[189]Zimmer insisted at first that the total of the amounts which he turned over to Halsey would not exceed $20,000. Later he admitted that he had not kept track of the amounts, and the total might have been $30,000. This he increased to $35,000, and finally stated that it was “not over $40,000, if it was that.” He admitted that it would have been possible for Executive Officer Glass to have paid out $70,000 without his knowledge. “Checks,” he said, “could have been signed without going through me; could have been carried just the same as this tag account was.”William J. Kennedy, cashier and assistant treasurer of the company, who had charge of the “tags,” stated that during February, 1906, considerable amounts were drawn out in this way, which might have totalled as high as $70,000.[190]Regarding the manner in which money was furnished to Halsey, Zimmer testified before the Grand Jury as follows:“Q. This $10,000 that you gave him (Halsey) under direction of Mr. Glass, in what shape did you hand it to him? A. Currency.“Q. Did you have the currency on hand or send out and get it? A. Sent out and got it. I went out and got it.“Q. Where did you get it? A. I don’t remember, I had to go to several banks.“Q. Did Mr. Glass tell you he wanted you to give it to him in currency? A. Yes, sir.”[191]These admissions led to close questioning of Mr. Zimmer. The following is taken from his testimony given before the Grand Jury:“Q. Now, in what way did that money appear in the books? A. Didn’t appear in the books.“Q. How was it taken care of? A. No voucher was ever made for it.“Q. How would your cash account for it? A. It wasn’t taken out of the cash account, so far as I know.“Q. What was it taken from? A. By check issued on the regular bank account.“Q. Who was the check made payable to? A. Eaton, treasurer, the same as other coin checks are issued, coin or currency.“Q. It would have appeared somewhere in the books, that check, that amount would be deducted from the bank account? A. Yes, sir; but carried in the expense account of the cash suspense.“Q. Leave a tag with you? Leave a tag, would you? A. Yes.”[192]Before the Grand Jury, Sherwin was closely questioned as to one of Mr. Halsey’s “Special expense” claims. The following is from his testimony:“Q. Now, then, that shows that it was charged against what fund? A. That got in the legal expense finally, we charged it to Reserve for Contingent Liabilities, and each month we credit that account, I have forgotten maybe $2,000, and charge it to legal to make it run even in the expense each month.“Q. Why does it go to legal? A. Because—instead—to what else would it go?“Q. What makes it legal? A. Oh, that’s just a subdivision of our expense.“Q. Was this $600 legal expenses? A. I don’t know what it was.“Q. Who told you to put it under legal expenses? A. You mean who told us to put it in that account?“Q. There is nothing on that paper that indicates that it goes into legal expense? A. No.“Q. Now, then, you say it was finally charged to the legal department. Why? A. Simply because everything that is charged to that reserve finally gets into legal expense.“Q. Everything that is charged to that reserve fund? A. Yes, that reserve fund is charged off for legal expense.“Q. And what is the reason for that? A. For charging it to legal?“Q. Yes. A. For charging it to legal—because—I don’t know the reason—it is always done that way.”[193]See Supervisors’ letter to the Examiner,footnote 64,page 62.[194]Calhoun returned to San Francisco April 10. In interviews published in the San Francisco papers of April 12, Calhoun emphatically denied all knowledge of the bribery transactions. In his interview in the Chronicle he said:“I wish to go on record before the people of San Francisco as stating that not one of the officers or legal counsel of the United Railroads of San Francisco or the United Railroads Investment Company of New Jersey ever paid, authorized to be paid, approved of paying or knew that one dollar was paid to secure the passage of the trolley franchise ordinance by the Board of Supervisors, and if I had known that one dollar was paid for the purpose of securing this franchise I would not have accepted it.”[195]The refusal of Calhoun and Mullally to testify created a sensation, even in those sensational times. The Chronicle in its issue of May 4, 1907, printed the following account of the incident:“For the first time in the history of the examination of witnesses before this Grand Jury, Heney was careful not to instruct the prospective witnesses as to their legal rights. Instead he merely asked them if they were already familiar with their rights under the law.“‘I am aware,’ said Calhoun, who was the first to be called, ‘that anything I might tell this body might be used against me.’“‘With that understanding are you willing to become a witness before this Grand Jury?’ asked Heney.“‘I am not,’ was Calhoun’s response.“The Jurymen who had leaned forward as the reply of the president hung on his lips sank back in their seats.“‘That is all, Mr. Calhoun,’ said Heney to the president, and then going to the door he said to the bailiff, ‘Call Mr. Mullally.’“Mullally’s examination was identical with that of his superior’s and he was permitted to go. Neither President Calhoun nor Assistant Mullally will be called again to the jury room.”Calhoun issued the following statement of his refusal to testify:“When called before the Grand Jury this afternoon and informed that it had under investigation the alleged bribery of public officials by the United Railroads, we declined to be sworn and in order that our action may not be misconstrued, I call your attention to these facts:“For months past the public prints have been full of charges traceable to certain persons connected with the prosecution that they had positive evidence that the United Railroads had spent not less than $450,000 in bribing the officials of this city. I have repeatedly stated that neither I nor the United Railroads, nor any official of the United Railroads, had bribed anyone, authorized any bribery, knew of any bribery or approved of any bribery. This statement I now fully reaffirm. It is not for us nor any officer of our company to disprove these grave charges. It is for those making them to prove them. We do not now care to discuss their motives. We know that they cannot produce any truthful evidence connecting us or any officer of the United Railroads with this alleged crime.“We relied, in declining to be sworn, upon the broad Constitutional right of every American citizen that a defendant cannot be called as a witness, and upon the justice, fairness and common sense of the Grand Jury, to whom we look for complete vindication without offering one word in our own behalf.”[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. SeeChapter 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.“Q. I don’t see how it helped you; it went to the property account and the property went right out; don’t see how it helped you any. A. It had to be charged to something, Mr. Heney.“Q. Why couldn’t it be charged to what it was, attorneys’ fees? A. Because attorneys’ fees were charged against property account.“Q. Were Morrison & Cope’s fees charged up as a piece of property and did they go through a rigmarole of deeding a piece of property too? A. No; their fees or any other expense against the property interests.“Q. Didn’t they go into the books as a fee for Morrison & Cope and charged as expenses against property? A. Charged direct to property.“Q. As expense? A. Don’t know as expense; it was charged to property, showing that we had that much money in property; when we got through selling anything over, that was profit in our favor.“Q. It appeared on the books as having been paid to Morrison & Cope for attorneys’ fees? A. Can’t say without seeing the books.“Q. Ordinary way of keeping books? A. Yes.“Q. You didn’t cover up anything you paid to Morrison & Cope by putting through the hands of the secretary? A. No, sir.“Q. Why did you cover up this in connection with Ruef? A. I don’t know; suppose the property account is probably the proper one to charge it to.“Q. Only explanation of it? A. Yes, sir.”[200]Early in the graft investigation Detective William J. Burns, with studied carelessness, dropped a remark in the presence of a salesman of the Parkside Company, that he had heard money was being used in the Parkside case. Soon after, Thomas L. Henderson, secretary of the company, received word from William I. Brobeck, of the law firm of Morrison, Cope & Brobeck, attorney for the Parkside Company, to call at that firm’s law office. Of the incident. Henderson testified before the Grand Jury as follows:“Q. His first question to you was what? A. We went in there. He said, Mr. Henderson, I am going to talk to you about Parkside and he said, have you an attorney? I said, no. I have no attorney. He says, it might be well for you to get an attorney. I said, all right. Mr. Brobeck, I will take you for an attorney. He said, all right, I will take you for a client.“Q. Then what was said? A. Then he spoke, he said, you know about that remark made by Mr. Burns at Nineteenth and H. I replied how I got the remark from Hooper who was the salesman out there and I had passed it off, saying I did not want to talk about it. Then he said to me, I can’t remember just the words, but his advice to me was not to say anything about it. I told him certainly, I would not. Then he spoke about Umbsen. Could I communicate with Gus? And I told him I could on the 4th of the month, he was then between Havana and Florida, and would arrive in New York about the 4th. Do you think it would be advisable to telegraph or write to him not to say anything? I said: Oh, no, I don’t see any necessity for doing that.“Q. What was the remark as you heard it that Burns made? A. We were coming down on the Sutter street car, Mr. Kernan and myself, when Ed Hooper, salesman, spoke to us and said: I had a distinguished visitor yesterday. I said, who; he said, Mr. Burns, the detective. He said, I knew something about the telephone cases. I say what he said, a little something. He asked me about that and started for the automobile and when he got there, he turned around and said, another thing, I want to ask you about, I heard Ruef got $30,000 from Parkside. Who would be the man to see. I am only out here selling land and don’t know anything about that. I had been here with Watson when he was agent and when Umbsen took charge he kept me in the same job. He was the salesman out there, that was at that time they had this automobile race and I turned around and said: I see the Oldsmobile won the race in Los Angeles, because I didn’t want to continue the conversation with him.“Q. Did Brobeck, in his conversation, tell you where he got the information that Burns had been out there? A. No sir, he did not.“Q. Did he tell you that he knew what Burns had said? A. The impression I got was that he knew. I don’t remember his saying in just so many words.“Q. He referred to the statement made by Burns? A. He may have made the remark that you know about what was said out there.“Q. At the time you talked about your having an attorney did he tell you to send him some money? A. After we finished he said, ‘Mr. Henderson, you had better send me pay for this interview.’ I said what? and he said five or ten dollars and when I got to the office, I mailed him a check for $10.”[201]Ruef’s version of the affair, as Ruef gave it before the Grand Jury, was: “Mr. Umbsen stated to me that with a great deal of difficulty, he had been able to persuade the people interested to allow me this fee. I thereupon told Mr. Gallagher that I had made arrangements to secure for myself an attorney’s fee in the matter and I would allow him something over $13,500 as his proportion of the fee. Mr. Gallagher estimated what it would require for his services in the matter and we had discussed would the Supervisors accept that amount.”[202]John Martin’s statement, when he refused to testify, furnishes fair example of the attitude of those who became involved in the graft scandal. The Grand Jury record shows:“John Martin recalled.“Foreman (to witness). You have already been sworn, so you can consider yourself under oath. Mr. Martin: I desire to stand on my constitutional right and not to testify further.“Mr. Heney: If you feel that your testimony might have a tendency to subject you to prosecution—. A. (interrupting). No, not that. I am not so advised that that is necessary. My constitutional rights are broader than that, I am advised.“Q. Then you don’t desire to testify? A. No, sir.“Mr. Heney: All right.”[203]Mr. Frank G. Drum testified as follows:“Q. Do you know Abraham Ruef? A. Met him.“Q. Did you have any conversation with him about that time? A. No, sir.“Q. I mean a conversation with reference to the rates? A. No, not that I know anything about.”[204]Ruef on this point testified before the Grand Jury as follows:“I received from Mr. Frank G. Drum, $20,000 as an attorney’s fee as spoken of between ourselves, about the time that the gas rates were being fixed. Of that money, I gave to Mr. Gallagher for the Board of Supervisors about, as I remember It now, $14,000. It may have been a few hundred dollars more or less. I think about $14,000. Mr. Drum spoke to me about employing me in the service of the company some month or two before, I believe, and engaged me as attorney to represent the interests, as I understood it from him, which he represented in the company, at $1000 a month, of which I received, I believe, for two or three months. At the time of the fixing of the gas rates some of the Supervisors, as I was informed by Supervisor Gallagher, insisted upon fixing an extremely low rate, such a rate as would have been ruinous to the business of the company, a rate which neither I nor any one who had looked up the question would have considered under any circumstances to be reasonable, proper or maintainable, and said they were determined absolutely to reduce those rates. The matter was brought up at one of the Sunday evening caucuses and some of the members of the Board of Supervisors insisted that the board had been pledged by its platform to a rate of 75c. per thousand feet; they thought that was even too much and made some strong speeches and others maintained the 75c. rate and they contemplated fixing the 75c. rate that evening, that is to say, agreeing to do it at the proper time which I suppose was a week thereafter. In the meantime, the company sustained a heavy fire loss, not the fire of April 18th, but the previous fire, which caused them a great deal of damage, and I told Mr. Drum that it would be necessary for me, in order to protect the interests of the company and theinterestswhich he represented, to have an additional attorney’s fee and I told him that I thought it would require $20,000. He considered the matter and one day, a day or two afterward, he agreed to pay me the additional attorney’s fee of $20,000 which I thereafter received.