05
Whitney Says
Craig Settled
Degnon Claim
Commissioner Asserts He
Has Not Yet Learned
the Terms of Adjustment
Inquiry Is Expecte d
Legislature Is I h o IL g h
L i k e y to Investigate
City Officers Methods

Public Service Commissioner Travis
II. Whitney charged yesterday that in
addition to the alleged secret settle
ment by Controller Craig of the claims
OF the Intercontinental Construction
Company at loss to the city esti-
mated by Mr.. Whitney at 100000, the
Controller also has secretly effected
another settlement. This one, he says,
was with the Degnon Contracting Com
pany, but as yet he has been unable to
learn the terms.
when Frederick L. c. Heating, coun-
sci for the Intercontinental company,
was before the Public Service Commits
sion on December 49," said Mr.. Whit
ney, che declared among other things
that the Controller had settled the
Degncn claim and that the Controller
had five other settlements under way.
If these settlements are to the advan-
tage of the city, why does not the Con-
troller take the public into his conf
dence and tell us all about it ?"
The Degnon Company, cramped by
the increasing cost of labor and ma
terials, stood to have it's contract for
feited, and assented to an arrangement
with the commission whereby it was to
complete it's contracts at sum not to
exceed $964O0O, and this amount was to
go for labor and materials only.
Legislative Inquiry Likely
From the way things are moving both
locally and in Albany it is expected
that legislative committee to investi-
gate the Mayor, Controller, Public Ser
vice Commission, Dock Department and
other municipal administrative func-
tons will be authorized within the next
two weeks.
Among the first things to be in
vestigated will be the "secret confer
ences" which seem to have determined
the Hylan administrators policy with
reference to municipal ownership o.
the traction companies. In connection
with the main subject light will be
asked on:
James G. Shaw's relations with the
Finance Department in connection
with the settlement by Controller Craig
of the Intercontinental Company's
claim.
The settlement of the claims with
out the knowledge Of the Public Ser
vice Commission of the Degnon Con-
tracing Company which has four sub
way contracts under way.
The Christmas party held at the
Good Ground home of Charles F. Muir
ply, attended by Governor Smith,
Mayor Hylan and Controller Craig, at
which the city's policy toward the
transportation companies with refer
ence to permitting an increase in fares
was discussed.
Shaw May Be Witness
James G. Shaw, in the light of his re-
vealed relation with the Controller,
doubtless will be one of the star wit
nesses in the investigation. In Jan
uary, 1914, Mr.. Shaw was before the
New York Grand Jury when that body
was looking into alleged aqueduct
frauds. The records show that GER
tain contract, No. %, was delivered to
Patterson e. Co. Mr.. Shaw admitted
receiving a package containing SAL, $50
from James G. Corcoran, messenger
for Patterson e. Co., and keeping it in
his safe. He recalled handing the pack
age to some one, but could not remem-
Der who he handed it to. 1t was
brought out that telephone connection
had been made between the office of
Mr.. Shaw and that of James E. Gaffney,
but Mr.. Shaw could not recall the per
son to whom he had handed the pack
age.
In connection with the threatened
forfeiture of his contract by the Pub
lie Service Commission, Mr.. Shaw on
December IL, 1918, appeared for
examination before the Public Service
Commission, and the record indicates
that he had little hope at that time of
making any settlement other than on
terms as outlined by the Public Ser
vice Commission.
Questioned About Contracts
After stating that he lived at 115
West Sixteenth Street, and was assis-
tant treasurer of the Intercontinental
Construction Company, and signed the
checks, he was questioned as to his
financial ability to carry forward his
contract work. The record follows:
CIVIL you please state to the com
MISSION IN your own way what you
have instructed your manager to do
with regard to work for the ensuing
period? Al instructed him to put
on adj the men the job would accom-
Todate and l would see that they were
paid.
Q.-Do you expect to pay this out
of your own money, Mr.. Shaw? A
l GO.
Q.--How much money have you put
into this company so far? A-Between
100000 and 100000. | am not sure as
to the exact amount.
Q.-Are you willing to waive that as
a charge against the company and to
accept it as loss? A-Absolutely.
Commiss Toner Whitney-Do YOU
mean by saying that you have waived
what you have advanced, that you have
authorized the company to write it off
as an Indebtedness to yo d. and that re-
duces the total cost Of the work by
that omoupfo