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“THE SYSTEM”
AS UNCOVERED BY
The San Francisco Graft Prosecution

BY

FRANKLIN HICHBORN

(Author of “The Story of the California Legislature of 1909”;
“The Story of the California Legislature of 1911”; and “The
Story of the California Legislature of 1913.”)

“It is well enough, my fellow-citizens, to meet as we do to-night, and to applaud the sentiments of patriotism, and to echo the voice of indignation uttered upon this rostrum. But another and more imperative duty devolves upon every one of us individually, and that is to give his and her moral support to the officers of the law. We must not content ourselves by merely adopting a set of resolutions, and then going home and forgetting about it, placing all responsibility upon the constituted authorities. This is not a case of the constituted authorities. It is the case of the people of San Francisco. And unless the people of San Francisco do their individual duty in supporting the prosecution, the officials of the courts and of the law must fail in their efforts.”—Walter Macarthur at the mass meeting called at the time of the attempted assassination of Heney.

COPYRIGHT, 1915
by
FRANKLIN HICHBORN

San Francisco
Press of The James H. Barry Company
1915

FRANKLIN HICHBORN’S
BOOKS ON
CALIFORNIA POLITICS

CONTENTS

APPENDIX.

PREFACE.

A tethered bull does not know that he is tied until he attempts to go beyond the rope’s limits.

A community does not feel the grip of the “System” until it attempts resistance. Then it knows.

San Francisco during the Ruef-Schmitz regime was no more under the heel of the “System” than when other “bosses” dominated; no more so than to-day; no more so than other communities have been and are.

The political “boss” is merely the visible sign of the “System’” existence. However powerful he may appear, he is, after all, but agent for the “System.” The “boss” develops power, does the “System’s” work until he is repudiated by the people, when another “boss,” usually in the name of “reform,” takes his place.

But the second “boss” serves the same “System.” Ruef entered San Francisco politics as a “reformer.” He supplanted other “bosses.” But Ruef in his turn served the “System” they had served.

San Francisco, when Ruef had reached his point of greatest possible power, rose against him. The “System” was not immediately concerned. Ruef had lived his day; the hour for another “boss” to succeed him had come. But San Francisco proposed to get at those back of the “boss”; to get at the “System.” And then San Francisco found the “System” more powerful than herself; more powerful than the State of California.

And San Francisco was beaten down, humiliated, made to understand that within her borders the laws could not be enforced against those to whom the “System” granted immunity from punishment.

To secure evidence against bribe-givers, the State granted immunity to bribe-takers who confessed their crimes and joined with the State to bring larger criminals to justice. And the “System’s” agents cried outrage that bribe-takers should go free of punishment.

But the “System” granted immunity from punishment to those who had bribed. And the apologists for the “System” will tolerate no criticism of this sort of immunity.

Other communities have risen against the “System’s” agents, the “bosses,” and the “bosses” have given place to other agents. But few communities, if any, have attacked the “System” as did San Francisco. Had they done so, unquestionably they would have found themselves as ineffective against corruption as San Francisco has been shown to be.

The “System” is confined to no particular State or locality; it permeates our entire public life. Judge Lindsey in Colorado calls it “The Beast.” In California we call it “The Southern Pacific Machine,” for in California the Southern Pacific Company was its chief beneficiary. Other communities call it the “Organization.” The bull does not discover his rope until he strains at it; the community knows little or nothing of the overpowering “System” until it resists. San Francisco resisted and discovered.

The mere bribing of a board of supervisors was not extraordinary. Our newspapers furnish us daily with sorry recital of bribe-taking public officials discovered in other communities. But the effective, searching resistance to bribe-giving which San Francisco offered was extraordinary. It was a new thing in American politics. It compelled the “System” to show its real strength, and that, too, was new in American politics, and extraordinary, also.

The “System” at San Francisco had taken the usual precautions which ordinarily ensure it against successful opposition, or even question. It had, through its agents, selected the candidates for public office, including the District Attorney. With the District Attorney loyal to the “System” the “System” was secure against attack. And even were the District Attorney to resist the “System,” still was the “System” secure, for the “System” could deny the District Attorney, through the public officials it controlled, the funds necessary for successful opposition.

But here again extraordinary circumstances worked for the “System’s” confusion. Not only had the “System” been mistaken in the caliber of the man whom it had permitted to be nominated for District Attorney, but patriotic citizens guaranteed the expenses of effective attack through the District Attorney’s office.

Nevertheless, the “System” would ordinarily have been able to laugh at the attack, and render it abortive, by compelling the citizens who were backing the District Attorney to withdraw their support.

Even at San Francisco, the supporters of the District Attorney felt the force of such attack. Those who supported the Prosecution found themselves harassed in their business ventures, and snubbed in the social circles in which they had moved. When Heney, stricken down in the discharge of his duty, lay at the point of death, a minister of the gospel prayed for the wounded Prosecutor’s recovery. Immediately from the pews came silent expression of disapproval. That pastor refused to be intimidated, refused to join with his fashionable congregation against the Prosecution. He was eventually compelled to resign his pastorate. Rudolph Spreckels, while accounting for every dollar that the Graft Prosecution had expended, asked to be excused from naming those who had subscribed to the fund, lest they be attacked. Ordinarily, those citizens whose instincts had led them to guarantee the District Attorney their support, would have been forced to abandon him.

But at San Francisco, a few citizens, in spite of ridicule, abuse, social ostracism and business opposition, stood firm for civic righteousness. This made San Francisco’s attack upon the “System” possible and stirred the “System” to extraordinary resistance.

The “System,” seeing itself threatened, went to the relief of the “boss,” its agent, whom even its chief beneficiaries despised. The “boss,” through his puppet in the Mayor’s chair, declared the office of the District Attorney vacant, and appointed himself to fill the vacancy. The boldness of the move startled the whole community. But the act merely demonstrated the extremes to which the “System” was prepared to go. It was not extraordinary in comparison with what was to follow. Later on, witnesses were to be concealed, intimidated, gotten out of the State; their kidnapping even being attempted. The managing editor of a newspaper opposing the “System” was to be taken on the street in daylight, hurried across the country to a suburban town, forced into a stateroom of an outgoing train, and sent on his way to a distant city. The home of the pivotal witness against the “System”-protected defendants was to be dynamited, the witness and other inmates of the building miraculously escaping with their lives. A public prosecutor was, while conducting one of the “System”-attacking trials, to be shot down in open court. A prisoner at the bar was to arise to denounce the judge on the bench as a partisan and a scoundrel. Thugs were to invade court-rooms while trials were going on, to intimidate “System”-threatening prosecutors and witnesses; men were to be trapped as they offered bribes to trial jurors; agents of the Prosecution were to be bribed to turn over to the defending element the Prosecution’s papers and reports. An agent of the Prosecution in the employ of the Defense, working in the interest of the Defense, was to sit at the Prosecutor’s side during the selection of a trial jury, to advise the Prosecutor of the character of the men under examination for jurors, and with such advice mislead and confuse.

No; bribe-giving at San Francisco was not so extraordinary as the events which grew out of attempt to punish for bribe-giving.

And now, as we look upon San Francisco beaten, and retarded in her development because of that beating, the hopelessness of her opposition to the “System” is the most startling thing of all. We see now, that with a District Attorney intent upon doing his duty, with funds ample for vigorous prosecution guaranteed, with trial judges of integrity and ability on the bench, none of the accused, so long as he remained loyal to the “System”—so long as he did not “snitch”—was in real danger of suffering the law-provided punishment for the crimes uncovered against him.

Ruef carefully weighed the ability of the Prosecution to save him, against the power of the “System” to punish or to save, and knowing the power of the “System” as few other men knew it, Ruef betrayed the Prosecution and cast his lot with the “System.” The outcome would have justified his judgment but for a series of unusual events which none could have foreseen. The most extraordinary incident of the whole Graft Prosecution, we can now, with the “System” uncovered before us, see, was that Abe Ruef went to the penitentiary. With full knowledge of the power, resources and methods of the “System,” it is not at all extraordinary that guilty men under its protection should escape punishment. But it is extraordinary—due only to a chain of extraordinary happenings—that one of its agents, who continued faithful, who didn’t “snitch,” finds himself in prison and unable to get out.

The San Francisco Graft Prosecution uncovered the “System” as it has been uncovered in no other American city, for San Francisco made the hardest, most persistent, and longest continued attack that a municipality has ever made upon it. California has profited greatly because of the uncovering, for while uncovered, the “System” may be proceeded against intelligently, not in the courts, but at the ballot-box. California has been quick to profit by the opportunity which the uncovering of the “System” has offered.

In preparing this volume for the press it is my purpose—so far as lies in my power to do so—to keep the cover off.

FRANKLIN HICHBORN.

Santa Clara, Calif., Dec. 25, 1912.

CHAPTER I.
The Union Labor Party Movement.

Eugene E. Schmitz[1] was elected Mayor of San Francisco in November, 1901. He had been nominated by the Union-Labor party. This party was organized after labor disturbances which had divided San Francisco into militant factions, with organized labor on the one side and organized capital on the other.[2]

The convention which had nominated Schmitz was made up in the main of delegates who had affiliations with labor unions and were in close sympathy with the labor-union movement.

But this did not mean that the new party had the unanimous approval of the labor unions, or of the rank and file of organized labor. A considerable faction, with P. H. McCarthy, president of the State Building Trades Council, even then a dominating figure in San Francisco labor circles, at its head, advised against the movement, and opposed the new party candidates not only in 1901, but in 1903 when Schmitz was a candidate for re-election.

On the other hand, the new party had in the beginning the support of the Coast Seamen’s Journal, published at San Francisco, and one of the most influential labor publications on the Pacific Coast. It had, too, the advocacy of several earnest Labor leaders.

Very frankly, such leaders questioned the ultimate consequences of the movement, expressing fears which time was to justify. But to them the situation offered no alternative. Their support and influence went to the new party as an expedient of the times, not as the beginning of a permanent political organization.

But the movement, once started, got beyond their control. During the first five years of Union-Labor party activities in San Francisco many of these original supporters were forced, first into silence and finally into open repudiation of the methods of the Union-Labor party administration.

