On March 27, 1972, Gallagher went before the grand jury clutching a suitcase filled with $333,000 in municipal bonds. He claimed they belonged to the Hudson County Democratic organization. "I was in a position of a trustee holding bonds for the Democratic party," he explained. "My sole contact in the Democratic party passed on, died, though he was alive when this investigation began and anybody had access to him, and that was Mr. Ben Schlossberg. I have never in any way been involved in any extortion or crooked plot or kickback or graft or anything else. I happen to consider myself an honest person. I have worked pretty damned hard all of my life, and I still do, but I did not want to bring the wrath of the party down on me, because I need their goodwill in order to survive politically... .

"Now, I just want to say this, Mr. Stem: I am a trustee of those bonds, and I would like to say right now, I don't know what to do with the bonds, because Mr. Schlossberg is dead and I don't know who to contact and I don't know whether a party still exists. It seems to me that the Democratic party has been totally devastated in the state of New Jersey. I don't know who speaks for the party, who is the party, whether it can survive.

"I have a problem. I would hke to pass that problem on, Mr. Stern, because right here are the contents of my trust, right there, and I give them to you, to the grand jury, to the court or anybody. [The bonds] have been a problem to me.... I didn't know whether I am to protect my trust or whether or not I am supposed to go on and try to hedge on this whole business. I don't want to hedge. I have a problem, and I want to answer every question truthfully...."

"Suppose you start letting me ask you some questions," Stern said.

"Yes, sir."

"Fine. Now, Mr. Schlossberg died in 1968. That is a fact, isn't it?"

"That is a fact."

"He died in November of 1968. That is a fact, isn't it?"

"That is a fact." . . .

"Now, all of this time you say you were the trustee of these bonds, is that right?"

"Yes, sir."

"Now, in 1968, when Mr. Schlossberg died, in November of 1968, did you know who the head of the Democratic party of Hudson County was?"

"All I know-"

"Answer the question!" Stern snapped.

"Yes, I did."

"Who was that man?"

"Mr. Kenny."

"In 1969, as you maintained those bonds with the prob lem you say you had about who to turn them over to, did you know who the head of the Democratic party was in Hudson County in 1969?"

"Yes, sir."

"Who was that man?"

"Mr. Kenny."

"In 1970, all the time that you had those bonds that you have now in your suitcase as a matter of trust from Mr. Schlossberg, as you were looking around for anybody to give them to, did the Democratic party have a head in Hud son County?"

"Yes."

"Who was that man?"

"Mr. Kenny."

"Now, in addition to Mr. Kenny, is there not a state chair man of the Democratic party?"

"The state chairman of the Democratic party had very little to do with the Democratic party in Hudson County."

"Congressman, is there a state chairman?" Stern snapped.

"Yes, there is."

"Is there one by law? Is he elected by the county committeemen?"

"Yes, he is."

"Is there also a chairman of the Democratic party of Hudson County?"

"Yes, there is."

"And he is by law, is he not, Congressman, the head of the Democratic party of Hudson County?"

"Yes, he is."

"Now, is it your testimony, Congressman, that since the death of Mr. Schlossberg in 1967 [sic] you have had a problem, and that problem has been that as trustee of these bonds, which you say are the bonds of the Democratic party of Hudson County, you did not know who to give them to, who to bring them to, and so today, in a grand-jury investigation as to your tax liability, you are bringing them here now to turn them over to the grand jury?"

"Yes, sir.". . .

"As trustee of these funds, is there any document or record on file anywhere in the Democratic party reflecting that these assets of the Democratic party are in your hands?"

"I don't know."

"Did you ever sign a receipt when you got them from Mr. Schlossberg?"

"No, I did not."

"So, if I understand you correctly, you are walking around with that suitcase right now containing bearer municipal bonds, which you say are the property of the Democratic party, and that there is no document located anywhere in the Democratic party to show-"

"Now, I don't know whether there is, Mr. Stern," Gallagher interrupted.

"-or any receipt signed by you to show that you are in control over a substantial amount of assets of the Democratic party?"

"I don't know whether there is. I just know I have never signed a receipt. I am not sure what is floating around or what instructions Mr. Schlossberg left with anybody. All I know is I have been waiting for somebody-"

"To come to you?" Stem suggested.

"Yes."

"And no one has?"

"No one has."

"Not in five years?"

"That's right. .. ."

"What is the face value of the bonds that you have in that suitcase?"

"I haven't counted them. I think it is about three hundred and fifty thousand dollars or three hundred and seventy."

"That is like money, isn't it, Mr. Congressman?"

"Mr. Stem, you know it is like money." . .

"Those bonds you've got there, you are the trustee of them? They are not your bonds?"

"They are not my bonds."

"Fine."

"I might be indicted for stupidity or insanity, Mr. Stem, because you know that if I did not consider this mine, I am under no obligation to bring these things in here today. But I don't know what to do, and I want to answer your questions truthfully, Mr. Stern."

"You got the bonds in 1967 from Schlossberg?"

"Yes."

"You are the trustee?"

"Yes."

"Could you tell us why he made you the physical trustee of them?"

"He trusted me."..

"Congressman, all •the time that you had these three hundred and seventy thousand dollars' worth of bonds after Schlossberg died, you were troubled by the fact that, as you have told us, you didn't know who to give them to?"

"That's exactly right, Mr. Stem. I am still troubled. I don't know whether I am doing the right thing or not in regards to my trust."

"Who did you make contact with in the Democratic party in order to find out about that?"

"Nobody."

"So troubled, though ... you told nobody in the Democratic party?"

"I don't know who the Democratic party is anymore."

Jon Corzine? Don't get fooled again!

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