Los Angeles herald., 1907-04-09
BIG GRAFT
IN NICKEL
MACHINES
Grand Jury Now Has
Abundance of
Proof
Ten Thousand Dollars Is
Paid to Curly Boss
Iby One Man
Ruefs Attorney Asks Judge Dunno to
Hold ProprIetors Of News
paper In Contempt
of Court
By Associated Press.

By Associated Press.
SAN FRANCISCO, April 8.-Nickel
in the slot machines and police corrup-
ton, allegedly resulting from their use,
occupied the attention of the grand
jury at its session today. Telephone in
vestigation was temporarily sidetracked
and no further indictments were re-
turned.
The trial of Abe Ruef for extortion
was resumed before June Dunno and
progressed for half an hour when ad-
journment was taken until tomorrow
morning on account of the indisposition
of Attorney Ach of the defense. Ach
filed an affidavit in support of an appli-
cation for an order requiring the pro-
prietor and editor of the San Francisco
Chronicle to show cause why they
should not be punished for contempt in
having published an editorial denun-
citation of the court conduct of Ruefs
counsel.
June Dunno refused to consider the
matter at this time, saying it would
tend to sidetrack the main issue, the
determination of the guilt or innocence
of Ruef. While making motion for
the drawing of 100 more names for the
regular Jury list, Ach announced that
the defense will exercise all of it's ten
peremptory challenges.
The witnesses examined before the
grand jury were DR.. Joseph F. Poheim,
formerly police commissioner;
Matthew Larkin, local agent for east
ern manufacturers of slot machines;
Fred Hilbert, of the defunct wholesale
liquor firm of Hilbert Brothers, and who
accompanied Mayor Schmitz upon his
recent tour of Europe, and G. Schultz,
pool room man.
BY questioning these witnesses AS
sistant District Attorney Heney sought
to strengthen the charge of the prose-
cution that in January of last year, for
twenty days succeeding the repeal by
the police commission of the ordinance
prohibiting the operation Of money pay
ing slot machines, large sums of money,
1t was alleged, were paid to Ruef,
Schmitz and police officials for "con-
tinued protection" until District At
torney Langdon cleaned out the ma
chimes under the state anti-gambling
law.
According to an official statement,
given as an illustration, the large
profits made by Schmitz who was then
an extensive owner or lessee of slot ma
chimes, were cut in two, half being re-
tained by himself and the other half
being by him turned over to Hilbert
for distribution among those higher
up"
Controlled TenderIoin
Hilbert is the man whom the prosecu-
ton charges with having paid Ruef $10,-
900 for the exclusive privilege of sup
plying Tenderloin resorts with whisky
on the understanding that any such
place which refused to patronize Hill
bert would lose it's license at the hands
of the police commission. Hilbert was
very close to the mayor.
Among the witnesses present today,
but not called, was M. A. King of Los
Angeles, who negotiated the franchise
for the Home Telephone company of
that city. He expects to testify on tele-
phone affairs tomorrow. He said that
he tried from December of 1901 until
September of 1905 to induce the San
Francisco authorities to advertise a
telephone franchise competitive to that
held by the Pacific States company,
and to award 1T to the highest bidder
but without success. "I wanted this
franchise personally" said King, "but
the supervisors turned me deaf ear"