In the meantime, members of the McCarthy faction, which had resisted the organization of the party, and had opposed it at the 1901 and 1903 elections, became its strong partisans. This element supported the party ticket at the 1905 election; and in 1907, and again in 1909, when McCarthy was himself the Union-Labor party candidate for Mayor.

But the Union-Labor party ticket which McCarthy headed did not have the united support of labor leaders who had organized the movement. Indeed, labor leaders whom the McCarthy faction in 1901 called “scabs” for organizing the Union-Labor party, were, by the same men who had condemned them in 1901, denounced as “scabs” during the 1909 campaign for not supporting the Union-Labor party candidates.

From the beginning, the Union-Labor party had the support of elements outside the labor-union movement. Much of this support came from citizens who, regardless of their attitude on trade-unionism, were dissatisfied with the old parties. The situation offered exceptional opportunity for the political manipulator. But the one man with the political vision to see the possibilities of the third-party movement, was not a member of a labor union. He was a lawyer who had already attained some prominence in San Francisco politics—Abraham Ruef.[3]

Ruef was quick to see the potentialities of the political Frankenstein which groping labor leaders had brought into being. He knew that they could not control their creation; he knew that he could. He did not overestimate his powers. He managed the new party’s 1901 campaign.[4] Under his direction, success was won for a cause that had been deemed hopeless. The genius of Abraham Ruef made Eugene E. Schmitz Mayor of San Francisco.[5]

In practical acknowledgment of Ruef’s services, Schmitz issued an open letter, in which he stated himself privileged to consider Ruef his friendly counsellor.[6] The issuance of that letter made Ruef the recognized political representative of the Union-Labor party administration, a position which he held until the estrangement of himself and Schmitz under the strain of the graft prosecution.[7]

But the government of San Francisco did not pass entirely under control of the Union-Labor party until four years after Schmitz’s elevation to the Mayoralty.

During the era of Union-Labor party power in San Francisco, the Mayor and the eighteen members of the Board of Supervisors were elected every two years.[8] Schmitz, under Ruef’s management, was re-elected in 1903. But the Union-Labor party failed at that election, as it had in 1901, to elect a majority of the Board of Supervisors. Many of the commissions, on the other hand, through appointments by the mayor, had, by 1903, passed completely under Union-Labor party control.

Gradually, the opinion grew in San Francisco that the management of the departments was unsatisfactory, if not corrupt. This opinion, in 1905, when Schmitz was for a third time the Union-Labor party candidate for Mayor, found expression in fusion of the Republican and Democratic parties to bring about the defeat of the Union-Labor party nominees.

This fusion was in the name of municipal reform. The organizers of the movement were in the main opposed to machine political methods. When, however, the movement gave evidence of vitality and strength, the political agents of public service corporations became identified with its leadership.[9] The new leaders were soon in practical control. Public-service corporations were largely instrumental in financing the movement. Testimony was brought out before the Grand Jury which conducted the graft investigations, that nearly every public-service corporation in San Francisco contributed to the fusion fund, the average of the contributions being $2,500 for each corporation.[10]

On the other hand, the public-service corporations contributed liberally toward the election of the Ruef-backed, Union-Labor party candidates.[11] Ruef was already on the pay-roll of the law departments of many of them. Thus, generally speaking, it made little difference to the corporations whether the “reform” fusion candidates or the Ruef Union-Labor party candidates were elected. The corporations had captained each side, and in a large measure had financed each side.

The inevitable difficulties of a campaign, financed and officered by public-service corporations, to correct municipal ills for which the corporations were in large measure responsible, were encountered from the beginning. For the head of the reform or fusion ticket, men who had been prominent in the organization of the anti-Ruef crusade were suggested, only to be rejected by the corporation allies who had after the reform group’s preliminary successes become identified with the movement.

Finally, after several names had been canvassed, John S. Partridge, an attorney of good ability, and repute, but scarcely known outside the immediate circle in which he moved, was agreed upon as Mr. Schmitz’s opponent. Both the Democrat and the Republican party nominated Mr. Partridge, and with him a complete fusion ticket, including supervisors.

Partridge had a clear field against Schmitz, but his candidacy failed to carry the confidence, or to awake the enthusiasm which brings success at the polls.

The Union-Labor administration was openly denounced as corrupt. Francis J. Heney,[12] fresh from his success in prosecuting the Oregon land fraud cases, went so far as to declare in a speech before one of the largest political gatherings ever assembled in San Francisco that he knew Ruef to be corrupt,[13] and, given opportunity, could prove it.

The public generally believed Heney’s charges to be justified. But of approximately 98,000 registered voters only 68,878 voted for Mayor, and of these, 40,191 voted for Schmitz. Partridge received only 28,687[14] votes, being defeated by a majority of 11,504.

Not only was Schmitz re-elected by overwhelming majority, but the entire Ruef-selected Union-Labor party ticket was elected with him.

Ruef, as Mayor Schmitz’s recognized political adviser, and political agent for the Union-Labor party, found himself in control of every branch and department of the San Francisco municipal government.

CHAPTER II.
The Ruef Board of Supervisors.

No observer of San Francisco politics, not even Ruef himself, had expected the entire Union-Labor party ticket to be elected. The election of the Supervisors was the greatest surprise of all. Ruef, with his political intimates, had selected the Supervisorial candidates, but more with a view to hold the organized labor vote for Schmitz than with idea of the fitness of the candidates for the duties involved in managing the affairs of a municipality of 500,000 population.[15] Not one of the eighteen elected was a man of strong character.[16] Several were of fair, but by no means exceptional ability. Of this type were Gallagher, an attorney of some prominence who acted as go-between between Ruef and the Supervisors; Wilson, who was a sort of second man to Gallagher, and Boxton, a dentist.

But for the most part they were men who had led uneventful lives as drivers of delivery wagons, bartenders and clerks. Without an exception, they saw in their unexpected elevation to the Board of Supervisors opportunity to better their condition. Some of them would not, perhaps, have sought bribes; few of them knew just how they could employ their office to their best advantage; but from the hour of their election the idea of personal advancement was uppermost in the minds of the majority of the members of the Schmitz-Ruef Board of Supervisors.[17] Their ignorance of the requirements of their office, their failure to appreciate their large responsibilities, and above all their ill-defined ambitions made them promise of easy prey for the agents of the public-service corporations, who were playing for special privileges worth millions.

None realized this better than Ruef. From the beginning, he recognized that the likelihood of individual members of the board yielding to temptation to petty gain[18] threatened his own larger purposes. He let it be known that he would himself personally prosecute any one of them whom he discovered to be “grafting.” Ruef was emphatic in his position that the Supervisors should have no financial dealings with those seeking special-privilege advantages. He even defined regular procedure for dealing with persons and corporations that might elect to catch the easiest way to accomplish their purposes by the use of bribe money. To this end he arranged:

(1) That Supervisor James L. Gallagher[19] should represent him on the board. The Supervisors at once accepted Gallagher, and dealt with him as Ruef’s recognized agent.

(2) Finally Ruef arranged for a regular weekly caucus[20] to be held each Sunday night, on the eve of the regular meeting day of the board, Monday.

The public was not admitted to these caucuses. Those who were admitted were Ruef, Mayor Schmitz, George B. Keane,[21] clerk of the Board of Supervisors, who also acted as secretary of the caucus, and the eighteen Supervisors.

At these meetings, which were held every Sunday evening, Ruef was the dominating figure. Supervisor Wilson, testifying at the graft trials, stated that Ruef took the position of “chief counsel and adviser for the board in matters that were to come before the board.”

Keane, as secretary of the caucus, took full notes[22] of the proceedings and sent written notices[23] of the meetings to each of those who were admitted.

The first of these caucuses was held shortly before the Schmitz-Ruef board took office. The organization of the board was provided by the Supervisors authorizing Ruef and Schmitz to make up the committees. Ruef undertook the task. He prepared the committee lists, and submitted his selections to Schmitz and Gallagher. Schmitz and Gallagher suggested unimportant changes. The committees were then announced to the Supervisors at the next caucus. There were objections raised, but these objections, with one exception, were denied in all important particulars. The organization of the Schmitz-Ruef Board of Supervisors was thus perfected.

Ruef’s way seemed clear. The committee organization of the Board of Supervisors was his own. The Supervisors were to hold no open meeting until they had met with him in secret caucus to ascertain his wishes. The official clerk of the board, who was also secretary of the caucus, was his tried henchman. Gallagher, the ablest of the Supervisors, flattered at being made his representative, and further bound by mercenary ties, was ready to do his slightest bidding. And never had entrenched boss more fruitful field for exploitation.

But scarcely had the new administration been installed, than a weak point developed in Ruef’s position. District Attorney William H. Langdon, who had been elected on the Ruef ticket, gave evidence that he proposed to enforce the law, regardless of the effect upon the administration of which he was a part, or upon Ruef’s plans and interests.

The first intimation the public had of Langdon’s independent attitude came when gambling games in which Ruef was popularly supposed to be interested were raided under the personal direction of the District Attorney. Langdon had first attempted to close the places through the police department. Failing, he had attended to the matter himself.[24] The gamblers appealed to Ruef, but Ruef was helpless. Langdon would not be turned from his purpose. The gamblers and capitalists interested in gambling establishments charged Langdon with political ingratitude.

But those who were laboring for the development, and were opposing the exploitation of San Francisco, saw in Langdon’s course the first sign that Abraham Ruef was not to have undisputed sway in San Francisco.[25] With Langdon in the District Attorney’s office it was still possible that the laws could be enforced--even against Abraham Ruef. The raiding of the gambling dens marked the beginning of the division in San Francisco, with those who approached the Ruef administration with bribe money on the one side, and those who resisted with the check of law enforcement on the other.

CHAPTER III.
The San Francisco Ruef Ruled.

The decade ending 1910 was for California an era of extraordinary enterprise and development. A third transcontinental railroad, the Western Pacific, was completed; vast land-holdings as large as 40,000 acres in a body were cut up into small tracts and sold to settlers; waters brought to the land by vast irrigation enterprises increased the land’s productiveness three and even ten fold; petroleum fields, enormously rich, were opened up and developed; the utilization of the falling waters of mountain streams to generate electric power, brought cheap light and power and heat to farm as well as to city factory. The Spanish war had brought thousands of troops to the coast. Practically all of them passed through San Francisco. This particular activity had its influence on local conditions. The State’s population increased from 1,485,053 in 1900 to 2,377,549 in 1910.