“Q. Where did the conversation take place in which you told him about the necessity of having the $20,000? A. At his office in the Mills Building.”[205]Although the Graft Prosecution was to be effectively opposed by Union Labor party leaders, the San Francisco Labor Council, made up of representatives of practically every San Francisco labor union, on the night of March 23, 1907, adopted resolutions declaring for the prosecution of bribe-givers as follows:“Whereas, The indictments issued during the past few days by the San Francisco Grand Jury against certain individuals involve specific charges of flagrant and widespread corruption on the part of many members of the present city government; and whereas, said government, having adopted the name of ‘Union Labor’ has professed particular concern for the welfare of the working class, as represented by organized labor, and has sought and secured election upon pledges of loyalty to the principles, economic and political, to which organized labor everywhere is committed; and whereas, the alleged conduct of the city government is not only grossly repugnant to the principles of organized labor, but violates every rule of common honesty; and whereas, the conduct of the ‘Union Labor’ government and the inevitable association thereof with the character of the labor movement is calculated to lead to public misconception of the latter and thus to injure it and lessen its efficiency in its chosen field, therefore be it“Resolved, By the San Francisco Labor Council, that we declare that every corruptionist, briber and bribed, should be prosecuted and punished according to law, and hereby pledge our co-operation to that end; further“Resolved, That we reassert the position of the San Francisco Labor Council as a body organized and conducted for purely economic purposes, having no connection, direct or implied, with the Union Labor party or any other political party or organization, and therefore being in no way responsible for the conduct or misconduct of any such party or organization; further“Resolved, That we also reaffirm our belief that the private ownership of public utilities constitutes the chief source of public corruption, and is in fact a premium thereon, and therefore ought to be displaced by the system of public ownership of public utilities.”[206]At the time Patrick Calhoun held the office of President of the United Railroads; Mullally was assistant to the President; Ford general counsel for the corporation. Abbott was Ford’s assistant.[207]The statements contained in this chapter are based on affidavits filed in the case of The People vs. Patrick Calhoun et al., No. 823. Many of the statements are qualified, and in many instances denied, in affidavits filed by Ruef, his friends, associates and attorneys, in the same proceedings.[208]In this connection, in discussing the difficulties in the way of bringing criminals to trial, the San Francisco Chronicle, in its issue of March 14, 1907, said:“The penal laws of California are admirable, and cover almost every transaction deserving moral reprobation. The only reason why all our people are not either virtuous or in jail is that the same Legislatures which have so carefully defined crimes and prescribed punishments have been still more careful to enact codes of criminal procedure that nobody can be convicted of any crime if he has the cash to pay for getting off. And what the legislatures have failed to do in this direction the courts have usually made good.”[209]Four years later to a day, March 13, 1911, Ruef was taken to the penitentiary at San Quentin to begin service of his fourteen-year term for bribing a Supervisor.[210]As the impaneling of the Ruef jury proceeded, that Ruef’s nerve was breaking became apparent to all who saw him. The Chronicle, in its issue of March 18, 1907, thus describes his condition:“Ruef’s nerve is breaking down. He is a prey to doubts and fears which never troubled him in those days when he could see his political henchmen every day and bolster up their confidence in his ability to fight off the prosecution. Reports reach his ears of confessions of guilt on the part of some of his official puppets, of the sinister activities of Burns and his agents and treachery on the part of those whom he considered his most devoted adherents, and fill him with alarm.“It was different when he could hold his Sunday evening caucus with the members of the Board of Supervisors, and reassure them that all would be well. He knows the men he used in his political schemes and their weaknesses.”[211]Heney, in instructing Burns as to his policy regarding Ruef, took occasion to state to the detective his attitude toward the broken boss. In an affidavit filed in the case of The People vs. Calhoun et al., No. 823, Heney sets forth that he told Burns: “Ruef was not a mere accessory or tool in the commission of these briberies. He is a man of extraordinary brain power, keen intelligence, fine education, with the choice of good environment, great power of persuasion over men, dominating personality, great shrewdness and cunning, coupled with a greedy and avaricious disposition. He has not been led into the commission of these crimes through weakness, but on the contrary has aided in the initiation of them and has joined hands with the most vicious and depraved elements in the city to secure unlawful protection for them in conducting their resorts of vice, and has joined hands with the special privilege seeking classes to place improper burdens upon the people of this city by granting franchises to public service corporations which ought never to have been granted, and by fixing rates which may be charged by them in excess of the amounts which such rates ought to be, and thus indirectly robbing the poor people of this city of a large part of their meagre earnings, and that to let Ruef go free of all punishment under such circumstances would be a crime against society.”[212]Running through the affidavits which resulted from the differences between the forces of the prosecution and the defense concerning these negotiations, is a thread of suggestion that individual members of the prosecution differed as to the policy that should be followed toward Ruef. Burns, the detective, leaned toward granting him complete immunity. Heney was unalterably opposed to this course. Langdon, on the whole, sided with Heney.[213]See Heney’s affidavit in the matter of The People vs. Patrick Calhoun et al., No. 823.[214]Nieto, according to Heney, had endeavored to make it appear that race prejudice entered into the prosecution of Ruef. Heney, in an affidavit filed in the case of The People vs. Calhoun et al., No. 823, tells of Nieto’s interference even when the Oliver Grand Jury was being impaneled. Heney says: “During the latter part of October or the first week in November, 1906, while said Grand Jury was being impaneled, Dr. Jacob Nieto introduced himself to me in the court room of Department No. 10, where I had noticed that he was a constant attendant and close observer of the proceedings connected with the impaneling of the Grand Jury.“Some days after he had introduced himself to me he stepped up to me, just as court had adjourned and after I had been examining some of the grand jurors as to their qualifications, and said in substance:“‘Mr. Heney, it seems to me that you discriminate somewhat against the Jews in examining jurors, and I think that in your position you ought to be more careful not to exhibit any prejudice against a man on account of his religion.’“I asked what in particular I had done to cause him to criticise my conduct in that way, and he referred to some question which I had asked a grand juror, but which I cannot now recollect. I then said to him in substance:“‘Why, Doctor, you are supersensitive. Some of the best friends I have in the world are Jews, and some of the best clients I ever had in my life were Jews, and I have no prejudice against any man merely on account of his religious belief. I am sorry that you have so misapprehended the purpose and motives of my questions to jurors.’“On a subsequent day, during the time the Grand Jury was being impaneled, Dr. Nieto again approached me after an adjournment of the court and again reproached me for having again shown prejudice or discrimination against some grand juror of the Jewish faith by the questions which I asked him * * * and I said to him in substance, in a very emphatic tone of voice: ‘Dr. Nieto, I have heretofore told you that I have no prejudice against any man whatever on account of his religion. All I am trying to do in this matter is to get fair grand jurors, and I am just as willing to trust honest Jews as honest Christians, but I want to make sure that a man is honest, whether a Jew or Christian, and it looks to me as if you are trying to find some excuse to line up in opposition to this prosecution. I do not see why you need to seek for excuses if that is what you want to do. I am conscious of my own singleness of purpose and purity of purpose in examining grand jurors, and it is wholly immaterial to me, therefore, what you or anybody else may think of my method of questioning them.’”As a matter of fact Jews not only sat on the Oliver Grand Jury, but were among the most earnest and effective in sifting the graft scandal to the bottom. But that the false cry that Ruef was persecuted because he was a Jew influenced many of his fellow Jews in his favor is unquestionably true.[215]This case was numbered from the indictment, 305. Schmitz was indicted jointly with Ruef in this indictment, and later was convicted under it and sentenced to five years in the penitentiary. See Chapter XVI. The testimony at the Schmitz trial showed that Ruef had taken the extortion money from the French-Restaurant keepers, after Schmitz had acted with him to imperil the French-Restaurant keepers’ liquor licenses, and had given part of the proceeds of the enterprise to Schmitz.[216]In his affidavit, Heney quotes Rabbi Nieto as saying In substance: “I do not care to get publicly mixed up in the Ruef case, because among other things, I am not a particular friend of Ruef’s, and am not interested in the matter as an individual but only in the welfare of this community. I think that Ruef has grievously sinned against this community and that he can do a great deal to undo the wrongs which he has committed and to clear up the situation, and I have told him that it is his duty to himself and to his family and to the city of his birth to do so. I want you to understand, Mr. Heney, that I have not come here to ask you to let Ruef go free and without punishment. I think he ought to be punished, and I think he ought to give a large part of the money which he obtained from these corporations to the city to improve its streets. He ought to give $300,000 for that purpose, but Ruef thinks more of money than he does of his family, or even of his liberty, and I think he would rather go to the penitentiary than give up any very large amount of it.”[217]Heney, in his affidavit, makes the following statement of his impression of Kaplan: “Dr. Kaplan appeared to be far more interested in finding out just what would be done to Ruef, provided he plead guilty in the French Restaurant case than he was in the moral issue which was involved in the discussion, or in the beneficial effect which the testimony of Ruef might have upon the deplorable situation then existing in San Francisco on account of its municipal corruption.“This was evidenced more from his manner and form of questioning than by anything which he said. I immediately became convinced that he was influenced by no motive or purpose other than that of getting Ruef off without any punishment if possible; but I also formed the opinion that he was honest and unsophisticated.”[218]Heney, in his affidavit, states: “During the conversation Ach stated, in substance: ‘You can’t convict Ruef in this French Restaurant case, but I realize that you are sure to convict him in some of the bribery cases, and I think it is useless for him to stand out and fight any longer, he had better take the best he can get, and I have told him so. He insists, however, that he ought not to be required to plead guilty in the French Restaurant case, or to submit to any punishment.’”[219]In the course of the interview, Langdon stated to Ach and the two Rabbis that he had authorized Heney to conduct the negotiations for him, but that he wanted it to be distinctly understood by everybody that he had the final say in the matter and would exercise it, and that no agreement could be concluded without his personal sanction.[220]Heney, In his affidavit describing these meetings, states that Ach, Kaplan and Nieto habitually came In the back way so they would not be seen by newspaper reporters who at the time frequented the front halls of the private residence in which Heney, after the fire, had his offices. Ach, Heney states, was desirous of not being known as party to the negotiations. Heney in his affidavit says: “In this same conversation (at the first conference) Ach said in substance: ‘I want everybody here to agree that the fact that I participated in this conference, or had anything to do with advising Ruef to turn state’s evidence, shall never be made known; it would absolutely ruin my business if it became known. A lot of the people whom Ruef will involve as accomplices are close friends of clients of mine. Of course I do not know just whom he will involve, but I do have a general idea. For instance, while he has never told me so in so many words, I understand that he will involve William F. Herrin. Now just to illustrate to you how it would affect me in business if it was known that I participated in urging Ruef to do this I will tell you that I am attorney for one company, an oil company, that pays me ten thousand dollars a year as a salary for attending to its business, and Herrin is one of the directors of the company and undoubtedly has sufficient influence with the other directors to take this client away from me. This is only one instance, and there are many others.’”