The San Francisco call., 1908-07-02
JIM REACALLS
HERRIN AND JFRE
BURKE THIEVES
Former Political Lieutenant of
Southern Pacific Boss
Now Cries Fraud
Claims He Was SwindIed Out OF
100000 in Sale of In
terurban Bonds
San JOsean VIII Soon Begin
Suit Against Two Men
He Accuses
SPECIAL DISPATCH 10 TIE GAIL


SAN JOSE, July William F.
Herrin, pilot Of the Southern Pacific
political machine in this state, is to be
the defendant in a suit to be begun by
his former political lieutenant, James
W. Rea, president Of a local insurance
company, and sensational disclosures
are promised. Jim" Rea, whose repu-
tation as a fighter is unequaled in this
valley, is fully aroused and IS very
angry
Thieves" "scoundrels and rob
bers" are a few of the hard names he
applied to Herrin and Jere Burke to-
night in describing an alleged COM
. spiracv against him, and through which
he. claims he has been -defraude8 to the
extent Of $4,000 by their selling out
and bidding in his holdings OF boads
in tie san Jose and Los Gatos inter-
urban railroad company
ONEAL THE ONLY BIDDER 7.
The bonds tn question were sold in
front OF the courthouse here Monday
haEing been held in. trust by the o, A.
Hale estate for several years Louis
Dneal attorney for the interurbaR
railroad and executor OF the Hale es-
tate, was the only bidder. f3e got the
bonds for $75.o0e, when they were al
-.eged to have been worth Sf65, COO
ftea- claims that the sale of the
boNds was advertised on several ocea-
IS. but that when he had q man on
4.s23 20 hid The sale was always post
j T0n Monday the sale was rushed
aroEgh. according TO Rea's statement.
Qneat being the only bidder
Ilea built the interurbarl electric
railroad with funds secured as a loan
from the 0fermania trust company Of
= ~ Louis Before ali OF the arrange
lnents for the transfer of sI35,O0D
loan were perfected the Common
wealth trust company Of St Louis Sc
cured a greater portion Of the stock
Of the Germania company and sWal-
lowed the Germania- Then the office
of the Commonwealth trust company
refused 10 do any further business
with Res-
PROMISES ROAD TO HERRIN
/ Prior 10 this .Rea says he had prom
.fsed Herrin that II the interurban met
with any difficulty Herrin should have
Tie first opportunity to purchase the
road. ~
~ hen the trouble was experienced
with the Germania company Rea saws
-.-le entered into an agreement by which
Herrin was TO advance so much MONEY
for stock ana carry Rea's loan or have
II carried until Rea could get rid Of
his bonds AT par
- AT the time I was involved in 3iff-
cation with the St Louis supply COM
pahy, says Reas ''as Well as the Com
HQnwealth trust company. q. a. Hale
III this city was chosen by me. as wen
as by Herrin, as our representative
who should 90 east and t5ntangle the
aiIairs Of the inrerurban. road. Hale
went as president Of the company.
e.. Hale concluded to take up my notes
. and reissue his own. Upon his return
10 the coast j gave my note to Hale,
tOgetner with security It was under
stood that Hale was 10 carry the loan
Tor one year, and at the expiration of
that time the loan was to be trans
terred 10 san Jose, where j could sell
cfE the bonds in small blocks and nav
or the debt. Hale had agreed to carry
the loan al per cent interest l gave
Hale contract before lie went east
lnsuring him against any loss.
WORSE THAN A THIEF
4. "Herrin also took measures to safe
guard him from any loss I afterward
gave Hale a consideration for carving
the notes for me. On his death none Of
.these papers could be found among
1fale.s effects, and his executors pro-
ceeded 10 collect the note. After using
every dishonorable means that they
COULD employ 10 prevent me from sell
Ing the bonds, OF. securing a loan upon
the bonds, I finally managed 10 get a
b. portion Of the bonds sold. Mr. Andrews.
one of. the executors refused TO give
me $4,000 of the bonds that L had
disposed Of
In other words. there is a conspiracy
TO do me out OF the bonds, and they
4. have carried out their scheme up to
date. / know ii is libelous to call a
man a thief, but that Herrin is whole
lot worse we viii demonstrate later
on. We wiz file suits against both
Burke and Herrin."