"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
In the gas-rate case, the Grand Jury found that the corporation that
would, in the final analysis, benefit by the increase in gas rates, was
the Pacific Gas and Electric Company. The four responsible men in this
company were found to be N. W. Halsey, John Martin, Eugene de Sabla and
Frank G. Drum. Halsey was out of the State for the greater part of the
time and Cyrus Bierce, acting as treasurer of the corporation, looked
after his interests. This narrowed the responsibility down to de Sabla,
Martin and Drum.
De Sabla testified before the Grand Jury that Ruef was not, to his
knowledge, at any time on the pay roll of the company. Martin swore that
he knew of no money that had been expended in connection with the fixing
of the gas rates, and expressed himself as being as surprised as anyone
at the confessions of the Supervisors to having received money after the
gas rates had been fixed. Later, after Ruef had plead guilty to
extortion, both de Sabla and Martin refused to testify further before
the Grand Jury.[202]
Mr. Frank G. Drum, when called before the Grand Jury, stated that he had
had no conversation with Ruef in reference to the fixing of the gas
rates.[203] But later Ruef told the Grand Jury that the money which he
had turned over to Gallagher in the gas-rate transaction had come from
Drum.[204]
The first to be indicted because of these transactions was Ruef.
Sixty-five indictments were on March 20 returned against him. Eighteen
were based upon the bribing of Supervisors in the so-called fight trust
matter; seventeen upon the bribing of Supervisors in fixing the gas
rates; thirteen upon the bribing of Supervisors in the matter of the
sale of the Home Telephone Company franchise; seventeen in the matter of
granting the over-head trolley permit.
On the same day, ten indictments were returned against Theodore V.
Halsey, of the Pacific States Telephone and Telegraph Company, for the
bribery of Supervisors to prevent the sale of a franchise to a competing
telephone company. A number of indictments were found against A. K.
Detweiler, for bribing Supervisors in the matter of the sale of the Home
Telephone franchise. The Detweiler indictments, thirteen in number,
were based upon payments of money by Ruef to Gallagher, and by Gallagher
to different members of the board. On March 23, the Grand Jury returned
nine indictments against Louis Glass, vice-president of the Pacific
States Telephone and Telegraph Company, based upon the bribing, through
Halsey, of Supervisors to prevent the granting of a competing telephone
franchise.
Public-domain text, read in full here on John Shaqi.
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