The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-04-28

THIS statement has been repeated
i by Mayor Hoan a countless num-
Der of times as well as by his
henchmen throughout the country.
However, there are facts on hand.
completely substantiated and docu-
mented, which prove that MilWau-
KEGS socialist Tammany is covered
with as much graft sludge as their
democratic brothers in New York
City.
In 1919 Mayor Hoan realized
$4,000 profit from the sale of sur
plus army and navy goods valued
at s1,OO0,0O0. These goods and the
facilities and expense Of selling it
was paid for out of the taxpayers
money-no profit was anticipated,
Hoan handling the whole affair
himself on city credit. When profit
did accrue he pocketed the money
claiming it was on his risk that the
deal was made and had there been
a loss HE would have been respon-
sible
Mayor HOan Stocks Up
Hoan was also a stakeholder in
the American Metal Products Co.
since 1918. This company was
created for the purpose of legally
covering up graft transactions.
Other stockholders in the firm were
public works contractors, saloon
men, city employees and relatives of
men holding high offices in the
socialist city government. From
1922 to 1928 Hoan's. income tax re-
ports reveal he received $3.50 worth
Of common stock in 1922 as pay
ment for legal services rendered; ~
in 1924 he was given $500 in stock;
in 1925, $500; 1925, 81 ,000-claiming
a deduction on this Of $500 because,
due to its value, it paid no divi-
dends! In 1927 he received 100 shares
of preferred stock at $40 share,
and in 1928 he received salary of
$500.
Reinhard Kunz, who was city
employee in charge of the bureau Of
safety engineering, was vice presi-
dent of the company and on the
board of directors which voted Hoan
the salary payments. Others in the
firm we're such men as Walter
Palm, engineer in the department
of public works; Health Commits
sioner DR.. Koehler's wife; the
daughter of Captain of Detectives
McCrory, and countless others-all
of whom received favors from the
city government by virtue of their
being stockholders. Frank j. Har-
der, who has served the city gov
eminent in many capacities, was
president of the company and later
president of the city land COM
mission.
Hoan took $4,000 of the war food
profits money and loaned it to the
American Metal Products Company
in which he was a stakeholder. The
loan was made at AZ per cent al
though their stock was paying at
7 per cent and the general rate of
interest was higher than AZ per
cent. At this time the stock was
worth actually only SOC on the dol
lar or less. This money was taken |
from the food profits on Dec. Is,
1922. On May 20, 1924, $1,000 was
returned to Hoan and on June l, |
1926 the balance of $4,000 was paid |
him-all plus interest. At different |
times Hoan bought a total Of $500
worth of American Metal stock-all /
paid for out of the food profits
money. When Hoan made the
original loan to the company he
knew the firm was in dire financial |
difficulties yet stated he made the
loan because I knew the firm was
sound"
THE war food fund profits was
originally in government securi-
ties-these he cashed without au-
thority and unlawfully used for
investment purposes. Hoan held
this fund for six years when all
claim against it would be barred by
law. In 1929 he received 1851. 70 |
interest from the fund and never
paid income tax on it-a good J. P. |
Morgan partner! In 1929, City
Sealer SteineI estimated the value
of the time of city employees and |
the use Of city property IN rela-
tionship to the foodstuffs, at
S4669.20, but this does not include |
all city property used, and not only
regular hours of the employes-no /
overtime" He stated that if Hoan |
could be forced to pay back this
money stolen from the taxpayers it |
would run, with interest, in excess
of $4,000.
The mayor used his veto power |
on a resolution demanding a $500 {
appropriation to make a test case"
of the war food profits after blar-
ingly inviting such a suit. He was
scared enough, however, to turn
over few thousand dollars with
hush money" gesture.
Graft in Real Estate
In going over the records at the
period Of boom time" realty, we
see. some of the adventures of Mil
waukee city employees and appointees
in this one time lucrative racket.
These deals were carried out by
men in a position to know where
city Improvements would be made.
The cleverest and most slippery
shark of them all is Charles Ben
nett, city planning engineer, who
promoted real estate deals to the
advantage of himself and others
who had to be let in on the graft.
He knew where contemplated i'm
proponents were to be made in the
city and what territory was slated
for annexation, where such sites
were to be acquired and where there
would be demand for property at
high prices.
Bennett was a stockholder and
director Of the Triangle Realty Co.
This company was organized in 1925
with Frank Narath, an employee in
the city engineers office, as presi-
dent and Harry Koehler also en-