Up to the time of the San Francisco fire, April 18, 1906, San Francisco, of the cities of the State, profited most by this development. San Francisco bank clearances, for example, increased from $1,029,582,594.78 for the year ending December 31, 1900, to $1,834,549,788.51 for the year ending December 31, 1905, a gain of 80 per cent.

San Francisco’s increase in population during those five years, can, of course, only be estimated. On the basis of the registration for the 1905 municipal election, approximately 98,000, San Francisco had, at the time of the 1906 disaster, a population of about 500,000, an increase from the population of 342,782 shown by the 1900 census of practically 50 per cent. in five years.[26]

The rapid increase in population, the sustained prosperity of the community, and its prospective development made San Francisco one of the most promising fields for investment in the country.

The public service corporations were quick to take advantage of the San Francisco opportunity. Those corporations already established sought to strengthen their position; new corporations strove for foothold in the promising field. Thus, we find the Home Telephone Company, financed by Ohio and Southern California capitalists, seeking a franchise to operate a telephone system in opposition to the Pacific States Telephone and Telegraph Company, which was already established. And we find the Pacific States Company taking active part in municipal politics to prevent the Home franchise or any other opposition telephone franchise being granted. The corporation holding the light and power monopoly, the Pacific Gas and Electric Company, had by the time of the third Schmitz inaugural, practical control of the San Francisco field. But it was face to face with a clamor for reduction of gas rates. The company was charging one dollar a thousand for gas. The Union-Labor party platform of 1905 pledged the Board of Supervisors to a seventy-five-cents-per-thousand rate.

Another matter of tremendous importance to the growing municipality was that of the supply of water. The Spring Valley Water Company had a monopoly of this necessity, but demand for municipal water to be brought from the Sierras was strong. A committee of experts had been appointed to pass upon the various sources of supply. Ruef appeared before them as spokesman for the Supervisors. The experts resigned when it was made clear to them that instead of being permitted to make an adequate study of all available sources of supply they were to report upon the Bay Cities project alone.[27] After the ousting of the Schmitz-Ruef administration the Bay Cities project was ignored and bonds authorized to bring water from Hetch-Hetchy valley. The Spring Valley Water Company, however, has been successful in blocking this project, and in 1914, San Francisco seems almost as far away from realizing her ambition for a supply of pure water as in 1905-6 when Ruef and his followers were at the height of their power.

The public-service problem which was attracting the most attention at the time of the great fire, was that of street-car transportation. The principal lines had passed into the hands of the United Railroads.[28] The corporation had, at the time of Schmitz’s election in 1905, practically a monopoly of the San Francisco street-car service.

The company’s principal lines were operated by the cable system. But fully five years before the fire, all traction officials as well as the general public, recognized that San Francisco had outgrown the cable road. It was admitted that electric lines must be substituted for the cable, but there was sharp division as to the character of the electric lines which should be installed. The officials of the United Railroads proposed the overhead trolley method of propulsion; the public, so far as it could find expression, declared for the underground conduit system.[29] In taking this position, the public was in reality backing up the municipal engineers, who had been sent to Eastern States to investigate electric transportation systems, and who had found in favor of the conduit and against the trolley.[30]

The San Francisco Merchants’ Association, however, apparently dissatisfied with the reports of the engineers employed by the municipality, employed Mr. William Barclay Parsons to report on the relative merits of the trolley and the conduit systems.

Mr. Parsons took issue with the city’s engineers, and recommended the trolley as against the conduit.[31] The directors of the Merchants’ Association thereupon declared for the trolley system.

Criticism of this action of the directors was followed by submission of the question to a referendum vote of the Association membership. The members voted in opposition to the directors, declaring against the trolley and for the conduit.[32]

But the most determined opposition to the installation of the trolley system came from improvement clubs, whose purpose was to promote the best development of San Francisco.

Prominent among these organizations were the Improvement and Adornment Association,[33] the Sutter Street Improvement Club[34] and the Pacific Avenue Improvement Club. The membership of these organizations consisted of some of the largest owners of San Francisco properties. The leaders were comparatively young men, natives of San Francisco, whose interests were inseparably wrapped up in the community, and who aimed to promote the best possible development of the city of their birth and fortunes.

Prominent in this group were Rudolph Spreckels[35] and James D. Phelan,[36] rated among the heaviest property-owners of San Francisco. These men were ready to join with the United Railroads in any plan which proposed the highest development of the street-car service.[37] On the other hand, they were prepared to oppose any attempt to exploit the service to the detriment of San Francisco.[38]

A conference of the directors of the Improvement and Adornment Association with officials of the United Railroads was finally arranged.[39] The meetings were held in March, 1906, less than a month before the great fire. There were, before the attempted adjustment was abandoned, several sessions.

The citizens urged Patrick Calhoun, president of the United Railroads, to give up his trolley design for Market and Sutter streets. As a compromise, he substantially agreed to build the underground conduit as far as Powell on Sutter, and as far as Valencia on Market, picking up the trolley on Valencia, McAllister, Hayes and Haight streets. The Adornment Committee directors wanted the conduit system on Sutter street extended as far as possible, and held out for Van Ness avenue. Calhoun would not consent to install the conduit beyond Powell.

In the midst of this deadlock, the San Francisco Chronicle published what purported to be reports of the several conferences. Up to that time there had been no publication of the meetings.

Following the Chronicle publication, Calhoun, in a letter to members of the Adornment Association, declared the information contained in the Chronicle article to be inaccurate,[40] and offered to let the people decide whether they wanted a conduit system on Market street to Valencia, and on Sutter street to Powell, or a uniform all-trolley system throughout the city.

Mr. Calhoun’s suggestion seemed reasonable until he stated in an interview that by the people he meant the Board of Supervisors.

He was asked how he proposed to ascertain the wishes of the people.

“I should suggest,” he is reported as replying, “that the matter be referred to the decision of the Board of Supervisors. The Board of Supervisors is a public body selected by the people, and represents the ideas and wishes of the people of the city.”

The reply was not well received. The Supervisors were even then under suspicion of corruption. Less than a fortnight before, March 10, the Examiner had called the board’s action on an ordinance which was supported by the Home Telephone Company “suspicious,” and had stated that the board had “made the mistake of acting as a bribed Board of Supervisors would have acted.”[41]

Later on, the Supervisors themselves confessed to having been bribed to grant the telephone franchise. The public, not at all blind to what was going on, believed, even at the time Mr. Calhoun made his suggestion, although there was no proof, that the Supervisors had been bribed.

San Francisco was opposed to any plan that would put trolley cars on the city’s best streets. Submission of the issue to the people would have been popular. Mr. Calhoun’s proposal that it be left to the Supervisors was met with suspicion, and open distrust of Mr. Calhoun’s motives.

In answer to the criticism which Mr. Calhoun’s suggestion had aroused, Mr. Calhoun, in a second letter to the Adornment Association, withdrew his offer to submit the question to the people, and announced the intention of his company to proceed with preparation of a plan for a uniform trolley system to be installed wherever the grades would permit.[42]

This second letter was made public in March, 1906, less than a month before the fire. The position taken by the United Railroads was generally condemned.[43] But the opposition took more practical form than mere denunciation. A group of capitalists, headed by Claus Spreckels, father of Rudolph Spreckels, Rudolph Spreckels and James D. Phelan, announced their intention to organize a street-railroad company, to demonstrate the practicability of operating electric cars in San Francisco, under the conduit system.

The plan was given immediate endorsement both by press and general public. The project was explained in detail to Mayor Schmitz, who in a published statement gave the enterprise his unqualified approval.[44] But when the incorporators sought further interview with Mayor Schmitz, they found themselves unable to secure a hearing.

The company, under the name of the Municipal Street Railways of San Francisco, was formed with Claus Spreckels, James D. Phelan, George Whittell, Rudolph Spreckels and Charles S. Wheeler as incorporators. The capital stock of the company was fixed at $14,000,000. Of this, $4,500,000 was subscribed, ten per cent. of which, $450,000, was paid over to the treasurer.[45]

With this $450,000 an experimental line, under the conduit system, was to be built on Bush street.[46]

The articles of incorporation provided that the franchises acquired under them should contain provisions for the acquisition by the City and County of San Francisco of the roads thus built.[47]

The new company filed its articles of incorporation with the Secretary of State at Sacramento on April 17, 1906.

In the early morning of the day following, April 18, came the San Francisco earthquake and fire. For the moment the public forgot all differences in the common disaster. But the lines of division between exploiter and builder could not be wiped out, not even by the destruction of the city. The contest, which had, without any one realizing its full significance, been fast coming to a head before the fire, was to take definite shape after the disaster.

CHAPTER IV.
San Francisco After the Fire.

The great San Francisco fire was brought under control Friday, April 20, 1906. The Sunday following, the first step was taken toward getting the scattered Board of Supervisors together. George B. Keane, clerk of the board, is authority for the statement that the meeting place was in a room back of Supervisor McGushin’s saloon.[48] The ashes of the burned city were still hot; the average citizen was thinking only of the next meal and shelter for the night for himself and dependents. But the public-service corporations were even then active in furthering plans which had been temporarily dropped while San Francisco was burning.

At the McGushin-saloon meeting, Keane found with the Supervisors Mr. Frick of the law firm of Thomas, Gerstle & Frick. Mr. Frick was on hand to represent the petitioners for the Home Telephone franchise, which, at the time of the disaster was pending before the board.

For months previous to the fire, no subject affecting a San Francisco public-service corporation had, with the single exception of the United Railroads’ scheme for substituting electric for cable service, created more discussion than the Home Telephone application for franchise. There had been allegations that the progress which, previous to the fire, the Home Company had made toward securing its franchise, had been paid for,[49] but for weeks after the fire few citizens had time to think about it. The people forgot for the time the issues which had before the disaster divided the city. But the agents for the public-service corporations did not forget. We find a representative of the Home Telephone Company picking his way over the hot ashes of the burned city to McGushin’s saloon to meet the Supervisors that the interests of his company might be preserved. The developments of the graft prosecution indicate that even as the Home Company was seeking out the Supervisors, the United Railroads was getting into touch with Ruef.[50]

But if the corporations were quick to avail themselves of the situation to secure privileges denied them before the fire, they were also active in the work of rehabilitation—so far as such activity served their plans and purposes.

