The Ellingwoods lived at 98 Clinton (1897-99+?) James Cunningham testimony, 1910 worked for C H Ellingwood & Co. three years previous to that (1907) for a year (1906-1907), previous to that E & C. CHE & Co composed of CHE and H. Townsend Davis. E & C formed 1893. E & C were partners to 1900, when Tracy Rogers joined as special partner, with a $100,000 interest. CHE retired Oct. 1902. Rogers retired Jan 1905. Firm failed 6 weeks later. Made an assignment to CHE rather than declare bankruptcy. Records of E & C were kept in a barn Montclair, supervised by men under detective Hotchkiss, then moved to Produce Exchange vaults to be safer from theft. CHE & Co. retired about 1907. Legislative money and accounts passing through E & C to the credit of legislators, implicated were Louis Bedell and Louis Goodsell. Rogers was pres of the Street Railway Assoc, which credited money to legislators through E & C. There was a question about evidence that money from W W Cole of Elmira went into JWC personal account and was later withdrawn and given in part to Bedell and Goodsell. Money in general in 1903 seems to have been forwarded by Cole and handled by Rogers and supervised by JWC to benefit Bedell. Apparently CHE sent a letter in 1900 with a contribution to the Republican cause in St. Lawrence Co. to Sen. George Malby, at the request of Tracy MATTERS INDICATING COEEUPT PRACTICES nr CONNECTION WITH LEGISLATION DEVELOPED IN THE INVESTIGATION CONDUCTED BY THE SlJPEBINTENDENT OF INSURANCE, DURING THB SPRING OF 1910. Between March 18 and April 6, 1910, a public investigation of the expenses of insurance companies from 1900 to 1910, in-elusive, particularly in connection with legislation, was had by the Superintendent of Insurance. The testimony and exhibits therein, together with the formal report of the Superintendent, were transmitted by the Executive to the Legislature on April 11, 1910. It appears from the report made by the Superintendent of Insurance, that three loose-leaf ledgers, covering the transactions from 1900 to March, 1905, of the firm of Ellingwood & Cunningham, stockbrokers, operating in New York city, came into the possession of the Superintendent of Insurance; and that an examination of these ledgers developed the existence therein of accounts with several former members of the Legislature, some of whom had been active on the insurance, railroads and rules committees. A partial examination of these accounts, in so far as they appeared in these ledgers, was made by the Superintendent of Insurance," but further inquiry was prevented by objection raised as to the power of the Superintendent of Insurance to proceed further with the investigation. Prior to the appointment of the Committee, the Superintendent of Insurance had ascertained that the remaining books, papers and records of the firm of Ellingwood & Cunningham were in the possession of Mr. Cunningham, and stored by him in a barn situated in Montclair, in the state of New Jersey. Whereupon the Superintendent of Insurance caused the same to be placed under constant surveillance. Upon the organization of this Committee, the Superintendent of Insurance placed at the disposal of the Committee the evidence taken by him in the investigation conducted by him, together with the loose-leaf ledgers of Ellingwood & Cunningham, and all other documents and papers which he had in his possession. Immediately upon the organization of the Committee, it undertook the surveillance of the books and papers of the firm of Ellingwood & Cunningham, at Montclair, N. J. These, in the meantime, had been moved to a warehouse. After service of subpoena duces tecum upon Mr. Cunningham, thorough examination was made of all of these books and papers, at the warehouse in Montclair. This work consumed several weeks and was attended with many difficulties. The books and papers filled ten large packing cases, were not indexed or systematically arranged. After the examination was completed, the books and papers found on such examination to be necessary and material to the inquiry were removed to the offices of the Committee, at No. 55 Liberty street, in the city of New York. On the examination made at Montclair, there were found missing from these records and papers some 40,000 canceled eheeb of the firm, ten letter books, two stub checkbooks and two blotters, and a deposit book which contained a specific description of each check and draft deposited by the firm after April, 1902, all of which were of the utmost importance to the investigation, and the absence of which seriously hampered the work of the Committee and increased its difficulties. The whereabouts of these books and papers, or tho time of their abstraction, the Committee was unable to determine. An examination of the records which remained, together with in examination of Mr. Cunningham, Mr. G. Tracy Rogers and several former employees of the firm, established the following: First. The firm of Ellingwood & Cunningham was formed in 1893 for the purpose of doing a general brokerage business, having offices at No. 41 Wall street, New York city. It was composed of C. H. Ellingwood and James W. Cunningham, until the year 1900, when G. Tracy Rogers was admitted as a special partner on his investment of $100,000 cash in the firm. In October, 1902, Mr. Ellingwood retired from the firm and in January, 1905, Mr. Rogers retired. Whereupon Mr. F. M. Black, one of the clerks of the firm, became a general partner. Some six weeks thereafter the firm made an assignment for the raefit of its creditors. Subsequently an involuntary petition in wniruptcy was filed against the firm in the United States District Court