[221]See affidavits of Francis J. Heney and Judge William P. Lawlor on file in the case of The People vs. Patrick Calhoun et al., No. 823.[222]See Heney’s affidavit in the case of The People vs. Patrick Calhoun et als., No. 823.[223]Ruef in this confession to Burns stated that he had received $200,000 from General Tirey L. Ford, head of the United Railroads law department. Of this amount, he said $50,000 he had given to Schmitz and retained $50,000 for himself. Ruef, five years later, in his story “The Road I Traveled,” published in the San Francisco Bulletin, again stated that he had received $200,000 from Ford, of which he gave to Schmitz $50,000, to Gallagher his share for the Supervisors, and retained $50,000 for himself. Gallagher received $85,000. This leaves a balance of $15,000 which Mr. Ruef does not account for.[224]It is significant to note in this connection that Heney did not call Ruef as a witness before the Grand Jury in the United Railroads cases until after the Grand Jury had found indictments against the officials of that corporation. In the opinion of the Grand Jurors, the testimony, exclusive of that of Ruef, justified these indictments.[225]The immunity contract signed by Ruef and the District Attorney will be found in full in the appendix.[226]At the completion of the Ruef Jury, the Chronicle, issue of May 15, 1907, said:“The Ruef jury is complete and we are now in a way to learn all the truth about the particular crime for which Ruef is this time on trial, but which, compared with most other crimes for which he has been indicted, is a mere peccadillo. That Ruef got the money is proved, for he has confessed. His defense, of course, will be that the French-Restaurant proprietors voluntarily presented him with it. The state will have to prove, in order to secure a conviction, that they did not give the money voluntarily, but yielded it up under threats which they believed it to be in his power to execute. If the state fails to prove that Ruef will stand before the community merely as a moral leper, loathsome to be sure, and despicable almost beyond human conception, but yet not proved guilty of that for which the law prescribes punishment in state’s prison. If proper proof cannot be made he must, of course, be acquitted of this crime and at once put on trial for another. Nothing is gained by society by the conviction even of the most unmitigated scoundrel on insufficient testimony. But when the proof is sufficient the salvation of society demands punishment, and more particularly of punishment of the rich criminal.”[227]Ruef’s statement was in full as follows:“If your honor please, with the permission of the court, I desire to make a statement. I do so after only a short consultation with my attorneys, to whom I have only within the last half hour disclosed my determination, and against their express protest. I take this occasion to thank them for their services, fidelity and friendship. Notwithstanding the Court’s finding yesterday that this trial might safely be carried on without serious injury to my health, physical or mental, I wish to assure you that my personal condition is such that I am at the present time absolutely unable to bear for two or three months daily the strain of an actual trial of this case, the constant, continual, nightly preparations therefor, the necessary consultation and conversation with my attorneys in regard thereto, to say nothing of other cares and responsibilities.“Moreover, the strain of these proceedings upon those whom I hold nearest and dearest of all on earth has been so grave and severe that as a result of these prosecutions their health has all been undermined, they are on the verge of immediate collapse and their lives are indeed now actually in the balance.“I have occupied a somewhat prominent position in this city of my birth, in which I have lived all my life, where are all my ties and interests, whence, when the time shall come, I hope to pass into the eternal sleep. I have borne an honored name. In my private and in my professional life there has been no stain. In my public affiliations, until after the municipal campaign of 1905 and the election of the present Board of Supervisors, the abhorrent charges of the press to the contrary notwithstanding, no action of mine ever gave just ground for adverse criticism or deserved censure; but the assaults of the press and its failure to credit honesty of purpose, a desire to hold together a political organization which had been built up with much effort, the means of otherwise holding them, did after the election of this Board of Supervisors in a measure influence me and the high ideals for which I had heretofore striven.“During the past few weeks I have thought deeply and often of this situation, its causes and conditions. To offer excuses now would be folly. To make an effort at some reparation for the public good is, however, more than possible; to assist in making more difficult, if not impossible, the system which dominates our public men and corrupts our politics will be a welcome task.“I have decided that whatever energy or abilities I possess for the future shall be devoted even in the humblest capacity to restoring the ideals which have been lowered; shall, as soon as opportunity be accorded, be re-enlisted on the side of good citizenship and integrity. May it be allotted to me at some time hereafter to have at least some small part in re-establishment on a clear, sane basis, a plane of high civic morality, just reciprocal relations between the constantly struggling constituent element of our governmental and industrial life.“In the meantime I begin by earnestness of purpose, a purpose to make the greatest sacrifice which can befall a human being of my disposition to make, to acknowledge whatever there may have been of wrong or mistake and so far as may be within my power to make it right.“I reached this final determination last night after careful reflection and deliberation. Where duty calls I intend to follow, whither hereafter the path of my life may lead and however unpleasant and painful may be the result. I make this statement so that the Court and the whole world may know at least the motives which have guided me in the step I am about to take.“As an earnest I have determined to make a beginning, I am not guilty of the offense charged in this indictment. I ask now, however, that this jury be dismissed from further consideration of this case. I desire to withdraw my plea of not guilty heretofore entered and to enter the contrary plea, and at the proper time submit to the Court further suggestions for its consideration.”[228]The Chronicle, to its issue of May 16, said of Ruef’s confessions:“Abraham Ruef should have thought of his family before he entered upon his career of crime. They are innocent and the public need not, as indeed it cannot, withhold its sympathy for them. The most terrible punishment which is inflicted on such criminals is the distress which their crimes brings upon the innocent persons who have been accustomed to respect and honor them. But it is the inexorable doom which crime brings upon itself.“For Ruef himself the only sympathy possible is that which one might feel for a wolf which, having devastated the sheep fold, has been pursued, brought to bay and, after a long fight, finally disposed of. It is not a case in which the safety of society permits leniency to be shown. Ruef has corrupted every branch of the city government which he could get hold of and brought the city almost to the verge of ruin. Seldom has a man occupying an unofficial station in life been able to achieve so much evil. It will be many a year before San Francisco can outlive the shame which the man Ruef has brought upon her.“He has not been ingenuous even in his confession, for while pleading guilty as charged, he professes to be not guilty of this particular crime—meaning merely by that that he did not extort the money by threats within the meaning of the law. Witnesses, however, would have sworn that he did so. It is unthinkable that such sums should have been paid him voluntarily by the restaurant keepers. All that Ruef can mean by his profession of ‘innocence’ while pleading guilty, is a claim that he succeeded in terrifying the restaurant men into submitting to blackmail without the use of words which the law would construe as a threat. There is no moral difference between what Ruef would claim that he did and the crime to which he has pleaded guilty.“Ruef also shows his disingenuousness by attributing his situation to ‘the assaults of the press.’ Doubtless he has been assaulted by the press. But the press has accused him of nothing but what he has confessed and intimated. What fault has he to find with that? Shall the press remain silent while thieves plunder a distressed city and rob it of its good name? Ruef fought the forces of decency until he could fight no longer. No man is strong enough to stand up against the wrath of an outraged community. His physical collapse was inevitable and the only mantle which charity can throw over him is that his physical weakness broke down his mental faculties and caused the self-contradictions in what is a virtual confession of all that he has been charged with.”
[189]Zimmer insisted at first that the total of the amounts which he turned over to Halsey would not exceed $20,000. Later he admitted that he had not kept track of the amounts, and the total might have been $30,000. This he increased to $35,000, and finally stated that it was “not over $40,000, if it was that.” He admitted that it would have been possible for Executive Officer Glass to have paid out $70,000 without his knowledge. “Checks,” he said, “could have been signed without going through me; could have been carried just the same as this tag account was.”William J. Kennedy, cashier and assistant treasurer of the company, who had charge of the “tags,” stated that during February, 1906, considerable amounts were drawn out in this way, which might have totalled as high as $70,000.
Zimmer insisted at first that the total of the amounts which he turned over to Halsey would not exceed $20,000. Later he admitted that he had not kept track of the amounts, and the total might have been $30,000. This he increased to $35,000, and finally stated that it was “not over $40,000, if it was that.” He admitted that it would have been possible for Executive Officer Glass to have paid out $70,000 without his knowledge. “Checks,” he said, “could have been signed without going through me; could have been carried just the same as this tag account was.”
William J. Kennedy, cashier and assistant treasurer of the company, who had charge of the “tags,” stated that during February, 1906, considerable amounts were drawn out in this way, which might have totalled as high as $70,000.
[190]Regarding the manner in which money was furnished to Halsey, Zimmer testified before the Grand Jury as follows:“Q. This $10,000 that you gave him (Halsey) under direction of Mr. Glass, in what shape did you hand it to him? A. Currency.“Q. Did you have the currency on hand or send out and get it? A. Sent out and got it. I went out and got it.“Q. Where did you get it? A. I don’t remember, I had to go to several banks.“Q. Did Mr. Glass tell you he wanted you to give it to him in currency? A. Yes, sir.”
Regarding the manner in which money was furnished to Halsey, Zimmer testified before the Grand Jury as follows:
“Q. This $10,000 that you gave him (Halsey) under direction of Mr. Glass, in what shape did you hand it to him? A. Currency.
“Q. Did you have the currency on hand or send out and get it? A. Sent out and got it. I went out and got it.
“Q. Where did you get it? A. I don’t remember, I had to go to several banks.
“Q. Did Mr. Glass tell you he wanted you to give it to him in currency? A. Yes, sir.”
[191]These admissions led to close questioning of Mr. Zimmer. The following is taken from his testimony given before the Grand Jury:“Q. Now, in what way did that money appear in the books? A. Didn’t appear in the books.“Q. How was it taken care of? A. No voucher was ever made for it.“Q. How would your cash account for it? A. It wasn’t taken out of the cash account, so far as I know.“Q. What was it taken from? A. By check issued on the regular bank account.“Q. Who was the check made payable to? A. Eaton, treasurer, the same as other coin checks are issued, coin or currency.“Q. It would have appeared somewhere in the books, that check, that amount would be deducted from the bank account? A. Yes, sir; but carried in the expense account of the cash suspense.“Q. Leave a tag with you? Leave a tag, would you? A. Yes.”
These admissions led to close questioning of Mr. Zimmer. The following is taken from his testimony given before the Grand Jury:
“Q. Now, in what way did that money appear in the books? A. Didn’t appear in the books.
“Q. How was it taken care of? A. No voucher was ever made for it.
“Q. How would your cash account for it? A. It wasn’t taken out of the cash account, so far as I know.
“Q. What was it taken from? A. By check issued on the regular bank account.
“Q. Who was the check made payable to? A. Eaton, treasurer, the same as other coin checks are issued, coin or currency.
“Q. It would have appeared somewhere in the books, that check, that amount would be deducted from the bank account? A. Yes, sir; but carried in the expense account of the cash suspense.
“Q. Leave a tag with you? Leave a tag, would you? A. Yes.”
