New-York tribune., 1922-10-29
Miller Points
To Graft In
Smith Regime
scsasiasss Frsn rasa one,

"a addition to direct sEtE5enenfs, raj
the report .cpnditions sayS been foun'
and practices have grown nI NJ . resui
Of which the victims Of industrial accs
Dents coming before sac industria
Commission for relief have been th'
enes to gufTer.
III seon discovered that certain en-,
rIoyees of she state fund had u vel
aefii,asi, Wholesale system Of graft
under whsrh the claimants we're being
.ssfefraueed of large sums of money
Qnckisg next from the Investigator
conclusion as to the administration oi
she final adjustment calendar, oves
which Deputy Commissioners Curtis
s1xualiN presided, the Governor read:
"One reason for the uEderpayment
was pure carelessness on the part OF
the deputy, and ii was also dre TO the
TACT that the deputy was either unable
or unwilling TO resist the persuasion Of
the representative and physirlans OF
the insurance carriers
"9he administration of the sinai ad-
jusament calendar has not only been
contrary to the statute but has been
q travesty ep justice.
Still reading from the pamphlet pub
lished by the state, containing the Con-
nor report, Governor Miller proceeded
to cite specific cases Of working men
and wemen whom Mr.. Connor declared
had been defrauded Of their just com
penSation. BY this time the speaker
had totally abandoned his customary
calm and judicial style Of public
speaking and was laundering forth his
indictment with his voice vibrant with
emotion while the audience of $500 in
aarraanus Bleecker Hall sat as if cleo
trifcd by the startling news issue be-
ing injected into the campaign. ocea-
sionaliy breaking out into storms Of
applause as the Governor smashed
nome his points.
"The Investigator says that about
$50 claims were held up for total OF
probably about $50 600" be added, and
he refers to specific cases Of fraud per-
petrated upon the state fund. THE IN
yestigator further refers TO the iile-
gitiulate practice of runners who
preyed upon the unfortunate claimants,
ard he says: Another runner is Tito
pacelli, already referred to in connec-
lion with the state fund graft cases.
pncelli is secretary and treasurer of
the International Tunnel Workers
Onion, Of which Deputy Commissioner
Curtis is president
Further o. he says that he (refer-
ring to Pacelii) admitted that he ap
peared in Il number Of state fund cases
Furnished him by Herman, and that the
funds in these cases were divided with
Herman and Jacobson, He also testi-
aed, referring to Mr. Curtis, 4 told
him sometimes that | would get money
from the men
The men mentioned above. accord
ing to the record were part of ring
through whom only the claimants
could receive a sufficient award, said
The Governor and when claimants
showed reluctance to be represented
by them, threats were made that the
eases were held unless they agreed to
split the money with the ring, all Of
whom the Governor called "grafters."
THE investigator found in the
adjusted compensation cases that
palpahle injustices had been com
nitted in the interest of the insurance
carriers" continued tie Governor ain
the state fund cases, that is, cases in
which the employees insured in the
state fund instead of with private
insurance corporation, the investiga-
tor found corruption and graft. He
refers to different groups of cases, to
one group Of eleven cases in the dis
triet OF Buffalo, where the claimants
received S2,742 when they should have
had S9,570; and he refers to the fact
that IN the cases of insurance by
small groups of employers an insur-
ance broker received so per cent of all
divldends, and that an employer of his
representative was interested in keen
ing down the compensation"
Referring to Mr.. Smiths statement
!ass night that one OF the first things
ne had dene after getting to ALBANY in
lSl9 was to appoint -Connor to investi-
gate the direct settlement clause of
the compensation act and then, when
the report had been submitted, to send
ne ,he Legislature sin black and whiton
me names and addresses of the persons
pensation by that provision. Governor
Miller said ''''0s
The speakers memory must have