"The System," As Uncovered by the San Francisco Graft ProsecutionHichborn, Franklin
History
"The System," As Uncovered by the San Francisco Graft Prosecution
Hichborn, Franklin
Political corruption -- California -- San Francisco; San Francisco (Calif.) -- Politics and government
The bribery transactions to which the seventeen Supervisors confessed,
came naturally under two heads:
The first class included the briberies carried on through Ruef, who
dealt directly with those who furnished the bribe money. Ruef employed
Gallagher as agent to deal with the Supervisors. Thus Gallagher did not
come in contact with those who furnished the money, while the
Supervisors were removed still further from connection with them. Ruef,
on his part, in passing the money, did not come into immediate contact
with the Supervisors except in Gallagher's case. It was bribery reduced
to a fine art. In this group of transactions were included the bribery
of the Supervisors to grant to the United Railroads its trolley permit;
to the Home Telephone Company, its franchise; to the Pacific Gas and
Electric Company, an 85-cent gas rate; to the prize fight combine,
monopoly of the pugilistic contests in San Francisco. In this class,
too, is properly included the Parkside Transit Company, which had, at
the time the exposure came, paid Ruef $15,000 to secure a street
railroad franchise, with a promise of $15,000 more when the franchise
had been actually granted. The Supervisors received nothing in this
transaction, but they had been told by Ruef's agent, Gallagher, there
would be, first $750 each for them in the Parkside matter. Later on they
were told the sum would be $1000 each.
The second class of bribes included those which were paid directly to
the Supervisors. They included the bribes paid by T. V. Halsey, agent of
the Pacific States Telephone and Telegraph Company to a majority of the
Supervisors to prevent their awarding the Home Telephone Company its
franchise. Gallagher did not participate in these bribery transactions,
and could only indirectly throw light upon them. But in the other cases
Gallagher was the pivotal witness. He received the bribe money from
Ruef, and, after taking out his share, he paid the balance to the other
Supervisors.
With a wealth of detail, Gallagher told how he had received the money,
when and where, and went into the particulars of its distribution among
his associates. He had received from Ruef in all, $169,350.[169] Of
this, he had retained $27,275 for himself; the balance, $142,075, he
had divided among his associates on the board.
This enormous corruption fund which Gallagher divided with the
Supervisors had come from four sources. The so-called prize-fight trust
had furnished $9,000 of it; the Pacific Gas and Electric Company,
$13,350; the Home Telephone Company, $62,000, and the United Railroads,
$85,000.
The first money that passed from Ruef to Gallagher and from Gallagher on
to the Supervisors, the confessions showed, was for the prize-fight
monopoly. This particular bribery seems to have been intended as a
trying-out of the several members to ascertain which of them would take
money in connection with the discharge of their duties as Supervisors.
Public-domain text, read in full here on John Shaqi.
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