New-York tribune., 1921-01-24
Whitman Sees Corruption
Linked With Sudden In.
crease in Agencies; SO
Per Cent i'll 8 Months
Many Police Quit
ToOpen Own Office
Crooks Reported Involved
i'm Stolen Auto Scandal;
Risk Companies Named

One Of the matters to be taken up
to-day or tomorrow by former Gov
ernor Charles S. Whitman, as special
counsel to the extraordinary January
grand jury investigating the Hylan
administration, is the sudden and un-
precedented increase in private detec-
tive agencies operating in New York
County.
Sufficient information on this sub
ject already has been placed before
Mr.. Whitman to lead him to believe
tnat he will have the matter in shape
10 lay before the grand jury before
the end OF the week.
According to we'll informed attaches
Of the Criminal Courts Building, where
the former Governor Is conducting his
inquiry, several indictments will be
forthcoming.
One Of Mr.. Whitman's assistants has
been studying the private detective
agency situation and yesterday had
assembled 80 much evidence that the
former Governor will give the matter
his personal attention Immediately. =
The remarkable increase in the num-
Der Of private detective agencies Ii
censed by the State Comptroller's office
in the last six months is said to inter
lock with tho investigation which
William Chilvers and Assistant Dis
trict Attorney James E. Smith, both
,C@o xo
in connection with alleged police graft
in the return Of stolen automobiles.
Flagrant Graft in Stolen Autos
According to information received by
The Tribune, number Of cases In
which certain members Of the Police
Department have reaped large financial
returns by cooperating with insurance
companies and private detective agen-
cies in the recovery Of stolen cars will
be presented to the grand jury either
to-day or to-moYroy.
This form Of graft Is said to be more
nagrant and widespread than any so
Iar developed in connection with the
industrial strikes which already have
led TO the Indictment of two police
captains.
It is alleged that the police, through
cooperation with private detectives and
insurance companies, have established
their own remuneration on e. basis of
S25 for car valued at $500 or less, $50
for a car worth $1,000 and $100 for a
machine valued in excess Of that sum.
Members Of the Police Department.
It is said, furnish the private detec-
tive agencies or the insurance compa-
MES with information necessary to re-
cover the car and then receive their
percentage Of the money exacted from
the owner. = Information in the pos
said to indicate that grating in stolen
automobiles has been going on so long
that 1t has developed into a highly
organized business, involving a staff
Of crooks whose personnel is we'll
known to the police. The operations
of the gang are not confined to New
York County alone, but are alleged to
extend to Nassau and Westchester
counties as we'll.
Members of Squad Questioned
Most of the records of the automo-
bile squad of the Police Department
have been examined by Mr.. Chilvers
and Mr.. Smith, aud the two have also
questioned a large number Of witnesses
in connection with motor car thefts
Sixteen of these witnesses we're mem
bcrs of the automobile squad. More
are scheduled to be called to-day, and
some are persons who will be sum-
moned as result of mass of infor-
nation turned over to Mr.. Whitman by
District Attorney Weeks of Nassau
County.
Statistics obtained from the State
Comptroller's Office in Albany show an
increase in the number of private de-
tective agencies in greater New York
alone of approximately so per cent in
tho last eight months. An investiga
tion Of the applications for licenses
shows that many of the agencies have
been organized by former members Of
the Police Department. Many of these
men .have left the ranks of the depart
ment to go into the detective business
for Themselves since Richard. f. En-
right became Police Commissioner.
The sudden increase in private de-
tective agencies in this city. according
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