The San Francisco call., 1906-12-23
CALHOUN ROADS
MAY LOSE
PERMIT I
Franchise Secured Through
Fraud May Be Cancelled
by Courts Of the City
CASE IN CHICAGO
GIVES PRECEDENT
Valuable Concession Of the
Company Endangered by
Activities of Grand Jury


As result of the statement of Spe-
cial Agent w. j. Burns ON the witness
stand In Judge Dunne's court last week
I'm which he let 1T be known that he
was in the possession Of evidence show.
Ing that a Doodle fund had been used
to secure the trolley franchise for the
United Railroads, steps may be taken
to annuI the permit. 1t is contended
that If proof can be laid before the
court that the franchise was obtained
by fraud, 1T lies within the power of
the court to declare the franchise void.
1t is claimed that precedent for such
action is to be found in the Chicago
case. where Doodle was used to secure
a street franchise by traction com
pany. The matter was taken to the
Superior Court and there the franchise
was annulled. Upon appeal to the
United States Supreme Court the ac-
tion of the lower tribunal was upheld.
While 1t has not been established
that the San Francisco case is Identical
with that of Chicago, attorneys con-
o04bCQ ySctSiody saw ~ 90 lilCii OplI-
ion that an action to annul franchise
secured by fraud could be maintained in
the local courts.
The permit granted to the United
Railroads by the Supervisors carried
permission to change the cable lines OF
the company to overhead trolley sys-
TENS. Should this permit be annulled
the traction company would be in the
same position in regard to franchises
as 1t was on April II.
It is also claimed that if it can be es-
tablished that the Home Telephone
Company secured it's franchise by
fraud similar action could be taken In
the courts and the franchise Cancelled
1t may be stated that should these
franchises be Cancelled and regranted
at something like their real value the
city treasury would be richer by sew
eral million dollars.
On Wednesday the Grand Jury is to
be in court, but in spite of that fact
1t is said that the jurors will crowd in
short space of time in which to vote
indictments in the matters already in
vestigated involving the criminal men,
bers Of the administration.
Foremost among these outstanding
accounts which will be settled before
the new year comes in is the theatrical
graft. Indictments are sure to follow
in those cases, and Ruef will soon be
given further opportunity to exert him
self in trying to block the wheels of
justice.
1t is the plan of Henry Ach and Ruef
to keep the jurors busy in dancing at
tendance on Judge Dunne's department
of the Superior Court Interrogations
are to be put to them in the forlorn
hope that by keeping the jurors in
court they will be "out of mischief"
from the Ruef- -Schmitz point of view.
But in spite of Ruef the Jury will
meet and return bills on the matters
already investigated. One new case
is to be taken up next week. The re-
Iations between the administration and
the firm of James A Shook & Co.,
dealers in foodstuffs and produce and
purveyors in extraordinary to the City
and County Almshouse, are to be thor
ough1y gone into. So far wrong have
those relations been that the records
of the Auditors Office glared with the
transactions. This investigation will
involve the Mayor, Ruef, Supervisor
Coffey of the boards committee on
hospitals and the Mayors two broth
ers, Frank and Herbert Schnitz The
former brother is superintendent of the
almshouse, and the other kin is con-
nected in some mysterious way with
the Shook firm. Charges of bribery are
to be brought against those criminally
involved.