The San Francisco call., 1898-02-04

moral ObIiQulty as was pIeSeIlleO oe- fore Justice Belcher yesterday is rare ly witnessed in a court of justice.
 Al. the conclusion of the examination Of s. E. Slade, which took up the en- tire day. no attendant at the trial or the injunction case Of the Paraffine Paint Company against the Harbor Commissioners could have retired from the courtroom with any belief other than that in the record of the evidence thus far presented is developed the proof of bribery, corruption and fraud
 This civil action against the board has assumed a countenance, in every line of which is written culpability and crime. The fact now stands out as boldly as if confessed that the rascally contract system, which the Dundon- Slade-Laydon combine has fastened on the State Board of Harbor Commits sioners has been maintained by ini- Quitious methods brought home to the commission. or to at least some mem Der of il.
 Collusicn and complicity are manifest throughout the transactions between the board and the Dundon clique.
 The case has become a public griev- ance, demanding drastic redress.
 To point the force and effect of Slade's testimony a brief review of the autecedenJs is essential. The combi- nation of contract JObbers has been chiefly represented by three organiza- tions. namely, the firm of Darby Lay don 6 Go. (DundOn partner), the Slade Lumber Company (alleged by Slade 10 be his oWn), the San Francisco Tim Der Preserving Company "a partnership between Slade and Dundon). Dundon besides has an iron works doing bus iness with and through the three con- cerns named.
 The Slade Lumber Company and the Timber Preserving Company transact business in the same office. and both sets of books are kept by Slade him self Sade is secretary of the Timber Preserving Company, and runs the Slade Lumber Company.
 During the year past the combina- ton has done business under a favored contract system with the Harbor Com sion. amounting 10 S134. .000. The Slade Lumber Company supplied lumber largely in excess of current prices Darby Lay6on &; Co. furnished logs for waterfront improvements and repairs These were turned over to the San Francisco Timber Preserving Company for treatment with creosote. It is charged that the whole number of piles paid for by the beard were not deIiy- cred by Darby Laydon & Go. to the Timber Preserving Company: that the whole number paid for as having been creosOted by the Timber Preserving Company were not treated, and that the thefts thus conniTed at in both fn- stances represented certain moneys paid by the Harbor Commission and di- Yided between the Dundon combine and the commission, or it's representa- lives.
 Positive record proof on this point could be obtained only from what are designated pile-bOoks, which have dis appeared. 4 former bookkeeper of Darby Laydon & Go. testified as to the existence of the record and to the practice Of theft
 4 man named Patterson. former su- per1ntendent of construction and re- pairs for the commission, was alleged to have received this partition money. When the Darby Laydon & Co. cash book, journal and ledger were exam tned in court numerous items were found disclosing the payment of money 10 persons indicated by the letters '.at- terson," to which had been prefxed recently the initials "M." 'Rp and R, making the names read Mat terson, Patterson" and 'tRatterson. |" The bookkeeper, who testified to hay ing made the substitution of initials under instruction of Laydon. did nor know the persons thus named but he 0id know Superintendent Patterson and had seen him at the office of the firm. He made other important era sures intended to conceal any secret transactions the firm might have had with the Herbor Commission.
 As a necessary link in the chain of circumstantIal evidence which was to prove the theft of piles and the nay ment by the board for materials it had never received 1t was necessary to tie the fraudulent entries in the Darby Laydon books to some item or items in the records Of the San Francisco Pre- serving Company. When their hodge podge accounts were investigated yes terday against the persistent remon- strance of Slade and his attorneys. it was discovered that many sums of money had been paid ito cash" in checkS, recorded either in the stubbs or journal as having been drawn in favor Of "Peelers." In every instance save one where the record was found word had been erased recently. 50 recently that the fur and fuzz stood out plainly on the paper. and over this. in ink fresh and scarcely dry. had been written "Peeler"
 In the excepted instance the hand of the slick worker had grown tired or lost its cunning, for the original ..P'' in partly faded ink was left, in striking contrast with the dewy black addition ''eelers" written over the erasion. In still another place the cross of the let ter .t" had not been wholly erased.
 Slade admitted that he kept the books himself: that he made the ensures and substitutioas, and then had the hardihood to state to the court that the money drawn on checks ito cash" which was unindorsed, had been paid to somebody, whom he did not know, to pay how many men he did not know, for peeling logs. This was the extent of his testimony as to the ''eeler" and "Peeler" entries
 If secret service money had been paid to any member or members Of the board, or an agent. it was important to ascertain whether that fact was in any manner told or implied in the Timber Preserving books.
 Items of the paynent of money