"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 Grand Jury could not secure the attendance of Mr. Detweiler, for
about the time of the investigation Mr. Detweiler mysteriously
disappeared. The investigation into the affairs of the Home Company
had, therefore, to be concluded without Mr. Detweiler's testimony.
Following the policy of the stockholders of the Empire Construction
Company, the officials of the United Railroads refused to testify.
President Patrick Calhoun[194] and Thornwell Mullally, assistant to the
president, when given opportunity to state their side of the case under
oath, stood upon their constitutional rights, and declined to give
evidence that might incriminate them.[195] They were accordingly excused
from the Grand Jury room.
But the employees of the company did not escape so easily. When, for
example, George Francis, William M. Abbott, George B. Willcutt and Celia
McDermott refused to answer questions put to them in the Grand Jury
room, they were haled before the Superior Court, where they were
informed that they must testify.
In spite of the hostility of these witnesses, the prosecution succeeded
in securing a wealth of data regarding $200,000 which passed into the
hands of Tirey L. Ford and, according to the theory of the prosecution,
from Ford to Ruef.
The prosecution established the fact that two days before Mayor Schmitz
signed the trolley permit, that is to say, on May 22, 1906, Patrick
Calhoun, as president of the United Railroads, received by telegraphic
transfer from the East to the United States Mint at San Francisco,
$200,000.[196] Two days later, the day the trolley permit was signed,
President Calhoun took Ford to the Mint and instructed Superintendent
of the Mint Leach to give Ford $50,000 of the $200,000. Ford told Leach
that he wanted currency. The currency was finally secured by exchanging
gold for bills at the Mint headquarters of the relief work then being
carried on in San Francisco. These bills, it was shown, were all in
small denominations, having been sent to San Francisco from all parts of
the country by individual subscribers to the relief fund.
This money was taken away from the Mint, the testimony showed, by Ford
and William M. Abbott.
Soon after, Ruef loaned Supervisor Rea[197] $3500. By a curious trick of
fate Rea had leased a piece of property from Rudolph Spreckels. In
payment on this lease he used the money that Ruef had loaned him. This
money was all in bills of small denominations. Late in July Ruef gave
Gallagher $45,000, all in bills of small denominations, as partial
settlement with the Supervisors for granting the trolley permit.
Gallagher gave Wilson of this money $5000, and the other Supervisors
with the exception of Rea $2000 each. They all understood that it was
because of the trolley franchise deal. The balance Gallagher retained
for himself.
Public-domain text, read in full here on John Shaqi.
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