The San Francisco call., 1908-03-14
RUFF AND SCHMITz
MISSED A MILLION
Detective Burns Tells of Curly
Boss Confession of Deal
With w. II. Teyis
Third of Water COmpany's Profit
Offered to Betrayers of
City, He Testifies

profit the Bay Cities water company
expected to make on the sale of it's
alleged water properties to the city of
San Francisco. OF this sum Abraham
Ruef was to have been paid $1,000. 900,
which he in turn was TO have divided
$500 600 between himself and former
Mayor Schmitz. The balance was to
have been paid out by former Super
visor Gallagher, who would have re-
ceived $4,000 as his share Of the
Doodle and each of the other super
visors $4,000
Briefly that was the testimony of De-
tective William J. Burns. who was
placed on the witness stand in the
Tevs- Bulletin libel suit yesterday aft
ernoon. Burns testimony was based
upon Ruefs confession TO Burns fol-
lowing the arrest. of Ruef at the
Trocadero roadhouse about year ago.
Assistant District Attorney William
Kof Cook and Attorney Henshell, who
is associated with Cook, fought siren
uously against the introduction of evil
dence in the form of Burns account of
Ruefs confession. Attorneys Matt I.
Sullivan, Hiram W. Johnson and
Thomas Hickey. with the citing of but
little authority and almost wholly de-
pendent upon the contents of the
stories alleged to be libelous of Tevis.s
blocked the efforts of the prosecution
and the court ruled that Burns should
answer questions put 10 him relative
to confessions made to him by Ruef
HOW HE TOOK UP FIGHT
Burns told Of the circumstances
which resulted in his leaving the
United States secret service on an in
definite leave of absence. on his be-
coming assured the results of his in
vestigations would not cease when a
few OF the little fellows" had been
punished for their crimes but would
continue until the big men" in the
deals were brought to Justice. Burns
said that it was during a conference
with Rudolph Spreckels that he actually
made UP his mind to come to San Fran
cisco, as Spreckels had volunteered to
finance the prosecution, even though
his own brother might become involved.
My conference with Ruef began on
the evening of March 8. 1907. when
Ruef was arrested at the Trocadero
roadhouse," said Burns.
Did Ruef ever make confession to
you regarding the scheme of the Bay
Cities water company?" asked Attorney
Matt l. Sullivan.
He did," replied Burns. "Ruef told
me he met Coloael E G. Wheeler of
the Bay Cities company in January.
1906, with whom he arranged for a
meeting with William s. Tevis.
PROFIT OF $s,OO0,ooo
@-Tevis. according to Ruef, told Ruef
the Bay Cities company would sell their
project TO the city of San Francisco for
s1O,500, 900, which meant to the COM
pany a profit of s3.000,000, a third OF
which the company agreed to pay Ruef
TO put through the deal with the board
of supervisors. Subsequently Ruef told
me he went to Schmitz and the latter
inquired:
Well. can the company furnish the
waterg to which Ruef said he an
swered Yes,
Very well. then; put the deal
through advised Schnitz.
~Thereupon Ruef said he sent for
Supervisor Jim Gallagher and ex-
planned the proposition to him, telling
him that the latter could have 100000
to divide between himself and the SUI
pervisors. According to this plan CAL
lagher was to receive $4,000 and each
of the other supervisors would receive
5000.
'Ruef told me that he refused to
stand for any such delay as the engi
neers contemplated and tried to get
the special board of engineers to con-
slider only one scheme, the Bay Cities,
whereupon the engineers resigned.
Ruef said the suggestions of other
schemes for consideration were made
70 block injunctions that might come if
only one scheme was Investigated.
TELLS OLDER OF DEAL
'Ruef was about to appear before the
grand jury and testify to the several
matters / mentioned and he had prom
ised me that he would testify as to
the deal he proposed to put through
for the Bay Cities company. This was
on the morning of May Is, 1907. About
noon met Mr.. Older, managing editor
of the Bulletin, at my Office in the
Delbert block.
Ever since the prosecution began its
work in San Francisco Mr.. Older had
worked day and night to aid us. Many
times he held out stories the publica-
tion of which would have been injuri-
Gus for us, and for this reason the
most complete confidence was reposed
in him. Therefore I gave him the
story which was printed on May 1s
and reprinted January il of this year
and by which 1t is said Tevis has been
libeled."
Did Ruef make any other confess
sions to your" again asked Sullivan
Yes. He told me of his deal with
William +. Herrin; of the proposal of
Schmitz for governor of California. and
how Herrin had paid all the expenses
of the primaries held at Santa Cruz
which amounted to $4,000. and the
subsequent naming of Gillett as the
gubernatorial candidate at the dicta-
tion of Herrin."
PUTS OFF CROSS QUESTIONING
The taking of Burns testimony did
not end until nearly o'clock At that
time Assistant District Attorney Hoff
Cook announced he would reserve
cross examination OF the witness in
definitely.
Horatio P. Livermore. pioneer and
capitalist and former official of the
Natoma land and mining company. who
was a witness early in the day, said
that several years ago the water prop
critics which the Bay Cities company
proposed to sell San Francisco for
sl0.50o.0O0 were offered to the Natoma
company for S250,000, but were re-
jected by the latter company because
Livermore said the water supply of
the Bay Cities company was deficient
and the titles defective. The Natoma
land and mining company, said Liver
more itself had claims upon the