[192]Before the Grand Jury, Sherwin was closely questioned as to one of Mr. Halsey’s “Special expense” claims. The following is from his testimony:“Q. Now, then, that shows that it was charged against what fund? A. That got in the legal expense finally, we charged it to Reserve for Contingent Liabilities, and each month we credit that account, I have forgotten maybe $2,000, and charge it to legal to make it run even in the expense each month.“Q. Why does it go to legal? A. Because—instead—to what else would it go?“Q. What makes it legal? A. Oh, that’s just a subdivision of our expense.“Q. Was this $600 legal expenses? A. I don’t know what it was.“Q. Who told you to put it under legal expenses? A. You mean who told us to put it in that account?“Q. There is nothing on that paper that indicates that it goes into legal expense? A. No.“Q. Now, then, you say it was finally charged to the legal department. Why? A. Simply because everything that is charged to that reserve finally gets into legal expense.“Q. Everything that is charged to that reserve fund? A. Yes, that reserve fund is charged off for legal expense.“Q. And what is the reason for that? A. For charging it to legal?“Q. Yes. A. For charging it to legal—because—I don’t know the reason—it is always done that way.”
Before the Grand Jury, Sherwin was closely questioned as to one of Mr. Halsey’s “Special expense” claims. The following is from his testimony:
“Q. Now, then, that shows that it was charged against what fund? A. That got in the legal expense finally, we charged it to Reserve for Contingent Liabilities, and each month we credit that account, I have forgotten maybe $2,000, and charge it to legal to make it run even in the expense each month.
“Q. Why does it go to legal? A. Because—instead—to what else would it go?
“Q. What makes it legal? A. Oh, that’s just a subdivision of our expense.
“Q. Was this $600 legal expenses? A. I don’t know what it was.
“Q. Who told you to put it under legal expenses? A. You mean who told us to put it in that account?
“Q. There is nothing on that paper that indicates that it goes into legal expense? A. No.
“Q. Now, then, you say it was finally charged to the legal department. Why? A. Simply because everything that is charged to that reserve finally gets into legal expense.
“Q. Everything that is charged to that reserve fund? A. Yes, that reserve fund is charged off for legal expense.
“Q. And what is the reason for that? A. For charging it to legal?
“Q. Yes. A. For charging it to legal—because—I don’t know the reason—it is always done that way.”
[193]See Supervisors’ letter to the Examiner,footnote 64,page 62.
See Supervisors’ letter to the Examiner,footnote 64,page 62.
[194]Calhoun returned to San Francisco April 10. In interviews published in the San Francisco papers of April 12, Calhoun emphatically denied all knowledge of the bribery transactions. In his interview in the Chronicle he said:“I wish to go on record before the people of San Francisco as stating that not one of the officers or legal counsel of the United Railroads of San Francisco or the United Railroads Investment Company of New Jersey ever paid, authorized to be paid, approved of paying or knew that one dollar was paid to secure the passage of the trolley franchise ordinance by the Board of Supervisors, and if I had known that one dollar was paid for the purpose of securing this franchise I would not have accepted it.”
Calhoun returned to San Francisco April 10. In interviews published in the San Francisco papers of April 12, Calhoun emphatically denied all knowledge of the bribery transactions. In his interview in the Chronicle he said:
“I wish to go on record before the people of San Francisco as stating that not one of the officers or legal counsel of the United Railroads of San Francisco or the United Railroads Investment Company of New Jersey ever paid, authorized to be paid, approved of paying or knew that one dollar was paid to secure the passage of the trolley franchise ordinance by the Board of Supervisors, and if I had known that one dollar was paid for the purpose of securing this franchise I would not have accepted it.”
[195]The refusal of Calhoun and Mullally to testify created a sensation, even in those sensational times. The Chronicle in its issue of May 4, 1907, printed the following account of the incident:“For the first time in the history of the examination of witnesses before this Grand Jury, Heney was careful not to instruct the prospective witnesses as to their legal rights. Instead he merely asked them if they were already familiar with their rights under the law.“‘I am aware,’ said Calhoun, who was the first to be called, ‘that anything I might tell this body might be used against me.’“‘With that understanding are you willing to become a witness before this Grand Jury?’ asked Heney.“‘I am not,’ was Calhoun’s response.“The Jurymen who had leaned forward as the reply of the president hung on his lips sank back in their seats.“‘That is all, Mr. Calhoun,’ said Heney to the president, and then going to the door he said to the bailiff, ‘Call Mr. Mullally.’“Mullally’s examination was identical with that of his superior’s and he was permitted to go. Neither President Calhoun nor Assistant Mullally will be called again to the jury room.”Calhoun issued the following statement of his refusal to testify:“When called before the Grand Jury this afternoon and informed that it had under investigation the alleged bribery of public officials by the United Railroads, we declined to be sworn and in order that our action may not be misconstrued, I call your attention to these facts:“For months past the public prints have been full of charges traceable to certain persons connected with the prosecution that they had positive evidence that the United Railroads had spent not less than $450,000 in bribing the officials of this city. I have repeatedly stated that neither I nor the United Railroads, nor any official of the United Railroads, had bribed anyone, authorized any bribery, knew of any bribery or approved of any bribery. This statement I now fully reaffirm. It is not for us nor any officer of our company to disprove these grave charges. It is for those making them to prove them. We do not now care to discuss their motives. We know that they cannot produce any truthful evidence connecting us or any officer of the United Railroads with this alleged crime.“We relied, in declining to be sworn, upon the broad Constitutional right of every American citizen that a defendant cannot be called as a witness, and upon the justice, fairness and common sense of the Grand Jury, to whom we look for complete vindication without offering one word in our own behalf.”
The refusal of Calhoun and Mullally to testify created a sensation, even in those sensational times. The Chronicle in its issue of May 4, 1907, printed the following account of the incident:
“For the first time in the history of the examination of witnesses before this Grand Jury, Heney was careful not to instruct the prospective witnesses as to their legal rights. Instead he merely asked them if they were already familiar with their rights under the law.
“‘I am aware,’ said Calhoun, who was the first to be called, ‘that anything I might tell this body might be used against me.’
“‘With that understanding are you willing to become a witness before this Grand Jury?’ asked Heney.
“‘I am not,’ was Calhoun’s response.
“The Jurymen who had leaned forward as the reply of the president hung on his lips sank back in their seats.
“‘That is all, Mr. Calhoun,’ said Heney to the president, and then going to the door he said to the bailiff, ‘Call Mr. Mullally.’
“Mullally’s examination was identical with that of his superior’s and he was permitted to go. Neither President Calhoun nor Assistant Mullally will be called again to the jury room.”
Calhoun issued the following statement of his refusal to testify:
“When called before the Grand Jury this afternoon and informed that it had under investigation the alleged bribery of public officials by the United Railroads, we declined to be sworn and in order that our action may not be misconstrued, I call your attention to these facts:
“For months past the public prints have been full of charges traceable to certain persons connected with the prosecution that they had positive evidence that the United Railroads had spent not less than $450,000 in bribing the officials of this city. I have repeatedly stated that neither I nor the United Railroads, nor any official of the United Railroads, had bribed anyone, authorized any bribery, knew of any bribery or approved of any bribery. This statement I now fully reaffirm. It is not for us nor any officer of our company to disprove these grave charges. It is for those making them to prove them. We do not now care to discuss their motives. We know that they cannot produce any truthful evidence connecting us or any officer of the United Railroads with this alleged crime.
“We relied, in declining to be sworn, upon the broad Constitutional right of every American citizen that a defendant cannot be called as a witness, and upon the justice, fairness and common sense of the Grand Jury, to whom we look for complete vindication without offering one word in our own behalf.”
[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.
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. SeeChapter XIII.
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. SeeChapter 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.
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.“Q. I don’t see how it helped you; it went to the property account and the property went right out; don’t see how it helped you any. A. It had to be charged to something, Mr. Heney.“Q. Why couldn’t it be charged to what it was, attorneys’ fees? A. Because attorneys’ fees were charged against property account.“Q. Were Morrison & Cope’s fees charged up as a piece of property and did they go through a rigmarole of deeding a piece of property too? A. No; their fees or any other expense against the property interests.“Q. Didn’t they go into the books as a fee for Morrison & Cope and charged as expenses against property? A. Charged direct to property.“Q. As expense? A. Don’t know as expense; it was charged to property, showing that we had that much money in property; when we got through selling anything over, that was profit in our favor.“Q. It appeared on the books as having been paid to Morrison & Cope for attorneys’ fees? A. Can’t say without seeing the books.“Q. Ordinary way of keeping books? A. Yes.“Q. You didn’t cover up anything you paid to Morrison & Cope by putting through the hands of the secretary? A. No, sir.“Q. Why did you cover up this in connection with Ruef? A. I don’t know; suppose the property account is probably the proper one to charge it to.“Q. Only explanation of it? A. Yes, sir.”
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.
“Q. I don’t see how it helped you; it went to the property account and the property went right out; don’t see how it helped you any. A. It had to be charged to something, Mr. Heney.
“Q. Why couldn’t it be charged to what it was, attorneys’ fees? A. Because attorneys’ fees were charged against property account.
“Q. Were Morrison & Cope’s fees charged up as a piece of property and did they go through a rigmarole of deeding a piece of property too? A. No; their fees or any other expense against the property interests.
“Q. Didn’t they go into the books as a fee for Morrison & Cope and charged as expenses against property? A. Charged direct to property.
“Q. As expense? A. Don’t know as expense; it was charged to property, showing that we had that much money in property; when we got through selling anything over, that was profit in our favor.
“Q. It appeared on the books as having been paid to Morrison & Cope for attorneys’ fees? A. Can’t say without seeing the books.
“Q. Ordinary way of keeping books? A. Yes.
“Q. You didn’t cover up anything you paid to Morrison & Cope by putting through the hands of the secretary? A. No, sir.
“Q. Why did you cover up this in connection with Ruef? A. I don’t know; suppose the property account is probably the proper one to charge it to.
“Q. Only explanation of it? A. Yes, sir.”
[200]Early in the graft investigation Detective William J. Burns, with studied carelessness, dropped a remark in the presence of a salesman of the Parkside Company, that he had heard money was being used in the Parkside case. Soon after, Thomas L. Henderson, secretary of the company, received word from William I. Brobeck, of the law firm of Morrison, Cope & Brobeck, attorney for the Parkside Company, to call at that firm’s law office. Of the incident. Henderson testified before the Grand Jury as follows:“Q. His first question to you was what? A. We went in there. He said, Mr. Henderson, I am going to talk to you about Parkside and he said, have you an attorney? I said, no. I have no attorney. He says, it might be well for you to get an attorney. I said, all right. Mr. Brobeck, I will take you for an attorney. He said, all right, I will take you for a client.“Q. Then what was said? A. Then he spoke, he said, you know about that remark made by Mr. Burns at Nineteenth and H. I replied how I got the remark from Hooper who was the salesman out there and I had passed it off, saying I did not want to talk about it. Then he said to me, I can’t remember just the words, but his advice to me was not to say anything about it. I told him certainly, I would not. Then he spoke about Umbsen. Could I communicate with Gus? And I told him I could on the 4th of the month, he was then between Havana and Florida, and would arrive in New York about the 4th. Do you think it would be advisable to telegraph or write to him not to say anything? I said: Oh, no, I don’t see any necessity for doing that.“Q. What was the remark as you heard it that Burns made? A. We were coming down on the Sutter street car, Mr. Kernan and myself, when Ed Hooper, salesman, spoke to us and said: I had a distinguished visitor yesterday. I said, who; he said, Mr. Burns, the detective. He said, I knew something about the telephone cases. I say what he said, a little something. He asked me about that and started for the automobile and when he got there, he turned around and said, another thing, I want to ask you about, I heard Ruef got $30,000 from Parkside. Who would be the man to see. I am only out here selling land and don’t know anything about that. I had been here with Watson when he was agent and when Umbsen took charge he kept me in the same job. He was the salesman out there, that was at that time they had this automobile race and I turned around and said: I see the Oldsmobile won the race in Los Angeles, because I didn’t want to continue the conversation with him.“Q. Did Brobeck, in his conversation, tell you where he got the information that Burns had been out there? A. No sir, he did not.“Q. Did he tell you that he knew what Burns had said? A. The impression I got was that he knew. I don’t remember his saying in just so many words.“Q. He referred to the statement made by Burns? A. He may have made the remark that you know about what was said out there.“Q. At the time you talked about your having an attorney did he tell you to send him some money? A. After we finished he said, ‘Mr. Henderson, you had better send me pay for this interview.’ I said what? and he said five or ten dollars and when I got to the office, I mailed him a check for $10.”
