New-York tribune., 1906-11-15
GRAFT FIGHT BEGINS.
San Francisco Restaurant Men Tell
Of "Hold-up' Relief Funds Lost.
fBy Telegraph 70 The Tribune. 7

San Francisco. Nov. 4-French restaurant pro-
pr.etors were before the grand jury to-day and
gave testimony regarding the deal two years ago
ny which they were permitted to continue in busi-
ness after they had retained Boss" Ruef as their
attorney. As the grand jury dismissed most Of the
witnesses at the END Of the day, with notice to
return tomorrow, II is supposed the evidence OBJ
tanned satisfied them. II is believed the Indictment
or Ruef and others viii come tomorrow.
Two years ago trouble developed between S I.
Constantin. proprietor Of Tortonis. and the Cooks
and Walters Union The story goes that in an
effort 20 obtain evidence which would show Tor
tonis in its true character, members Of a labor
organization visited the place. and after dinner
which was served in one of the private rooms up
stairs obtained the company of two women
through the proprietor The proof Of the disrepu-
table nature Of the place adduced evening was
sufficient 10 convince the Police Commissioners
that It was run along immoral lines. The license
was revoked and the restaurant was closed.
In the mean time Ruef busy gathering evil
dence on his own account. In body the restaurant
proprtetors were summoned before Lhe commission
ers. They had collected defence fund ot $4,000.
This was turned 10 Ruef who appeared as
their attorney before the commissioners he had
ated. This farce carried through. ana the
promised investigation was dropped like hot cake
after Ruef had talked q few moments before the
board. RuaTs FEE" amounted TO considerably
more than $1,000 a minute.
significant visit paid this morning by Detective
Burns 10 the Office or the Chief Of Police is be-
department. J George Boyne, secretary of the
Police Commission and one OF Ruefs enthusiastic
followers. with Patrolman Skelly. assistant in
the license department have been subponaed by the
grand jury. Immediately after the visit of Burns
to Oman Sergeant Donovan, who had been the
head OF the license department since 1902 was re-
moved and Sergeant Douglas was placed in charge
temporarily
II leaked out to-day that President Roosevelt
and the federal government are about TO prosecute
certain san Francisco officials who are alleged to
be guilty Of appropra5ing relief funds from
the East aid the earthquake and fire sufferers.
Federal interference IS due 10 the fart that the
frauds occurred through the postofice. most
glaring instance Of graft. which is said 70 have
mounted into several figures, is found IN Of
contribution s. 0S5 collected by the citizens of
Searchlight New, and sent 10 Mayor Schmitz.
The money shipped in bills by Wells Fargo
& Co. from Los Angeles and by them turned
over 70 Mayor Schmtz. The relief committee
never received # Wells Fargo & Co. declare they
have receipt signed by Mayor schmitz and also
a letter from him acknowledging its receipt.
Mayor Schuitz declared before he left for Europe
he had no recollection OF the matter but that If
he did receive that particular package It was
turned over TO the relief committee and James D.
Phelan.
Wells Fargo & Co. and eK-SIayor Phelan are in
vestigating. but one has able TO follow the
money past Mayor SchmitZ Captain Seymour,
formerly head OF the detective bureau and now
chief detective for Wells Fargo & Co.. is in
Los Angeles. where IL Is said the Broadway Bank
and Trust Company holds the receipt Of Mayor
schnaitz which was forwarded 10 them. Other
Instances OF the kind. It IS said. viii be sought
under the direction Of the United States postal
authorities II is reported that the entire amount
unaccounted for may reach 100000