CHAPTER XX.

THE FORD TRIALS AND ACQUITTALS.

The conviction of Glass, following immediately upon the overthrow of the

Schmitz-Ruef municipal administration, and coupled with the pitiful

position in which, all recognized, Halsey would find himself before a

jury, stirred the graft defense to astonishing activity. Although it

developed later that the defendants had had their agents at work even

before the bringing of indictments,[294] little was suspected of the

extent of their labors until after the Glass trials. During the trials

of General Tirey L. Ford, who followed Glass before trial jurors,

however, the work of the defendants' agents and their methods became

notorious. From the opening of the Ford trials, the representatives of

the various graft defendants who congregated in the courtroom ranged in

social and professional standing from the highest priced lawyers of the

character of Alexander King, President Calhoun's law partner, down

through layers of the typical, criminal lawyer of the Earl Rogers-Porter

Ashe[295] grade, to characters of the type of Harry Lorenstzen,[296]

notoriously known throughout Central California as the "Banjo-Eyed Kid,"

and Dave Nagle, the gun-fighter, who numbered among his accomplishments

the slaying of Judge Terry. Nor were the defending corporations alone

represented. The Southern Pacific, although none of its officials were

under indictment, had men at work in the interest of the defense.[297]

With such motley array of attorneys, detectives, gunfighters and agents,

District Attorney Langdon and his associates contended until, what was

practically the ending of the graft prosecution, the defeat of Heney for

District Attorney at the municipal election of 1909.

Ford had been indicted for his alleged part in the bribery of the

Supervisors by the United Railroads to secure its over-head trolley

permit. At his first trial, Ford answered to the charge of bribing

former Supervisor Lonergan. Lonergan had not been long on the stand

before the defense demonstrated the astonishing effectiveness of the

work of its agents.

Earl Rogers, for the defendant, on cross-examination, presented a paper

signed by Lonergan within the month, in which Lonergan set forth that

when he voted for the trolley permit he had not been promised, nor did

he understand, there would be any monetary consideration allowed

him--nor any other member of the board--for voting in favor of the

measure.

Lonergan had testified on direct examination that some time prior to the

granting of the permit, Supervisor Wilson had brought word to him there

would be $8000 for him in the passing of the trolley ordinance. Later

Wilson had told him that the amount would be $4000 only. This amount,

Lonergan testified, Gallagher had paid him. Lonergan's statement, signed

a few days before the opening of the trial, to the effect that when he

voted to grant the United Railroads its trolley permit no monetary

consideration had been promised him, came as a surprise to the

prosecution.

The story of the manner in which the paper came to be in Rogers's

possession, however, was quite as sensational as the statement itself.

Lonergan, the driver of a bakery wagon, confronted by the keenest

practitioners at the California bar, harassed and confused, stammered

out explanation of the manner in which he had been induced to sign the

paper in Rogers's hands.

Long before he had signed it, one Dorland had secured introduction to

him. Dorland had represented himself to be a magazine writer, who held

that the ousted Supervisors had been misused. Dorland stated that his

purpose was to set the Supervisors right in the East. He represented

that he was to prepare an article on the San Francisco graft situation

from an independent, unbiased standpoint. Dorland made himself very

agreeable to Lonergan. He took the unhappy fellow to lunch. He gave him

and members of his family automobile trips and expensive dinners.

Lonergan finally signed the statement which the agreeable "magazine

writer" was to use in his behalf, and with which the graft defense[298]

confronted him on the witness stand.

The statement which Lonergan had signed was a rambling account of

conditions in San Francisco, the one pertinent paragraph touching upon

the United Railroads graft being buried in a multitude of words.

"And you intended to say to all the readers of the magazine what you set

forth over your signature there?" demanded General Ford's attorney.

"Yes," replied Lonergan, weakly, "but when I made that statement I was

not under oath."

Then Lonergan was confronted with the affidavit which he had signed at

the opening of the Graft Prosecution when Langdon was fighting against

Ruef, Acting Mayor Gallagher and the Schmitz-Ruef Supervisors to keep

himself in the office of District Attorney and Ruef out. In that

affidavit Lonergan set forth that he had "never committed a felony of

any kind or character," and had "never been a party thereto."[299]

"I didn't read that paper at the time I signed it," faltered the

miserable witness. "I did not consider I was committing a crime when I

signed that document."

"If it be a crime to have me sign that," he continued in answer to

General Ford's attorney's merciless hammering, "then I must have

(committed a felony)."

