CHAPTER I.

Transcriber's Note

Footnotes have been gathered at the end of each chapter.

There are numerous apparent spelling or typographical errors, including

those that appear in the copious quoted material. These have been

corrected, and are noted in the detailed notes at the end of this text.

Italics are represented here using the underscore character as _italic_.

Bold text uses the equal character as =bold=.

"THE SYSTEM"

AS UNCOVERED BY

The San Francisco Graft Prosecution

BY

FRANKLIN HICHBORN

(Author of "The Story of the California Legislature of 1909"; "The

Story of the California Legislature of 1911"; and "The Story of the

California Legislature of 1913.")

"It is well enough, my fellow-citizens, to meet as we do to-night,

and to applaud the sentiments of patriotism, and to echo the

voice of indignation uttered upon this rostrum. But another and

more imperative duty devolves upon every one of us individually,

and that is to give his and her moral support to the officers of

the law. We must not content ourselves by merely adopting a set

of resolutions, and then going home and forgetting about it,

placing all responsibility upon the constituted authorities.

This is not a case of the constituted authorities. It is the

case of the people of San Francisco. And unless the people of

San Francisco do their individual duty in supporting the

prosecution, the officials of the courts and of the law must

fail in their efforts."--_Walter Macarthur at the mass meeting

called at the time of the attempted assassination of Heney._

COPYRIGHT, 1915

by

FRANKLIN HICHBORN

San Francisco

Press of The James H. Barry Company

1915

FRANKLIN HICHBORN'S

BOOKS ON

CALIFORNIA POLITICS

Story of the California Legislature of 1909 $1.25

Story of the California Legislature of 1911 1.50

Story of the California Legislature of 1913 1.50

"The System," as Uncovered by the San Francisco

Graft Prosecution 1.50

CONTENTS

Chapter Page

I. The Union Labor Party Movement 11

II. The Ruef Board of Supervisors 22

III. The San Francisco Ruef Ruled 30

IV. San Francisco After the Fire of 1906 49

V. Graft Prosecution Opens 73

VI. Ruef's Fight to Take the District Attorney's Office 87

VII. Oliver Grand Jury Impaneled 96

VIII. Ruef Loses Fight for District Attorney's Office 107

IX. Ruef and Schmitz Indicted 110

X. Fight to Evade Trial 121

XI. Ruef a Fugitive 130

XII. The Trapping of the Supervisors 139

XIII. Confessions of the Bribe-taking Supervisors 154

XIV. The Source of the Bribe Money 168

XV. Ruef Pleads Guilty to Extortion 186

XVI. Schmitz Convicted of Extortion 208

XVII. Schmitz Ousted from Office 215

XVIII. The Real Fight Begins 240

XIX. The Glass Trials and Conviction 269

XX. The Ford Trials and Acquittals 279

XXI. The San Francisco Election of 1907 300

XXII. Higher Courts Free Schmitz and Ruef 320

XXIII. The Defense Becomes Arrogant 335

XXIV. Jury Fixing Uncovered 357

XXV. The Shooting of Heney 370

XXVI. The Calhoun Trial 388

XXVII. The San Francisco Election of 1909 405

XXVIII. Dismissal of the Graft Cases 425

XXIX. Ruef's Last Refuge Fails 440

XXX. Conclusion 455

APPENDIX.

Judge Lawlor's Ruling in Motion to Dismiss

Graft Cases i

How the Supervisors Were Bribed vii

Gallagher's Order Removing Langdon from

Office of District Attorney xii

The Ruef "Immunity Contract" xix

"Immunity Contract" Given Supervisors xxi

District Attorney Langdon's Plan for Reorganizing

the Municipal Government xxii

Roosevelt's Letter to Spreckels on the Graft

Situation xxv

Governor Johnson's Statement Regarding Ruef's

Imprisonment xxviii

Schmitz's Attempt to Control San Francisco's

Relief Funds xxxiii

Receipts and Disbursements of the Graft Prosecution xxxiv

PREFACE.

A tethered bull does not know that he is tied until he attempts to go

beyond the rope's limits.

A community does not feel the grip of the "System" until it attempts

resistance. Then it knows.