This was well illustrated by the course of the United Railroads. Within a fortnight after the fire, that corporation had established efficient service over a number of its electric lines. For a time, passengers were carried without charge. On April 29 and 30, however, fares were collected from men, but not from women and children. With the beginning of May, fares were collected from all persons. For a time, in a glare of much publicity, the United Railroads contributed these collections to the fund for the relief of the stricken city.

The Home Telephone Company had no plant to restore nor authority to establish one; but on Ruef’s suggestion it, too, contributed to the fund for the relief of the stricken city—$75,000.[51]

The United Railroads’ activity in restoring its electric roads, was in curious contrast to its failure to take advantage of the possibilities offered by its cable systems. As some excuse for this inactivity, the corporation’s representatives alleged that the cable slots had been closed by the earthquake, making restoration of the cable roads impractical.

The alleged closing of the slots was even used as argument against the conduit electric system.[52] But as a matter of fact, there were many to testify that the damage done the cable slots was not from the earthquake, although the slots in the burned district had been warped more or less by the heat of the fire. But this damage was easily remedied. On the Geary-street road, for example, cars were run for an hour or more after the earthquake. The fire warped the Geary-street cable slot, but this was easily and cheaply remedied by a force of men with cold chisels and hammers.[53]

Statements from officials of the United Railroads, now of record, indicate that the company’s cable lines suffered no greater damage than did other cable systems. An affidavit of Frank E. Sharon, for example, who before the fire was superintendent of cables and stables belonging to the United Railroads, made in the adjustment of fire losses sustained by that corporation, sets forth that the company’s principal cable power house and repair shops situate on Valencia street were damaged but little by the earthquake.[54] Although the buildings were damaged by the fire, the damage to the contents, including the machinery by which the cable cars were operated, was, according to statements made by the United Railroads in fire-loss adjustment, comparatively small. The company placed the sound value upon this machinery and contents, after the earthquake, but preceding the fire, at $70,308.80. The salvage was placed at $60,933.80, leaving a total fire loss of $9,375.[55]

The cable cars, with few exceptions, were saved. The most serious loss of cars was on the Powell-street system, where sixty-four were destroyed. Only one Valencia-street car was burned. After both earthquake and fire, the United Railroads had available at least 150 cable cars for its Market and Powell-street systems. This does not include the cable cars available on the Hayes and McAllister roads. The power-houses of these two last-named systems were not destroyed by fire. The allegation has been made that the McAllister-street cable was kept running for several hours after the earthquake.

But whatever the possibilities for the restoration of the United Railroads’ cable properties, no steps were taken toward that end. Instead, trolley wires were strung over the tracks of cable systems. Street-car service was one of the greatest needs of the first few weeks following the fire. Statements that cable properties could not be restored were generally believed; the trolley service was accepted as a matter of expediency; few thought, however, that it was to be permanent.[56]

Within two weeks after the fire, the United Railroads had trolley wires strung over the cable tracks on Market street. The little objection made to this course went unheeded. The Market-street trolley cars, two weeks after the fire, were as welcome to The People of San Francisco as were the temporary shacks which were being erected upon the sites of the old city’s finest buildings. Market-street trolley cars gave as sorely-needed transportation as the shacks gave needed shelter.

The opening of the Market-street trolley line was made subject for rejoicing throughout the city. In the midst of this good feeling toward his company, President Calhoun gave out that if allowed to place overhead wires on Sutter and Larkin streets, he would place 2,000 men at work and have both these lines in operation within thirty days.[57]

But the era of good feeling was not of long duration. On May 14, less than a month after the fire, the Supervisors received a communication signed by President Calhoun as President of the United Railroads, setting forth that if the board would permit the use on the cable lines of the standard electric system in use on the company’s other lines, the United Railroads would be glad to put all of their lines in commission as rapidly as could be accomplished by the most liberal expenditure of money and the largest possible employment of men.[58]

That very day, the Supervisors took the initial step toward granting to the United Railroads a blanket permit, authorizing that corporation to substitute the trolley system for all its cable lines.

Immediately, San Francisco’s opposition to the trolley system was revived. All classes joined in condemning the action of the board. The Sutter Street Improvement Club, representing large down-town interests and property holders, adopted resolutions demanding that the Supervisors refuse to grant the permit. The San Francisco Labor Council, representing over 100 affiliated unions, with a membership of more than 30,000 wage earners, declared as strongly against such action. The press charged the United Railroads with taking advantage of the city’s distress to force the trolley upon her.[59]

Then came explanations and defense. Mayor Schmitz in public interviews set forth that the proposed permit was not a permanent measure, nor under its provisions could the United Railroads indefinitely operate trolley cars in Market street.[60] The Labor Council which had at first adopted resolutions condemning the policy of granting the permit, adopted resolutions of confidence in the “present city administration.” President Calhoun himself solicited citizens to attend the meeting of the board at which a vote was to be taken on the proposed permit, to urge action favorable to the United Railroads.[61]

Long before the board met to take final action it was recognized that in spite of opposition the permit would be granted.[62] And it was granted. On May 21, the Supervisors passed the ordinance which gave the United Railroads authority to convert its cable systems, wherever grades would permit, into trolley lines. For this privilege, no money compensation, nor promise of compensation, was made the city.[63]

Demand that Mayor Schmitz veto the ordinance granting these extraordinary privileges followed. Nevertheless, the Mayor affixed his signature to the trolley permit-granting ordinance.

Fair expression of the feeling this action engendered will be found in the San Francisco papers of the latter part of May, 1906. “Mayor Eugene E. Schmitz,” said the Examiner, for example, “has betrayed the trust reposed in him by the people, violated his solemn pledge in favor of an underground conduit system, and joined Abe Ruef and the United Railroads in the shameless work of looting the city at the time of her greatest need.”

The Ruef-Schmitz administration protested at the criticism. The eighteen Supervisors, seventeen of whom were within a year to confess that they had accepted bribes and all of whom were to be involved in the scandal, joined in a letter[64] to the Examiner, announcing that such criticism was unwarranted, and injured the city. The letter contained veiled threat that questioning of the Supervisors’ motives would not be tolerated. The threat, however, intimidated nobody. Criticism of Ruef and the administration continued.

But in spite of the hostility toward him, Ruef controlled the San Francisco delegates who were named that year to attend the Republican State convention. The convention met at Santa Cruz. Ruef held the balance of power. He was the most sought man there. He had the nomination for Governor in his hands. He gave it to James N. Gillett.[65]

While the convention was in session, a dinner was given the State leaders of the Republican party at the home of Major Frank McLaughlin, then Chairman of the Republican State Central Committee. Ruef was one of the select few present. A flash-light picture of that banquet board shows him seated in the place of honor at the center of the table, the remaining guests with the exception of the host, McLaughlin, who is seated at Ruef’s side, standing.

At Ruef’s back stands James N. Gillett, who had just received, with Ruef’s assistance, the party nomination for Governor, his hand resting upon Ruef’s shoulder. Others in this flash-light group are George Hatton, political manipulator, whose connection with the 1905 mayoralty campaign in San Francisco has already been noted; J. W. McKinley, head of the Southern Pacific Law Department at Los Angeles, who was chairman of the convention; Rudolph Herold, a politician prominent in the counsels of the old “Southern Pacific machine”; Justice F. W. Henshaw of the California Supreme Bench, who was nominated at the convention for re-election;[66] Walter F. Parker, political agent for the Southern Pacific Company; Warren R. Porter, who had just received the nomination for Lieutenant-Governor; Congressman J. R. Knowland, prominent in the counsels of the “machine” that at the time dominated the State, and Judge F. H. Kerrigan of the Appellate Bench, whose decision in favor of the Southern Pacific Company while on the Superior Bench, in the so-called San Joaquin Valley railroad rate case, made him a conspicuous figure in California public life.[67]

The group represented the most effective forces at the time in California politics. Ruef, at the Santa Cruz convention, reached the height of his power. He left Santa Cruz planning a State organization that would make him as great a factor in State politics as he was at the metropolis.

But on his return to San Francisco, Ruef found himself harassed by criticism and beset by opposition. At every point in the municipal administration, with the exception of the District Attorney’s office, was suggestion of graft and incompetency. The police department could not, or would not, control the criminal element. Merchants, in the middle of the day, were struck down at their places of business and robbed. Several were fatally injured in such attacks, being found dying and even dead behind their counters. Street robberies were of daily occurrence.

In the acres of ash-strewn ruins, was junk worth hundreds of thousands of dollars. The police seemed utterly powerless to protect this property. It became the loot of unchecked bands of thieves.

A reign of terror prevailed. Citizens feared to appear on the streets at night. Merchants charged that their business was seriously injured by these conditions. On all sides, blame was placed upon the Schmitz administration which Ruef was known to control.[68]

Then again, Ruef’s toll from the tolerated gambling, saloon and social evil interests was getting too heavy for his own safety.[69] The public was given hint of this when the newspapers quoted George Renner, a prominent businessman, as asserting that a liquor license could be secured if the applicant “put the matter into Ruef’s hands and paid a fat little fee.” Ruef, in his reply, stated that the liquor people were nuisances anyhow. Ruef had long acted as attorney for the California Liquor Dealers’ Association. The Association, after Ruef’s flippant characterization of the liquor people, boldly dispensed with his services and employed another attorney, Herbert Choynski, in his stead. Choynski made no effort to placate Ruef. On the contrary, he gave out interviews to the press charging that Ruef had received $500,000 for the trolley permit, and that each Supervisor had been given $4000 or $5000 for his vote.

This story was given some credit, although few realized the amount of truth it contained.

The Supervisors were spending money freely. Men, who in private life had earned less than $100 a month, and as Supervisors were receiving only that amount, gave evidence of being generously supplied with funds. Supervisor Coffey, a hack driver, took a trip to Chicago. Lonergan, driver of a delivery wagon, announced plans for a tour of Ireland with his wife and children. Wilson planned a trip through the Eastern States. The official head of the administration, Mayor Schmitz, left on a trip to Europe, leaving Supervisor Gallagher as acting Mayor.[70] Reports printed in San Francisco papers of Schmitz, the orchestra player, as guest of the most expensive European hotels, did not tend to lessen the opposition to the administration.

