The daily worker., 1934-12-26
SchoelkoPf Utility Reaped Profit
From Duplicated Light Bills Paid
By Relief Clients, Inquiry Reveals
TERA Head Fired Audi
tor Who Exposed Graft
in Cohoes Relief
By SIMON w. GERsON


York State is the creature of the
great utilities and in particular, A.
H. Schoellkopf, State Temporary
Emergency Relief Chairman-and
president of the powerful Niagara
Hudson Power Corporation and Di-
rector of II others, an investigation
by the Daily Worker revealed.
This startling picture of graft,
corruption and intimidation would
sound almost incredible were it not
for unimpeachable proof in the
hands of the Daily Worker.
At least one of the companies
which Mr. Schoellkopf controls has
rendered double light bills to at
least one city relief administration
and gotten paid for them.
A terra. auditor who brought
this to the attention of terra.
officials was promptly discharged
for his pains. Mr.. Schoellkopf per-
sonally wrote the employee that he
would not be reinstated.
President Roosevelt, G overn or
Lehman and State Comptroller
Morris S. Tremaine have all been
informed of the facts-but not one
of them has seen fit to move a
muscle to expose these conditions
to the people of New York State or
reinstate the discharged auditor.
Practically every large newspaper
in New York City was approached
with the facts of the story-includ-
ing the liberal" "fire-eating. "util-
ity- fighting" New York Post. Not
one of them touched it. There was
too much dynamite in it. 1t hit
people in high places.
This, in brief, is the outline Of
the sordid story Of New York State
Relief
The munition makers, who liter
ally coined gold out of the torn
flesh that strewed the worlds bat
tlefields in the World War have
met their equals-the utilities that
traffic in civil misery. rene DUPONT
may now officially shake hands with
Alfred H. Schoellkopf.
Scene Laid In Cohoes, N. Y.
The scene of the story is laid
principally in the little town of
Cohoes, New York, municipality a
few miles north of Albany on the
banks of the Hudson. What tran
spired in the relief administration
of this community of $4,000 people
has, in one degree or another-as
the relief investigation now going
on in New York City eloquently
indicates-happened in many an
other city in the State.
On June 6 of this year, a terra.
field auditor, Karl Hitler, of Is
oswald Court, Oceanside, New
York, was ordered by terra. head
quarters into Cohoes to make q pre-
audit of expenditures and commit
ments made by the local relief
group. We use the term "pre-audit"
advisedly, since the State TERRA
was then paying 100 per cent of
the relief expenses of the COM
munity and not rs per cent as
prescribed by the Wicks Act.
When Mr.. Hitler arrived in Co.
hoes he found six months of COM
mitnents awaiting examination and
payment. He Immediately informed
his superiors at terra. headquar-
ters, 79 Madison Avenue, of his
discoveries. In particular, Mr.. Hitler
Informed his executive officers of
the duplication of light bills by the
New York Power and Light Com
pany-a subsidiary of the Niagara
and Hudson Power Corporation.
Mr.. Alfred H. Schoellkopf, be it
noted, is chairman Of the Board of
this company and a director.
Submits Written Charges
In a formal report submitted to
S. H. McVicar, Acting Comptroller
of the TERRA, under date of
August 10, Mr.. Hitler wrote:
g. the New York Power and
Light Company rendered dupli-
cate bills, showing exactly the
same meter readings and kiIo-
watts consumed, the only variance
on the bills being that the period
ending for light consumed diff
fered by two days. This company
also filed sworn claims for these
duplicate bills with two orders
for the same amounts, one of
which was enormously issued in
the Home Relief Bureau.
Specimens of these irreguIa-i-
ties were given to Mr.. Mcvicar,
Acting Comptroller, at meeting
held in Hearing Room No. 4, State
IEa.t.....l -. d.