San Francisco during the Ruef-Schmitz regime was no more under the heel

of the "System" than when other "bosses" dominated; no more so than

to-day; no more so than other communities have been and are.

The political "boss" is merely the visible sign of the "System's"

existence. However powerful he may appear, he is, after all, but agent

for the "System." The "boss" develops power, does the "System's" work

until he is repudiated by the people, when another "boss," usually in

the name of "reform," takes his place.

But the second "boss" serves the same "System." Ruef entered San

Francisco politics as a "reformer." He supplanted other "bosses." But

Ruef in his turn served the "System" they had served.

San Francisco, when Ruef had reached his point of greatest possible

power, rose against him. The "System" was not immediately concerned.

Ruef had lived his day; the hour for another "boss" to succeed him had

come. But San Francisco proposed to get at those back of the "boss"; to

get at the "System." And then San Francisco found the "System" more

powerful than herself; more powerful than the State of California.

And San Francisco was beaten down, humiliated, made to understand that

within her borders the laws could not be enforced against those to whom

the "System" granted immunity from punishment.

To secure evidence against bribe-givers, the State granted immunity to

bribe-takers who confessed their crimes and joined with the State to

bring larger criminals to justice. And the "System's" agents cried

outrage that bribe-takers should go free of punishment.

But the "System" granted immunity from punishment to those who had

bribed. And the apologists for the "System" will tolerate no criticism

of this sort of immunity.

Other communities have risen against the "System's" agents, the

"bosses," and the "bosses" have given place to other agents. But few

communities, if any, have attacked the "System" as did San Francisco.

Had they done so, unquestionably they would have found themselves as

ineffective against corruption as San Francisco has been shown to be.

The "System" is confined to no particular State or locality; it

permeates our entire public life. Judge Lindsey in Colorado calls it

"The Beast." In California we call it "The Southern Pacific Machine,"

for in California the Southern Pacific Company was its chief

beneficiary. Other communities call it the "Organization." The bull does

not discover his rope until he strains at it; the community knows little

or nothing of the overpowering "System" until it resists. San Francisco

resisted and discovered.

The mere bribing of a board of supervisors was not extraordinary. Our

newspapers furnish us daily with sorry recital of bribe-taking public

officials discovered in other communities. But the effective, searching

resistance to bribe-giving which San Francisco offered was

extraordinary. It was a new thing in American politics. It compelled the

"System" to show its real strength, and that, too, was new in American

politics, and extraordinary, also.

The "System" at San Francisco had taken the usual precautions which

ordinarily ensure it against successful opposition, or even question. It

had, through its agents, selected the candidates for public office,

including the District Attorney. With the District Attorney loyal to the

"System" the "System" was secure against attack. And even were the

District Attorney to resist the "System," still was the "System" secure,

for the "System" could deny the District Attorney, through the public

officials it controlled, the funds necessary for successful opposition.

But here again extraordinary circumstances worked for the "System's"

confusion. Not only had the "System" been mistaken in the caliber of the

man whom it had permitted to be nominated for District Attorney, but

patriotic citizens guaranteed the expenses of effective attack through

the District Attorney's office.

Nevertheless, the "System" would ordinarily have been able to laugh at

the attack, and render it abortive, by compelling the citizens who were

backing the District Attorney to withdraw their support.

Even at San Francisco, the supporters of the District Attorney felt the

force of such attack. Those who supported the Prosecution found

themselves harassed in their business ventures, and snubbed in the

social circles in which they had moved. When Heney, stricken down in the

discharge of his duty, lay at the point of death, a minister of the

gospel prayed for the wounded Prosecutor's recovery. Immediately from

the pews came silent expression of disapproval. That pastor refused to

be intimidated, refused to join with his fashionable congregation

against the Prosecution. He was eventually compelled to resign his

pastorate. Rudolph Spreckels, while accounting for every dollar that the

Graft Prosecution had expended, asked to be excused from naming those

who had subscribed to the fund, lest they be attacked. Ordinarily, those

citizens whose instincts had led them to guarantee the District Attorney

their support, would have been forced to abandon him.

But at San Francisco, a few citizens, in spite of ridicule, abuse,

social ostracism and business opposition, stood firm for civic

righteousness. This made San Francisco's attack upon the "System"

possible and stirred the "System" to extraordinary resistance.