Then on re-direct examination Lonergan testified as to how he had come

to sign the affidavit. George B. Keane, clerk of the Board of

Supervisors, Ruef's right-hand man, secretary of the Sunday-night

caucuses, had, Lonergan testified, said to him, "Tom, there is a

document across the street there for you to go over and sign. All the

boys are signing it." Lonergan testified that he had gone over and

signed it. "I am almost sure," Lonergan continued, "that some of them

said to me that it was a matter of form, merely eulogizing the board."

"When proper inducements or circumstances occur," sneered General Ford's

attorney, "you will testify falsely concerning your offenses."

"I will not testify falsely on this stand," replied the unhappy witness,

"to whatever has happened during my term as Supervisor."

But complicated as the position in which the prosecution found its

principal witness, it might have been more complicated had all the plans

of the agents for the defense been carried out.

On the night before Lonergan was to take the stand against Ford,

Dorland, the alleged magazine writer, called him up by telephone and

invited him "to make a night of it." Dorland stated two women would

accompany them. Before accepting the invitation, Lonergan notified

Detective Burns. Burns instructed him not to go on the trip, but to meet

Dorland and to take Mrs. Lonergan with him. Lonergan, with his wife,

accordingly met Dorland and the two women at the appointed place.

Dorland expressed his chagrin when he found Lonergan not alone.

"He said," Lonergan testified, "he was sorry I was not alone; two nice

young ladies were there."

Lonergan's testimony of Dorland's dismay when the detective found that

Mrs. Lonergan accompanied her husband, was received with amusement. The

one-time Supervisor went on no automobile ride that evening. Thus tamely

ended what the prosecution insisted was a plot to kidnap, or at least

compromise, Lonergan on the eve of his appearance as a witness against

General Ford.[300]

Out of this attempt to involve Lonergan, grew the scarcely less

astonishing kidnaping of Fremont Older, managing editor of the San

Francisco Bulletin.

Among those alleged to have participated in the Lonergan affair was an

employe of the graft defense by the name of Brown. The defense had at

the time two employes of that name, "Luther" and "J. C.," the latter of

whom is alleged to have been the one who co-operated with Dorland in his

attempt upon Lonergan. The Bulletin, in its account of the affair,

confounded Luther with J. C. Brown. Based on the Bulletin's allegations

against Luther Brown, warrants were sworn out at Los Angeles, charging

Managing Editor Older with criminal libel. The manner of serving these

Los Angeles warrants was characteristic of the times.

Late in the afternoon of September 27, Older, while at Heney's office,

received a telephone message that he was wanted at a prominent hotel. As

he approached the hotel in response to the message, he was stopped by a

number of men who claimed to be peace officers from Los Angeles. These

displayed the warrant, and hustled Older into an automobile. Older

demanded that he be taken before a local court. His captors promised him

he should be. But instead they headed the machine for Redwood City, a

town some twenty miles south of San Francisco on the line of the

Southern Pacific. When Older protested a revolver was pressed against

his side, and he was ordered to keep silent.

At Redwood City, Older was put on board a Los Angeles train. On the

train were R. Porter Ashe and Luther Brown. Older was not permitted to

communicate with his friends nor with the passengers, but was confined

in a stateroom which his captors had secured.[301]

In the meantime, the entire police force of San Francisco was scouring

the city for the missing man. There had been rumors that those prominent

in the prosecution, Older among them, were to be made away with. Older's

unaccountable disappearance tended to confirm these rumors. His alarmed

friends were prepared to act promptly when word finally reached them

that Older was on the southbound train.

The train was due to reach Santa Barbara early the following morning.

Arrangements were accordingly made to rescue Older at that point. When

the train arrived there, deputy sheriffs were awaiting its arrival.

Older was taken into court under habeas corpus proceedings. His release

followed,[301] another sensation of the graft defense thereby coming to

sorry ending.[302]

There were other surprises for the representatives of the prosecution at

the Ford trials well calculated to confuse them. Alex. Latham, chauffeur

for Ruef, whose testimony connected Ruef and Ford, during the period of

the alleged bribery transactions was, when his name was called as a

witness, found to be missing. He was alleged to be in Colorado.