The general dissatisfaction with the administration finally found expression in a mass meeting intended to inaugurate a movement to rid the community of Ruef’s influence.[71] The meeting was called in the name of various promotion associations and improvement clubs. It was to have been held in the rooms of the California Promotion Association, a temporary shack that had been erected in Union Square, a public park in the business district. But the crowd which gathered was so great that the meeting had to be held in the park itself.

When the committee in charge met to complete final preparations, preliminary to calling the meeting to order, Ruef and Acting Mayor Gallagher, with astonishing assurance, appeared before the committee and offered their co-operation in the work in hand. Their presence does not appear to have been welcome. Nevertheless, before the resolutions which the committee had under consideration were read before the crowd, all harsh references to Ruef and the municipal administration had been expurgated. In effect, the expurgated resolutions called upon commercial organizations, clubs, labor unions and similar bodies to form a committee of 100 for public safety.

In the meeting which followed the expurgation of the resolutions, the organizers of the movement lost control. Their counsel was for moderation in a situation where all elements were at work.

The crowd was made up of Ruef claquers who shouted everybody down; members of Labor Unions who had been led to believe that the purpose of the gathering was to break down the unions; and of radicals who were for proceeding immediately to clean up the town. Those responsible for the gathering appeared appalled at its magnitude, and showed themselves unable to cope with the situation.

William A. Doble presided. Samuel M. Shortridge, an attorney who was to play a prominent part in the graft trials, stood at Doble’s side and acted as a sort of director of the proceedings. The expurgated resolutions were read by the President of the Merchants’ Association, E. R. Lillienthal. The ayes were called for and the resolutions declared to have been adopted. The next moment announcement was made that the meeting stood adjourned.

An angry demonstration followed. The people had met to discuss lawlessness. They refused to be put off. The adjourned meeting refused to adjourn. There were cries of Drive Ruef out of Town. One speaker, A. B. Truman, denounced Ruef as a grafter. For the moment an outbreak seemed imminent. At this crisis, Acting Mayor Gallagher appeared.

“I would suggest,” he announced,[72] “that you disperse to your respective homes.”

Citizens who did not care to participate in what threatened to become a riot began leaving the park. But Ruef’s henchmen did not leave.

Ruef, who had cowered in fright when the crowd was denouncing him, was concealed in a room in the so-called Little St. Francis Hotel, which after the fire had been erected in Union Square Park. From his hiding place he could see the crowd without being seen. At the right time, he appeared on the steps of the building which were used for the speaker’s stand. His followers, now in a majority, cheered him wildly. The next moment, Ruef was in control of the meeting which had been called to protest against the conditions in San Francisco, for which the administration, of which he was the recognized head, was held to be accountable.[73] The first serious attempt to oust Ruef from his dictatorship had failed.

But while the protestants against prevailing conditions were hot with the disappointments of this failure, District Attorney Langdon issued a statement that he had determined to seize the opportunity presented by the impanelment of a new Grand Jury to inaugurate a systematic and thorough investigation into charges of official graft and malfeasance in office. To assist in this work, he announced, Francis J. Heney had been requested to become a regular deputy in the District Attorney’s office, and had accepted. That the investigation might not be handicapped by lack of funds, Mr. Langdon stated Rudolph Spreckels had guaranteed that he would personally undertake the collection from public-spirited citizens of a fund to provide for the expenses necessary to make the investigation thorough.[74] It became known that William J. Burns, who had been associated with Heney in the Oregon land-fraud cases, had been retained to direct the investigation, and that for several months his agents had been quietly at work.

The effect of these announcements was immediate. All talk of “vigilante committee” and “lynching” ceased. The case of The People of San Francisco vs. the Schmitz-Ruef Administration was to be presented in an orderly way in the courts.

And the united press of San Francisco, legitimate business interests, and a great majority of the people welcomed the alternative.

CHAPTER V.
Graft Prosecution Opens.

Three days after the announcement of his plans, District Attorney Langdon appointed Heney to a regular deputyship. But even before Langdon had taken office, as early as December, 1905, Fremont Older, editor of the San Francisco Bulletin, had suggested to Heney that he undertake the prosecution of those responsible for conditions in San Francisco.

The Bulletin had been the most fearless and consistent of the opponents of the Schmitz-Ruef regime.[75] After Ruef’s complete triumph at the November election in 1905, he boasted that he would break the Bulletin with libel suits. With every department of government in his control, Ruef appeared to be in a position where, even though he might not be able to make good his threat, he could cause the Bulletin much annoyance if not great financial loss.

Older went on to Washington to engage Heney to defend the paper, should Ruef attempt to make his boast good. Heney gave Ruef’s threats little credence. “I would be very glad to defend you,” he told Older, “but I am afraid I’ll never get a chance to earn that fee.”[76]

Incidentally Older stated that he believed a fund could be raised to prosecute the corrupters of the San Francisco municipal government, and asked Heney if he would undertake the prosecution, if such a fund could be secured.

Heney replied that he would be glad to undertake it, but stated that at least $100,000 would be required. And even with this amount, Heney pointed out to Older, all efforts would be futile, unless the District Attorney were genuinely in sympathy with the movement to better conditions.

On Heney’s return to California early in 1906, Older brought him and Rudolph Spreckels[77] and James D. Phelan together. Heney and Spreckels met for the first time. Phelan vouched for Langdon’s[78] integrity and honesty of purpose. Indeed, Langdon was already giving evidence of his independence of the Ruef organization. Up to that time no attempt had been made to raise the funds necessary to conduct a practical investigation. Phelan stated that he would subscribe $10,000 and Spreckels agreed to give a like amount. Spreckels undertook to look the field over and expressed confidence that he could get twenty men who would subscribe $5000 each, making the $100,000 which Heney had declared to be necessary for the undertaking. The question of Heney’s fee was then raised.[79]

“If there be anything left out of the $100,000 we will talk about fee,” Heney replied. “But I don’t think there will be anything left and I will put up my time against your money.”

It was practically settled at this meeting that Heney should devote himself to the prosecution of corruptionists against whom evidence might be secured. He returned to Washington early in March to wind up his affairs there. Before he could return to San Francisco, came the earthquake and fire.

Heney got back to San Francisco April 25, one week after the disaster. He had another conference with Spreckels.[80] Spreckels told him that he wanted the investigation begun at the earliest possible moment, and that he (Spreckels) would himself guarantee the expenses which might be incurred.[81] Heney notified Burns, and as early as June[82] Burns had begun the investigation that was to result in the downfall of Ruef, and the scattering of his forces.

By the middle of the following October, Heney had so arranged his affairs as to be free to devote himself to the San Francisco investigation. His appointment as Deputy District Attorney followed.

In view of one of the principal defenses advanced by Ruef and his allies, namely, that the graft prosecution was undertaken to injure the United Railroads, these dates are important. The services for which the bribe money which got the United Railroads into difficulties was paid, were not rendered until May 21, 1906, long after final arrangements had been made for Burns to conduct the investigation and Heney to assist in the prosecution. The actual passing of the United Railroads bribe money was not completed until late in August[83] of that year. Burns was at work, and had received pay for his services before the bribe-giving for which United Railroad officials were prosecuted had taken place.[84]

Langdon’s announcement that he would appoint Heney as a Deputy District Attorney, to assist in investigating into charges of official corruption, brought upon him the condemnation of the municipal administration and of the leaders of the Union-Labor party. P. H. McCarthy and O. A. Tveitmoe, who, from opposing the Union-Labor party movement in 1901-3 had, by the time the Graft Prosecution opened, become prominent in its councils, were particularly bitter in their denunciations. At a Ruef-planned mass meeting held at the largest auditorium in the city October 31, 1906, for the purpose of organizing a league for the protection of the administration, Langdon was dubbed “traitor to his party,” a man “who has gone back on his friends,” “the Benedict Arnold of San Francisco.”

Heney was denounced as “the man from Arizona.” On the other hand Mayor Schmitz was called “the peerless champion of the people’s rights,” and Ruef, “the Mayor’s loyal, able and intrepid friend.”

Thomas Egan, one of the organizers of the Union-Labor party, stated of the graft prosecution: “This movement, led by Rudolph Spreckels and engineered by James D. Phelan, conceived in iniquity and born in shame, is for the purpose of destroying the labor organizations and again to gain control of the government of our fair city.”

Ruef, in an earnest address, insisted upon his innocence of wrongdoing. “As sure as there is a God in heaven,” he announced solemnly, “they have no proof as they claim.”[85]

Acting Mayor Gallagher issued a statement in which he took the same ground as had Egan at the Dreamland Rink mass meeting, that the prosecution was a movement on the part of the Citizens’ Alliance to disrupt the labor unions.[86]

From another angle, officials of public service corporations charged those identified with the investigation with being in league with the labor unions. In one of his statements to the public, Patrick Calhoun, president of the United Railroads, set forth that, “I confidently expect to defeat alike the machinations of Rudolph Spreckels, his private prosecutor, with his corps of hired detectives, and Mr. Cornelius, president of the Carmen’s Union, the leader of anarchy and lawlessness, and to see fairly established in this community the principles of American liberty, and the triumphs of truth and justice.”[87]

Then, too, there were points at which the two supposed extremes, corporation magnates and Labor-Union politicians, touched in their opposition to the prosecution. At a meeting held on November 2, 1906, less than two weeks after Heney’s appointment, John E. Bennett, representing the Bay Cities Water Company, read a paper in which Heney and Langdon were denounced as the agents of the Spring Valley Water Company. The Chronicle, in its issue of November 3, charged that the paper read by Mr. Bennett was type proof of a pamphlet that was to be widely distributed, and that the proof sheets had been taken to the meeting by George B. Keane, secretary of the Board of Supervisors.[88]

On the other hand, practically the entire press of the city,[89] the general public and many of the labor unions gave the prosecution unqualified endorsement, welcoming it as opportunity, in an orderly way, either to establish beyond question, or to disprove, the charges against the administration of incompetency and corruption.[90] Rudolph Spreckels’s statement, that “this is no question of capital and labor, but of dishonesty and justice,”[91] was generally accepted as true expression of the situation.