The "System," seeing itself threatened, went to the relief of the

"boss," its agent, whom even its chief beneficiaries despised. The

"boss," through his puppet in the Mayor's chair, declared the office of

the District Attorney vacant, and appointed himself to fill the vacancy.

The boldness of the move startled the whole community. But the act

merely demonstrated the extremes to which the "System" was prepared to

go. It was not extraordinary in comparison with what was to follow.

Later on, witnesses were to be concealed, intimidated, gotten out of the

State; their kidnaping even being attempted. The managing editor of a

newspaper opposing the "System" was to be taken on the street in

daylight, hurried across the country to a suburban town, forced into a

stateroom of an outgoing train, and sent on his way to a distant city.

The home of the pivotal witness against the "System"-protected

defendants was to be dynamited, the witness and other inmates of the

building miraculously escaping with their lives. A public prosecutor

was, while conducting one of the "System"-attacking trials, to be

shot down in open court. A prisoner at the bar was to arise to denounce

the judge on the bench as a partisan and a scoundrel. Thugs were

to invade court-rooms while trials were going on, to intimidate

"System"-threatening prosecutors and witnesses; men were to be trapped

as they offered bribes to trial jurors; agents of the Prosecution were

to be bribed to turn over to the defending element the Prosecution's

papers and reports. An agent of the Prosecution in the employ of the

Defense, working in the interest of the Defense, was to sit at the

Prosecutor's side during the selection of a trial jury, to advise the

Prosecutor of the character of the men under examination for jurors, and

with such advice mislead and confuse.

No; bribe-giving at San Francisco was not so extraordinary as the events

which grew out of attempt to punish for bribe-giving.

And now, as we look upon San Francisco beaten, and retarded in her

development because of that beating, the hopelessness of her opposition

to the "System" is the most startling thing of all. We see now, that

with a District Attorney intent upon doing his duty, with funds ample

for vigorous prosecution guaranteed, with trial judges of integrity and

ability on the bench, none of the accused, so long as he remained loyal

to the "System"--so long as he did not "snitch"--was in real danger of

suffering the law-provided punishment for the crimes uncovered against

him.

Ruef carefully weighed the ability of the Prosecution to save him,

against the power of the "System" to punish or to save, and knowing the

power of the "System" as few other men knew it, Ruef betrayed the

Prosecution and cast his lot with the "System." The outcome would have

justified his judgment but for a series of unusual events which none

could have foreseen. The most extraordinary incident of the whole Graft

Prosecution, we can now, with the "System" uncovered before us, see, was

that Abe Ruef went to the penitentiary. With full knowledge of the

power, resources and methods of the "System," it is not at all

extraordinary that guilty men under its protection should escape

punishment. But it is extraordinary--due only to a chain of

extraordinary happenings--that one of its agents, who continued

faithful, who didn't "snitch," finds himself in prison and unable to get

out.

The San Francisco Graft Prosecution uncovered the "System" as it has

been uncovered in no other American city, for San Francisco made the

hardest, most persistent, and longest continued attack that a

municipality has ever made upon it. California has profited greatly

because of the uncovering, for while uncovered, the "System" may be

proceeded against intelligently, not in the courts, but at the

ballot-box. California has been quick to profit by the opportunity which

the uncovering of the "System" has offered.

In preparing this volume for the press it is my purpose--so far as lies

in my power to do so--_to keep the cover off_.

_FRANKLIN HICHBORN._

Santa Clara, Calif., Dec. 25, 1912.

CHAPTER I.

THE UNION LABOR PARTY MOVEMENT.

Eugene E. Schmitz[1] was elected Mayor of San Francisco in November,

1901. He had been nominated by the Union-Labor party. This party was

organized after labor disturbances which had divided San Francisco into

militant factions, with organized labor on the one side and organized

capital on the other.[2]

The convention which had nominated Schmitz was made up in the main of

delegates who had affiliations with labor unions and were in close

sympathy with the labor-union movement.

