New-York tribune., 1920-01-17
Special Grand Jury Had
"Tip'' That Mayor
and District Attorney
Played Market Short
Thirty Brokers
Are Questioned
McQuaid and Talley File
AMdavits Denying Any
Such Sales Were Found

Justice Barlow S. Weeks, of the ex
traordlnary criminal trial term of the
Supreme Court, personally directed an
investigation of reports that public Of
ficals, including Mayor Hylan and Dis
trict Attorney Swami, traded in Inter
borough Rapid Transit Company stocks
and bonds. according to documents
filed in Justice Weeks's court yester-
day.
The investigation, made by William
A. McQuaid. Assistant District Attor-
ney, under Justice Weeks's direction,
continued from November S to Novem-
Der "a last. according to affidavits filed
by Mr.. McQuaid and Chief Assistant
District Attorney Alfred j. Talley. 1t
was prompted, it was said, by anony-
nous letters to Raymond r. Almirall,
foreman OF the extraordinary grand
public officials had been selling Inter
borough securities short prior to the
charges of fare increase conspiracy
made by Mayor Hylan.
IN certain quarters this inquiry was
looked upon last night as being what
the grand jury had in mind when. it
nrst alluded to the "overshadowing
crmc," leading into the Mayors office
and into the headquarters of Mr..
swami No evidence of short selling
by city officials was turned up, it was
declared.
Aifidavits Produced
On November 81 the Almirall jury,
IN presentment to Justice Weeks,
SAID that the Mayors Interborough
conspiracy allegations, recently dis
missed by the panel, could not be
determined until thorough inquiry
into their origin and causative proc
esses" had been made The present
ment added that the pursuit of such
facts led into municipal offices and
the Offices Of the District Attorney
and charged reasonable ground for
belief of "wilful and corrupt miscon-
duct" in office by public officials
Events in Justice Weeks's courtroom
ley's appearance to oppose the grand
jury's request for the publication of
those sections of it's minutes deal
ing with the dismissed Interborough
charges. Mr.. Talley demanded the pub
lication of ''all the jury's minutes or
none"
After clash between court and pros
ecutOr the court said:
You must cease making public state
ments in court in regard to the action
of the court unless they are supported
by affdavits." After an adjournment
Mr.. Talley appeared with the McQuaid
affidavit and his own. These declared
among other things, that Foreman AL
mirall Informed Mr.. Talley that "cer-
based upon advice received from JUS
tice Weeks. McQuad rehearsed his
Wall street inquiry under the courts
| direction.
This inquiry was halted when Mr.
Swami and Mr. McQuaid both declined
to sign a circular letter to Wall Street
brokers in regard to the search for
short lnterborough sales, Mr.. Swami in
sisting that it go out over the sigma
ture of the extraordinary grand jury,
if at all.
Mr.. Swann's Letter
Mr. Talley attached to his affidavit,
as an exhibit, letter sent Justice
Weeks on January 10, by Mr. Swami.
The District Attorney, who called at
tenton to the fact that McQuaid had
not reported to him while he Wall
Street inquiry was on concluded:
~ assume that in all this you are
acting as an individual citizen and not
in your judicial as, Of course, the
scheme Of American justice does not
provide for geinvestigato prose
cutor"
Mr.. Swann's letter follows in part:
"Whcn you asked for the services
Of Mr.. William A. McQuaid, one of
the first Assistant District Attorneys,
he was promptly requested to report
to you. | learned later that you
were sending him around from Office
to office among the stock brokers Of
Wall Street, examining their records
tion ftrading in stock by the Dis
trict Attorney or by the Mayor,
whose charge against the Inter
borough officials OF having formented
the strike Of their employees as Il
part Of their propaganda to force an
8 cen. fare upon the public, was
pending before the grand jury. This
investigation in Wall Street was con-
ductcd solely under your supervision
and direction. At the same time,
you were personally communicating
Stock Exchange in an effort to dis
cover some instance in which the
Mayor or the District Attorney had
dealt in traction stocks.
AT no time while Mr.. McQuaid
was acting under your direction did
he report to me, but only to you.
While you were making this inves-
tgation in Wall Street, against the
public officials who we're presenting
the evidence against the INTERIOR
ough, and while you were holding
numerous private conferences with
Mr.. Almirall Of the extraordinary
grand jury, without the presence OF
the District Attorney and without
the presence Of any other member
Of the grand jury, and without after
ward disclosing the substance or sub
jcct-matter of the conferences, the
foreman was making indirect charges
Of an 'overshadowng crime against
| the Mayor and the District Attor
ncy, while the charges against the
Interborough were before the grand
| jury.
Inquiry Was Pending
"Why these things were done, while
the charges against the lnterborough
were pending, Is m the exclusive
knowledge OF those by whom they
were done.
~ called your attention to the fol-
| lowing fncts: ~ That the foreman
Of the grand jury had formally been
under retainer at $500 n month for
three years by one Of the chief sub
sidary companies Of the INTERIOR
ough, 08 per cent Of whose stock
| ~~aA