George Starr, treasurer of the United Railroads, whose testimony was

needed in the tracing of the exact amount of the bribe money paid Ruef

in the overhead trolley deal, $200,000, that had been placed in Ford's

hands under somewhat peculiar circumstances, went East about the date

the trial opened. The United Railroads' cash book was sent East about

the same time, and could not be produced at the trial.[303]

Then again, witnesses who had testified freely before the Grand Jury

became forgetful. Supervisor Wilson, who had conveyed word to Lonergan

from Gallagher that there would be $4000 in the trolley deal for

Lonergan, could, when brought to the witness stand, remember nothing of

the incident. Supervisor Coffey also proved equally forgetful.[304]

In the midst of these extraordinary happenings, General Ford's trial

went on, marked by repeated attacks by attorneys for the defense upon

those who had been instrumental in bringing about the Graft Prosecution.

Rudolph Spreckels in particular, was made object of vicious

denunciation. It was recognized from the beginning that the defense was

battling not for General Ford alone, but for President Calhoun, and the

other officials of the United Railroads under indictment.

The State's attorneys, target for constant abuse and ridicule at the

hands of the defense, proceeded, however, to present the case of The

People. In spite of sensations, the disappearance of witnesses and the

forgetfulness of witnesses, the prosecution brought out testimony to

show that the Supervisors had received $85,000 for their votes granting

the trolley permit. By the testimony of officials of the United States

Mint it was shown that Patrick Calhoun had, after the fire, but before

the opening of the San Francisco banks, created a fund of $200,000 at

the Mint.

None of the directors of the United Railroads who could be dragged to

the stand knew anything about this $200,000. Other amounts, which the

United Railroads, during the days of stress following the fire, had

received at the Mint from the East, could be accounted for by the books

and vouchers, but not this $200,000.[305] United Railroads employes who

could be made to testify could throw no light upon its final

disposition.

But the prosecution did show by the Mint officials that President

Calhoun had ordered the $200,000 paid to General Ford and that it was

paid to General Ford.

The following dates, brought out by the testimony, showed the receipt

and suggested the disposition of the money:

May 21--Overhead trolley franchise granted by the Board of Supervisors.

May 22--$200,000 placed in the Mint to the credit of Patrick Calhoun.

May 25--General Ford drew $50,000 from the Mint which he exchanged for

currency of small denominations.

July 31--General Ford drew $50,000 from the Mint, which he exchanged for

currency.

August 1--The Supervisors received from Gallagher their first payment

for voting to grant the overhead trolley permit. Gallagher testified

that he had received the money from Ruef. The payments were in currency,

the bills being of small denominations.

August 23--General Ford drew $100,000 from the Mint, which he exchanged

for currency, receiving bills of large denominations.

August 24-30--The Supervisors received their final payments from

Gallagher for their votes on the trolley permit. These last payments

were made in bills of large denominations. Gallagher testified that he

had received the money from Ruef.

The withdrawals from the Mint had been made by General Ford, on Mr.

Calhoun's instructions to the Mint officials that the payments should be

made to the General.

The testimony of the Mint officials and employes was to the point and at

times sensational. Nathan Selig, a clerk at the Mint, for example,

assisted Eugene D. Hawkins as assistant cashier,[306] in making up a

package of $50,000 in bills which were turned over to Ford. Selig fixed

the time of the occurrence at "shortly after the Mayor signed the

franchise bill for the overhead wire."

"What impressed that upon your mind?" was asked him. "Because I made the

remark to Mr. Hawkins, as he was going out," replied Selig, "that that

was--I thought it was, the Supervisors' 'bit'."

Having traced this $200,000 from Calhoun to the Mint and from the Mint

to Ford, the prosecution proved by Charles Hagerty, Ruef's office boy,

that during the weeks after the fire General Ford and Mr. Mullally of

the United Railroads, had had conference with Ruef at Ruef's office.

Ruef was traced to Ford's office. Ford's stenographer testified,

reluctantly, to Ruef's presence there. Ford was shown to have sent

warning, through his assistant Abbott, to Ruef, at the opening of the

graft investigation, that the Grand Jury was taking up the matter of the

United Railroads trolley privilege, that the prosecution had not made

any headway, that it was thought the next step would be to lay some trap

for the Supervisors.[307] That Ruef and Ford had more or less intimate

relations during this period was fully established.[308] The question

raised was: Did the $85,000 in currency which Ruef gave Gallagher to be

paid to the Supervisors for their votes on the overhead trolley permit

pass from Ford to Ruef? Did the money paid the Supervisors come out of

the unaccounted-for $200,000 which had disappeared into General Ford's

possession?[309]

A word from Abe Ruef would have lifted the case out of the plane of

circumstantial to that of positive evidence.

