Omaha daily bee., 1907-03-22
TELEPHONE DEAL
Omeials of san Francisco Corporation
Before Grand Jury-HHIsey
Arrested in Manila.

SAN FRANCISCO, March a.-The grand
jury today resume dthe work Of investigat-
ing the alleged wholesale graft and cor
ruption in the municipal affairs OF this
city, and after an all-day session, with
brief recess at noon, adjourned tonight un-
I'll II o'clock Saturday morning. No in
dictments we're returned today. The en-
tire day was taken up in probing into the
alleged bribing Of the supervisors by the
telephone companies, on which twenty
seven indictments have already been-based.
The grand jury made a determined effort
to trace the $4,000 alleged to have been
paid by T. V. Halsey, representing the
Pacific States Telephone and Telegraph
company to ten of the supervisors to pre-
vent the granting Of a franchise to the
Home Telephone company. For the pur-
pose almost all Of the officials and books
Of the Pacific States company were AIKEN
before the grand jury by Secret Service
Agent Burns. Among the officials exam
ined were Henry I. Scott, PRESIDENT r.
]. thinner former auditor, but now vice
president; B. c. Carroll, general agent;
John S. Curran, adjuster; A. B. Cooper,
| station man; c. J. Hall, secretary TO 7. V.
/ Halsey, the former general agent; T. S.
| Sherwin, auditor, and Frank d. Drum, a
| director Of the company. The latter
! emerged from the grand jury room some
| what nervous and excited and assaulted
newspaper photographer who attempted
70 take his picture. President Scott was
| in the jury. room but a few minutes and
! upon comm gout declined to discuss the
testimony given beyond that he had IAN
! swered all question put 10 him"
| Auditor sherwin said that he was re
quested to explain the bookkeeping meth
| ,ulra = HNPFaf
! the various amounts on the books which
were paid to Halsey, but declared that the
accounts showed no such sum as $4,000 OF
any considerable part as having been used
or paid to the former general agent. Hall
under the Interrogation of Heney, ex'
planned his duties as secretary TO Halsey
which consisted, he said, of looking after
the publicity department and of gathering
data on the opposition.
Miss Nellie Smith, stenographer tc
Gerstle Frick & Beedy, the attorneys who
represented the Home Telephone company
in the obtaining of franchise from the
supervisors, was recalled today and spent
over an hour In the grand jury room. She
is considered by Heney and Burns to bt
one of the most important witnesses in thu
deal by which the Home company Is saiC
to have paid $4,000 to the supervisor
through Ruef for their franchise. It Il
said that all efforts so far to get an!
information from her have failed.
T. V. Halsey, the "outside" man for tn
Pacific States Telephone company, who, 1t 1
charged handled the bribe money for tn
supervisors from the telephone company
has been arrested in Manila and is abou
to begin his journey back to San Fran
cisco to face trial on the ten indictment
filed against him yesterday by the gran
jury Halsey was taken into custody b
Chief of Police Harding of Manila i'm
mediately upon the receipt OF the cable
gram from the authorities in this cit,
Subsequently District Attrruey Iangdo
: was notified by cable from Chief Hardin
of the arrest and that Halsey had waive
! extraditlon
} 1t is expected that Halsey will be n
turned to this country on the next Pacifi
E Mail steamer leaving Hong Kong in chars
of Chief Trowbridge of the United State
5 secret service.
7 The state supreme court today on the rC
t quest OF the attorneys Of Abraham Rue
e the central figure of the municipal graf
3 investigation, dismissed Ruefs applicatio
! for a writ of habeas corpus TO transfe
- him from the custody OF Elisor w. j. Bigg
= to that of Sheriff ONeill and to be take
y from the st. Francis to the county Jail.
WASHINGTON, March 2L-The Unite
States supreme court today received th
record in the appeal of Abe Ruef of sa
; Francisco, charged with eXtortion, frol
the decision of Judge Hebbard dsmissin
the petition for a writ Of habeas corpU
y and remanding hi minto custody.