Those directly connected with allegations or suggestion of irregular practices, issued statements disclaiming any knowledge of irregularity or corruption. General Tirey L. Ford, chief counsel of the United Railroads, in a published interview,[92] stated that no political boss nor any person connected with the municipal administration had benefited financially to the extent of one dollar in the trolley permit transaction, and that had any one profited thereby, he (Ford) in his official capacity would have known of it. Those connected with the administration were as vigorous in their denials.[93] Many of them expressed satisfaction at the prospect of an investigation. Supervisor Kelly went so far as to suggest that the municipality give $5000 to assist in the inquiry. “Let us,” said Supervisor Lonergan, “get to the bottom of this thing. These cracks about graft have been made right along, and we should have them proved or disproved at once.”

But in spite of this brave front, the developments of the years of resistance of the graft prosecution show the few days following Heney’s appointment as Assistant District Attorney to have been a period of intense anxiety to Ruef and his immediate advisers. Ruef held daily consultations with Acting Mayor Gallagher, Clerk Keane, and his attorney, Henry Ach. The public knew little of these consultations, but a rumor became current that Mayor Gallagher would suspend District Attorney Langdon from office. Little credence was given this, however. Nevertheless, on the night of October 25 Acting Mayor Gallagher suspended Langdon from office, and appointed Abraham Ruef to be District Attorney to conduct the graft investigations.[94]

The following morning the San Francisco Call, under a large picture of Ruef, printed the words: “THIS MAN’S HAND GRIPS THE THROAT OF SAN FRANCISCO.”

CHAPTER VI.
Ruef’s Fight to Take the District Attorney’s Office.

The impaneling of the Grand Jury was to have been completed on October 26. Heney was appointed Assistant District Attorney on October 24. Ruef, to secure control of the District Attorney’s office before the Grand Jury could be sworn, had little time to act. But he was equal to the emergency. Gallagher removed Langdon and named Ruef as District Attorney the day after Heney’s appointment and the day before the impaneling of the Grand Jury was to have been completed.

Ruef had, however, considered Langdon’s suspension from the day of the District Attorney’s announcement of his plans for investigating graft charges. Gallagher testified at the graft trials that Ruef had, several days before Langdon’s suspension, notified him it might be necessary to remove Langdon from office[95]. The Acting Mayor expressed himself as ready to carry out whatever Ruef might want done.

Gallagher testified that the names of several attorneys, including that of Henry Ach, Ruef’s attorney and close associate, were canvassed as eligible for appointment as Langdon’s successor. Nothing definite was decided upon, however, until the day that Langdon’s position was declared vacant. On that day, Gallagher received word from Ruef to call at his office. There, according to Gallagher’s statement, he found Thomas V. Cator, a member of the municipal Board of Election Commissioners. Henry Ach came in later.

Ruef told Gallagher that he had decided it was necessary to remove Langdon, and that he had decided to take the place himself. Gallagher assured Ruef that whatever Ruef decided in the matter he, the Acting Mayor, would stand by. The papers removing Langdon had already been prepared. Gallagher read them over, for typographical errors, he states in his testimony, and signed them.

The Board of Supervisors was to have met that day at 2:30 P. M. in regular weekly session. Gallagher, as Acting Mayor, was to preside. But it was well after 6 P. M. when Gallagher arrived, from Ruef’s office, at the council chamber.

He appeared worried and disturbed. The Supervisors, who had been waiting for him for nearly four hours, were called to order. The communication removing Langdon was read and adopted without debate or opposition.[96] Gallagher then announced that he had appointed Ruef to be Langdon’s successor.

How completely Ruef dominated the municipal departments was shown by the fact that he filed his bond, his oath of office, and his certificate of appointment at the various municipal offices without hint of what was going on reaching the public. Ruef had commanded secrecy, and secrecy was observed. After Gallagher had announced Ruef’s appointment in open meeting of the Supervisors, the filing of the papers was made public.

Although the Supervisors, in open board meeting, endorsed Gallagher’s action without apparent hesitation, nevertheless the abler among them did so with misgivings. Supervisor Wilson went straight from the meeting of the board to Ruef’s office. He told Ruef that in his judgment a mistake had been made; that the papers would call the removal of Langdon confession of guilt.[97] But Ruef laughed at his fears, and to cheer him up, took him to a popular restaurant for dinner.

But before leaving his office, Ruef performed his first act as District Attorney. He wrote a curt note to Heney, dismissing him from the position of assistant.[98] Later in the evening he appointed as Heney’s successor Marshall B. Woodworth.

The order of dismissal was delivered to Heney within ten minutes. Heney’s answer reached Ruef as he sat at dinner with Supervisor Wilson and Henry Ach, who had joined the group. Heney’s reply was quite as pointed as Ruef’s letter of dismissal. Heney stated he did not recognize Ruef as District Attorney.

The battle between the two forces was fairly on. Ruef and his associates, as they sat at dinner, discussed the advisability of taking possession of the District Attorney’s office that night, but concluded to wait until morning. In this Ruef suffered the fate of many a general who has consented to delay. When morning came, District Attorney Langdon had his office under guard, and San Francisco was aroused as it had not been in a generation.

Supervisor Wilson had not misjudged the interpretation that would be placed upon Langdon’s suspension. The Call the following morning denounced Ruef as “District Attorney by usurpation; a prosecuting officer to save himself from prosecution.” The Chronicle set forth, in a biting editorial article, that “as long as they (the Ruef-Schmitz combine) felt safe from prosecution, they jauntily declared that they would like to see the accusations fully justified, but the instant they began to realize the possibility of being sent to San Quentin, they turned tail and resorted to a trick which every man in the community with gumption enough to form a judgment in such matters will recognize as a confession of guilt.”

The Examiner called the removal of Langdon and the appointment of Ruef, “the last stand of criminals hunted and driven to bay.”

“They have,” said the Examiner, “come to a point where they will stop at nothing.... William H. Langdon, the fearless District Attorney, and Francis J. Heney, the great prosecutor, have driven the bribe-seekers and the bribe-takers to a condition of political madness. In hysterical fear they last night attempted their anarchistic method of defense.”

The Bulletin devoted its entire editorial page to Ruef’s new move, heading the article, “Ruef’s Illegal Action is Confession of Guilt.”

“Nothing,” said the Bulletin, “in the history of anarchy parallels in cool, deliberate usurpation of authority this latest exhibition of lawlessness in San Francisco.... Government is seized to overthrow government. Authority is exercised in defiance of authority. The office of the District Attorney is seized deliberately, with malice aforethought, with strategy and cunning and used as a fort for thieves to battle down the forces of citizenship. The criminals, accused of felony, after inviting investigation and pretending to assist, have shown their hypocrisy by committing an act of anarchy which, while it might be tolerated for the time being in San Francisco, would result in the execution of these men in any government of Europe.”

Gallagher’s action, while upheld by the Union-Labor party leaders, and by the unions which these leaders dominated, was condemned by independent labor organizations.

The Building Trades Council, with which all the building trades unions were affiliated, dominated by P. H. McCarthy, promptly endorsed Gallagher’s action in removing Langdon. But many of the affiliated unions not only withheld endorsement, but some of them repudiated the action of the central body.

The Bricklayers and Masons’ Union, for example, with 800 members present, and without a dissenting vote, adopted resolutions declaring that “the President and Secretary[99] of the Building Trades Council are not fit persons to be at the head of the Union movement in San Francisco,” and denouncing the course of the municipal administration, which the Building Trades Council had approved, as “high-handed defiance of the law.”[100]

In spite of this repudiation by the unions, Ruef issued a statement in which he denounced the prosecution as a movement “to destroy the Union Labor organization and to control the situation in San Francisco in the interest of those who are opposed to the success of the wage-earning classes.” He announced further, “I have accepted this office, the first political position I ever held in my life, because I believe it to be my duty to the public to bring to an end this constant defamation and to stop the publication of matter detrimental to the city’s growth and material interest.”

“I do not intend,” he said, “to make any changes in the personnel of the District Attorney’s office until it is determined what fate Mr. Langdon shall meet, with the exception that Mr. Heney will not be retained. I will not have Mr. Heney in my office because I do not believe that his moral standing is equal to the position.”[101]

District Attorney Langdon was out of the city when Acting Mayor Gallagher announced his suspension from office. Langdon hurried back prepared to resist the executive’s action.[102] Even while Ruef and his associates were debating the advisability of taking possession of the District Attorney’s office that night, attorneys for the prosecution were at work on papers in injunction proceedings to restrain Acting Mayor Gallagher, the Supervisors and Ruef from interfering with the District Attorney in the discharge of his duties. The papers were not ready before 5 o’clock of the morning of the 26th. At that hour, Superior Judge Seawell signed an order temporarily restraining Ruef from installing himself as District Attorney, and from interfering with Langdon in the discharge of his duties as District Attorney. By eight o’clock that morning, Presiding Judge Graham of the Superior Court had assigned the case to Judge Seawell’s department; a police officer and two deputy sheriffs had been installed in the District Attorney’s office with instructions to enforce the restraining order. For the time, at least, District Attorney Langdon was secure in his office.

Ruef appeared two hours later. He was that morning to have represented the defendant in a murder trial, The People vs. Denike, but began the day by formally withdrawing from the case on the ground that as District Attorney he could not appear for the defense. He appeared in the police courts ready to prosecute a libel suit which he had brought against the proprietor of the San Francisco Bulletin, but the justice had been served with Judge Seawell’s restraining order and the libel-case hearing was postponed. In Judge Dunne’s department of the Superior Court, Ruef received something of a setback. The Court made a special order permitting one of Langdon’s deputies to prosecute in a criminal action then pending, regardless of who might be District Attorney. The restraining order kept Ruef and Woodworth out of the District Attorney’s office. By noon it was evident that at the big event of that eventful day, the impaneling of the Grand Jury, Langdon, and not Ruef, would, as District Attorney, represent The People.

CHAPTER VII.
Oliver Grand Jury Impaneled.