A word from General Ford would have shown the manner in which the money

had been disposed.

Those who took seriously Ruef's protestations at the time of his plea of

guilty to extortion, that his life would thereafter be devoted to

undoing the wrong he had wrought, looked to see the prosecution put Ruef

on the stand.

The many supporters of General Ford--he was one of the most likable and

popular men in the State--who still held belief in his innocence, looked

to see him take the stand to clear his name by accounting for the

disposition of that $200,000 which he had received, at the order of

President Calhoun, from the Mint officials.

But neither Ruef nor Ford took the stand.

Later developments in the graft cases showed why the prosecution did not

call upon Ruef to testify.

But no satisfactory showing has been made why General Ford did not take

the stand to tell, under oath, of the disposition of that $200,000 last

seen in his possession.

Heney, in an affidavit[310] acknowledged March 10, 1908, tells why Ruef

was not called upon to testify.

Some ten days before the taking of testimony in the first Ford trial

began, according to this affidavit, Heney had Gallagher and Ruef at his

office. The two men had told stories of the passage of the ordinance

granting the trolley permit, which conflicted slightly. Heney's purpose

in confronting them, he tells us in the affidavit, was that he might

determine in his own mind which was right. Heney had not seen Ruef,

except as he had passed him in court or corridor, since he had proved

that Ruef had made misrepresentations to him in the French Restaurant

cases.[311] The conversation between Ruef and Gallagher did not tend to

change Heney's opinion of the broken boss. Indeed, Heney became more

firmly convinced than ever that Ruef was not acting in good faith, that

he was not telling the whole truth. A few days after this meeting, Burns

brought Heney word that Ruef would not testify at the Ford trial at all,

unless the prosecution allowed him to withdraw his plea of guilty in the

extortion case, and dismissed all the indictments against him. Heney

refused to be coerced. He sent word back to Ruef that the prosecution

had had sufficient evidence to convict Ford before Ruef had told

anything; that if Ruef were called to the witness-stand it would be

without further talk with him; that none of the cases against him would

be dismissed, and that if called to the stand he could testify or not

testify, as he saw fit.

That night, according to Heney, Rabbis Nieto and Kaplan, with Ruef's

attorney, Henry Ach,[312] appeared at Heney's office. Ach announced in

substance, according to Heney's affidavit, that inasmuch as Heney and

Langdon had promised to permit Ruef to withdraw his plea of guilty to

the extortion charge, and then dismiss the case, as a condition upon

which Ruef signed the immunity contract,[313] the time had arrived when,

in justice to Ruef, this ought to be done.[314]

Heney let Ach finish.

"We might as well understand each other," Heney then announced. "You

know perfectly well that I did not at any time make any such promise to

Ruef or to you, or to any one present, or to any one else on earth."

Heney then recited the exact terms of his promise.[315] Both Kaplan and

Nieto agreed with him that his statement was correct, but Kaplan

insisted that he had understood that Ruef was to be allowed to withdraw

his plea, arguing that he had told the truth and that his evidence was

very important.

"Ruef lied to us," answered Heney emphatically, "in the French

Restaurant case, and I proved it to him in this very room, and he simply

laughed in my face. He also lied to us in all the other cases. He is not

entitled to immunity in any case, and I not only will not permit him to

withdraw his plea of guilty in case number 305, but on the contrary it

is my present intention to ask the court in that case to give him no

leniency whatever, but to sentence him for the maximum term which is

prescribed by law."

Heney suggested that Ruef's representatives take this word back to their

principal.

"Ruef," Heney concluded, "tried to job the prosecution and he has only

succeeded in jobbing himself into the penitentiary."

Ten days later, when Heney made his opening statement before the first

Ford jury, he carefully refrained from stating that the prosecution

expected to prove any fact that necessarily depended in whole or in part

upon Ruef's testimony. And with all San Francisco on tiptoe of

expectancy,[316] Heney closed the case of The People without putting

Ruef on the stand.[317]

The defense offered no evidence. The case went to the jury on the

evidence which the prosecution had presented. The jury failed to agree,

eight standing for acquittal, and four for conviction.

General Ford was immediately brought to trial for the second time. The

case selected was for the bribery of Supervisor Jennings Phillips.

Heney, in his opening statement, announced that he did not intend to put

Ruef on the stand. The second case presented was, if anything, stronger

than the first, but the jury brought in a verdict of "not guilty."

General Ford was tried on a third of the indictments against him, and

again was the verdict of the jury "not guilty."

