Omaha daily bee., 1907-03-28
TRACING ALLEGED GRAFT FUND
Frisco Grand Jury Coins Deeper Into
Scandal Growing out OF TeIe-
phone Franchise Deal.

SAN FRANCISCO. March H.--The follow
ing witnesses were called before the grand
Jury and briefly examined today: Or.
Ferdinand Butterfield, representing inter
ests allied with the United States Inde-
pendent Telephone company; z. o. Open
helm Of Los Angeles; William Meade. pres
ident of the Central bank OF Los Angeles,
and Mr.. Sloan of Los Angeles. Percy Nor
gan, president of the California Wine
Growers association and formerly one OF
the directors of the Pacific States Tele-
phone and Telegraph company, was tenn
porarily excused.
Former Governor Henry T. Gage, who
arrived in the city last night from Los
Angeles and who is reported to be de-
sired by Abraham Ruef as associate ooun-
sci. declined today to affirm or deny that
he was here for the purpose OF conferring
with Ruef
Ruef is likewise uncommunicative on
the subject and says that, although It is
true he is seeking additional counsel, he
is not in position to make any state
ment.
The grand jury resumed its session this
| afternoon and the inquiry will be directed
to an effort to trace the course Of the
100000 said to have been sent here from
/
obtaining a franchise for the Home Tele-
phone company It is stated that the
money was sent to an Oakland bank to
the credit of the telephone company, then
transferred to another bank to the credit
| of the Empire Construction company, an
allied corporation. At todays hearing the
prosecution hoped to show by the books
of the bank that the purpose of changing
the deposit was to cover up the subsequent
payment of the money to the supervisors.
A number of the officials of the two banks
were ordered to, appear to identify the
books.
At the conclusion Of the session District
Attorney Langdon was asked to make a
statement regarding the days investiga-
ton. He replied:
! This vas one Of the most important
days thus for before the grand jury-a
day respecting which 1t is necessary for the
officers of the prosecution to observe the
strictest silence. 1 shall simply say that
this was one of the most satisfactory days
yet"
This was taken to mean that the wit
nesses called, or some of the more impor-
tant of them, had given testimony tending
to corroborate the bribery and graft evil
dence on which slxty-hve indictments have
been already returned against Abraham
Ruef, nine against General Manager
Louis Glass of the Pacific States Telephone
company, thirteen against Abraham X.
Detweiler, outside agent for the Home
Telephone company, ten against ]. ". Hal
sey. outside agent for the Pacific States
Telephone company; fve against Mayor
schmitz and one against Chief Of Police
Dinan.
Judge Lawler in the superior court will
call General Manager Glass to plead "a
the nine bribery indictments tomorrow
morning. Mr., Glass was asked tonight to
state what his intentions are He referred
the questioner 70 his attorney. The latter
said: 1T would be unwise for aa TO make
any statement now. Whether we shall plead
TO the indictment or test them by demurrer
will become known tomorrow when the
} cases are called. This is all we are pre-
pared to say tonight"
Mayor Schmitz today made a statement
specifically denying published charges thai
he has profited by administration graft tC
the extent OF S662,0O0 He declared thai
when given opportunity in court HI
would prove his innocence Of ell charges
made against him.