"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
[196] For several weeks after the great fire of April 18-19-20,
1906, the banks were closed at San Francisco. Money could,
however, during this period, be transferred to San Francisco,
through the United States mint.
[197] Gallagher had notified Ruef that he would not deal with Rea in
the trolley transaction. Ruef, Gallagher alleged, had agreed
to attend to Rea's case himself. See Chapter XIII.
[198] Crocker testified before the Grand Jury, however, that he had
known Ruef for many years. "He (Ruef) and my brother-in-law,
Prince Poniatowski," said Crocker, "both being French, and
both being pretty clever men, struck up quite a friendship
together and through that means I used to see more or less of
Ruef and that was one of those peculiar friendships that
spring up with people who are not identified and not connected
in any way whatever in any business enterprise, sprang up
between Ruef and myself, and when he told me that in my office
it didn't surprise me a bit."
Crocker had testified that Ruef had promised to do all he
could to get him his franchise, and wouldn't want a dollar
from Crocker, or from the institution with which Crocker was
connected.
[199] Of this manipulation of the books, President J. E. Green, of
the Parkside Company, testified before the Grand Jury as
follows:
"Q. How was the transaction to appear in the books? How was
the property account to be charged with it? It would have to
show some property. A. It was charged for a block that was
purchased from Watson and Umbsen, a block of land.
"Q. Did you tell Watson to do that? A. I believe I did.
"Q. How did they get paid for the land? A. They deeded this
block which they had to the company and the company in turn
executed a deed to them, returning the land to them, simply a
matter of bookkeeping.
"Q. Was the company's deed put on record? From them to the
company? A. I rather think so.
"Q. What was the purpose of that? A. To get a charge to the
property account for the expenditure of that amount of money.
"Q. What was the reason for charging it to property account? A.
Every expenditure that was made was charged to property account
with the idea the property had to pay it back.
"Q. Did you always go through the form with every expense that
wasn't actually a piece of property, did you go through a form
of deeding a piece of property and then deeding it back? A. No,
sir.
"Q. What was the reason of doing it in this instance? A.
Because--other things--there was a case--grading, sewering or
fencing the blocks when they spoke for itself.
Public-domain text, read in full here on John Shaqi.
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