Long after, the prosecution discovered that agents for the United

Railroads had systematically corrupted members of its detective force.

On the evidence in the hands of the prosecution, a search warrant was

secured, and the offices of the United Railroads raided in a search for

stolen documents. Copies of over 2400 documents belonging to the

prosecution were found. It developed that men in the employ of the

prosecution were receiving regular monthly salaries from agents of the

United Railroads to turn these reports over to agents of the defense for

copying. The defense was in this way kept informed of all that had been

reported to the prosecution regarding jurors, etc., by Burns's own

agents.[318]

At the time of the third Ford trial, for example, Heney was engaged with

Ruef's trial in the Parkside case. The Ford trial was conducted for the

State by John O'Gara. One of Burns's men, Platt by name, was appointed

to assist O'Gara by advising him of the character of the men drawn for

jury service. O'Gara repeatedly discovered Platt's advice and

suggestions to be unreliable. Long after it was discovered that Platt

was at the time in the employ of agents for the United Railroads. The

reason for the character of his advice and suggestions was then

apparent.

At none of the Ford trials did the defense attempt to meet the evidence

which the prosecution presented. At the third trial, the prosecution

called President Calhoun and Abe Ruef[319] to the stand. But both

declined to answer. The disposition of the $50,000 in currency in small

bills, and of the $150,000 in currency in large bills, which passed into

General Ford's hands, at the time that currency of this exact amount and

description passed into the hands of Abe Ruef, $85,000 of which Ruef

distributed among the Supervisors for voting for the United Railroads

trolley permit, continues as great a mystery as it was on the day that

the first Ford trial opened. Ruef at the time of his plea of guilty to

the extortion charge, and five years later in the story of his career

published in the San Francisco Bulletin, admitted that the $200,000 that

on Calhoun's order was turned over to Ford was soon after paid to him

(Ruef) because of the granting of the trolley permit. The $85,000 that

Gallagher divided among the Supervisors on account of their granting

this permit, Ruef has stated in his several confessions, came out of

this Calhoun-to-Ford, Ford-to-Ruef $200,000.

And in California there are many who hold that in this instance, at

least, Ruef is telling the truth.

FOOTNOTES:

[294] John Helms, a detective, testified at the trial of Patrick

Calhoun that he had been employed by the United Railroads as

early as May 3, 1907; that his duties consisted of "mostly

shadow work, watching out for things being done by the

prosecution"; that Patrick Calhoun had himself authorized him

(Helms) to employ men to follow Burns on motorcycles. Later on

automobiles were substituted for the motorcycles.

If Helms's employment began on May 3, as he testified, the

United Railroads was preparing for its defense at least three

weeks before indictments were brought against its officials.

The extent of that corporation's defense, or the details of

it, are not known to those outside the corporation. At the

Calhoun trial the Prosecution accounted for every dollar spent

in the operations against the Schmitz-Ruef regime. The

attorneys representing the United Railroads were invited to

make as frank statement of the expenditures made by the

defense, but they declined.

[295] Ashe participated in the first Ford trials. At the time of the

later trials he was involved in the scandal of the alleged

kidnaping of Fremont Older.

[296] In referring to the men and women employed by the graft

defense, The Call, in an editorial article, in its issue of

September 26, said:

"The retinue of the trolley magnates, as exhibited in the Ford

case, makes a remarkable picture. Behind the expert lawyers of

last resort troops a motley train of gun fighters,

professional plug-uglies, decoys, disreputable 'detectives,'

thugs, women of the half world and the wolfish pack of gutter

journalism. It must be, indeed, a hard case that needs such

bolstering.

"How will Mr. Calhoun square with his protestations of

high-mindedness the presence and the efforts in his behalf of

such creatures of the slums and stews as 'Bogie' O'Donnell and

'The Banjo Eyed Kid'? Are these and the others of their kidney

laboring in the same behalf as friends and sympathizers of Mr.

Calhoun or merely as his hired men?"

[297] At the Ford trial, Supervisor Lonergan had testified that he

had been followed during a recess of the court. The following

testimony followed:

"Q. Was that Mr. Melrose, a detective of the Southern Pacific,

who is sitting there? A. I don't know Mr. Melrose.

"Q. Is he the gentleman sitting immediately back of Mr. Ford?

A. That is the gentleman; that is him.

"Q. He was following you around during the noon hour? A. Yes,

sir.

"Q. Don't you know he is a detective of the Southern Pacific?