Early in the graft investigation Detective William J. Burns, with studied carelessness, dropped a remark in the presence of a salesman of the Parkside Company, that he had heard money was being used in the Parkside case. Soon after, Thomas L. Henderson, secretary of the company, received word from William I. Brobeck, of the law firm of Morrison, Cope & Brobeck, attorney for the Parkside Company, to call at that firm’s law office. Of the incident. Henderson testified before the Grand Jury as follows:
“Q. His first question to you was what? A. We went in there. He said, Mr. Henderson, I am going to talk to you about Parkside and he said, have you an attorney? I said, no. I have no attorney. He says, it might be well for you to get an attorney. I said, all right. Mr. Brobeck, I will take you for an attorney. He said, all right, I will take you for a client.
“Q. Then what was said? A. Then he spoke, he said, you know about that remark made by Mr. Burns at Nineteenth and H. I replied how I got the remark from Hooper who was the salesman out there and I had passed it off, saying I did not want to talk about it. Then he said to me, I can’t remember just the words, but his advice to me was not to say anything about it. I told him certainly, I would not. Then he spoke about Umbsen. Could I communicate with Gus? And I told him I could on the 4th of the month, he was then between Havana and Florida, and would arrive in New York about the 4th. Do you think it would be advisable to telegraph or write to him not to say anything? I said: Oh, no, I don’t see any necessity for doing that.
“Q. What was the remark as you heard it that Burns made? A. We were coming down on the Sutter street car, Mr. Kernan and myself, when Ed Hooper, salesman, spoke to us and said: I had a distinguished visitor yesterday. I said, who; he said, Mr. Burns, the detective. He said, I knew something about the telephone cases. I say what he said, a little something. He asked me about that and started for the automobile and when he got there, he turned around and said, another thing, I want to ask you about, I heard Ruef got $30,000 from Parkside. Who would be the man to see. I am only out here selling land and don’t know anything about that. I had been here with Watson when he was agent and when Umbsen took charge he kept me in the same job. He was the salesman out there, that was at that time they had this automobile race and I turned around and said: I see the Oldsmobile won the race in Los Angeles, because I didn’t want to continue the conversation with him.
“Q. Did Brobeck, in his conversation, tell you where he got the information that Burns had been out there? A. No sir, he did not.
“Q. Did he tell you that he knew what Burns had said? A. The impression I got was that he knew. I don’t remember his saying in just so many words.
“Q. He referred to the statement made by Burns? A. He may have made the remark that you know about what was said out there.
“Q. At the time you talked about your having an attorney did he tell you to send him some money? A. After we finished he said, ‘Mr. Henderson, you had better send me pay for this interview.’ I said what? and he said five or ten dollars and when I got to the office, I mailed him a check for $10.”
[201]Ruef’s version of the affair, as Ruef gave it before the Grand Jury, was: “Mr. Umbsen stated to me that with a great deal of difficulty, he had been able to persuade the people interested to allow me this fee. I thereupon told Mr. Gallagher that I had made arrangements to secure for myself an attorney’s fee in the matter and I would allow him something over $13,500 as his proportion of the fee. Mr. Gallagher estimated what it would require for his services in the matter and we had discussed would the Supervisors accept that amount.”
Ruef’s version of the affair, as Ruef gave it before the Grand Jury, was: “Mr. Umbsen stated to me that with a great deal of difficulty, he had been able to persuade the people interested to allow me this fee. I thereupon told Mr. Gallagher that I had made arrangements to secure for myself an attorney’s fee in the matter and I would allow him something over $13,500 as his proportion of the fee. Mr. Gallagher estimated what it would require for his services in the matter and we had discussed would the Supervisors accept that amount.”
[202]John Martin’s statement, when he refused to testify, furnishes fair example of the attitude of those who became involved in the graft scandal. The Grand Jury record shows:“John Martin recalled.“Foreman (to witness). You have already been sworn, so you can consider yourself under oath. Mr. Martin: I desire to stand on my constitutional right and not to testify further.“Mr. Heney: If you feel that your testimony might have a tendency to subject you to prosecution—. A. (interrupting). No, not that. I am not so advised that that is necessary. My constitutional rights are broader than that, I am advised.“Q. Then you don’t desire to testify? A. No, sir.“Mr. Heney: All right.”
John Martin’s statement, when he refused to testify, furnishes fair example of the attitude of those who became involved in the graft scandal. The Grand Jury record shows:
“John Martin recalled.
“Foreman (to witness). You have already been sworn, so you can consider yourself under oath. Mr. Martin: I desire to stand on my constitutional right and not to testify further.
“Mr. Heney: If you feel that your testimony might have a tendency to subject you to prosecution—. A. (interrupting). No, not that. I am not so advised that that is necessary. My constitutional rights are broader than that, I am advised.
“Q. Then you don’t desire to testify? A. No, sir.
“Mr. Heney: All right.”
[203]Mr. Frank G. Drum testified as follows:“Q. Do you know Abraham Ruef? A. Met him.“Q. Did you have any conversation with him about that time? A. No, sir.“Q. I mean a conversation with reference to the rates? A. No, not that I know anything about.”
Mr. Frank G. Drum testified as follows:
“Q. Do you know Abraham Ruef? A. Met him.
“Q. Did you have any conversation with him about that time? A. No, sir.
“Q. I mean a conversation with reference to the rates? A. No, not that I know anything about.”
[204]Ruef on this point testified before the Grand Jury as follows:“I received from Mr. Frank G. Drum, $20,000 as an attorney’s fee as spoken of between ourselves, about the time that the gas rates were being fixed. Of that money, I gave to Mr. Gallagher for the Board of Supervisors about, as I remember It now, $14,000. It may have been a few hundred dollars more or less. I think about $14,000. Mr. Drum spoke to me about employing me in the service of the company some month or two before, I believe, and engaged me as attorney to represent the interests, as I understood it from him, which he represented in the company, at $1000 a month, of which I received, I believe, for two or three months. At the time of the fixing of the gas rates some of the Supervisors, as I was informed by Supervisor Gallagher, insisted upon fixing an extremely low rate, such a rate as would have been ruinous to the business of the company, a rate which neither I nor any one who had looked up the question would have considered under any circumstances to be reasonable, proper or maintainable, and said they were determined absolutely to reduce those rates. The matter was brought up at one of the Sunday evening caucuses and some of the members of the Board of Supervisors insisted that the board had been pledged by its platform to a rate of 75c. per thousand feet; they thought that was even too much and made some strong speeches and others maintained the 75c. rate and they contemplated fixing the 75c. rate that evening, that is to say, agreeing to do it at the proper time which I suppose was a week thereafter. In the meantime, the company sustained a heavy fire loss, not the fire of April 18th, but the previous fire, which caused them a great deal of damage, and I told Mr. Drum that it would be necessary for me, in order to protect the interests of the company and theinterestswhich he represented, to have an additional attorney’s fee and I told him that I thought it would require $20,000. He considered the matter and one day, a day or two afterward, he agreed to pay me the additional attorney’s fee of $20,000 which I thereafter received.“Q. Where did the conversation take place in which you told him about the necessity of having the $20,000? A. At his office in the Mills Building.”
Ruef on this point testified before the Grand Jury as follows:
“I received from Mr. Frank G. Drum, $20,000 as an attorney’s fee as spoken of between ourselves, about the time that the gas rates were being fixed. Of that money, I gave to Mr. Gallagher for the Board of Supervisors about, as I remember It now, $14,000. It may have been a few hundred dollars more or less. I think about $14,000. Mr. Drum spoke to me about employing me in the service of the company some month or two before, I believe, and engaged me as attorney to represent the interests, as I understood it from him, which he represented in the company, at $1000 a month, of which I received, I believe, for two or three months. At the time of the fixing of the gas rates some of the Supervisors, as I was informed by Supervisor Gallagher, insisted upon fixing an extremely low rate, such a rate as would have been ruinous to the business of the company, a rate which neither I nor any one who had looked up the question would have considered under any circumstances to be reasonable, proper or maintainable, and said they were determined absolutely to reduce those rates. The matter was brought up at one of the Sunday evening caucuses and some of the members of the Board of Supervisors insisted that the board had been pledged by its platform to a rate of 75c. per thousand feet; they thought that was even too much and made some strong speeches and others maintained the 75c. rate and they contemplated fixing the 75c. rate that evening, that is to say, agreeing to do it at the proper time which I suppose was a week thereafter. In the meantime, the company sustained a heavy fire loss, not the fire of April 18th, but the previous fire, which caused them a great deal of damage, and I told Mr. Drum that it would be necessary for me, in order to protect the interests of the company and theinterestswhich he represented, to have an additional attorney’s fee and I told him that I thought it would require $20,000. He considered the matter and one day, a day or two afterward, he agreed to pay me the additional attorney’s fee of $20,000 which I thereafter received.
“Q. Where did the conversation take place in which you told him about the necessity of having the $20,000? A. At his office in the Mills Building.”
[205]Although the Graft Prosecution was to be effectively opposed by Union Labor party leaders, the San Francisco Labor Council, made up of representatives of practically every San Francisco labor union, on the night of March 23, 1907, adopted resolutions declaring for the prosecution of bribe-givers as follows:“Whereas, The indictments issued during the past few days by the San Francisco Grand Jury against certain individuals involve specific charges of flagrant and widespread corruption on the part of many members of the present city government; and whereas, said government, having adopted the name of ‘Union Labor’ has professed particular concern for the welfare of the working class, as represented by organized labor, and has sought and secured election upon pledges of loyalty to the principles, economic and political, to which organized labor everywhere is committed; and whereas, the alleged conduct of the city government is not only grossly repugnant to the principles of organized labor, but violates every rule of common honesty; and whereas, the conduct of the ‘Union Labor’ government and the inevitable association thereof with the character of the labor movement is calculated to lead to public misconception of the latter and thus to injure it and lessen its efficiency in its chosen field, therefore be it“Resolved, By the San Francisco Labor Council, that we declare that every corruptionist, briber and bribed, should be prosecuted and punished according to law, and hereby pledge our co-operation to that end; further“Resolved, That we reassert the position of the San Francisco Labor Council as a body organized and conducted for purely economic purposes, having no connection, direct or implied, with the Union Labor party or any other political party or organization, and therefore being in no way responsible for the conduct or misconduct of any such party or organization; further“Resolved, That we also reaffirm our belief that the private ownership of public utilities constitutes the chief source of public corruption, and is in fact a premium thereon, and therefore ought to be displaced by the system of public ownership of public utilities.”