But this did not mean that the new party had the unanimous approval of

the labor unions, or of the rank and file of organized labor. A

considerable faction, with P. H. McCarthy, president of the State

Building Trades Council, even then a dominating figure in San Francisco

labor circles, at its head, advised against the movement, and opposed

the new party candidates not only in 1901, but in 1903 when Schmitz was

a candidate for re-election.

On the other hand, the new party had in the beginning the support of the

Coast Seamen's Journal, published at San Francisco, and one of the most

influential labor publications on the Pacific Coast. It had, too, the

advocacy of several earnest Labor leaders.

Very frankly, such leaders questioned the ultimate consequences of the

movement, expressing fears which time was to justify. But to them the

situation offered no alternative. Their support and influence went to

the new party as an expedient of the times, not as the beginning of a

permanent political organization.

But the movement, once started, got beyond their control. During the

first five years of Union-Labor party activities in San Francisco many

of these original supporters were forced, first into silence and finally

into open repudiation of the methods of the Union-Labor party

administration.

In the meantime, members of the McCarthy faction, which had resisted the

organization of the party, and had opposed it at the 1901 and 1903

elections, became its strong partisans. This element supported the party

ticket at the 1905 election; and in 1907, and again in 1909, when

McCarthy was himself the Union-Labor party candidate for Mayor.

But the Union-Labor party ticket which McCarthy headed did not have the

united support of labor leaders who had organized the movement. Indeed,

labor leaders whom the McCarthy faction in 1901 called "scabs" for

organizing the Union-Labor party, were, by the same men who had

condemned them in 1901, denounced as "scabs" during the 1909 campaign

for not supporting the Union-Labor party candidates.

From the beginning, the Union-Labor party had the support of elements

outside the labor-union movement. Much of this support came from

citizens who, regardless of their attitude on trade-unionism, were

dissatisfied with the old parties. The situation offered exceptional

opportunity for the political manipulator. But the one man with the

political vision to see the possibilities of the third-party movement,

was not a member of a labor union. He was a lawyer who had already

attained some prominence in San Francisco politics--Abraham Ruef.[3]

Ruef was quick to see the potentialities of the political Frankenstein

which groping labor leaders had brought into being. He knew that _they_

could not control their creation; he knew that _he_ could. He did not

overestimate his powers. He managed the new party's 1901 campaign.[4]

Under his direction, success was won for a cause that had been deemed

hopeless. The genius of Abraham Ruef made Eugene E. Schmitz Mayor of San

Francisco.[5]

In practical acknowledgment of Ruef's services, Schmitz issued an open

letter, in which he stated himself privileged to consider Ruef his

friendly counsellor.[6] The issuance of that letter made Ruef the

recognized political representative of the Union-Labor party

administration, a position which he held until the estrangement of

himself and Schmitz under the strain of the graft prosecution.[7]

But the government of San Francisco did not pass entirely under control

of the Union-Labor party until four years after Schmitz's elevation to

the Mayoralty.

During the era of Union-Labor party power in San Francisco, the Mayor

and the eighteen members of the Board of Supervisors were elected every

two years.[8] Schmitz, under Ruef's management, was re-elected in 1903.

But the Union-Labor party failed at that election, as it had in 1901,

to elect a majority of the Board of Supervisors. Many of the

commissions, on the other hand, through appointments by the mayor, had,

by 1903, passed completely under Union-Labor party control.

Gradually, the opinion grew in San Francisco that the management of the

departments was unsatisfactory, if not corrupt. This opinion, in 1905,

when Schmitz was for a third time the Union-Labor party candidate for

Mayor, found expression in fusion of the Republican and Democratic

parties to bring about the defeat of the Union-Labor party nominees.

This fusion was in the name of municipal reform. The organizers of the

movement were in the main opposed to machine political methods. When,

however, the movement gave evidence of vitality and strength, the

political agents of public service corporations became identified with

its leadership.[9] The new leaders were soon in practical control.

Public-service corporations were largely instrumental in financing the

movement. Testimony was brought out before the Grand Jury which

conducted the graft investigations, that nearly every public-service

corporation in San Francisco contributed to the fusion fund, the

average of the contributions being $2,500 for each corporation.[10]

On the other hand, the public-service corporations contributed liberally

toward the election of the Ruef-backed, Union-Labor party

candidates.[11] Ruef was already on the pay-roll of the law departments

of many of them. Thus, generally speaking, it made little difference to

the corporations whether the "reform" fusion candidates or the Ruef

Union-Labor party candidates were elected. The corporations had

captained each side, and in a large measure had financed each side.