A. I don't know anything about the gentleman."

[298] The Call, in its issue of September 26, 1907, stated in

explanation of how the graft defense had come by the statement

Lonergan had made to Dorland that: "After court adjourned

(September 25) Attorney Rogers offered an explanation for

Walter Dorland, the man who was charged by the prosecution

with having attempted to kidnap Lonergan. Rogers's story

differed from that told by Dorland. Rogers stated that Dorland

was not a detective, but was in charge of a hospital in

Chicago. He came to San Francisco, where he met Luther Brown,

an associate of Rogers. Brown and Dorland were old friends and

the former induced Dorland to get statements from the

Supervisors for him. Dorland did this. Rogers says he has

statements from all the Supervisors with the exception of

Gallagher."

[299] Heney states in an affidavit filed in the case of The People

vs. Patrick Calhoun et als., No. 823, that he had been

informed that the reason given by Ruef for securing the

signatures of the Supervisors to this affidavit was to find

out which, if any of them, had confessed, upon the theory that

any one of them who had confessed would refuse to sign an

affidavit, and upon the further theory that if such a

confessing member did sign the affidavit, he would thus be

making a contradictory statement under oath, which could thus

be further used against him by Ruef or Gallagher, upon the

trial of either of them.

But whatever Ruef's far-seeing motive, this affidavit which

he, through Keane, induced the Supervisors to sign, was used

by the attorneys for the defense at the graft trials to show

contradictory statements of the confessing Supervisors.

[300] The San Francisco Call, in its issue of September 25, 1907, in

commenting on Lonergan's testimony, says: "While Lonergan's

narrative tells a portion of the story, it is not all. In

another automobile were Detective Luther Brown and the

'Banjo-Eyed Kid' of the United Railroads. They followed close

on the heels of the auto occupied by Detective Dorland. Both

machines sped to a resort near the park, where a meeting place

had been arranged and where Lonergan was to be turned over to

the custody of the 'Banjo-Eyed Kid.' The rest was to be left

to the Kid. If the plan had carried there would have been no

Lonergan at the trial yesterday, the defense would have

flashed the statement secured by Dorland and set up the cry

that the entire prosecution of the United Railroads was a plot

set on foot by Rudolph Spreckels."

[301] Several who participated in this affair were later indicted

for kidnaping. There were no convictions.

[302] Burns in an affidavit filed in the case of The People vs.

Patrick Calhoun et als., 832, refers to a plot hatched about

the time of the Ford trials to kidnap Ruef. Burns charges that

Ruef was to have been taken into a mountain county and held

there until the United Railroads cases had been disposed of.

He states his belief that Ruef was party to the plot.

[303] The disinclination of the United Railroads to produce its

books continues to cause that corporation inconvenience and

trouble. In 1913, for example, the corporation applied to the

California State Board of Railroad Commissioners for

permission to issue promissory notes to the amount of

$2,350,000. That the Commission might determine the necessity

of such an issue, request was made for the corporation's

books. This request was denied. The Commission withheld

authorization of the note issue. In commenting upon its

refusal, the Commission said:

"It should be understood that the conclusions hereinbefore set

out have been reached on the partial information which has

been submitted to the Commission, and that if an examination

of the original books which the company has refused to supply

should reveal a different condition, the responsibility for

these conclusions, which we contend inevitably must be drawn

from what evidence is before us, lies with the applicant

because of its failure to submit its books for examination by

the Commission.

"It is an axiom that evidence suppressed is deemed to be

adverse, and having in mind this axiom certainly the Commission

is justified in concluding that the books which the applicant

refuses to produce at least would not better its showing."

Following the defeat of the graft prosecution in November,

1909, peculiar transactions are recorded against the United

Railroads. For example, the Railroad Commission found, and has

so reported, that "in the minutes (of the United Railroads) of

May 25, 1910, it appears that four years' 'back salary' was

voted to Patrick Calhoun, president of the United Railroads of

San Francisco, in the sum of $75,000 a year, or a total of

$300,000. No explanation is made of this item, but it at once

suggests the necessity of a thorough investigation in order to

determine the items claimed by applicant as operating expenses

of the United Railroads over a series of years." See Decision

No. 439 Railroad Commission of California, in the matter of the

application of the United Railroads, etc., February 4, 1913.

[304] Both Wilson and Coffey were indicted for bribe-taking. Wilson

later on found his memory. At other graft trials he explained

that his testimony at the first Ford trial had been given

after he had undergone an operation that had involved the use

of large quantities of cocaine. He insisted that he did not

know to what he was testifying. Coffey was tried for

bribe-taking and convicted. The Supreme Court, however, set

aside the verdict on technicalities.

