The San Francisco call., 1895-12-15
Grand Jury Inquiry Dis
closes Many Curious
Transactions.
THE EXISTING PAYROLL.
Ex-Auditor Smiley Explains How
the Law Was Ignored
in 1892.
SOME SECRETS ARE REVEALED
Expert Reports Point to Waste and
Wrong in Other Branches of
City Government.

The closing days of the present Grand
Jury will be devoted to the consideration
OF some very important reports from the
various committees. Shortly after the
jury was impaneled the agreement was
made among members that each committee
should be allowed an expert, whose COM
pensatlon should not exceed $5 a day, and
whose term of employment should not.
except in special cases, extend beyond, a
limit OF five days. Several experts have
reported, and others will report during the
coming week.
The Grand Jury was distinctly advised
by Judge Sanderson in the beginning of
Its term that the reports should not con-
tain accusations of misconduct unless
there was evidence to sustain the charges.
The Judge indicated that the members of
the jury might be prosecuted for libel if
charges of corruption were made without
proof to sustain them. In brief, Judge
Sanderson advised the jury to act rather
than report.
In line with these instructions the Grand
Jury will make only brief final report,
but many of the committee reports may
contain facts ofgreat Importance and yet
fail to produce the positive proof which
seems to be required.
For example, the expert OF the commit
tee on Board of Education and Public
Schools has prepared an elaborate docu-
ment. The committee of Grand Jurors
consists of Charles NJ. Gates, George H.
Sanders and E. II. Hanjes The commit
tee is convinced that time cannot be OBJ
mi,
reaching investigation of School Depart
ment affairs, yet the report presents such
an array OF facts touching upon the num-
Der of teachers employed and the startling
increase of annual expenditures without a
corresponding increase in the number of
pupils that it would seem to be the duty of
the jury to take some steps to check the
riot of extravaganza and introduce meth
DDS of economy and reform.
1t may be shown that positions in the
department have been purchased for coin
or other considerations, but the Grand
Jury, guided by instructions from Judge
Sanderson, would dare not point to any
member of the present board OF any ex-
School Director as the guilty man or boss
manilFIlator unless proof of his guilt could
Nbe established.
> T. Al Hyde, ex-president of the Board of
Education, went before the Grand Jury
and presented facts and figures to prove
that the enormous annual increase OF ap-
propriations for the maintenance of the
schools was not justified by the slightly
increased attendance. AS to teachers em-
ployed, the number was out of all proper
ton to the number of classes taught and
pupils enrolled. Ii was shown to the jury
that places had been made for favorites
and salaries increased to promote the po-
litical advancement of School Directors.
1t is true THE CALLS report OF Mr..
Hyde's testimony produced some conster-
nation in the Board of Education, and as
result some steps were taken toward re-
trenchment. When the Grand Jury ad-
iourns the enthusiasm for retrenchment
NAV subside and the present board emu
late the dangerous example Of its prede-
cessors.
1t has been the talk for some time that
the Committee on Public Library, Home
for Inebriates and Magdalen Asylum
would present a startling report. The
committee consists of George II. Sanders,
William H. Phelps and Reuben Tucker.
It is asserted that positive proof can be
produced to sustain their report that large
sums of money have been appropriated
for the Magdalen Asylum without author
Itv OF law. The report, it is understood,
will present facts and figures concerning
the allowances by the Board OF Super
pressly prohibits appropriations of this
kind.
The Fire Department Committee of the
Grand jury consists of 0. f. Wiley, John
A. Hammersmith and j. j. Groom. The
chairman of the committee has manifested
a desire from the beginning 10 acquire ali
the facts-the real inside secrets-concern-
ing the management of the department.
The committee is convinced beyond the
shadow of doubt that crookedness exists.
1t is said that Creamy pays a dollar to
some one close to Sam Rainey for every
horse shod. 1t is believed that the charge
for putting in hydrants Is excessive and
outrageous. Moreove the belief prevails
that Rainey, through the water company
or hydrant-makers, receives money for
each new hydrant placed. Some members
OF the jury fear that Rainey may some day
compel the City to pay royalty on all the
hydrants put in, as the fact is well known
that hydrants patented by him are largely
in use.
The investigation of Fire Department
affairs presents some curious phases.
Joseph Gordon, man whose integrity is
not questioned, was engaged by .. +. Will
lev to make an expert examination of de-
nartmept expenses. The fact of his en-
nlovment was announced in THE CALL, and
also the fact that he had prepared an elab-
crate report. This report reviewed at
great length the early OTgdHiZdtIOIi OF tlie
department, the annual expense auth or
lied in 1878 and the number of employees
then permitted. Reference is made to re-
districting the City, the employment of
additional engineers and the reasonswhy
the Board of Supervisors and Fire Com
missioners authorized the employment OF
more men than the consolidation act al
lows.
The Fire Department expenses for July
were placed at $39, III and for October S42,-
737.
The report says: 1.-THE corporation yard
is the creation of the Fire Commissioners.
The advertisements for all materials are
made by tie Board OF Supervisors; the
yard distributes the articles needed only
upon the demands OF the various compa-
nies to the Fire Commissioners, who
authorize by printed orders such delivery
for the yard"
The report closes with recommenda-
ton for a new charter, or an ainendment
by the Legislature to the consolidation act.
The report simply paralyzed the COM
mittee of the Grand Jury. They thought
If Sam Rainey had prepared it himself ne
could not have presented the case Tor the
department In better light.
o. T. Wiley and 10 Gordon, who are
warm personal friends, had long confer
ence Willev said 80, this is no way to