"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
As Heney put it, the Empire Construction Company received the most
benefit from the granting of the Home Telephone franchise. The Empire
Construction Company furnished at least part of the money that went into
the fusion campaign fund in 1905. Investigation showed that 25 per cent.
of the stock of the Empire Construction Company belonged to men who were
in the construction solely, while 75 per cent. was in the hands of men
who were financing the enterprise. This last block of stock at the time
of the investigation was divided among James H. Adams and Thomas W.
Phillips of the Adams-Phillips Company, A. B. Cass, Gerald S. Torrance
and A. K. Detweiler. Detweiler could not be found. Adams, Cass and
Torrance, after answering some of the questions put to them, availed
themselves of their constitutional privilege, and refused to make
further answers. The books of the Adams-Phillips Company disappeared and
employees of that company undertook to evade answering questions
regarding the disappearance, on the ground that they might incriminate
themselves. But a sharp order from the Superior Court brought out their
testimony. However, none of them gave testimony that led to the
discovery of the missing volumes.
But the general trend of the testimony went to show that the responsible
agent for the Empire Construction Company and the Home Telephone Company
in San Francisco was A. K. Detweiler. The testimony showed Detweiler to
have been at Ruef's office in consultation with Ruef and Supervisor
Gallagher; he was active in every move that was made on behalf of the
Empire Construction Company and of the Home Telephone Company in San
Francisco, and had the disbursing of the funds.
Incidentally, through the testimony of Dr. Fred Butterfield, a
representative of Adolphus Busch, the brewer, the Grand Jury learned
that a third telephone company, the United States Independent, seeking a
franchise to do business in San Francisco, would have bid for the
franchise which the Home Company received, had not the franchise been so
worded that only the telephone system controlled by the Home people
could be operated under it. Butterfield stated that his company, made up
of responsible capitalists, considered the franchise worth something
over a million dollars, and was prepared to bid up to a million dollars,
if necessary, to get it. The Home Company paid San Francisco $25,000 for
the franchise. Butterfield testified that his company had intended to
invest $4,500,000 in the San Francisco enterprise, and that Ruef knew of
the extent of the company's plans. With such testimony, the assertions
of Ruef's partisans that opposition to the Ruef-Schmitz administration
retarded development of the community compare curiously.[193]
Public-domain text, read in full here on John Shaqi.
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