New-York tribune., 1922-12-24
Aldermen Stripped of
Power by Legislature 20
Years Ago After Block.
ing p. r. r. Franchise
Rea Inquiry Seen
As Test for HyIan
Governor Elect Advised
as He Plans to Restore
Boards Transit Grip

Governor-elset Alfred T. Smith has
had brought 20 his attention the fact
that in 1902. the last time the city OF
New York had undisputed control Of
granting franchises 20 public service
corporations. the Tammany Board OF
Aldermen blocked the application Of
the Pennsylvania Railroad Company for
its projected new terminal. An ap-
peal was made by business and civic
organizations TO the Legislature. which
promptly took from the aldermen the
power 10 interfere.
Governor-eleet Smith has informally
announced his intention Of turning over
20 the city dbsolute control Of transit
and franchise granting. II Is expected
that this will restore 20 the aldermen
power TO pass on franchises, plans and
routes for subways or any other tran
sit plans.
Queens Opposes HylAn's Project
The appeal Of President Rea Of the
Pennsylvania to Mayor Hylan for the
construction OF a subway from Ja-
mhien to Thirty-fourth Street and
Ninth Avenue, Manhattan, is inter
preted by the Rapid Transit Commits
sion as a move on the part Of the com
pany 10 test the attitude Of the Hylan
administration toward a proposed i'm
provement that is supported by Bor-
ough President Connolly Of Queens,
who, incidentally. Is opposed TO Mayor
Hylan's so-called 5000 900. 900 subway
plan for the reason that IL defers the
building OF a subway into Queens for
about eight years.
The blocking Of the Pennsylvania
twenty years ago brings TO the front
once more a sensational scandal IN
which Tammany officials prominently
figured.
No sooner had the 'Pennsylvania sub
mitted its plan than things began 20
happen in the Board Of Aldermen. Seth
Low was Mayor. but Tammauy had con-
troll Of the aldermen. Mayor Low and
the Rapid Transit Commission were
busy with the construction Of the
original Belmont subway when the
Pennsylvanin came forward with is
tunnel and terminal plans. The ad-
vantage accruing 10 the city from the
carrying forward Of the project was
instantly recognized. As soon As the
franchise came before the Board OF
Aldermen. the expected thing happened
The franchise resolutions went into =
committee Of the board. and stories OF
a hold-up and demand for graft be-
came rife.
The New York Contracting and
Trucking Company made It's sensa-
tional appearance at this time. Little
or nothing had been heard Of Il before,
as Il seemed 20 be working without
much capital. John ]. Murphy,
brother OF Charles +. Murphy, was an
officer Of the corporation, and Alder
man James +. Gafney It's president
The two soon became the men Of the
hour Gaffney represented the Sulli-
vans and Murphy was supposed 20 rep
resent his brother. Charles r.
Public Sentiment Aroused
Public sentiment soon became
aroused. The Republican Legislature
put throubh a Law which took away
from the aldermen their franchise
Granting prerogatives. With this OBJ
struetion removed, the Pennsylvania
cot It's franchise from the Rapid Tran
sit Commission and the tunnels and
terminal were built II was observed
afterward. however. that the New York
Contracting and Trucking Company
was the dominant contracting concern
in the exeayating for the new terminal
In Manhattan.
John j. Murphy had been in the old
Municipal Council from the gas house
district, while Gaffney had served as
alderman from the same district.
They we're under the tuolage m the
Board OF Aldermen Of Little Tim" Sui
livan. Gaffney and Marphy were IN
dicted in connection with the leasing
OF piers while Charles y Murphy was
treasurer Of the Dock Board, out the
indictments were dismissed by justice
BisehoH, Of the Supreme Court.
In January, 1914, Harry b. Hanger,
contractor. testified in a legal investi-
cation that he paid Gafney $4,000 for
sieeal advice" in connection with q
citv contract on the Catskill aqueduet.
coon after he paid this sum, Hanger
testified. he obtained a fat contract.
Gafney had a sensational rise 70
wealth and power from the period
when the Pennsylvania Railroads
franchise application was held up in
the Board Of Aldermen. Afterward he
became chief owner Of the Boston
Braves.
Closely following the scandal over
Gafney's operations, Judge Edward
?. ODwyer, president Of the National
democratic Club, who had got into a
fght with Charles F. Murphy and
Alderman Gahney. introduced reso-
luton AT a meeting Of the Democratic
Club dropping Murphy. Ganneyi
Thomas F. Foley. Health commissioner
Thomas Darlington and Senator
George W. Plunkitt, all intimate
friends Of the Tammany Boss. from
the club membership for non-payment
Of dues. Thomas =. Smith, Secretary
Of Tammany Hall, was at the meeting
and tried in vain 20 have the club
accept a check for the dues In arrears,
but under club rule Judge O'Dwyef
was sustained.