Evening star., 1932-06-01
SEABURy DEMANDS
WALKER REMOVAL
.ON BOND CHARGES
Declares Mayor Received
Securities of Firm Which
Got City Contract.
INSISTS OWNERSHIP
VIOLATED CHARTER
Executive Had Testified Monev
Represented His Profits
From a Pool.
By the Associated Press

! BY 'he Associated Press
! NEW YORK, June I.-Samuel SEA-
bury at hearing Of the Hofstadter
! Committee today introduced testimony
indicating that Mayor James j Walker
! had owned bonds of the Reliance
/ Bronze & Steel Co.. which received a
s43,55640 city contract. Seabury de-
clared that, in his opinion, that con-
stituted grounds for the mayors re-
moval from cflce.
say the mayor Of this city mas no
right to hold stock in a company that
has a city contract" Seabury said,
and I say u is grounds foc removal
and has been so held and is so provided
in section 1888 Of the city charter"
Included in S26,5O0 Batch.
Seabury said that 10 bonds Of the
Reliance Bronze &; Steel Co were in
cluded in s26,5O0 worth of securities
that witnesses have testified the mavor
received from J. A. Sisto while Sisto's
company was interested in the promo
ton Of a taXicab company
Walker had testified the securities
represented his profits from a pool
which he was invited to ioin about
the time he first met Sisto az a ban
quet in Atlantic City in 1929. He
denied the securities came from Sisto.
and he testified he vetoed a taxicab
control bill that would have brought
profits of $1,000 900 a year to the taxi
cab company in which Sistos broker
age house was interested.
Awarded City Contract.
Harry J. Rosenbloom. treasurer of the
Reliance Bronze g. Steel Co.. testified
today that on January 9. 1881. the COM
pany was awarded a city contract for
l04 bronze traffic standards for use
on Fifth avenue. The original esti-
mate for the standards, he said, was
4l.5584O.
Rcsenbloom testified the contract was
signed February 3. 1881 and in the
end the city paid the company s43.-
556.40 because five additional standards
were required by the Police Department.
Seabury called to the attention Of
the committee Mayor Walkers testi-
mony that some time after he received
the S26500 in securitieS-including. Sea-
bury said. the 10 Reliance bonds-he
turned them over to Mrs. Walker.
Deposited in Walker Bank.
He then introduced documentary evil
dence indicating that On December 90
1880. 10 coupons of the Reliance bonds.
valued at $50 each. were deposited in a
bank account belonging to the mayor
and Mrs. Walker. and that subsequently
10 more Reliance coupons of the same
value also we're deposited
ROsenblcom testified that the COM
fOrv7ci oF
merger of three other companies. He
said mlllion-dollar issue of per cent
convertible oebenture bonds and $4,000
shareS OF no-par value stock were issued
The bond issue, Rosenbloom testified,
was underWritten by J. A. Sisto g. Co.,
which bought cut the whole issue and
also 26.000 shares of common stock.
The bonds. Rosenblcom said. are con-
vertlble into common stock at the op-
ton of the holder.
Democrats Deny Charge.
Assemblyman Louis A. Cuvillier OF
the Democratic minority on the COM
mlttee protested there was no proof
! that the bond coupons we're caShed by
the mayor.
The record shows" replied Seabury.
! that coupons. up to the date have
mentioned. were deposited by the mayor
in his personal account. He says he
turned those bonds over TO Mrs Walker,
where they now are"
Senator John J. McNaboe. Democrat,
inquired if it was Seabury's contention
that the mayor cannot buy stock in
any corporation"
Seabury replied the mayor cannot
hold stock IN company having a city
contract and said it was grounds for
removal under the city charter.
Quotes City Charter.
your honors will remember the
testimony to the effect that these bonds,
which are convertible into stock, we're
subsequently turned over By Mayor
Walker to Mrs. Walker" Seabury said.
He then read into the record section
1888 of the city charter which states
that any city official who is a stock
holder in or is directly or indirectly
interested in any corporation having a
contract with the City Of New York
Continued on Page 2. Column o.