Jack Kenny kept the cash stashed in an ashcan in his basement.

"When I heard about that fifty thousand dollars," Stern says, "I realized that I had a tremendous piece of corroboration. It's difficult now, the case is over, there's been a conviction, and everyone says, `Of course, they're guilty.' But if you put yourself back then, you realize that the testimony of this man was incredible. While they may suspect things are wrong, our ordinary citizens have no conception of how massive, monumental, corruption was in Hudson County. Contractors were practically standing in line with envelopes in their hands. In retrospect, everybody agrees that's the way it was, but when you have to prove it in a court of law beyond a reasonable doubt, it sounds crazy. It is crazy, but it's true."

Stern persuaded Kenny to turn over the money. They met at the Gateway Motel in Newark. Kenny showed up with a shopping bag filled with cash. Stern had him sit on the bed and initial every bill so he could identify them in court. The bills ranged from five- to hundred-dollar bills. Some were worn tissue paper thin and were so old that they bore the signature of Henry W. Morgenthau, the New Deal treasury secretary.

Securing John J. Kenny's cooperation required granting him immunity from prosecution. To Stern there was no doubt that this was the proper course: "It was clear to everybody that between prosecuting this one fellow and using him to rub out this whole miserable, corrupt organization, there was just no choice."

But a problem arose because Jack Kenny was already under indictment by the state-for allegedly taking a $50,000 bribe to secure a zoning variance. Kenny was convinced that the indictment was revenge for his breaking with the organization. Given the Cahill administration's record of cooperation with the Hudson County Democratic machine-both before and after its disgrace-and its dogged determination to press the case, his belief seems justified.

Whatever the cause, granting federal immunity might preclude state prosecution. Stern decided to break the bad news as gently as possible. At the Legislative Correspondents Dinner at Newark's Robert Treat Hotel, he called aside New Jersey's attorney general, George F. Kugler, Jr., and told him of Kenny's cooperation and grant of immunity. At the time, Kugler seemed satisfied.

"Over the next couple of days," Stem says, "he was telephoning me furiously, telling me he didn't want to see him immunized as to their case. He specifically asked me not to question John J. Kenny about that transaction. I told him I wouldn't, but I also told him that I couldn't stop cross-examination, that he must-realize that if they went into it on cross, he was going to get immunity. Apparently, he wasn't satisfied with the telephone conversation. So, on the day the trial opened, he sent me a letter. I sent him a letter in reply."

The exchange did not end the imbroglio.

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