New-York tribune., 1921-02-04
Charges Against Official
Said to Refer to Pay
ments i'm Connection
With City Contracts
Whitman Resigns,
But. Reconsiders
81 Arrests, No Real Con-
victions, for 9, 900 Auto
Thefts During 1920

A close friend of Mayor Hylan
who is also one of his associates IN
the Board of Estimate is involved in
the evidence of graft gathered by
former Governor Charles S. Whit
man, conducting the city admins
tration inquiry, it was admitted yes
terday by Arthur M. King, one of
the Whitman aids.
Mr.. King, who is a former as
sistant United States Attorney here,
for three weeks has been investigat-
ing tips turned over to Mr. Whitman
by Meier Steinbrink, special counsel
to the Board of Estimates city con-
tract investigation.
Until yesterday, when he threat
ened to have issued bench warrants
on charges of contempt of court, his
witnesses did not appear. They did
then, however, and produced can
celed checks and other records which
Mr.. Kings feels will justify Mr..
Whitman in asking for the indict-
ment of the member of the Board of
Estimate and others early next week.
Whitman Resignation Withdrawn
The Criminal Courts Building at
taches received genuine shock yes
terday morning when it was rumored
that Mr.. Whitman had resigned as
Special Assistant District Attorney.
The rumor had some basis in fact
the former Governor did resign verb
ant District Attorney Harold Hastings,
who had publicly criticized the investi-
CATION, had retracted and apologized
for his statement, he agreed to with
draw the resignation and go on with
his work.
The records in the District Attor-
ney's Office on automobile thief convic-
tions made public yesterday indicate
that there were but eighty-seven ar
rests in 1920 and not one conviction of
a real automobile thief. Mr.. Whitman
says that his information is that there !
were 5000 machines stolen during 1920
and 4,500 recovered by the police. In
almost all the cases the police recover
ing the cars were rewarded"
Another bombshell was thrown into
Police Headquarters yesterday when it
became known that two prominent men,
bers of the department had been sum-
moned to the Federal Building and
questioned at great length regarding
certain booze deals. Their names were
not made public, but unofficially it was
l,o~ Sl,o& hot how haan 1trdar
suspicion in the Whitman investigs-
tion and both are members of the de-
tective bureau.
Costigan Aid Drafted
Mr.. Whitman made application for
and was Immediately granted yesterday
the use of Patrolman william f. Reith,
of the West Thirtieth Street station.
Reith, q former member OF the Costigan
vice squad, confidential investigator for
Lawrence B. Dunham, who served as
Deputy Commissioner under Colonel
Arthur Woods and was policeman for
nine years, is noted for his knowledge
! of associations of the police with the
underworld. He has not been in favor
during the Enright regime and has been
pounding the pavements" for three
and half years, despite the fact that
previously he had been chosen for con-
| fidential work.
| Cancelled checks seized by Mr.. King
! and admissions by the six witnesses he
examined yesterday opened up leads
: . ee~ias nf cases which for Sc yeral
weeks Mr.. King believed were almost
| hoa elesa.
| Mr.. Kings investigation indicates. it
| is said, that certain sums of money
many Of them large amounts--were
paid to the representative of high
city official, member of the Board
of Estimate His identity was care
fully guarded by Mr.. Whitman and
King.
The money thus paid was fog ths
purpose of influencing the letting of
ty contracts to favored builders, etc,
according to those in touch with the
progress of the investigation.
Leads Outside of Manhattan
"Does your investigation lead into q
borough outside of Manhattan? ?" Mr..
| King was asked.
ut does" the former Federal pros
ecutor answered.
/ Has it anything to do with the let
ting Of sewer contracts In Queens 7"
was the next question.
"lt has moth ng to do with sewer
contracts" was the reply.
1t is known that Mr.. King has had
nesses 20 answer even grand jury sub
p@nas. Many of those sought beiieve.s
that because they lived in another
county they were beyond the jurisdic-
tion of the New York County grand
jury.
Their attention was directed to che
fact that the granA Jury was stags
body, and not G coun,s org3. 'zation.
and failure to comply with it's SUBJ
poenas by any one in any part of tbs
state would warrant the issuance of !
bench warrant. The reluctant wig.
nesses then appeared and. according "a
unofficial sources. came through
While Mr., Whitman did not go be.
, fore the grand jury yesterday, thing
began TO hum as soon as he .reachej /
i his Office in the Criminal CoursN auill,
{, ing. He strobe into the offcAsot Dis
! down marked copy of q fsornir
e paper, said:
.Av resignation Is move in Won,