Although the Graft Prosecution was to be effectively opposed by Union Labor party leaders, the San Francisco Labor Council, made up of representatives of practically every San Francisco labor union, on the night of March 23, 1907, adopted resolutions declaring for the prosecution of bribe-givers as follows:
“Whereas, The indictments issued during the past few days by the San Francisco Grand Jury against certain individuals involve specific charges of flagrant and widespread corruption on the part of many members of the present city government; and whereas, said government, having adopted the name of ‘Union Labor’ has professed particular concern for the welfare of the working class, as represented by organized labor, and has sought and secured election upon pledges of loyalty to the principles, economic and political, to which organized labor everywhere is committed; and whereas, the alleged conduct of the city government is not only grossly repugnant to the principles of organized labor, but violates every rule of common honesty; and whereas, the conduct of the ‘Union Labor’ government and the inevitable association thereof with the character of the labor movement is calculated to lead to public misconception of the latter and thus to injure it and lessen its efficiency in its chosen field, therefore be it
“Resolved, By the San Francisco Labor Council, that we declare that every corruptionist, briber and bribed, should be prosecuted and punished according to law, and hereby pledge our co-operation to that end; further
“Resolved, That we reassert the position of the San Francisco Labor Council as a body organized and conducted for purely economic purposes, having no connection, direct or implied, with the Union Labor party or any other political party or organization, and therefore being in no way responsible for the conduct or misconduct of any such party or organization; further
“Resolved, That we also reaffirm our belief that the private ownership of public utilities constitutes the chief source of public corruption, and is in fact a premium thereon, and therefore ought to be displaced by the system of public ownership of public utilities.”
[206]At the time Patrick Calhoun held the office of President of the United Railroads; Mullally was assistant to the President; Ford general counsel for the corporation. Abbott was Ford’s assistant.
At the time Patrick Calhoun held the office of President of the United Railroads; Mullally was assistant to the President; Ford general counsel for the corporation. Abbott was Ford’s assistant.
[207]The statements contained in this chapter are based on affidavits filed in the case of The People vs. Patrick Calhoun et al., No. 823. Many of the statements are qualified, and in many instances denied, in affidavits filed by Ruef, his friends, associates and attorneys, in the same proceedings.
The statements contained in this chapter are based on affidavits filed in the case of The People vs. Patrick Calhoun et al., No. 823. Many of the statements are qualified, and in many instances denied, in affidavits filed by Ruef, his friends, associates and attorneys, in the same proceedings.
[208]In this connection, in discussing the difficulties in the way of bringing criminals to trial, the San Francisco Chronicle, in its issue of March 14, 1907, said:“The penal laws of California are admirable, and cover almost every transaction deserving moral reprobation. The only reason why all our people are not either virtuous or in jail is that the same Legislatures which have so carefully defined crimes and prescribed punishments have been still more careful to enact codes of criminal procedure that nobody can be convicted of any crime if he has the cash to pay for getting off. And what the legislatures have failed to do in this direction the courts have usually made good.”
In this connection, in discussing the difficulties in the way of bringing criminals to trial, the San Francisco Chronicle, in its issue of March 14, 1907, said:
“The penal laws of California are admirable, and cover almost every transaction deserving moral reprobation. The only reason why all our people are not either virtuous or in jail is that the same Legislatures which have so carefully defined crimes and prescribed punishments have been still more careful to enact codes of criminal procedure that nobody can be convicted of any crime if he has the cash to pay for getting off. And what the legislatures have failed to do in this direction the courts have usually made good.”
[209]Four years later to a day, March 13, 1911, Ruef was taken to the penitentiary at San Quentin to begin service of his fourteen-year term for bribing a Supervisor.
Four years later to a day, March 13, 1911, Ruef was taken to the penitentiary at San Quentin to begin service of his fourteen-year term for bribing a Supervisor.
[210]As the impaneling of the Ruef jury proceeded, that Ruef’s nerve was breaking became apparent to all who saw him. The Chronicle, in its issue of March 18, 1907, thus describes his condition:“Ruef’s nerve is breaking down. He is a prey to doubts and fears which never troubled him in those days when he could see his political henchmen every day and bolster up their confidence in his ability to fight off the prosecution. Reports reach his ears of confessions of guilt on the part of some of his official puppets, of the sinister activities of Burns and his agents and treachery on the part of those whom he considered his most devoted adherents, and fill him with alarm.“It was different when he could hold his Sunday evening caucus with the members of the Board of Supervisors, and reassure them that all would be well. He knows the men he used in his political schemes and their weaknesses.”
As the impaneling of the Ruef jury proceeded, that Ruef’s nerve was breaking became apparent to all who saw him. The Chronicle, in its issue of March 18, 1907, thus describes his condition:
“Ruef’s nerve is breaking down. He is a prey to doubts and fears which never troubled him in those days when he could see his political henchmen every day and bolster up their confidence in his ability to fight off the prosecution. Reports reach his ears of confessions of guilt on the part of some of his official puppets, of the sinister activities of Burns and his agents and treachery on the part of those whom he considered his most devoted adherents, and fill him with alarm.
“It was different when he could hold his Sunday evening caucus with the members of the Board of Supervisors, and reassure them that all would be well. He knows the men he used in his political schemes and their weaknesses.”
[211]Heney, in instructing Burns as to his policy regarding Ruef, took occasion to state to the detective his attitude toward the broken boss. In an affidavit filed in the case of The People vs. Calhoun et al., No. 823, Heney sets forth that he told Burns: “Ruef was not a mere accessory or tool in the commission of these briberies. He is a man of extraordinary brain power, keen intelligence, fine education, with the choice of good environment, great power of persuasion over men, dominating personality, great shrewdness and cunning, coupled with a greedy and avaricious disposition. He has not been led into the commission of these crimes through weakness, but on the contrary has aided in the initiation of them and has joined hands with the most vicious and depraved elements in the city to secure unlawful protection for them in conducting their resorts of vice, and has joined hands with the special privilege seeking classes to place improper burdens upon the people of this city by granting franchises to public service corporations which ought never to have been granted, and by fixing rates which may be charged by them in excess of the amounts which such rates ought to be, and thus indirectly robbing the poor people of this city of a large part of their meagre earnings, and that to let Ruef go free of all punishment under such circumstances would be a crime against society.”
Heney, in instructing Burns as to his policy regarding Ruef, took occasion to state to the detective his attitude toward the broken boss. In an affidavit filed in the case of The People vs. Calhoun et al., No. 823, Heney sets forth that he told Burns: “Ruef was not a mere accessory or tool in the commission of these briberies. He is a man of extraordinary brain power, keen intelligence, fine education, with the choice of good environment, great power of persuasion over men, dominating personality, great shrewdness and cunning, coupled with a greedy and avaricious disposition. He has not been led into the commission of these crimes through weakness, but on the contrary has aided in the initiation of them and has joined hands with the most vicious and depraved elements in the city to secure unlawful protection for them in conducting their resorts of vice, and has joined hands with the special privilege seeking classes to place improper burdens upon the people of this city by granting franchises to public service corporations which ought never to have been granted, and by fixing rates which may be charged by them in excess of the amounts which such rates ought to be, and thus indirectly robbing the poor people of this city of a large part of their meagre earnings, and that to let Ruef go free of all punishment under such circumstances would be a crime against society.”
[212]Running through the affidavits which resulted from the differences between the forces of the prosecution and the defense concerning these negotiations, is a thread of suggestion that individual members of the prosecution differed as to the policy that should be followed toward Ruef. Burns, the detective, leaned toward granting him complete immunity. Heney was unalterably opposed to this course. Langdon, on the whole, sided with Heney.
Running through the affidavits which resulted from the differences between the forces of the prosecution and the defense concerning these negotiations, is a thread of suggestion that individual members of the prosecution differed as to the policy that should be followed toward Ruef. Burns, the detective, leaned toward granting him complete immunity. Heney was unalterably opposed to this course. Langdon, on the whole, sided with Heney.
[213]See Heney’s affidavit in the matter of The People vs. Patrick Calhoun et al., No. 823.
See Heney’s affidavit in the matter of The People vs. Patrick Calhoun et al., No. 823.
[214]Nieto, according to Heney, had endeavored to make it appear that race prejudice entered into the prosecution of Ruef. Heney, in an affidavit filed in the case of The People vs. Calhoun et al., No. 823, tells of Nieto’s interference even when the Oliver Grand Jury was being impaneled. Heney says: “During the latter part of October or the first week in November, 1906, while said Grand Jury was being impaneled, Dr. Jacob Nieto introduced himself to me in the court room of Department No. 10, where I had noticed that he was a constant attendant and close observer of the proceedings connected with the impaneling of the Grand Jury.“Some days after he had introduced himself to me he stepped up to me, just as court had adjourned and after I had been examining some of the grand jurors as to their qualifications, and said in substance:“‘Mr. Heney, it seems to me that you discriminate somewhat against the Jews in examining jurors, and I think that in your position you ought to be more careful not to exhibit any prejudice against a man on account of his religion.’“I asked what in particular I had done to cause him to criticise my conduct in that way, and he referred to some question which I had asked a grand juror, but which I cannot now recollect. I then said to him in substance:“‘Why, Doctor, you are supersensitive. Some of the best friends I have in the world are Jews, and some of the best clients I ever had in my life were Jews, and I have no prejudice against any man merely on account of his religious belief. I am sorry that you have so misapprehended the purpose and motives of my questions to jurors.’“On a subsequent day, during the time the Grand Jury was being impaneled, Dr. Nieto again approached me after an adjournment of the court and again reproached me for having again shown prejudice or discrimination against some grand juror of the Jewish faith by the questions which I asked him * * * and I said to him in substance, in a very emphatic tone of voice: ‘Dr. Nieto, I have heretofore told you that I have no prejudice against any man whatever on account of his religion. All I am trying to do in this matter is to get fair grand jurors, and I am just as willing to trust honest Jews as honest Christians, but I want to make sure that a man is honest, whether a Jew or Christian, and it looks to me as if you are trying to find some excuse to line up in opposition to this prosecution. I do not see why you need to seek for excuses if that is what you want to do. I am conscious of my own singleness of purpose and purity of purpose in examining grand jurors, and it is wholly immaterial to me, therefore, what you or anybody else may think of my method of questioning them.’”As a matter of fact Jews not only sat on the Oliver Grand Jury, but were among the most earnest and effective in sifting the graft scandal to the bottom. But that the false cry that Ruef was persecuted because he was a Jew influenced many of his fellow Jews in his favor is unquestionably true.
Nieto, according to Heney, had endeavored to make it appear that race prejudice entered into the prosecution of Ruef. Heney, in an affidavit filed in the case of The People vs. Calhoun et al., No. 823, tells of Nieto’s interference even when the Oliver Grand Jury was being impaneled. Heney says: “During the latter part of October or the first week in November, 1906, while said Grand Jury was being impaneled, Dr. Jacob Nieto introduced himself to me in the court room of Department No. 10, where I had noticed that he was a constant attendant and close observer of the proceedings connected with the impaneling of the Grand Jury.
“Some days after he had introduced himself to me he stepped up to me, just as court had adjourned and after I had been examining some of the grand jurors as to their qualifications, and said in substance:
“‘Mr. Heney, it seems to me that you discriminate somewhat against the Jews in examining jurors, and I think that in your position you ought to be more careful not to exhibit any prejudice against a man on account of his religion.’