The inevitable difficulties of a campaign, financed and officered by

public-service corporations, to correct municipal ills for which the

corporations were in large measure responsible, were encountered from

the beginning. For the head of the reform or fusion ticket, men who had

been prominent in the organization of the anti-Ruef crusade were

suggested, only to be rejected by the corporation allies who had after

the reform group's preliminary successes become identified with the

movement.

Finally, after several names had been canvassed, John S. Partridge, an

attorney of good ability, and repute, but scarcely known outside the

immediate circle in which he moved, was agreed upon as Mr. Schmitz's

opponent. Both the Democrat and the Republican party nominated Mr.

Partridge, and with him a complete fusion ticket, including supervisors.

Partridge had a clear field against Schmitz, but his candidacy failed to

carry the confidence, or to awake the enthusiasm which brings success at

the polls.

The Union-Labor administration was openly denounced as corrupt. Francis

J. Heney,[12] fresh from his success in prosecuting the Oregon land

fraud cases, went so far as to declare in a speech before one of the

largest political gatherings ever assembled in San Francisco that he

knew Ruef to be corrupt,[13] and, given opportunity, could prove it.

The public generally believed Heney's charges to be justified. But of

approximately 98,000 registered voters only 68,878 voted for Mayor, and

of these, 40,191 voted for Schmitz. Partridge received only 28,687[14]

votes, being defeated by a majority of 11,504.

Not only was Schmitz re-elected by overwhelming majority, but the entire

Ruef-selected Union-Labor party ticket was elected with him.

Ruef, as Mayor Schmitz's recognized political adviser, and political

agent for the Union-Labor party, found himself in control of every

branch and department of the San Francisco municipal government.

FOOTNOTES:

[1] Schmitz, previous to his election, was employed as a musician in

a San Francisco theater. His connection with organized labor

came through membership in the Musicians' Union. He had no

intention of aspiring to the Mayor's chair until Ruef suggested

it to him.

[2] The San Francisco labor strike of 1901 arose out of the refusal

of the organized teamsters to deliver goods to a non-union

express agency. The Employers' Association refused to treat with

the men collectively. Other organizations went out in sympathy.

James D. Phelan, who was then Mayor, was the intermediary

between the teamsters and their employees. He advocated

recognition. The negotiations failed. During the progress of the

strike there were constant disturbances. A steamship company,

for example, employed prizefighters in the guise of workingmen

to seek positions as strikebreakers, and when interfered with to

belabor the pickets. Assaults were made upon non-union teamsters

carrying supplies to and from railway stations. The Chief of

Police, in order to preserve peaceful traffic, placed two

policemen upon each truck. Labor leaders asked not only that the

police be withdrawn from the trucks, but from the waterfront.

This action the Mayor refused to take, on the ground that it was

his duty to preserve public order, and that it was in the

interest of all to avert rather than suppress trouble. A meeting

of representatives of the several factions was held at the

Mayor's office, September 23, 1901. The story was circulated

that the Mayor had said at the meeting that if the workmen did

not want to be clubbed let them go to work. Both sides now admit

the statement was not made. Joseph S. Tobin, Henry U.

Brandenstein, Lawrence J. Dwyer and Peter J. Curtis, who were

present, have set forth in affidavit that "Mayor Phelan did not

say at said conference, as has been alleged, referring to the

workingmen's strike, that 'if they don't want to be clubbed let

them go to work,' nor did he make any statement of like import."

At the time, however, feeling was running so high at San

Francisco that the most extravagant stories were believed.

Opponents of the administration--those representing capital as

well as those advocating recognition of the unions--seized upon

every opportunity to discredit. Crafty adventurers of the type

of Abe Ruef lost no chance to work distrust and confusion. Out

of the turmoil came the Union Labor party.