for the Southern District of New York, which was ^ i-hdrawn some sixty days later, after a settlement had been made V the firm with its creditors. Second. During the time G. Tracy Rogers was a special partner, several members of the Legislature and other persons interred in legislative affairs had accounts with the firm. Many of ' b«e accounts appeared regular in all respects and contained no items which called for explanation. Others, to which reference is hereafter made, were evidently carried primarily not for the purpose of dealing in stocks and securities, but for the purpose of facilitating and concealing the transfer of moneys to the legislators in whose names the accounts stood. Third. At the time G. Tracy Rogers became a special partner, he was the president of the Street Railway Association of the state of New York, an association organized in 1883, and still in existence, the ostensible purpose of which was the acquisition of experimental, statistical and scientific knowledge relating to the construction, equipment and operation of street railroads and the diffusion of this knowledge among the members of the association. The membership of this association comprised nearly all the important street railway companies within the state, together with certain associate and allied members consisting of individuals, co-partnerships and corporations, engaged in the manufacture, selling and dealing in railway supplies and materials. Mr. Rogers continued as president of this association from 1894 until 1903. Fourth. During Mr. Roger's inciimbency of the office of president of the association, he represented it at Albany during the sessions of the Legislature in matters of legislation affecting its members. Shortly after he became president, upon his suggestion and with the approval of the executive committee a system was inaugurated of levying assessments upon the various railroad companies which were members of the association in proportion to their gross earnings, to raise funds with which to promote the interests of these members of the association in matters of legisla- lation. At first these assessments were fixed at one-tenth of one mill upon the gross earnings. Later this was raised to two-tenths of one mill, and, in addition thereto, from time to time, as, in the judgment of the president, exigencies required, special assessments were laid on the members for the purpose of raising additional funds. Many of the books and records of the association, including minutes of the secretary, records of the treasurer, and correspondence of its officers have been lost or destroyed. The officers testified that they were unable to produce them, and were ignorant of the cause or manner of their disappearance. On account of the loss of these records, the exact amount contributed by the members of the association to this fund cannot be ascertained, but that it was large appears from the fact that during tie months of June and July, 1903, $25,000 was forwarded to Ellingwood & Cunningham and by them placed to the credit of legislators. Fifth. The distribution of this fund was wholly under the control of the president of the association and he was not called upon at any time to account, either to the executive committee or to the association, for the manner of its use. There were three methods used in transferring these funds, namely: a. By depositing from time to time with the firm of Ellingwood & Cunningham sums of money directly to the credit of these members of the Legislature, which sums were subsequently either withdrawn hy them, or used by them for the purpose of trading in stocks and bonds. b. By depositing from time to time with the firm of Ellingwood & Cunningham to the credit of a confidential clerk of the firm, sums of money which were subsequently transferred to the accounts of these legislators. c. By making contributions directly to the campaign funds of the political parties in the districts represented by these members of the Legislature, and to the funds of the state committee of the dominant parties. Sixth. Henry A. Robinson, attorney for the Metropolitan Street Railway Company of New York, was the secretary and treasurer of the association from 1894 to June, 1903. In June, 1903, Robinson resigned as treasurer and the executive committee of the association selected a new treasurer to act until the innual election of officers in October of that year. In October, 1903, an entirely new set of officers were elected hy the associa- iion and a new policy adopted, at least temporarily. The levying of assessments was apparently abandoned. This change of policy * as evidently a matter of " policy," since the evidence shows that '« collection of the unpaid assessments continued. Carious methods were resorted to by the treasurer and the members of the association to cover up these assessments, and Wong others may be noted, the assessment of $8,000, collected inJuly, 1903, from the Metropolitan Street Railway Company on behalf of the Third Avenue Railway Company. The evidence- shows that in order to conceal the real nature of the transfer of $8,000 of the moneys of the Third Avenue Railway Company for legislative purposes, the following ingenious and despicable method was adopted: A voucher and draft for this amount was drawn to the order of the treasurer of the Street Railway Association, as attorney, in settlement of a fictitious claim for personal injuries to one Charles Lankeman. It recited upon the face of the voucher that the injuries were received by Lankeman " On May 1st, 1902, at 99th Street and Third Avenue, on car 247, run 70, trip No. 1, north-bound: that the