Jersey Graft Inquiry Centers on Crabiel
law enforcement officials disclose that NJ Sec of State J Edward Crabiel is principal target of state grand jury investigation of corruption in NJ hwy construction involving alleged collusive bidding and kickbacks to local politicians; Crabiel denies any wrongdoing, news conf; jury recd previous day financial records from Franklin Contracting Co, hwy construction co that Crabiel was pres of before being sworn in last Jan as Sec of State; rept that Crabiel is prime suspect appears certain to have serious impact on Gov Byrne adm, which has pledged to end NJ's reputation for pol corruption; Byrne refuses to comment on investigation except to say that State Criminal Justice Div prosecutors have been given 'full rein'; Atty Gen William F Hyland and Deputy Attys Gen Peter R Richards and Edwin Stier, who are conducting investigation, also refuse to comment; Richards said in previous ct appearance that investigation involves allegations of short-weighting of supplies by construction cos, collusive bidding on local construction contracts, cutting up of areas as bidding preserves for individual cos and bribing of public officials; sources say that although repts seemed to indicate that investigation centered in Passaic County, where Franklin Contracting Co is located, other counties now appear to be involved; say alleged corruption occurred in '60s when Crabiel was co pres; at that time there was repeated criticism of alleged appearance of conflict of interest since Crabiel, while serving as legislator, voted on hwy construction projects, some of which co worked on; Crabiel, who is expected to confer with Byrne and Hyland, says he has no intention of taking leave of absence while investigation is continuing; jury has subpoenaed records of number of construction cos and compelled several witnesses to testify, including Paterson City Engineer Daniel Malatesta and Passaic County Freeholders Bd Clerk Ronald Dooney; Crabiel says he has not been subpoenaed; his illus (M)