[3] Ruef graduated from the University of California and from the

University of California law school with exceptional honors. He

was at twenty-one a practicing attorney. With Franklin K. Lane,

the present Secretary of the Interior, Dean John H. Wigmore of

the Northwestern University, and others, he organized a club for

civic reform. His first political convention, he tells us in his

Confessions, showed him that representative government was a

farce. He resolved to devote himself to his law practice. But

almost immediately we find him an "errand boy" for Martin Kelly

and Phil Crimmins, powerful "bosses" in their day, but now

practically forgotten. Ruef continued with Kelly and Crimmins

for ten years. He drifted with the machine, securing excellent

training for his future career. His opportunity came in 1901,

when, in its effort to throw off the yoke of the bosses, the

State secured the enactment of a new primary law. Under this law

Ruef took his first step to secure control of the State

political machine. He seized upon the new law as a vehicle to

organize a "reform" movement. His organization took the name

Republican Primary League. He secured a large following. He was

becoming powerful. He tells us in his Confessions that during

this period he was invited to dine at the homes of men of

political and social importance, among them William F. Herrin,

chief counsel of the Southern Pacific Company, and Patrick

Calhoun, president of the United Railroads. But as yet, Ruef had

little real influence in the "organization." Then came the labor

unrest, and the Union Labor party movement. Ruef managed to

combine the Republican Primary League with the Union Labor party

movement. This combination was the basis of his campaign for the

election of Schmitz.

[4] Ruef also provided much of the funds employed in the first

Schmitz campaign. In a statement published May 16, 1907, Ruef

said: "When Schmitz first ran for Mayor I made his campaign for

him, and put up $16,000. My friends told me I was a fool. I

guess I was."

[5] Out of the 52,168 votes cast for Mayor, at the 1901 election,

Schmitz received 21,776. His opponents--Wells (Republican) and

Tobin (Democrat)--divided 30,392 between them, Wells receiving

17,718 and Tobin 12,674. Up to the present time (1914) the

Union-Labor party has four times been successful in San

Francisco mayoralty elections. But only once, in 1905, has its

candidate been elected by majority vote. Changes in the San

Francisco Charter, ratified at the 1911 session of the State

Legislature, place the election of municipal officials on a

non-partisan basis, and prevent election by plurality vote.

Henceforth all officials must be elected by majority vote.

[6] Schmitz's letter announcing his obligation to Ruef was as

follows:

"My Dear Ruef: Now that the election is over and I am to be

the Mayor of our native city, I wish to express to you and

through you to all your loyal friends and the faithful

Republicans who supported my cause, my profound appreciation

of the generous, whole-souled, substantial and effective

support accorded me in the exciting campaign which has just

closed. Viewed from your prominent position in the Republican

party, I know the seriousness of the step which you took when

you voluntarily and unconditionally offered me your valuable

aid, and I cannot in words properly give utterance to my deep

feeling in this regard. I can only say that your action is

worthy of yourself, and that no higher praise can be accorded

you.

"I have now for some fifteen years enjoyed your acquaintance

and friendship and your services as my attorney in many

capacities, and I say without hesitation or flattery that I

have yet to find a more honorable, a more loyal, a more able

attorney, or a truer friend.

"I feel that I owe a great deal of my success in this

campaign to you and your friends, and I shall not permit

myself at any time to forget it.

"Though you have never asked or even suggested it, I shall,

with the utmost confidence and with a sentiment of absolute

security, feel myself privileged at all times to consider you

as my friendly counsellor and to call upon you whenever I may

require assistance in the solution of any of the perplexing

and complicated questions which must necessarily arise in the

conduct of so vast and important an office.

"I trust that you will not hesitate to say that I may do so.

Again and again thanking you and your friends, I am,

"Very sincerely yours,

"E. E. SCHMITZ."

[7] Ruef at once availed himself of the opportunities which his

position offered. He accepted regular "retainers" from

public-service corporations. He testified before the Grand Jury

that he was employed by the United Railroads through Tirey L.

Ford, just after the first election of Schmitz, at $500 per

month, and that he gave receipts to Ford for this money, during

Schmitz's first term of office, but received the money always in

Ford's office in currency; but that after the second election of

Schmitz, he (Ruef) refused to give any more receipts for this

money, although he continued to receive it from Ford the same as

before with receipts, and that after the third election his

salary was increased to $1,000 per month, which was paid in the

same way by Ford without any receipts.