[305] It was shown at the Ford trial that about $175,000 in addition

to the unaccounted-for $200,000 was received by the United

Railroads through the United States mint. Every dollar of this

$175,000 except $3,000 loaned to Ruef by Mullally, was taken

out by the treasurer of the company, and carried to the United

Railroads' office and there put in its safe and used as

needed, that it was taken in gold and was paid out to its

employees in gold. It was further shown that not one dollar of

currency was ever put in any of the safes at the United

Railroads' office by any person during that period of time

covered by Ford's withdrawal of money from the mint, and that

no currency was deposited to the credit of the company in any

of its bank accounts nor to the credit of Ford or Mullally or

Abbott, and that no currency was turned over to the treasurer

of the company during that time. Thus by a process of

exclusion this $200,000 was left in the hands of Ford

absolutely unaccounted for upon any theory consistent with an

honest use of it. Add these facts to the further facts that

Ruef was traced to Ford's office on two of the days on which

Ford got the money, and that Ruef on each occasion, within a

day or two, paid the same kind of money to Gallagher, that

currency was not generally in circulation at all in San

Francisco.

[306] The two men were at the time detailed to handle the money of

the relief fund. The mint officials could not accommodate Ford

with the currency he wanted. They gave him gold. The gold

which Ford secured at the mint was trucked across the hall to

relief headquarters, where it was exchanged for the currency.

Selig and Hawkins counted out the bills.

[307] See transcript of testimony, trial of The People vs. Tirey L.

Ford, No. 817, taken September 25, 1907, page 270.

[308] Mr. Mullally, assistant to Mr. Calhoun, and also Mr. Calhoun

were known to have enjoyed friendly relations with Mr. Ruef

during this period.

[309] The facts brought out at General Ford's trial are interesting

in connection with General Ford's interview in the San

Francisco Examiner of October 28, 1906, soon after the Graft

Prosecution opened. See Footnote 92.

Ruef, in "The Road I Traveled," printed in the San Francisco

Bulletin, states that he gave Schmitz $50,000 and kept $50,000

for himself out of the $200,000 which was given to him by

Tirey L. Ford from Patrick Calhoun to pay for the granting of

the trolley permit.

[310] This affidavit deals with the Graft Prosecution from its

beginning down to the spring of 1908. This document was filed

in the case of The People vs. Patrick Calhoun et als., No.

823.

[311] See Chapter XVI, page 211, and footnote 119, page 111.

[312] This is the same Ach who dramatically left the Ruef defense at

the time of Ruef's plea of guilty to extortion. See Chapter

XV, page 204.

[313] For immunity contract see page xix of the Appendix. For the

negotiations upon which Ach's claim was based see Chapter XV.

[314] Heney sets forth in his affidavit that Ach's claim did not

surprise him. He says of Ach's statement: "I was not very much

surprised by its substance as I had long before commenced to

suspect that Ruef, Ach, Dr. Kaplan and Dr. Nieto would claim

eventually that such agreement existed in regard to case

number 305 (the extortion case) if it became necessary to do

so in order to keep Ruef out of the penitentiary. In fact I

would not have been greatly surprised by anything that Ach

might have claimed, as I have learned to know him pretty well

and am sometimes at a loss to decide whether he or Ruef is

entitled to first place as an artistic and imaginative

'equivocator,' to use Ruef's language."

[315] See Chapter XV, pages 190-7. Heney states in his affidavit

that both Nieto and Kaplan agreed that Heney's statement of

the arrangement was correct. "Yes, you are right, Mr. Heney,"

the affidavit sets forth Nieto said. "I understand it that

way, and consequently I never told Ruef anything about that.

He never got that from me." The affidavit sets forth that

Kaplan said in substance: "Yes, that is what you said, Mr.

Heney, but I always understood that Mr. Ruef would be allowed

to withdraw his plea of guilty in the French Restaurant cases

and would not receive any punishment."

Heney replied in substance: "You may have so understood,

Doctor, but you had no right so to understand from anything

which I said."

[316] Heney, in his closing argument, told the jury that Ruef had

not been put on the stand because the prosecution did not

trust him. Heney said: "Nobody except Mr. Ford and Mr. Ruef

could tell about it (the passing of the $200,000). They did

not complain about my asking why they did not put Mr. Ruef on

the stand. They asked why we didn't put him on the stand and

vouch for his veracity and enable them to put words in his

mouth, and I will answer now, because we DID NOT TRUST HIM."