claimant, a passenger on the car, was standing on the rear platform: that the car came to a stop at 99th Street and started with a sudden jerk, throwing the claimant from the rear of the car to the street, which resulted in injuries to his back and spine, shock and contusion." The treasurer of the Street Railway Association indorsed this draft as attorney and also indorsed it as treasurer of the association, and deposited it to his credit as treasurer, and it was paid in due course. Later this money found its way into these accounts carried by Ellingwood & Cunningham. The treasurer of the Street Railway Association testified that he never knew Mr. Lankeman, and never had heard of any such person, or accident, that he was not an attorney-at-law, nor was he the attorney-in-fact for Mr. Lankeman, and knew nothing about any such accident. An examination of the officers of the company failed to reveal that any such accident had ever occurred or that there was any such person as Mr. Lankeman. This was evidently a mere invention and subterfuge for the purpose of concealing the transfer of this $8,000 by the Metropolitan Street Railway Company to the treasurer of the association for legislative purposes. The surviving records of the association were so meagre and fragmentary and the disappearance of the great bulk of them so extraordinary and inexplicable as to raise a grave suspicion that similar methods may have been resorted to at other times. It would seem that in deference to the new order of affairs inmatters of legislation and public service, the association, in 1904, permanently abandoned the methods which it had followed in matters of legislation. Seventh. On the 16th day of March, 1900, a bill was introduced in the Senate, entitled: " An Act to amend the Transportation Corporation Law by addition thereto of a section in relation to extending roads and extensions." This bill passed the Senate on March 29, 1900. On the date of its passage it was transmitted to the Assembly and was immediately reported by the committee on rules, and passed by the Assembly on April 5, 1900, the day before the final adjournment of the Legislature. It subsequently became a law and constitutes chapter 567 of the Laws of 1900. Under this act it became possible for the New York Transportation Company, a public service corporation, operating in the city of New York, to greatly extend its franchise. It appears from the books of Ellingwood & Cunningham, that prior to the passage of this act and shortly thereafter several members of the Legislature, some of whom were members of the committee on railroads and of the committee on rules, came into the possession of a large amount of stock of this company. These blocks of stock so held were at least in two instances purchased through Ellingwood & Cunningham and paid for by Rogers with the proceeds of a check received from the president of the Metropolitan Street Railway Company. In other cases, the stock was deposited by members of the Legislature with Ellingwood & Cunningham and carried by them until May, 1901, when a pool of 1,400 shares, made up of the holdings of various members of the Legislature and other persons connected therewith, were delivered to a member of the committee on railroads of the Senate and by Mm sold to an unknown purchaser at 14, at a time when the same stock was selling in the open market at 4%, and the following month sold down to 1*4. This bill, though general in its character, could possibly affect &qu ot;o corporation except the New York Transportation Company. It waa introduced by a Senator who represented no part of tlioterritory in which this corporation operated. He testified that it was handed to him by a Senator also representing a district wholly without the territory in which this company operated; that he neither asked nor received from the Senator who gave it to him any statement or explanation as to its provisions or the source from which it came. Eighth. The evidence shows that between April, 1900, and March, 1903, the account of the chairman of the committee on railroads in the Assembly during those years was credited upon the books of Ellingwood & Cunningham with the sum of $24,281, none of which came from him directly, but all of which was contributed either by checks of the president or attorney of the Metropolitan Street Railway Company or the treasurer of the Street Railway Association, or by the checks of the president of the Street Railway Association. The evidence also shows that the account of a member of the committee on railroads of the Senate was credited on the books of the firm of Ellingwood & Cunningham, between April, 1900. and July, 1904, with $24,800, all of which came through checks of the president of the Metropolitan Street Railway Company or the attorney of said company or the treasurer or president of the Street Railway Association. The explanation of these accounts given by the persons in whose names they were carried and by Rogers, were that these transfers were made by Rogers either in payment of his personal indebtedness to them or as political contributions, and that they had no knowledge of the sources from which he obtained the money. It is apparent that the firm of Ellingwood & Cunningham was used during these years by Rogersj acting for the Street Railway Association, as a clearing house through which to transfer monev from the treasuries of the various railroads belonging to the association to the individual accounts of certain members of th< Legislature and political organizations, whom they deemed usefii] in the protection and promotion of their interests in matters of legislation.