The hard fight of the morning of October 26th to prevent Ruef taking possession of the District Attorney’s office had been carried on practically without the general public being aware of the proceedings. Langdon had been suspended early in the evening of the previous day. The temporary order restraining Ruef from interfering with the District Attorney had been signed at 5 o’clock in the morning. The general public found by the morning papers that Ruef had attempted to seize the office, but of the steps taken to stay his hand the papers had nothing. The question on every man’s lip was: Will Judge Graham recognize Ruef or Langdon as District Attorney at the impaneling of the Grand Jury?

The court was to meet at 2 o’clock. Long before that hour arrived, the halls of Temple Israel, a Jewish synagogue in which several departments of the Superior Court met during the months following the great fire, were packed with citizens. The street in front of the building soon became jammed with a struggling mass of men demanding entrance. The crowd became so great that none could enter or leave the building.

Plain-clothes men were on all sides, and succeeded in clearing a space about the entrance. The work of clearing the building of all who could not show that they had business there, then began. In this work, deference was shown Ruef’s adherents. Notorious saloon-keepers, ex-prize fighters and strong-arm men friendly to Ruef were permitted to remain. Opponents of the administration who protested against removal were unceremoniously thrown out.

Although little groups of partisans of the administration appeared in the crowd, the citizens assembled were in the main clearly in sympathy with the prosecution.[103] The arrival of Langdon, Heney and Spreckels was signal for outbursts of applause. Ruef apparently appreciated the feeling against him. He appeared guarded by two detectives of the regular police department,[104] and a body-guard of partisans. The crowd began to press about him. Several of his followers made motions as though to draw revolvers. Ruef hurried into the building. To add to the confusion, there was, planned or without planning, misunderstanding as to the room in which the hearing was to be held. The representatives of District Attorney Langdon’s office finding themselves misinformed as to the meeting place, forced their way from hall to hall seeking reliable information. When the room was finally located, it was found to be packed with Ruef followers. The sheriff ordered the doors closed. The Court’s attention was called to this. District Attorney Langdon insisted that the doors be opened and the crowd permitted to enter to the capacity of the room. He pointed out that some had been admitted and others kept out, and insisted there should be no discrimination. This course was taken. The crowd poured in until every available foot of standing room was occupied.[105]

Eighteen of the nineteen citizens required under the California law for Grand Jury service had already been drawn at former sessions of the court. As soon as order had been secured, the name of the nineteenth was taken from the jury box.

This detail over, Heney called the Court’s attention to the provision of the California law, that no person whose name does not appear on the assessment roll of the county in which he serves is eligible for Grand Jury service, and that the courts have held further, that bias or prejudice of a Grand Juror against a person indicted is sufficient grounds for setting aside the indictment. Heney then stated that he wished to examine the nineteen men as to their qualifications as Grand Jurors.

Ruef, announcing himself as an officer of the court, arose to speak. Heney objected to Ruef appearing, if by officer of the court he meant District Attorney or Acting District Attorney. Ruef answered that he appeared only in his capacity as member of the bar. On this showing he was allowed to proceed.

Ruef contended that the procedure proposed by Heney was irregular; that if followed the validity of the Grand Jury would be imperiled. He stated that he did not want to see the Grand Jury made an illegal body.

Heney replied that he intended, as Assistant District Attorney, to present felony charges against Ruef, and desired to examine the prospective Grand Jurors as to their bias for or against Ruef. Furthermore, Heney insisted, the Court had authority to excuse a juror if he were not on the assessment roll. To accept as Grand Jurors men whose names were not on the assessment roll, or men biased or prejudiced against Ruef would, Heney insisted, make the proceedings a farce.[106]

In reply to Heney, Ruef defied him to produce any evidence “in open court before an untutored Grand Jury for an indictment.” Ruef charged Heney further with employing abuse “to make the Grand Jury illegal so that nothing might come of any indictment.”

At this point, the Attorney General of the State, U. S. Webb,[107] addressed the Court. At his suggestion the Grand Jurors were excused for the day. General Webb then stated that he knew of no law for the procedure which Mr. Heney suggested. He admitted, however, that such procedure would be desirable, and advised that no hasty action be taken in coming to a decision.

Heney in reply read from California decisions to show that The People have the authority to make examination of Grand Jurors, and continued:

“The only question remaining is as to when this examination shall be made. Suppose the foreman of the Grand Jury is biased or prejudiced. Does it require any argument that now is the time to make this examination instead of waiting until we have presented our evidence to the Grand Jury? Shall we first have to give those whom we accuse time to bribe witnesses and get them out of the country? Shall we let the defendant come in and quash the indictment, if there is any bias or prejudice, and then be enabled to protect himself against prosecution?

“After the miserable fiasco (the attempted removal of Langdon) which occurred last night,” Heney went on, “what more important duty for this Court to perform than to say immediately that the law is more powerful than any man or any set of men in San Francisco?”

As Heney concluded, the packed courtroom burst into applause. The crowd outside heard, took it up and cheered wildly. As soon as order was restored, Henry Ach, one of the attorneys appearing for Ruef, suggested that Heney, the Attorney General and himself, get together to present the question of whether Langdon or Ruef were District Attorney to the Supreme Court. Ach stated that he feared if Langdon or Heney attended a session of the Grand Jury and Ruef were to be found to be District Attorney, then the acts of the Grand Jury might be invalidated.

Heney replied that in acting as prosecutor it had been his rule “to have no conferences, treaties or alliances with persons charged with crime, or with their attorneys.” On this ground, Heney declined Mr. Ach’s proposition.

Judge Graham made no rulings that day on any of the points raised, but ordered a continuance until the following Monday.

After adjournment of court, the appearance of Langdon and Heney at the entrance of the building brought forth cheers from the crowd that all through the proceedings had waited outside. A speech was demanded of Langdon.

“My friends,” he replied, “we have no speeches to make. We have a duty to perform and we will perform that duty.”

Immediately behind Langdon came Ruef, closely guarded by police and detectives. He was pale and worn and clearly frightened. The crowd pressed about him. Threats came from his followers to shoot into the crowd if it pressed too closely. Ruef finally reached his automobile and was driven away.[108]

The topic of discussion of the two days that elapsed before Judge Graham decided the questions that had been raised by Heney’s proposal to proceed with the examination of the Grand Jurors, was whether Graham would allow such examination. It was alleged that no less than four of the citizens drawn for Grand Jury service were not on the assessment roll. There were, too, charges that Ruef controlled several of them. Some of the papers printed the names of those whom it was alleged were either under obligations to Ruef or connected with his political organization.

A second crowd filled courtroom, building and street when Judge Graham’s court was called to order the following Monday. Mounted policemen, plain-clothes men and detectives, directed by two captains of police, were, however, on hand to preserve order.[109] There were no demonstrations. Judge Graham announced from the bench that after due deliberation, he had concluded that the District Attorney had the right to interrogate the Grand Jurors as to their qualifications. He stated further that inasmuch as Langdon was the de facto District Attorney, Langdon would conduct the examination.

The prosecution had won the first skirmish in the years-long fight upon which San Francisco was entering for the enforcement of the law.

The next move came from Attorney Samuel M. Shortridge. Shortridge appeared with Ruef’s attorney, Henry Ach, and Marshall B. Woodworth. Ruef had named Woodworth, it will be remembered, as Heney’s successor in the District Attorney’s office.

Mr. Shortridge read Acting Mayor Gallagher’s order suspending Langdon and appointing Ruef, and also called the Court’s attention to the fact that Ruef had filed his official bond as District Attorney. Shortridge stated that the matter was pending before Judge Seawell, and asked the Court, “in deference to Judge Seawell,” to postpone proceedings until the District-Attorney controversy should be decided. Shortridge expressed himself as fearful that, if the examination of the Grand Jurors went on, Judge Seawell’s decision might invalidate the Grand Jury proceedings.

W. T. Baggett, Assistant City Attorney,[110] followed Shortridge. Mr. Baggett read a letter from the Acting Mayor, setting forth the fact of Langdon’s removal, and joined with Shortridge in pleading for delay. But the pleas of both gentlemen were denied. Judge Graham repeated his opinion given earlier in the day that Langdon should be recognized as the de facto District Attorney, and ordered the impaneling of the Grand Jury to continue.

Shortridge thereupon announced his desire to participate in the examination of the Grand Jurors. Heney objected to Shortridge appearing as a representative of the District Attorney’s office. Shortridge replied that he respected Judge Seawell’s order, and had no intention of violating it. He asked if he would be permitted to act in the capacity of amicus curiæ[111] in examining jurors. This privilege was accorded him.

The examination of the Grand Jurors occupied more than a week. Several of the nineteen were excused, it being found that their names were not on the assessment roll.

The examination was concluded[112] on November 7th and the Grand Jurors sworn. B. P. Oliver was appointed foreman. From him the body received its name of Oliver Grand Jury. The Grand Jury organized by electing C. G. Burnett secretary. But one important question remained to be decided, namely—Was Ruef or Langdon to represent The People at the investigation into graft charges which the Grand Jury was ready to begin?

CHAPTER VIII.
Ruef Loses the District Attorney’s Office.

While the impaneling of the Grand Jury was going on before Judge Graham, Ruef was disputing Langdon’s title to the office of District Attorney before Judge Seawell. In these proceedings Samuel M. Shortridge appeared with Ruef’s attorney, Ach, and Deputy City Attorney Baggett, not as amicus curiæ, but as Ach’s associate in the legal contest to force Langdon out of office.

The principal feature of Ruef’s case was the introduction of affidavits, signed by sixteen members[113] of the Board of Supervisors, in which the Supervisors denied committing felony of any character. Later, after the Supervisors had confessed, these affidavits were to be used by the defense at practically all the graft trials in efforts to break down their testimony against the bribe-givers.

During the examination, Ach endeavored to force from Langdon and his deputies a statement of what evidence they had against Ruef. In this Ach failed. On the other hand, the prosecution sought to bring out testimony that Ruef had directed Gallagher to suspend Langdon.[114] To this end Heney placed Ruef on the stand. But Judge Seawell stated[115] that he did not at that time wish to go into question of motive and the point was not pressed.

The outcome of the proceedings was a second victory for the prosecution. The injunction against Ruef was granted;[116] Langdon was left in peaceful possession of the District Attorney’s office.[117] Later, Judge Seawell issued a permanent writ of prohibition against the Board of Supervisors restraining that body from removing Langdon from office.

