The New York herald., 1921-06-08
GRAFT LINK sought
BETWEEN DETECTIVE
AGENCIES And POLICE
Meyer Committee Begins
Tracing Reports OF New
System of Extorting
Protection Money.
LEACH GIVES UP DATA
Wallstein Seeks Light on
Demands in Behalf of Pri-
vate Bureaus for Re-
covering Plunder.
BEATS RED LIGHT WAY
Queens Pipe Scandal Witness
Not FOund-'The'McManus
to Appear Soon-Costigan
Case Delayed.
BEATS RED LIGHT WAY

The legislative committees investiga-
ton Of the Police Department began
to assume more definite form yester-
day when the inquiry spread into
several new channels. John A. Leach,
Acting Police Commissioner, appeared
IN answer to a subpoena and produced
official records.
Leonard NJ. Wallstein, associate coun-
sci for the committee, took charge OF
the inquiry into the police admin .-r
ton, and in this work is being as-
sisted by Frank r. Lord, forne-ly
Deputy Commissioner of Police, and
James f. Smith, Assistant District
Attorney. Members of the comm ttes
and its counsel are closely gual ling
all developments.
1t was said that Mr.. Leach m roly
produced the papers requested and
that no effort was made to crcss-
examine him. He has refused to ap-
pear as a witness before a subcom-
mittee and a motion to have him de-
clared in contempt is now before the
courts.
It is presumed that one OF the things
at which the investigators are aiming IL
to determine whether there Is any un-
derground connection between the de-
partment and private detective agencies.
Such connection has come close 70 fac
surface many times, but never has hs-n
exposed fully.
| I,, ar<i - ic q
ed TO find out what basis there Is foe
reports that one big private agency hsa
been doing a tremendous business bc
cause OF well established connecacp
with headquarters.
Little Red Light Drafting Now.
The old system in the police word
was to pay tribute for non-interfeI
with illegitimate enterprise. That form
Of graftins--the red light graft of
twenty years ago--is believed to tairt
to-day only in small degree.
The modern form is believed to be ..i1
sale OF protection. II Is charged. and
these charges are 10 be run to tho
ground. that the public has had to pay
for it's police protection. when COM
plant was made that protection was in
adequate and that valuable property IN
the financial district and elsewhere was
In danger. II is said that the "sugges-
tion" has been thrown out by the police
themselves that the best assurances
against burglary and theft was to get
the services OF the private company.
Another line of investigation is exc
pected to relate to the demands amounts
ing at times to extortion. for the recov-
cry of lost property. When bond theftS
were common 1. IL understood that In
sistent demand was made for the Offer
of larger rewards for the recovery OF
the stolen property. Records will be
searched 10 find how many times pri-
vate agencies recovered the stolen goods
and what amounts were paid I'm rewards.
In fact, every activity of tho polics
will be subjected TO the closest scrutiny.
II Is expected. before the inquiry Is COM
pleted. What information the commits
tee obtains will not reach the public un-
I'll II is disclosed on the witness stand.
Commissioner Leach yesterday wrote
20 Senator Meyer. chairman OF the COM
niittee, stating that the request for Capt
Honest Dan" Costigan's services as an
investigator would be referred TO Coir-
missioner Enright soon he returns.
The Commissioner was said 10 be at
Elornell, near his old home. on a vaca-
tion.
Scanning Police Promotions.
All papers dealing with the last pro-
motion of patrolmen to the rank OF SER
Ecant were demanded OF the Municipal
Civil Service Commission. Irregularities
in the line of promotion have been
hinted. Officials In charge of the rec
ords said they would be pleased TO pro-
duce anything the committee wanted.
but said the documents were bulky and
- L.. q A..
fices where the documents are kept.
The committees inquiry into police
affairs Il only part OF it's many activi-
ties as It's staff of accountants and In
vestigators search for material TO be
revealed later I'm public hearings.
Announcement was made that the
committees subpoena servers had been
unable TO find John NJ. Phillips, sales
man for a pipe concern. whose testi-
rnony Is wanted in connection with con-
tracts in Queens. There Is one transac-
ton involving $4,000 on which the
committee believes Phillips could give
some light
Alderman McMsnus Informed the com
rnittoe that he had been unable TO find
his brother The" McManus. for whom
the committee has been hunting for
three weeks. The West side Tammany
leader would show UP soon, the Alder
man said.
Porter r. Atlec, accountant In the Of
flee OF David Hfrshfieid Commissioner
OF Accounts. had been subponaed. but
the Commissioner refused to lend Atiee's
services 20 tho committee. He will be
subponaed before a subcommittee and
the information obtained in that way.
Justice Donnelly In the Supreme Court
directed that books belonging to Isaac
Goldberg Of 43 East Tenth street which
lad been seized BY the committee. be
returned. The documents were taken IN
connection with the inquiry into the af-
fairs Of a relative OF Goldberg. who has
a public stand permit. Counsel for Gold
berg said nothing had been found which
repaid the investigators for their trouble.