The New York herald., 1920-01-17
JUSTICE WEEKS
. STOCK SCANDAL
. HUNT REVEALED
Official Worked for Days in
Wall Street on Secret
Mission.
SOUGHT SHORT SALES
ON INTERBOROUGH
Failed to Find Such Transac-
tons for Mayor or Dis
trict Attorney.

That the "overshadowing crime" and the
crime leading into the District Attor-
ney's office" are synonymous; that the
investigation conducted by the Extra ordi-
rary Grand Jury of the alleged crime was
inspired through anonymous communica-
tons received by that body and Justice
Weeks, and that Justice Weeks ordered an
Assistant District Attorney to examine
books of thirty brokerage houses in the
financial district to learn whether Mayor
John T. Hylan. Edward Swami, District
Attorney, and other high city officials had
dealt in Interborough Rapid Transit stocks
Immediately before and after the strike
Of subway and elevated employees last Au-
gust. was the declaration yesterday of
Alfred J. Tally. Chief Assistant District
Attorney. before Justice Weeks, in the
Supreme Court.
Mr.. Talley made the assertion in an
affidavit which he was requested to fur
nish to the Court when he appeared be-
fore Justice Weeks to oppose the request
OF the inquisitors not to make public the
minutes of all the proceedings before the
UOuy except anarchy cases.
During SHARP colloquy with Justice
Weeks Mr.. Talley declared that the Court
personally had supervised ap examination
Of the books of more than a score of
brokerage houses by William A. McQuade,
Assistant District Attorney, and that the
examination of the books reevaled that no
public Officials had sold short stock of
the Interborough through those firms.
Mr.. McQuade Assigned.
Mr. Talley appeared before Justice
Weeks. in the absence of District Attor-
ney Swami, who is i'll at his home with a
cold. He contended that although the
District Attorney had complied with the
request of Justice Weeks to designate
Mr.. McQuade to conduct the examina-
ton of the books of the brokerage houses.
the Court instructed Mr.. McQuade not 20
confer with Mr.. Swami or any other Off
cial about his examination. but to report
to him on his findings.
Mr.. Talley was first in court in the fore
noon, and after he had made his asser-
tion Justice Weeks requested that he put
1t I'm affidavit form. Mr. Talley then went
to his office and two hours later ap-
peared with an affidavit, attached to
which was another affidavit made by Mr..
McQuade and a letter addressed to jus
tice Weeks on January 10 last by District
Attorney Swami.
Mr.. Talley's affidavit, in part, follows:--
Il state it TO be a fact, and fact with
in the knowledge of Judge Weeks. that
Judge Weeks was frequently in private
conversation with Mr.. Almirall, the fore
man of the Extraordinary Grand Jury. at
which no other member of the Grand Jury
was present. and at which neither the
District Attorney nor any member of his
staff was present.
II state II to be fact that on more than
one occasion Mr.. Almirall stated to me
and TO the District Attorney that certain
actions of the Grand Jury were based
upon advice received from Judge Weeks
Il state IL to be fact, and a fact with
in tho knowledge Of Judge Weeks, that the
Grand Jury as body very rarely, If ever,
apply to the Court for legal advice.
Investigation In wall street.
Upon information and belief state it
to be fact. and one within the knowledge
OF Judge Weeks, that Judge Weeks DUR
ing the period running from November 6
to November "a, 1919. was engaged in con-
Quoting an investigation into Wall street
brokerage offices with a view to ascer-
tanning whether any public officers had
been selling Interborough stock or securi-
ties short and that as a result OF this in
Nestigation no such stocks or securities
were found to have been engaged in by
any public official.
i state 1t to be fact that the minutes
of the entire Grand Jury proceedings were
placed in the possession of and examined
by Judge Weeks and that I was so in
formed by him. The source of my informa-
tion and the grounds OF my belief as to
the investigation in Wall street con-
Quoted by Judge Weeks is the affidavit
of William A. McQuaid, Assistant Dis
trict Attorney"
After he had read Mr.. TaIley's affidavit,
Justice Weeks then turned to the affi-
davit OF Mr.. McQuaid, which reads, in
part. as follows:-
"On the fifth day OF November. 1919. I
was directed by Acting District Attorney
Alfred J. Talley to report to Judge Weeks
in his chambers in the Criminal Courts
Building. / reported to Judge Weeks and
was In conference with him from about
eleven o'clock until half-past one or two.
Judge Weeks told me, in substance. that
he had information that there had been
short selling in the traction securities and
wished me TO investigate the same and
made an appointment with me to go down
to his office the next day to go over the
matter.
IT went down to his chambers in No
81 Chambers street, and he sent for the
Financial Chronicle and copies of a daily
newspaper for the months Of July and Au-
gust 1919, and he made up schedule
showing the high mark OF the different
traction securities for the years 1918 and
1919, also showing the amount OF bonds
and stocks and their movemen IS, which ne
tabulated and retained, showing me the
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