New-York tribune., 1922-11-09
O'Neil Admits
Getting Share
OF Bus Profits
Tarnnlany Leader Says He
Got One-slird of 25 Per
Cent OF West Farms
Company's Gross Receipts
Owner Also Given Third
Shearn Shows Payments
We're Compensation for
Inducing Whalen to Act

fndtlcing Whalen to- Act
The Transit Commission went right
ahead yesterday with its inquiry into
the operation OF the Hylan bus sys-
TEN, uarnindfni of the election and its
result. rs though 20 refate the Mayors
charge shat the inquiry had been
launched solely for campaign purposes
and political effect. Whatever may be
IS fate under the new adm :nistration
at Albany. the commission is believed
TO have amply justified IFS inquiry by
disclosing how completely the opera
tion OF busses under Commissioner
Grover Whalen's Department OF Plant
and Structures was made an adjunct
OF the Tammany political machine.
Clarence j. Sheath, special counsel
to the commission who is conducting
the investigation. got in one of his
most telling blows as yesterdays ses
sion. BY testimony drawn from un-
siiline witnesses Mr. Shearn traced
substantial payments from the profits
of one bus line 20 two of the most
prominent Tamfnany lsaders in the
Bronx. These payf@ nnts, which amount
ed TO more than $4,000 apiece in the
course Of few months. were admit
tedly made, IN AZ least one instance. as
permit for the bus line from Commits
sioner Whalcn.
Admits Getting Big Share
Thomas II. 0'Neil, Tammany dis
trict leader and former Sheriff of the
Bronx, admitted under oath that he
got a one-thi-d share OF 25 per cent
of the gross receipts of the West Farms
Bus Corporation solely for his services
in going to Commissioner Whaien and
inducing him TO issue permit far the
line. Another one-third share, which
was 70 have gone to Arthur II. Murphy,
Tammany county chairman of the
Bronx, mas keen paid since his death
in February each month to his estate.
Ferdinand VI. Frankenberg, who sup
piled all Of the capital for the corpora
tion, owned the buses which it oper-
ated and alone managed the entire en-
terprise, got only one-third share for
himself.
The existence OF some powerful in
fuence behind the West Farms Cor
poration has been suspected since a
previous session, when Louis Karsch, q
silk salesman, who appeared as vice
president Of the corporation on its
books, testified that he had no knowl-
edge of its activities and no interest
in II, financial or otherwise, AT yes
terday's session Christian Broschart,
another director, according TO the cor
poration's books, admitted that he was
acting merely as dummy for O'Neil.
Subsequently O'NeiI verified Brosehart's
story and made the further admission
that Karsch was on the directorate as
d representative of the Murphy inter
csts.
When Frankenberg testified at a
previous session he made no ailusion TO
The presence of dummy directors in
the corporation, described in detail the
duties performed by each and testified
to their active interest and participa-
tion in the company's affairs. Bros
chart added hia denial of this to that
of that OF Karseh when he was on the
witness stand, and Mr.. Shearn an
nounced that the testimony of both
would be forwarded to District At
torney Banton, completing the case
against Frankenberg tor perjury"
The West Farms Bus Corporation re-
ceived a permit from the Department
of Plant and Structures in April of
this year after the Board of Estimate.
at Commissioner Whalen's personal re-
quest, had revoked a franchise held for
several years by the City Island Bus
Company. Unlike the other bus lines,
the West Farms concern was permitted
what amounted to an exclusive permit
for this route, although on other bus
lines "a many as twenty or twenty-five
independent operators are permitted.
Commissioner Whalen's application
before the Board of Estimate for the
revocation Of the old franchise, on the
plea that there had been defaults in
the payments due the city, was made
after several visits from O'Neii, the
latter admitted on the witness stand.
Day-to-Day Permit Issued
Fsankenberg came to him in Decem-
Der, 1921, o'Neil testified. and agreed
TO pay him the one-third share in re-
burn for his aid in getting the permit.
Murphy was brought into the deal to
furnish capital which O'Neil thought
might become necessary il another
franchise could be obtained. when, in
accordance with the Hylan policy, the
day-to-day permit was issued the idea
of getting franchise was dropped, but
the Murphy share was continued, de-
spite the fact that no capital would be
needed.
Several trips were made by the wit
hess TO Commissioner Whalen's office,
and as soon as the old franchise had
been revoked the permit for the new
company was issued. The buses be-
gan operation in April, and after one
month O'Neil and the Murphy estate
received $356.41 each as their share
The figures for the succeeding months
through October were considerably
higher, so that it appeared that each
received $5,175 from the first six
months operation.
"Frankenberg had to give up to you