The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-04-27
WILL ESCAPE BY
GIVING EVIDENCE
AGAINST HALsEY
Advance Guard for Pacific
States Company to
Aid Prosecution
JOHN KRAUSE'S WORK
Dimes the Supervisors and
Steers Them Into Pres
ence of Bribe Giver
READY TO TESTIFY
Assistant General Tele-
phone Agent to Assist N
Convicting Chiefs

Through the publication in The
Call yesterday of the detailed tes-
tirnony given out before the grand
jury it has developed that the
graft prosecutors are holding in
reserve an important witness who
will clinch the cases growing out
of the Pacific States telephone
bribery deals. This man is John
Krause. He is assistant general
agent of the telephone company
and his duties included the enter
tainment at French dinners of
members of the board of super
visors- The testimony of Krause
is relied upon to convict Theodors
v. Halsey. The menace OF Indictment
will be strong factor in inducing
Krause to testify against Halsey.
Krause co-operated with Haisey IN
the bribery transactions He acted as
Halsey's advance guard He met the
supervisors. talked over the telephone
matters with them and then turned
them over to~Halsey, who did the rest
Moreover. Krause assisted Halsey In
the offices in the Mills building. where
the money was paid over to the bood-
ling city officials.
CAN ESCAPE INDICTMENT
At the time the supervisors made
their confessions. Krause was In Reno.
New He returned later to San Fran
cisco and was served with a subpoena
requiring his ATTENDANCE upon the
grand jury. Krause was s9ffering from
rheumatism at the time and was too
i'll to appear. He was excused tenn
porarily. He can escape indictment
by going on the witness stand at the
trial OF Halsey. The testimony Of
Krause makes a perfect case against
Halsey.
Krause first came into the case when
he approached Lonergan. for the Pacific
States company Lonergan tells the
story as follows:
Il first met Mr.. Krause on a Satur-
answered the door and told me gem
tlemen wished to see me. I went down
stairs to the door and he said; Are
you Mr.. Lonerganr I said. Yes. sir
don't think you are the man. he
said; are you the supervisory I said
Yes He saids I don,t think you ara
the gentleman I thought. I came over
here a few years since with Mr..
Lonergan from the east. and didn't
know but # might be he who was
elected supervisor ana I thought
would come around and see you said
guess It's the other fellow He
spoke in that strain a little while. He
said: BY the way, I am interested
in the Pacific States telephone company:
come down and 1 will be only too
pleased to show you around the plant
said. oh. well, probably some time
may go down He called on me again
and asked me to come and see ths
plant"
SHOWS LONERGAN THE PLANT
II went and he took me around over
two or three different plants. showed
me the different advantages and the
workings and tried to show me that st
wasn't necessary that we should have
competing telephone system here at all
must say I was greatly pleased at
the workings of the things he showed
me-"
Supervisor Walsh told the grand Jury
that he had met Krause In the tele-
phone ONCE. and Maplock said thar
he had been greeted at the Offices
in the Mills building BY Krause as we'll
as by Halsey. Supervisor Kelly said
that he had had many hne French
dinner with Krause and that they
talked over telephone matters between
courses. Supervisor Coffey also testi-
fed that he had enjoyed a French din
ner now and then at the expense Of
Krause-
Krause is in San Francisco at the
present time and stands ready to give
his testimony when called upon