New-York tribune., 1922-11-14
WIlaIerlRevolxes
Permit OF w est
Farms Bus Line
Company of Which Frank
eaberg Is Head Covered
Up With Dummies Sllar-
ing Profits With O'NeiI
and M urp Ia y Estate
1907 Profit ON S22. 900
Commissioner Not Interest
ed and Doesn't See How
Transit Will BE Solved

Grover A. Whalen, Commissioner of
Plant and Structures, announced yes
terday that he had revoked the per-
r1t Of the West Farms Bus Company
he concern of which Ferdinand
Fraukenberg is president, and which
covered up with dummies profit shar-
iag with Under Sheriff Tom o'Neil
asd the estate Of Arthur H. Murphy
Tammany bosses in the Bronx.
The Bronx bus scandal was disclosed
By the Transit Commission the week
before eleceons WREN through sworr
testimony it was shown that Commits
siCner Whalen lad issued permit tt
political insiders who cleaned up 10t
per cent profits on an investment o.
$4,000,
When the facts we're being laid bare
by Clarence j. Shearn. counsel to the
Transit Commission, Commissions
Whalen burst into the hearing room
unannounced, called Mr.. Shearn S
sliar" and little rat" and demanded
to be heard out of turn. He had to
take his turn. When the disclosure
was made about the dummies and the
O'Neil and Murphy profits, Commits
sioner Whalen said he was not in"
terested.
Aren't you interested in the dis
closures here that these men up there,
o'Neil and the Murphy estate, what
than 100 per cent profits on their in
vestment out of the 2o-cent fare
charger" asked Shearn.
WbaIan Not Trforae+ad
"Not at all. l am not at all inter
ested," said Whalen. II do not see
how it is going to solve the transit
problem"
Afterward O'Neil testified that he
tore up his checks as fast as they
came back from the bank, although he
said he could give no special reason
for it. The Transit Commission turned
over the Frankenberg testimony to the
District Attorney.
During his testimony Frankenberg
said that Commissioner Wnalen had
sent him letter authorizing the 90
cent fare. Commissioner Whalen JUS
tifed this on the ground that the
predecessor Of the West Farms Com
pany had imposed similar charge.
Ftankenberg's testimony showed that
.ae company consisted of three stock
hcdcrs, each receiving one-third of
tas profits. The stockh olders were
srsnkenberg. president; Louis Harsh,
wsretary, and Christian Borchardt,
aaurer Borchardt is Deputy Sher-
En- the Bronx, in the office with
0yd karsch testified that he never
Eaaed meeting OF the directors or
e9h olders and that he knew moth
g shout himself and, Borchardt get
ang diviaeads unta he saw FranEen
Ssg S testimony in the newspapers
lhe lndorsed cAecks showed that O'Neii
tnd the estate Of Arthur H. Murphy
s2ait tne profits into three portions and
that they realized 100 per cent on an
Investment o. $4,000, all of whi&t
original capital was furnished BY
Fraukenberg.
Commissioner WhaIen said Yesterday
tfat he revoked the permit as soon as
fyanlSenberg testified that the direc-
tors OF the company were dummies.
Frankenberg so testified on October
81. The records of the Department of
Plant and Structures indicate that the
revocation did not take effect until No
vember 9, two days after election.
Subject to Commission
During Frankenberg's testimony MIR.
Shearn said:
"The commission will take notice of
the fact that this concern is a common
carrier and, Of course, properly sub
ject to the jurisdiction OF this COM
mission as to rates of fare and charges,
and that If the law were complied with,
as they started TO do in the case of
the unfortunate Riedl and speedily
ceased doing, and they applied to this
commission for certificates of conven-
fence and necessity, it would be nee
essary for these concerns to come di-
rectly and voluntarily within the jur-
isdictlon of this commission, and this
commission would have to fix the rates
snd charges as it does in the case of
Gner common carriers. But by re-
M.sing to this device of getting per-
hN from department that has no
al'aority to issue permits these peo-
Pie sre able to get the consent OF the
Dig chief of this bus business to
saarge fare of 20 cents. There
one OF the mediums and practical
evils Of this situation, that they can
20 TO man who has no real authority
whatsoever, and after obtaining his
consent through the intervention of
iom o'Neil, the district leader, get
permit to impose charge Of 20
cents on the people of the Bronx,
whereas if they had complied with the
iaw they would have to come here and
make proper showing as to what is
aair and reasonable, and subject them
selves to the jurisdiction of this COM
:, sFrankenberg's company succeeded
sS sae old City Island Bus Corporation,
Sh Ssaleh went out of business last April
seeause It was unable to comply with
sl she hnaneial requirements of it's fran
S Ssalse After it had given up the ghost
ssrrsahkkenberg's Ira company took it's place,
t yas ffankenberg did not bother with
!, sne :, details of asking for franchise
I'm n me regular way, which would have
fas faseh him TO the Transit Commission
M q certificate of convenience and
oosSSes:Slty He went with former Sheriff
0Seil ..S to the office of Grover Whalen
ss saG got revocable permit. under
snr;i Amen ne has been operating since last
,EFfaainkenberg also testified like
sh' ShNel' that he destroyed his Cancelled
the bank. e@'A'e Da'A iioA''
ckInney. ap,I Mn4 EYII