Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-03-19
Astonishing Revelations
of Graft Said to Have
Been Made.
$450,O00 In ONE FUND
Boss Ruef Had Handling of it
AIl---Scores Facing In
dlctment.

San Francisco. March 10 The
Schmitzs Case was continued to April s
today, by consent of both sides.
Many Indictments Expected.
San Francisco, Cal, March 19.-The
grand jury, it is expected, will return
indictments against Mayor Schmitz,
Boss Ruef, President Calhoun of the
United railroads, and a number of well
known capitalists. for graft in trolley
and telephone franchises, by which, it
is alleged, millions of dollars were di-
vided among boodlers.
Bribe Fund S45O,OOO.
The amount of the bribe fund said TO
have been given out by the United
railroads was $45O.OOO, of which
Schmitz and Ruef are alleged to have
got the lions share. The two tele-
phone companies are said to have con-
tributed about half this sum.
The first witness before the grand
jury yesterday afternoon was James l..
Gallagher, chairman of the finance COM
mittee of the supervisors and at one
time acting mayor, at which time he
is said to have distributed bribes
among his colleagues. He was follow
ed by Andrew NJ. Wilson, a business
man and former Ruef supervisor, now
state railroad commissioner. After
they had partially finished giving their
testimony they were temporarily eX-
cused.
Revelations Amaze Jurors.
They were succeeded by Thomas Lo-
nergan and Charles BoxtOn, both prom
inent supervisors. Then, in their pres
ence, the testimony of several of the
supervisors was heard.
Their testimony was sensational.
Deals hitherto barely suspected and
deals unknown were divulged with a
wealth of facts that amazed the inquisi-
tors, prepared as they were by pre-
vious Investigations to expect corrup-
ton.
First and most important is the deal
by which the United railroads, by its
president, Patrick Calhoun, gained the
overhead trolley franchise. The price
paid for the franchises, which permit
ted the company to initiate its stock
into millions by turning its cable lines
into a trolley system. was S450,0OO. OF
this the supervisors received but a
small share. the bulk of it going into
the pockets of Ruef and Schmitz it is
claimed.
How Traction Deal Was Made.
Ruef. it is said, demanded $450G0C
from Calhoun to carry through the
transaction, and this money was drawn
by the United railroads in installments
calculated to be small enough to di
vert suspicion. Ruef said $S5,000 was
to go to mysterious persons who. he
insisted, had to be squared" $S5, 600
more was set aside for the supervisors
and this sum was placed in the hands
of Gallagher by Ruef Gallagher, it is
said, retained $4,000 for himself. SIC
900 YVES given to Daniel Coleman, ant
$4,000 went to Wilson. Other super
visors received $4,000 each, and still
others were given as little as $4,000
After subtracting $4,000 for the sa
pervisOrs and $4,000 for the person!
Ruef insisted must be taken, care of
but who may never have received tn,
money, $2S0,000 was left to be divided
between Schmitz and Ruef
All this was carried forward Will,
the city was yet in the throes of socia
convulsion following the earthquake
and while the very existence of tn
town was still threatened.
Warning Companies Both Held Up.
But the corruption surrounding tn
history of the franchise granted to tn
Home Telephone company was eve
worse. The supervisors were bough
twice, it is claimed, once by the Pa
cific States telephone, which wished t
keep the rival corporations out of tn
city, and once by the Home Telephon
company, which was fighting to gai
entrance. The Pacific States compan
paid the most mOney-and even hire
suite of apartments in which it wa
given-but the franchise went to tn
Pome Telephone people.
This was brought about by the allies
ed purchase of Schmitz and Ruef b
the foreign concern, and they force
the granting of the coveted privilege.
Most of the supervisors, it is sait
got $4,000 apiece from the Pacif
States company. though they were nj
considered worth buying. A little |;
ter the Home telephone agents paid
number of supervisors So 900 eacl