Los Angeles herald., 1908-05-03

wouldn't that committee have rushed
to the supervisors and hanged them to
the nearest lamp post?
Now. anybody knows that. If that's
true, why was the money paid7 Be-
cause Pat wanted to carry out the deal
made before the earthquake. And II
he had not made 1t he never would
have paid the 100000 to Abe Ruef. He
made the bargain and he settled the
matter by splitting the 100000 and pay
ing half. And this fighting hero per-
mitted himself to be held up! II that's
the sort of stuff you make heroes of.
God forbid that should entertain any
hero worship.
"They have to do it. The gas COM
pany wanted an 85-ecnt rate for gas.
Paid Large Sum
"The valuation of the gas plant did
not exceed $10,000,000 at the time. II
was bonded at $30,000,000 and had to
pay interest on that amount. And OF
course you have to make considerable
profit per thousand feet of gas to pay
dividends on $SO,0OO,OoO bonds when the
property Is worth only $4,000 900.
Consequently they paid Abe 5000
and got an 85-cent rate instead of rs
cents, and they made 100000 the first
year. They paid $4,000 to make in
terest on their watered stock.
well, didn't innocent purchasers
hold the bonds, and haven't they been
induced by banks to subscribe for
them? Certainly. So when we inter-
fere with Ruef we interfere with gas
rates, we strike at the 100000 profits,
we take away the interest on the bonds.
$50 with the telephone company peo-
pie. They got into the deal innocently.
They had to make some more money,
and IL they couldn't get 1t any other
way they had to get it by bribing the
supervisors.
"They broke 1t off by selling bonds to
the people and leaving them to hold the
stock. So the people who hold the bonds
set up a howl. And they have right
to howl.
Will Howl More
"They will howl some more when our
supervisors assume their rights and re-
fuse to pay interest on $10,000OO0 wa
tered capital of the gas company.
when 1 went to Oregon Southern
Pacific official attended prayer meet
ing and made a speech.
"He said that Heney was all wrong,
that the lumber industry was the most
important one in the northwest, and
that big companies could not operate If
they could not get big tracts of land
IL they could not acquire them honest
them anyway. So he said that Heney
ought to get out.
The oregon homesteader should
have the right to exchange his lands
for any land any place in the United
States was the claim of the railroads
in the Oregon land cases. They also
said that it would not be right to keep
the homesteader out in those lonely
lands by himself, and that he could
trade those lands to the railroads.
Wanted Lands
"They wanted the lands, and they
would plead that If they could get him
out of those lonely places they could
have the lands for their own usage
after / had been before the grand
jury and questioned as to what knew
in regard to Ruef, Senator Perkins
hade statement giving Abe a certifi-
cate of character.
Perkins said that he had known
Ruef for a long time, and that there
could be no truth in the rumors of
Abe's alleged efforts to bring 1000 Chi
nese disorderly women into San Fran
cisco.
1T is true that Perkins had known
Ruef and his actions for some time.
Think of a man, a United States
of such a man as Ruef from the public
when 1t is of vital Importance that the
people should know the facts
I'VE must demand higher standard
of our public servants. We have a
right to demand honesty in public serv-
ants, and what we have a right to ex-
pect from them we have a right to
expect from our newspapers.
I'VE worked at night to get evidence