Ruef further testified that he was employed by the Pacific

States Telephone and Telegraph Company, immediately after

Schmitz's first election, through T. V. Halsey, and that Halsey

paid him $1,200 per month in currency without any receipt.

E. S. Pillsbury, general counsel of the Pacific States Telephone

and Telegraph Company, testified that he never heard of Ruef's

employment until after the indictments were returned against

Halsey, and that he, Pillsbury, attended to all of the legal

business of the company during the entire time Ruef was under

employment. Pillsbury received only $1,000 per month for his own

services, and testified that he would have objected to the

payment to Ruef of a larger salary than he was getting.

Pillsbury was a stockholder to the amount of $500,000 in his own

right, and was a member of the executive committee of the board

of directors of the company.

At the trial of The People vs. Tirey L. Ford, No. 817, I. W.

Hellman, one of the most prominent of California bankers and at

one time a director of the United Railroads, testified: "Some

five years ago (the Ford trial was in 1907, which would make the

date about 1902) Mr. Holland, who was then the president of the

United Railways, came to me to ask my advice whether Mr. Ruef

should be employed as an attorney for the United Railways,

stating that by employing him peace could be secured with the

labor unions, that he had great influence with them, and there

would be general peace, and it was to the benefit of the

railways company to have such peace. Mr. Ruef then was an

attorney of high repute, recognized as a good lawyer, and I said

if that could be accomplished it would be for the benefit of the

railway company as well as for the public, and I advised yes.

Whether he has been employed or not I do not know, because I

afterward sold my interest in the company and I never have

inquired whether he had been employed or not."

In this connection, it is interesting to note that Ruef in his

latest confession, the publication of which was begun in the San

Francisco Bulletin in May, 1912, states that his employment by

corporations as attorney did not begin until after the second

Schmitz election--that is to say, in 1903. Hellman's testimony

would indicate that his employment by the United Railroads dates

from 1902. Compare with footnote 77, page 74.

[8] Under amendments to the San Francisco Charter, ratified by the

Legislature of 1911, the Mayor and Supervisors are now elected

to four-year terms.

[9] George F. Hatton, Southern Pacific lobbyist and politician, and

political manager for United States Senator George C. Perkins,

was one of the principal leaders of the 1905 "reform" movement.

He was at one time retained as an attorney by the Empire

Construction Company, affiliated with the Home Telephone

Company, which was seeking a franchise to establish a telephone

system in San Francisco in competition with the Pacific States

Telephone and Telegraph Company. The Home Telephone Company

contributed to the "reform" campaign fund. Through the "reform"

Board of Supervisors, who were to be elected, and whose campaign

was thus financed, the Home Company was to get its franchise.

But the "reform" candidates were defeated, the Schmitz-Ruef

Union-Labor party candidates were elected. The Home Telephone

Company thereupon proceeded to secure its franchise by employing

Ruef.

[10] William Thomas, of the law firm of Thomas, Gerstle & Frick,

attorneys for the Home Telephone Company, testified before the

Grand Jury that his company had contributed $8,000 to the

"reform" campaign fund. The testimony indicated that this money

was used at the primaries. Louis Sloss, one of the leaders of

the "reform" movement, testified that after the primaries,

Detweiler, who was at the head of the Home Telephone Company

enterprise, sent his personal check for $800 additional.

Fairfax H. Wheelan, one of the leaders of the "reform"

movement, testified before the Grand Jury that the Pacific

States Telephone and Telegraph Company, in the name of T. V.

Halsey, subscribed $2,000 to the fund; and the United

Railroads, concealing its identity under the name "Cash,"

$2,000 more.

[11] Dr. Charles Boxton was one of the Union-Labor party Supervisors

elected in 1905. At the second trial of Louis Glass,

vice-president of the Pacific States Telephone and Telegraph

Company, for bribery, Boxton testified that during the

campaign, T. V. Halsey, political agent for the company, met

him on the street and gave him a sealed envelope, saying: "If

that will be of any use to you use it."

Boxton found the envelope to contain $1,000 in United States

currency.

