The San Francisco call., 1898-11-29
SHERMAN TOOK SIXTY THOUSAND DOLLARS
 TO BRIBE C0UNCILMEN OF LOS ANGELES

son Of JOhn Mchee. It mas alTeduy been shown that Mckee in a f1duciary capacity was deeply interested in the cable railroad of Los Angeles. When the scheme of consolidation was pro- posed Mckee showed a tendency to be fractious. He was not willing to take part in the deliberations and Sherman as usual was equal to the emergency. There were some private talks with MT. Mckee and certain very close friends or Sherman and the president Of the Clearing house opened another set Of negotiations.
 Sherman's friends possessed a cer- tain persuasive eloQuence and sub- mitted such convincing arguments that MT. Mckee became a factor in the de- Alterations that eliminated in the con- solidation of the two roads. His apathy was transformed into energy and In consideration of certain labors that he performed in Chicago he received s7000 represented in seven bonds of the Consolidated Electric Railway Com pany Some of those who had the privilege of knowing the inside history of the consolidation believed that MT. McKee's compensation should have been $12,000. Others, who certainly had a right to know, understood that the sum should have been S15,000.
 AS already described, Sherman had absolute control of the electric railroad for two years after the consolidation. He hadw a great triumph and with his wit had wrested a fortune from shrewder men than himself. In win ming his fortune he had shamelessly declared that he had bribed at least two of the City Councils of Los An geles The facts in reference to the of ficial grant of franchises to the Los Angeles Electric Railroad are interest ing. The first franchise for the Los Angeles Consolidated Railway Com pany was secured in October, 1890. It was granted in the name of an indi- vidual and was transferred for con sideration about eighteen months afterward tp the electric road corpora tion. This franchise covered a great many of the streets of Los Angeles. It was Shermans habit never to ask for anything in his own name, and on a subsequent day a large number of new franchises was granted to different private persons.
 There were fifteen of these franchises which were again transferred to the electric railroad corporation. In all the negotiation Sherman never ap- 1 peared on the surface. Property-own- CTS and spectators asked for the rail- road privileges and received them ir every instance by a unanimous vote o1 | the City Council. What it cost Sher- man to effect these deals, either through the City Councils or with the | private individuals, no one knows l When the first franchise was granted | in October, 1S90 the City Council o- l Los Angeles consisted of the following men: First Ward, H. Van Dusen: Sec ond Ward, George P. McLain; ThirC Ward, W. H. Bonsall; Fourth Ward l Jacob Frankenfield; Fifth Ward A. c 1 Shafer; Sixth Ward, F. M. Hamilton | Seventh Ward. James T. Brown | Eighth Ward. Theodore Summerland
 Ninth Ward. R. E. Wishing.
 l The franchises that were received by | Moses H. Sherman in 1891 were granted | to him through his agents by the fol | lowing City Council of Los Angeles 1 First Ward, F. M. Nikell; Second Ward Daniel Innis; Third Ward. w. H. Bon- sail; Fourth Ward, - Rhodes; Fifth Ward, J. Q. A. Tufts; Sixth Ward C. H. Afford; Seventh Ward, D. McGarry Eighth Ward, Theodore Summerland; Ninth Ward Samuel Reese.
 | These are the men that Moses H | Sherman received 900 for bribing There is nothing absolutely to indicate | that these public officers were corrupt | ed except the uncorroborated word ot | Moses H. Sherman He received how ever, s60,000 on his word that he cor l rupted these men. At the time the | franchises were granted there was nc scandal in connection with the trans 1 action. The men who occupied posi- | tions in the City Council were men oi | high standing. Frankenfield was presi- | dent of the California Bank of Los An i geles; McGarry was a director in the First National Bank; Bonsall was pro- prietorIof the Nadeau Hotel; Summer land was County Assessor of Los An geles; Tufts was a bank director; Nix ell was a merchant, and Innis a cap italist.
 These are the men whom Moses H Sherman declared had been corrupted
 For two years after the consolda tior of the cable railroad of Los Angeles and the electric railroad Sherman was | aDSOlutely III COIl1ldHu. klle STed' manipulator was not even then satis- 1 fled with the enormous profits that he had obtained, and he secured another franchise for himself for road tC EPasadena and Santa Monica over the very tracks of the Consolidated Elec- | tric Railway Company He holds this franchise yet and at any time may be- come a competitor to the Los Angeles Electric Railroad. After two years haC expired after the consolidation Sher- man was in duty bound, under his contract to the bondholders, to begiT the payment of interest on the bonds.
 The road defaulted on this interest and Sherman manipulated to get a new bond issue. This he succeeded in do
 ing. He wanted at first to obtain al issue of S, GOO, 900, but he failed in this
 He succeeded, however, in getting {
 new s3,O0O, 900 issue, with a quarter o, a million dollars on the side. The Con solidated Electric Railway Company became the Los Angeles Railway Com
 pany. and Moses H. Sherman had con
 summated another tremendous deal-s-
 fO