“I asked what in particular I had done to cause him to criticise my conduct in that way, and he referred to some question which I had asked a grand juror, but which I cannot now recollect. I then said to him in substance:
“‘Why, Doctor, you are supersensitive. Some of the best friends I have in the world are Jews, and some of the best clients I ever had in my life were Jews, and I have no prejudice against any man merely on account of his religious belief. I am sorry that you have so misapprehended the purpose and motives of my questions to jurors.’
“On a subsequent day, during the time the Grand Jury was being impaneled, Dr. Nieto again approached me after an adjournment of the court and again reproached me for having again shown prejudice or discrimination against some grand juror of the Jewish faith by the questions which I asked him * * * and I said to him in substance, in a very emphatic tone of voice: ‘Dr. Nieto, I have heretofore told you that I have no prejudice against any man whatever on account of his religion. All I am trying to do in this matter is to get fair grand jurors, and I am just as willing to trust honest Jews as honest Christians, but I want to make sure that a man is honest, whether a Jew or Christian, and it looks to me as if you are trying to find some excuse to line up in opposition to this prosecution. I do not see why you need to seek for excuses if that is what you want to do. I am conscious of my own singleness of purpose and purity of purpose in examining grand jurors, and it is wholly immaterial to me, therefore, what you or anybody else may think of my method of questioning them.’”
As a matter of fact Jews not only sat on the Oliver Grand Jury, but were among the most earnest and effective in sifting the graft scandal to the bottom. But that the false cry that Ruef was persecuted because he was a Jew influenced many of his fellow Jews in his favor is unquestionably true.
[215]This case was numbered from the indictment, 305. Schmitz was indicted jointly with Ruef in this indictment, and later was convicted under it and sentenced to five years in the penitentiary. See Chapter XVI. The testimony at the Schmitz trial showed that Ruef had taken the extortion money from the French-Restaurant keepers, after Schmitz had acted with him to imperil the French-Restaurant keepers’ liquor licenses, and had given part of the proceeds of the enterprise to Schmitz.
This case was numbered from the indictment, 305. Schmitz was indicted jointly with Ruef in this indictment, and later was convicted under it and sentenced to five years in the penitentiary. See Chapter XVI. The testimony at the Schmitz trial showed that Ruef had taken the extortion money from the French-Restaurant keepers, after Schmitz had acted with him to imperil the French-Restaurant keepers’ liquor licenses, and had given part of the proceeds of the enterprise to Schmitz.
[216]In his affidavit, Heney quotes Rabbi Nieto as saying In substance: “I do not care to get publicly mixed up in the Ruef case, because among other things, I am not a particular friend of Ruef’s, and am not interested in the matter as an individual but only in the welfare of this community. I think that Ruef has grievously sinned against this community and that he can do a great deal to undo the wrongs which he has committed and to clear up the situation, and I have told him that it is his duty to himself and to his family and to the city of his birth to do so. I want you to understand, Mr. Heney, that I have not come here to ask you to let Ruef go free and without punishment. I think he ought to be punished, and I think he ought to give a large part of the money which he obtained from these corporations to the city to improve its streets. He ought to give $300,000 for that purpose, but Ruef thinks more of money than he does of his family, or even of his liberty, and I think he would rather go to the penitentiary than give up any very large amount of it.”
In his affidavit, Heney quotes Rabbi Nieto as saying In substance: “I do not care to get publicly mixed up in the Ruef case, because among other things, I am not a particular friend of Ruef’s, and am not interested in the matter as an individual but only in the welfare of this community. I think that Ruef has grievously sinned against this community and that he can do a great deal to undo the wrongs which he has committed and to clear up the situation, and I have told him that it is his duty to himself and to his family and to the city of his birth to do so. I want you to understand, Mr. Heney, that I have not come here to ask you to let Ruef go free and without punishment. I think he ought to be punished, and I think he ought to give a large part of the money which he obtained from these corporations to the city to improve its streets. He ought to give $300,000 for that purpose, but Ruef thinks more of money than he does of his family, or even of his liberty, and I think he would rather go to the penitentiary than give up any very large amount of it.”
[217]Heney, in his affidavit, makes the following statement of his impression of Kaplan: “Dr. Kaplan appeared to be far more interested in finding out just what would be done to Ruef, provided he plead guilty in the French Restaurant case than he was in the moral issue which was involved in the discussion, or in the beneficial effect which the testimony of Ruef might have upon the deplorable situation then existing in San Francisco on account of its municipal corruption.“This was evidenced more from his manner and form of questioning than by anything which he said. I immediately became convinced that he was influenced by no motive or purpose other than that of getting Ruef off without any punishment if possible; but I also formed the opinion that he was honest and unsophisticated.”
Heney, in his affidavit, makes the following statement of his impression of Kaplan: “Dr. Kaplan appeared to be far more interested in finding out just what would be done to Ruef, provided he plead guilty in the French Restaurant case than he was in the moral issue which was involved in the discussion, or in the beneficial effect which the testimony of Ruef might have upon the deplorable situation then existing in San Francisco on account of its municipal corruption.
“This was evidenced more from his manner and form of questioning than by anything which he said. I immediately became convinced that he was influenced by no motive or purpose other than that of getting Ruef off without any punishment if possible; but I also formed the opinion that he was honest and unsophisticated.”
[218]Heney, in his affidavit, states: “During the conversation Ach stated, in substance: ‘You can’t convict Ruef in this French Restaurant case, but I realize that you are sure to convict him in some of the bribery cases, and I think it is useless for him to stand out and fight any longer, he had better take the best he can get, and I have told him so. He insists, however, that he ought not to be required to plead guilty in the French Restaurant case, or to submit to any punishment.’”
Heney, in his affidavit, states: “During the conversation Ach stated, in substance: ‘You can’t convict Ruef in this French Restaurant case, but I realize that you are sure to convict him in some of the bribery cases, and I think it is useless for him to stand out and fight any longer, he had better take the best he can get, and I have told him so. He insists, however, that he ought not to be required to plead guilty in the French Restaurant case, or to submit to any punishment.’”
[219]In the course of the interview, Langdon stated to Ach and the two Rabbis that he had authorized Heney to conduct the negotiations for him, but that he wanted it to be distinctly understood by everybody that he had the final say in the matter and would exercise it, and that no agreement could be concluded without his personal sanction.
In the course of the interview, Langdon stated to Ach and the two Rabbis that he had authorized Heney to conduct the negotiations for him, but that he wanted it to be distinctly understood by everybody that he had the final say in the matter and would exercise it, and that no agreement could be concluded without his personal sanction.
[220]Heney, In his affidavit describing these meetings, states that Ach, Kaplan and Nieto habitually came In the back way so they would not be seen by newspaper reporters who at the time frequented the front halls of the private residence in which Heney, after the fire, had his offices. Ach, Heney states, was desirous of not being known as party to the negotiations. Heney in his affidavit says: “In this same conversation (at the first conference) Ach said in substance: ‘I want everybody here to agree that the fact that I participated in this conference, or had anything to do with advising Ruef to turn state’s evidence, shall never be made known; it would absolutely ruin my business if it became known. A lot of the people whom Ruef will involve as accomplices are close friends of clients of mine. Of course I do not know just whom he will involve, but I do have a general idea. For instance, while he has never told me so in so many words, I understand that he will involve William F. Herrin. Now just to illustrate to you how it would affect me in business if it was known that I participated in urging Ruef to do this I will tell you that I am attorney for one company, an oil company, that pays me ten thousand dollars a year as a salary for attending to its business, and Herrin is one of the directors of the company and undoubtedly has sufficient influence with the other directors to take this client away from me. This is only one instance, and there are many others.’”
Heney, In his affidavit describing these meetings, states that Ach, Kaplan and Nieto habitually came In the back way so they would not be seen by newspaper reporters who at the time frequented the front halls of the private residence in which Heney, after the fire, had his offices. Ach, Heney states, was desirous of not being known as party to the negotiations. Heney in his affidavit says: “In this same conversation (at the first conference) Ach said in substance: ‘I want everybody here to agree that the fact that I participated in this conference, or had anything to do with advising Ruef to turn state’s evidence, shall never be made known; it would absolutely ruin my business if it became known. A lot of the people whom Ruef will involve as accomplices are close friends of clients of mine. Of course I do not know just whom he will involve, but I do have a general idea. For instance, while he has never told me so in so many words, I understand that he will involve William F. Herrin. Now just to illustrate to you how it would affect me in business if it was known that I participated in urging Ruef to do this I will tell you that I am attorney for one company, an oil company, that pays me ten thousand dollars a year as a salary for attending to its business, and Herrin is one of the directors of the company and undoubtedly has sufficient influence with the other directors to take this client away from me. This is only one instance, and there are many others.’”
[221]See affidavits of Francis J. Heney and Judge William P. Lawlor on file in the case of The People vs. Patrick Calhoun et al., No. 823.
See affidavits of Francis J. Heney and Judge William P. Lawlor on file in the case of The People vs. Patrick Calhoun et al., No. 823.
[222]See Heney’s affidavit in the case of The People vs. Patrick Calhoun et als., No. 823.
See Heney’s affidavit in the case of The People vs. Patrick Calhoun et als., No. 823.
[223]Ruef in this confession to Burns stated that he had received $200,000 from General Tirey L. Ford, head of the United Railroads law department. Of this amount, he said $50,000 he had given to Schmitz and retained $50,000 for himself. Ruef, five years later, in his story “The Road I Traveled,” published in the San Francisco Bulletin, again stated that he had received $200,000 from Ford, of which he gave to Schmitz $50,000, to Gallagher his share for the Supervisors, and retained $50,000 for himself. Gallagher received $85,000. This leaves a balance of $15,000 which Mr. Ruef does not account for.
Ruef in this confession to Burns stated that he had received $200,000 from General Tirey L. Ford, head of the United Railroads law department. Of this amount, he said $50,000 he had given to Schmitz and retained $50,000 for himself. Ruef, five years later, in his story “The Road I Traveled,” published in the San Francisco Bulletin, again stated that he had received $200,000 from Ford, of which he gave to Schmitz $50,000, to Gallagher his share for the Supervisors, and retained $50,000 for himself. Gallagher received $85,000. This leaves a balance of $15,000 which Mr. Ruef does not account for.
[224]It is significant to note in this connection that Heney did not call Ruef as a witness before the Grand Jury in the United Railroads cases until after the Grand Jury had found indictments against the officials of that corporation. In the opinion of the Grand Jurors, the testimony, exclusive of that of Ruef, justified these indictments.
It is significant to note in this connection that Heney did not call Ruef as a witness before the Grand Jury in the United Railroads cases until after the Grand Jury had found indictments against the officials of that corporation. In the opinion of the Grand Jurors, the testimony, exclusive of that of Ruef, justified these indictments.
[225]The immunity contract signed by Ruef and the District Attorney will be found in full in the appendix.
The immunity contract signed by Ruef and the District Attorney will be found in full in the appendix.
[226]At the completion of the Ruef Jury, the Chronicle, issue of May 15, 1907, said:“The Ruef jury is complete and we are now in a way to learn all the truth about the particular crime for which Ruef is this time on trial, but which, compared with most other crimes for which he has been indicted, is a mere peccadillo. That Ruef got the money is proved, for he has confessed. His defense, of course, will be that the French-Restaurant proprietors voluntarily presented him with it. The state will have to prove, in order to secure a conviction, that they did not give the money voluntarily, but yielded it up under threats which they believed it to be in his power to execute. If the state fails to prove that Ruef will stand before the community merely as a moral leper, loathsome to be sure, and despicable almost beyond human conception, but yet not proved guilty of that for which the law prescribes punishment in state’s prison. If proper proof cannot be made he must, of course, be acquitted of this crime and at once put on trial for another. Nothing is gained by society by the conviction even of the most unmitigated scoundrel on insufficient testimony. But when the proof is sufficient the salvation of society demands punishment, and more particularly of punishment of the rich criminal.”