[12] Francis J. Heney when five years old went to San Francisco with

his parents. He was educated at the public schools of that

city, the University of California, and Hastings Law School.

After being admitted to practice he lived for a time in

Arizona, where he served as Attorney-General. On his return to

San Francisco in 1895, he confined himself to civil practice

until, at the solicitation of United States Attorney-General

Knox, he undertook the prosecution of the Oregon Land Fraud

cases. He was at the close of successful prosecution of these

cases, when invited by Rudolph Spreckels, Phelan and others, to

participate in the prosecution of the San Francisco graft

cases.

[13] Heney's statement was prophetic. The published account of his

speech (see Chronicle, November 6, 1905) was as follows:

"If I had control of the District Attorney's office, I would

indict Abe Ruef for felony and send him to the penitentiary,

where he belongs, for I have personal knowledge that he is

corrupt.

"If you elect these people, the graft of this city will become

so great that the citizens of San Francisco will ask me to come

back and prosecute him. When the time comes I will do as the

people request as a matter of civic duty."

Heney's charge brought caustic reply from Ruef. In an open

letter to Heney, published November 7, 1905, Ruef said:

"Francis J. Heney:--In the published reports of your speech at

Mechanics Pavilion last Saturday night you are represented as

saying: 'I say to you, moreover, that I personally know that

Abraham Ruef is corrupt, and I say to you that whenever he

wants me to prove it in court I will do so.'

"I am not a candidate for office, but as a man I do not propose

to leave your false statement undenied.

"In the past I have paid little attention to anything said by

hostile papers concerning myself, feeling that the public fully

understood the despicable motives underlying the utterances of

their proprietors. In your case a different situation presents

itself. You have recently acquired considerable repute as a

prosecuting attorney for the United States Government. Your

statements, if unchallenged, may be given some credence by

those not familiar with the true condition of affairs.

"In making the statement that you personally know that I am

corrupt you lied. You cannot personally know that which does

not exist.

"In making the statement at a time and place which allowed no

opportunity for a legal showing before the date of the election

which you seek to influence, you showed the same courage which

put a bullet into the body of Dr. J. C. Handy of Tucson, Ariz.,

in 1891, for whose killing you were indicted for murder, and

upon trial were acquitted because you were the only witness to

the deed.

"You say whenever I want you to prove it in court you will do

so.

"I want you to try to prove it, and at once. I demand that you

begin at once. I know you cannot prove what does not exist. Why

you should wait upon my desire, why you should depend upon my

wish to proceed with the performance of what must be to every

good citizen a public duty, I do not know.

"But as you declare that you will proceed only with my consent,

I give you here and now full consent and authority to proceed,

and I go further and ask that you do so.

"I regret that your recent identification with the Citizens'

Alliance and with the corporations anxious to encompass the

defeat of a candidate in a political campaign should have made

you so far forget the regard for truth, justice and decency

which should characterize men in our profession, as to have

induced you to take the chance of ruining for life the

reputation and standing of one who is not rightfully amenable

to your charge, and who has not otherwise heretofore given you

the slightest private or personal provocation for your savage

and mendacious attack.

"A. RUEF.

"San Francisco, November 6th."

[14] To hold that only 28,687 electors of San Francisco wished a

change in the administration of San Francisco would be unjust.

Many who were opposed to Ruef's domination remained away from

the polls, through dissatisfaction with the management of the

fusion movement. Of the more than 40,000 who voted for the

Union Labor ticket, were thousands of union men who were

opposed to the Schmitz-Ruef element. But Ruef cleverly injected

the Citizens' Alliance issue, and the organized labor element

was, because of this, made to vote practically solidly for the

Ruef-selected candidates. The fact that voting machines were

used in every precinct in San Francisco for the first time

contributed to this. Members of labor unions did not understand

the working of the machines, and were afraid to attempt to vote

anything but the straight ticket. This dissatisfied organized

labor element, two years later, contributed in no small degree

to the election of Mayor E. R. Taylor and the re-election of

District Attorney William H. Langdon, thereby making possible

continuation until 1910 of the graft prosecution.

"The System," As Uncovered by the San Francisco Graft Prosecution · 第 1 / 26 章