The Waterbury Democrat., 1938-01-18
Fake Realty Firms
 In c. o. P. Scandal
Public Interest Grows as Grand Jury Probe Draws
 Near-"Gift' to Local FusiOnists Suspected

be investigated by the Grand Jury when 1t conveneS on January 25 to investigate the spending of $6,000,0 ,000 by John A. Macdonald, State High way Commissioner, for the purchase of land for the right of way for the Merritt Parkway.
 Another, equally important ques- tion which is being asked is, Did the Fusionist group in Waterbury receive any of this Kick Back" from politicians to wage an unsuc- ceSsful campaign against the city administration.
 Arthur H. Waterman, real estate operator of Brooklyn and Green wich and President of the Westport Estates, Inc, which sold property for the right of way for the Merritt Parkway in Westport for IA times its assessed valuation has been identi- fled as the former head of the Pru- dence Company. Inc, a New York Mortgage and Investment firm which according to a New York Leg islative Investigating Committee Left the public holding the bag".
 The WeStport acreage assessed at $16,310 and sold to the state for $l83 900 - was acquired by Water mans Westport Estates, Inc, in 1929, three years before resigning as head of the Prudence Company which shortly afterwards went into bakruptcy. The Bank Commissioner of New York has since taken over the company.
 Resigned In 1882
 Waterman resigned as president of the Prudence Company on April 13, 1892 - because of I'll Health" Shortly afterward the company and several affiliates became involved in financial tangles which finally brought about a dozen indictments against them.
 The management of the company has been under Federal Investiga- tion, a Congressional Committee and a New York Legislative Committee.
 The grand jury on January 2, 1884, handed up three indictments charg- ing twelve of Waterman's associates, officers and agents of the New York Investors - with using the mails to defraud, concealment of assets in Bankruptcy and conspir- acy.
 The check for $210,OOO which was paid for land bought from the Port Green Realty Company, in Green wich is alleged missing from the files of the State Treasurer.
 Others Listed
 Others expected to be called be- fore the grand jury include Nelle Joyce of Greenwich who received $245, 900 in 8 transaction in which the state twice bought her house, and the officers and directors of various real estate companies that sold the state land for the Merritt Parkway.
 Inquiry will be made into Le Roy Kemp's, who acted as the pur- chasing agent for the State of Con- necticut, for the purchase of 13 acres in Westport from Mrs. Lillian Blount of East Orange, N. J., for $24,750 after she bought the land for $16,O00 when the state refused, through Kemp, to do so.
 Transactions in which individuals, or real estate firms, acquired land a short time before it was bought by the state and turned over at a quick and very handsome profit, are also expected to receive special scru- tiny at the hands of the grand jury.
 Contracts
 Among other phases of the trans actions of the State Highway De- partment, other than the Merritt Highway to be investigated are the alloting of contracts for state work. The Osborne-Barnes Company of Danbury, it is alleged, was awarded a contract for grading and paving a job in Sharon is cited in particular. It is alleged that on this job, "Ex- tras" brought the cost of a $1O0,0OO .-l kA1v ACQ1