"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 confessing Supervisors, with the exception of Wilson and Rea,
testified that their first payment on account of the trolley permit was
$2000 each, in bills of small denominations. Wilson testified to having
received $5000.
Later, Ford, making two trips to the Mint, drew out the $150,000
balance of the $200,000 that had been telegraphed to Calhoun's credit.
As before, the Mint paid him in gold, and as before, Ford exchanged the
gold for currency. But instead of getting bills of small denomination,
on the two trips which Ford made for that $150,000, he secured fifty and
one hundred-dollar bills.
On the day that Ford drew the last of that $200,000 from the Mint, an
agent in the employ of the prosecution followed Ruef from his office to
the car barns in which Ford's office was then located. A few days later
Ruef gave Gallagher $40,000 in fifty and one hundred-dollar bills, the
greater part of which Gallagher distributed among the Supervisors as
second and final payment on account of the granting of the trolley
permit.
In the Parkside deal, the Grand Jury had little difficulty in tracing
the money involved. William H. Crocker,[198] a capitalist of large
affairs, who owned the largest interest in the company, showed
astonishing ignorance of the management. The Grand Jury learned little
from him.
But those interested in the enterprise with Crocker not only told how
half the money was paid Ruef, but how the books had been manipulated to
conceal the payment.
Ruef, according to the testimony of officials of the company, had first
demanded $50,000 as price for his employment to put the franchise
through, but had finally agreed to take $30,000. This amount, officials
of the company testified, was provided by drawing two checks, one in
favor of H. P. Umbsen and the second in the name of Douglass S. Watson,
secretary of the Parkside Company. Umbsen and Watson thereupon deeded to
the Parkside Company two parcels of land. The transaction was then
charged to the purchase of property.[199] The property was deeded back
to Umbsen and Watson at the same time, but these last deeds were not
immediately recorded.
Watson cashed the checks at the Crocker-Woolworth Bank, of which William
H. Crocker was president. He testified that he received currency for
them.
The $30,000 he took to G. H. Umbsen. Half the $30,000 Umbsen paid Ruef.
At the time of the exposure, Umbsen[200] testified he was withholding
the second payment until the franchise should be put through.[201]
Public-domain text, read in full here on John Shaqi.
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