[317] Heney, in his affidavit, describes the disappointment of Ruef,

Ach and Nieto when the case was closed without Ruef being

called. Heney says: "I rested the case on behalf of the

prosecution in the first Ford trial in this department of this

Court on the 2nd day of October, 1907, and the attorneys for

the defendant asked for time to consider what they would do

about putting in evidence, and Court adjourned for the purpose

of giving them such time. I had noticed Henry Ach and Ruef

sitting together next to the aisle, which was directly in

front of where I sat, and could see that up to the time I

closed the case they were anxiously waiting for me to call

Ruef as a witness. When Court adjourned they remained sitting

and as I passed them Ach stopped me and said in substance,

'Why didn't you put Ruef on the stand as a witness? Are you

not going to dismiss these cases against him?' I replied in

substance, 'There are a lot more cases to be tried. There will

be plenty of opportunities to dismiss these cases if I want to

do it.' Ruef said, with one of his most winning smiles, in

substance, 'I guess he is going to put me on in rebuttal just

as he did in the Schmitz case.' I replied in substance, 'Oh, I

don't know about that, Ruef. I don't like to try all my cases

the same way.' I started to leave and Ach stopped me as I had

taken only a couple of steps, and said in substance, 'There

isn't any change in the situation, is there in regard to

Ruef?' I smilingly and meaningly replied, in substance, 'Not a

particle, Henry, since our last talk,' meaning thereby the

talk which Ach and myself had on or about the 19th or 20th day

of September, 1907, at night in my office in the presence of

Dr. Nieto, Dr. Kaplan, William J. Burns and Charles W. Cobb,

as hereinbefore set forth. As I made this statement I walked

on out of the courtroom and someone stopped me somewhere

between there and the entrance door of the building and Dr.

Nieto came up to me, all smiles, and said in substance, 'You

didn't put Ruef on the stand, did you?' I replied, 'No, I did

not, Doctor.' Dr. Nieto then said in substance, 'There isn't

any change in the situation, is there?' And I replied with a

smile in substance, 'None whatever since our last talk,

Doctor,' meaning the talk at my office just hereinbefore

referred to, at which Dr. Nieto, Dr. Kaplan and Ach were

present. The manner of Ach and the manner of Dr. Nieto when I

made this reply to each of them indicated plainly that each

understood exactly what I meant."

[318] Calhoun protested vigorously against the raiding of his

offices. Concerning the raid and Mr. Calhoun's protests, the

interior press expressed general approval of the first and

condemnation of the latter.

"It is not a question," said the Oroville Register, "alone of

graft in San Francisco now. It is rather a question as to

whether in America, where 'all men are free and equal,' there

is a law for the rich and another law for the poor, and

whether a little money can put our whole penal system at

naught and make monkeys of judicial officers. Unluckily in the

Calhoun case we can not in America resort to the czar-like

methods which should be resorted to, but must fight it out by

the long and slow process of law. Luckily for the honor of

America Mr. Heney and his associates are gifted with the

courage, ability and tenacity to fight it out on this line

even if it takes this summer and the whole of the next so to

do."

"The 'private sanctity' of Calhoun's offices," said the Santa

Barbara Independent, "was violated, his defenders say, when the

police entered to search for stolen goods. The fact that the

goods were concealed in the offices--that the police unearthed

there a 'fence' for the reception of stolen goods--doesn't seem

to have destroyed the sanctity of the place.

"Recently the police in Los Angeles raided a cigar store, where

they found concealed some of the money that three months ago

had been stolen from the Monrovia bank. The cigar dealer's

lawyers should go into court and protest against violation of

the 'private sanctity' of the thief's hiding place.

"It is beyond understanding how men can view a similar

circumstance in different lights. To an unprejudiced mind a

thief is a thief, whether he has stolen an old pair of shoes or

robbed the public through a municipal or other government. And

the honest man rejoices in his capture, the recovery of the

stolen goods and apprehension and punishment of persons who

receive and conceal the fruits of theft."

[319] Calhoun and Ruef were placed on the stand April 29, 1908.

Their refusal to answer will be found in the transcript of

testimony taken that day. Complete records of all the graft

cases were in 1912, when this review was written, in the

possession of A. A. Moore, prominently connected with the

graft defense.

"The System," As Uncovered by the San Francisco Graft Prosecution · 第 20 / 26 章