At the completion of the Ruef Jury, the Chronicle, issue of May 15, 1907, said:
“The Ruef jury is complete and we are now in a way to learn all the truth about the particular crime for which Ruef is this time on trial, but which, compared with most other crimes for which he has been indicted, is a mere peccadillo. That Ruef got the money is proved, for he has confessed. His defense, of course, will be that the French-Restaurant proprietors voluntarily presented him with it. The state will have to prove, in order to secure a conviction, that they did not give the money voluntarily, but yielded it up under threats which they believed it to be in his power to execute. If the state fails to prove that Ruef will stand before the community merely as a moral leper, loathsome to be sure, and despicable almost beyond human conception, but yet not proved guilty of that for which the law prescribes punishment in state’s prison. If proper proof cannot be made he must, of course, be acquitted of this crime and at once put on trial for another. Nothing is gained by society by the conviction even of the most unmitigated scoundrel on insufficient testimony. But when the proof is sufficient the salvation of society demands punishment, and more particularly of punishment of the rich criminal.”
[227]Ruef’s statement was in full as follows:“If your honor please, with the permission of the court, I desire to make a statement. I do so after only a short consultation with my attorneys, to whom I have only within the last half hour disclosed my determination, and against their express protest. I take this occasion to thank them for their services, fidelity and friendship. Notwithstanding the Court’s finding yesterday that this trial might safely be carried on without serious injury to my health, physical or mental, I wish to assure you that my personal condition is such that I am at the present time absolutely unable to bear for two or three months daily the strain of an actual trial of this case, the constant, continual, nightly preparations therefor, the necessary consultation and conversation with my attorneys in regard thereto, to say nothing of other cares and responsibilities.“Moreover, the strain of these proceedings upon those whom I hold nearest and dearest of all on earth has been so grave and severe that as a result of these prosecutions their health has all been undermined, they are on the verge of immediate collapse and their lives are indeed now actually in the balance.“I have occupied a somewhat prominent position in this city of my birth, in which I have lived all my life, where are all my ties and interests, whence, when the time shall come, I hope to pass into the eternal sleep. I have borne an honored name. In my private and in my professional life there has been no stain. In my public affiliations, until after the municipal campaign of 1905 and the election of the present Board of Supervisors, the abhorrent charges of the press to the contrary notwithstanding, no action of mine ever gave just ground for adverse criticism or deserved censure; but the assaults of the press and its failure to credit honesty of purpose, a desire to hold together a political organization which had been built up with much effort, the means of otherwise holding them, did after the election of this Board of Supervisors in a measure influence me and the high ideals for which I had heretofore striven.“During the past few weeks I have thought deeply and often of this situation, its causes and conditions. To offer excuses now would be folly. To make an effort at some reparation for the public good is, however, more than possible; to assist in making more difficult, if not impossible, the system which dominates our public men and corrupts our politics will be a welcome task.“I have decided that whatever energy or abilities I possess for the future shall be devoted even in the humblest capacity to restoring the ideals which have been lowered; shall, as soon as opportunity be accorded, be re-enlisted on the side of good citizenship and integrity. May it be allotted to me at some time hereafter to have at least some small part in re-establishment on a clear, sane basis, a plane of high civic morality, just reciprocal relations between the constantly struggling constituent element of our governmental and industrial life.“In the meantime I begin by earnestness of purpose, a purpose to make the greatest sacrifice which can befall a human being of my disposition to make, to acknowledge whatever there may have been of wrong or mistake and so far as may be within my power to make it right.“I reached this final determination last night after careful reflection and deliberation. Where duty calls I intend to follow, whither hereafter the path of my life may lead and however unpleasant and painful may be the result. I make this statement so that the Court and the whole world may know at least the motives which have guided me in the step I am about to take.“As an earnest I have determined to make a beginning, I am not guilty of the offense charged in this indictment. I ask now, however, that this jury be dismissed from further consideration of this case. I desire to withdraw my plea of not guilty heretofore entered and to enter the contrary plea, and at the proper time submit to the Court further suggestions for its consideration.”
Ruef’s statement was in full as follows:
“If your honor please, with the permission of the court, I desire to make a statement. I do so after only a short consultation with my attorneys, to whom I have only within the last half hour disclosed my determination, and against their express protest. I take this occasion to thank them for their services, fidelity and friendship. Notwithstanding the Court’s finding yesterday that this trial might safely be carried on without serious injury to my health, physical or mental, I wish to assure you that my personal condition is such that I am at the present time absolutely unable to bear for two or three months daily the strain of an actual trial of this case, the constant, continual, nightly preparations therefor, the necessary consultation and conversation with my attorneys in regard thereto, to say nothing of other cares and responsibilities.
“Moreover, the strain of these proceedings upon those whom I hold nearest and dearest of all on earth has been so grave and severe that as a result of these prosecutions their health has all been undermined, they are on the verge of immediate collapse and their lives are indeed now actually in the balance.
“I have occupied a somewhat prominent position in this city of my birth, in which I have lived all my life, where are all my ties and interests, whence, when the time shall come, I hope to pass into the eternal sleep. I have borne an honored name. In my private and in my professional life there has been no stain. In my public affiliations, until after the municipal campaign of 1905 and the election of the present Board of Supervisors, the abhorrent charges of the press to the contrary notwithstanding, no action of mine ever gave just ground for adverse criticism or deserved censure; but the assaults of the press and its failure to credit honesty of purpose, a desire to hold together a political organization which had been built up with much effort, the means of otherwise holding them, did after the election of this Board of Supervisors in a measure influence me and the high ideals for which I had heretofore striven.
“During the past few weeks I have thought deeply and often of this situation, its causes and conditions. To offer excuses now would be folly. To make an effort at some reparation for the public good is, however, more than possible; to assist in making more difficult, if not impossible, the system which dominates our public men and corrupts our politics will be a welcome task.
“I have decided that whatever energy or abilities I possess for the future shall be devoted even in the humblest capacity to restoring the ideals which have been lowered; shall, as soon as opportunity be accorded, be re-enlisted on the side of good citizenship and integrity. May it be allotted to me at some time hereafter to have at least some small part in re-establishment on a clear, sane basis, a plane of high civic morality, just reciprocal relations between the constantly struggling constituent element of our governmental and industrial life.
“In the meantime I begin by earnestness of purpose, a purpose to make the greatest sacrifice which can befall a human being of my disposition to make, to acknowledge whatever there may have been of wrong or mistake and so far as may be within my power to make it right.
“I reached this final determination last night after careful reflection and deliberation. Where duty calls I intend to follow, whither hereafter the path of my life may lead and however unpleasant and painful may be the result. I make this statement so that the Court and the whole world may know at least the motives which have guided me in the step I am about to take.
“As an earnest I have determined to make a beginning, I am not guilty of the offense charged in this indictment. I ask now, however, that this jury be dismissed from further consideration of this case. I desire to withdraw my plea of not guilty heretofore entered and to enter the contrary plea, and at the proper time submit to the Court further suggestions for its consideration.”
[228]The Chronicle, to its issue of May 16, said of Ruef’s confessions:“Abraham Ruef should have thought of his family before he entered upon his career of crime. They are innocent and the public need not, as indeed it cannot, withhold its sympathy for them. The most terrible punishment which is inflicted on such criminals is the distress which their crimes brings upon the innocent persons who have been accustomed to respect and honor them. But it is the inexorable doom which crime brings upon itself.“For Ruef himself the only sympathy possible is that which one might feel for a wolf which, having devastated the sheep fold, has been pursued, brought to bay and, after a long fight, finally disposed of. It is not a case in which the safety of society permits leniency to be shown. Ruef has corrupted every branch of the city government which he could get hold of and brought the city almost to the verge of ruin. Seldom has a man occupying an unofficial station in life been able to achieve so much evil. It will be many a year before San Francisco can outlive the shame which the man Ruef has brought upon her.“He has not been ingenuous even in his confession, for while pleading guilty as charged, he professes to be not guilty of this particular crime—meaning merely by that that he did not extort the money by threats within the meaning of the law. Witnesses, however, would have sworn that he did so. It is unthinkable that such sums should have been paid him voluntarily by the restaurant keepers. All that Ruef can mean by his profession of ‘innocence’ while pleading guilty, is a claim that he succeeded in terrifying the restaurant men into submitting to blackmail without the use of words which the law would construe as a threat. There is no moral difference between what Ruef would claim that he did and the crime to which he has pleaded guilty.“Ruef also shows his disingenuousness by attributing his situation to ‘the assaults of the press.’ Doubtless he has been assaulted by the press. But the press has accused him of nothing but what he has confessed and intimated. What fault has he to find with that? Shall the press remain silent while thieves plunder a distressed city and rob it of its good name? Ruef fought the forces of decency until he could fight no longer. No man is strong enough to stand up against the wrath of an outraged community. His physical collapse was inevitable and the only mantle which charity can throw over him is that his physical weakness broke down his mental faculties and caused the self-contradictions in what is a virtual confession of all that he has been charged with.”
The Chronicle, to its issue of May 16, said of Ruef’s confessions:
“Abraham Ruef should have thought of his family before he entered upon his career of crime. They are innocent and the public need not, as indeed it cannot, withhold its sympathy for them. The most terrible punishment which is inflicted on such criminals is the distress which their crimes brings upon the innocent persons who have been accustomed to respect and honor them. But it is the inexorable doom which crime brings upon itself.
“For Ruef himself the only sympathy possible is that which one might feel for a wolf which, having devastated the sheep fold, has been pursued, brought to bay and, after a long fight, finally disposed of. It is not a case in which the safety of society permits leniency to be shown. Ruef has corrupted every branch of the city government which he could get hold of and brought the city almost to the verge of ruin. Seldom has a man occupying an unofficial station in life been able to achieve so much evil. It will be many a year before San Francisco can outlive the shame which the man Ruef has brought upon her.
“He has not been ingenuous even in his confession, for while pleading guilty as charged, he professes to be not guilty of this particular crime—meaning merely by that that he did not extort the money by threats within the meaning of the law. Witnesses, however, would have sworn that he did so. It is unthinkable that such sums should have been paid him voluntarily by the restaurant keepers. All that Ruef can mean by his profession of ‘innocence’ while pleading guilty, is a claim that he succeeded in terrifying the restaurant men into submitting to blackmail without the use of words which the law would construe as a threat. There is no moral difference between what Ruef would claim that he did and the crime to which he has pleaded guilty.
“Ruef also shows his disingenuousness by attributing his situation to ‘the assaults of the press.’ Doubtless he has been assaulted by the press. But the press has accused him of nothing but what he has confessed and intimated. What fault has he to find with that? Shall the press remain silent while thieves plunder a distressed city and rob it of its good name? Ruef fought the forces of decency until he could fight no longer. No man is strong enough to stand up against the wrath of an outraged community. His physical collapse was inevitable and the only mantle which charity can throw over him is that his physical weakness broke down his mental faculties and caused the self-contradictions in what is a virtual confession of all that he has been charged with.”