Langdon and his deputies, after a three-weeks fight, were free to proceed with the graft investigation.

CHAPTER IX.
Ruef and Schmitz Indicted.

Within twenty-four hours after organizing, the Grand Jury had begun investigation into graft charges. Tenderloin extortion, especially in connection with the so-called “French Restaurants,” was the first matter taken up. The inquiry involved both Schmitz and Ruef.

The term “French Restaurant” in San Francisco is used in connection with a particular type of assignation house. These establishments contain a restaurant on the ground floor, and sometimes banquet hall and private rooms without assignation accompaniments. The stories overhead are devoted to private supper bedrooms. Some of these assignation places are several stories in height. Before the fire, among the establishments alleged to be “French Restaurants” were Marchand’s, Delmonico’s, the New Poodle Dog, the Bay State and the Pup. The extent of the business conducted by these places is indicated by the testimony of A. B. Blanco, who stated under oath at the graft trials that he had $200,000 invested in the New Poodle Dog, while Joe Malfanti testified that he had about $400,000 invested in Delmonico’s.[118]

French Restaurants had long been a scandal in San Francisco. Toward the close of 1904, the Police Commission, then absolutely under domination of Schmitz and Ruef, gave evidence of proceeding against such places. The commission, as a beginning, revoked the liquor license of a “French Restaurant” known as Tortoni’s. Without a license to sell liquor a “French Restaurant” could not continue in business. These licenses had to be renewed once every three months. The Police Commission had arbitrary power to grant, or to refuse, application for renewal. One by one renewal applications of other French Restaurants were held up. It became a matter of common report that all the “French Restaurants” were to be treated as Tortoni’s had been, namely, driven out of business by having their licenses to sell liquors revoked.

And then Abe Ruef appeared before the Police Commissioners as attorney for the “French Restaurant” keepers.[119] Ruef asked that consideration of the French Restaurant cases be postponed for two weeks. This was accorded him. But his request that during those two weeks the places be permitted to conduct their business as before, namely, that they be allowed to sell liquors in the private supper bedrooms, was denied by a tie vote, two commissioners of the four voting for Ruef and two against him.

Before the two weeks’ extension of time which Ruef had secured had expired, Mayor Schmitz had removed from office one of the commissioners who had opposed[120] Ruef’s request that the sale of liquors in “French Restaurant” bedrooms be continued.

The opposing commissioner out of the way, the board by a vote of two to one, adopted certain rules submitted by Ruef for the management of French Restaurants.[121] By the same vote, the commission then granted the French-Restaurant licenses, action upon which had so long been delayed.

All this was done before the public. There were, of course, charges of graft and extortion, which most people, although without definite proof, believed. Heney, nearly a year later, in his speech in the Partridge campaign, referred to in a previous chapter, charged graft. A Grand Jury had made[122] an honest attempt to get to the bottom of the scandal. The efforts of this early Grand Jury came to nothing.

The Oliver Grand Jury had not been in session a fortnight, however, before the whole miserable story of Ruef’s connection with the French Restaurant cases had been spread before it.

Thomas Regan, who had served as Police Commissioner during the Schmitz administration, testified that as early as the summer of 1904 Schmitz had told him that the “French Restaurants” were bad places and should not be permitted to exist. When Tortoni’s was closed, Schmitz stated to Regan, according to Regan’s testimony, that the French Restaurants were all run alike, and should all be closed. Acting upon the Mayor’s suggestion, the Police Commission ordered the investigation into the methods of the French Restaurants which created such a sensation in San Francisco during the closing months of 1904. Licenses were denied in some cases. In others, hearings of applications for renewals were postponed from time to time. Some proprietors were called upon to show cause why their licenses should not be revoked. Of all of which, Commissioner Regan testified, he kept Mayor Schmitz informed.

The course of the commission threw the keepers of the French Restaurants into a panic. Their attorneys found themselves helpless and could give their clients no encouragement. Marcus Rosenthal, for example, who appeared before the commission on January 3, 1905, on behalf of the Bay State Restaurant, testified at the Schmitz trial, that he was not permitted to say anything; that the commissioners would not listen to him, nor hear testimony. After that meeting he had advised his client, and a little group of “French Restaurant” keepers who had gathered about him, that it would be useless for them to appeal to any court, because under the law there could be no review of the action of the Police Commissioners; that the commission could arbitrarily dispose of any saloon-keeper, and he could not seek remedy in the courts.

And then, having explained the situation fully, Rosenthal told them, what every observer in San Francisco knew, “There is only one man who could help you, and that is Mr. Ruef.”[123] The French Restaurant keepers received this advice from all sides. Joe Malfanti testified at the Schmitz trial that “numerous friends advised me to see Ruef.”

And to Mr. Ruef the “French Restaurant” keepers finally found themselves compelled to go—at the urgent suggestion of a fellow French Restaurant keeper, Jean Loupy.

Loupy was proprietor of the French Restaurant known as the “Pup.” At Loupy’s place Ruef maintained a sort of headquarters. There he took his dinner practically every night, entertained friends and received his henchmen.

Ruef had from time to time acted as Loupy’s attorney. He had also loaned Loupy money. At the time of the French Restaurant troubles, Loupy, according to his testimony, owed Ruef $1000.

When the closing of the French Restaurants seemed inevitable, this Loupy brought word to the French Restaurant proprietors that Ruef would represent them all before the Police Commission for $7000 a year,[124] on a contract for two years. The sum was finally cut to $5000,[125] $10,000 for the two years. For the first year “Marchand’s,” “Delmonico’s,” “The New Poodle Dog” and the “Bay State” paid $1175 each. Loupy for the “Pup,” on the grounds that he had been put to considerable expense and was a poorer man than the others, paid only $300.[126]

The money being paid over to Ruef,[127] Ruef appeared before the Police Commissioners, as has already been told, with his plan for regulating the French Restaurant business in San Francisco.

Ruef’s arrangements with the French Restaurant keepers were concluded during the first week in January. Police Commissioner Regan testified that sometime after January 3, Mayor Schmitz asked him to vote to restore the French Restaurant licenses.[128] Regan objected on the ground that it was not right to ask him to vote first one way and then another. With Commissioners Regan and Hutton voting against issuing the licenses, the licenses could not be granted. Either Hutton or Regan had to change their attitude, or one of them had to be removed from office. Police Commissioner F. F. Poheim testified at the Schmitz trial that at a conference on the French Restaurant problem held early in January, 1905, which he and Schmitz attended, Schmitz announced: “We will have to give these people (the French Restaurant proprietors) their licenses if we can. If we cannot do anything else we will have to remove Hutton.”

And during the week following Ruef’s first appearance before the commissioners as representative of the French Restaurants, Mayor Schmitz removed Hutton.[129] The licenses were then issued to the “French Restaurant” keepers.[130]

Much of the story of these transactions was presented to the Grand Jury. But the evidence was not secured without effort. Many of the witnesses were unfriendly; others afraid of the consequences of frank statement of facts. Witnesses disappeared and could not be found. Several known to have testified were threatened and even assaulted. One French Restaurant keeper, before the investigation had been concluded, had been indicted for perjury. Three attorneys who were more or less in touch with the tenderloin situation had been cited for contempt for refusing to answer questions put to them in the Grand Jury room. But point by point the evidence was presented.

The Grand Jury, on the evidence, indicted Schmitz and Ruef on five counts for extortion.[131] Bonds were fixed at $10,000 on each charge, $50,000 for each defendant.

Ruef[132] was released on $50,000 bail.

Schmitz, the day after the indictments were brought, was reported to have started for home from Europe.

Schmitz’s probable reception on his arrival at New York apparently gave keen anxiety at San Francisco.

Heney states that Justice F. W. Henshaw called at his (Heney’s) office and asked Heney, as a favor, to tell him whether Schmitz would be arrested upon his arrival in New York, as William J. Dingee of the Contra Costa Water Company, wanted to arrange for Schmitz’s bail in New York City. William F. Herrin of the Southern Pacific Company is credited with interesting himself in Schmitz’s behalf in arranging for the bond that was furnished when Schmitz reached San Francisco. Schmitz’s bond was furnished by Dingee and Thomas Williams, president of the New California Jockey Club. The New California Jockey Club operated the notorious Emeryville racing and gambling establishment. Mr. Dingee was at the time one of California’s most prominent capitalists.

CHAPTER X.
Fight to Evade Trial.

The indictments against Schmitz and Ruef were returned November 15. Schmitz reached San Francisco on his return from Europe on November 29.[133] He at once joined with Ruef in the fight to prevent the issue raised by his indictment being presented to a trial jury.

The two defendants were to have been arraigned on December 3, but at their earnest solicitation arraignment[134] was continued until December 6.

On that day the plans of the defendants became apparent. It was seen that they would divide the defense, demanding separate trials; and it was quite as evident that their first move would be an attack upon the validity of the Grand Jury.

Attorneys Frank C. Drew and John J. Barrett appeared for Schmitz, while Ruef was represented by Samuel M. Shortridge and Henry Ach. At the close of the proceedings, Ach asked that subpoenas be issued for the members of the Grand Jury to appear in court the following Monday to testify for the defendants. This meant the examination of the Grand Jurors for bias. The long technical fight to disqualify the Grand Jury had opened.[135]

In the attack upon the Grand Jury, Joseph C. Campbell joined with Schmitz’s attorneys, Drew and Barrett, while Frank J. Murphy and Charles H. Fairall appeared with Shortridge and Ach for Ruef. Ach, in moving to set aside or quash the indictments, stated that the motion was made for Schmitz and Ruef jointly, but that the defendants reserved the right to plead and to be tried separately.

Ach’s motion was based on nineteen counts. The point most insisted upon was that Grand Juror Wallace Wise was disqualified because of his having been on a petty trial jury panel during the current year. Wise, being thus disqualified, Ach argued, the whole indictment failed as much as though the whole nineteen Grand Jurors were disqualified.[136]

Judge Dunne, after a three days’ hearing, swept aside the multitude of technical objections which the various attorneys for the defense had advanced. In particular did he refuse to declare the whole nineteen Grand Jurors disqualified, because of the alleged disqualification of Juror Wise.