The Washington herald., 1909-01-31
One of the Most Startling and Dramatic Chapters
of Corruption in American History Access of
Wealth to Community Preface to Bribery and
Financial Recklessness-Debauchery in Councils

knew what was going on, so strict was
the secrecy observed by the reformers
The result OF their work became known
wholly by what the refOrmers consider a
most unfortunate accident Had Il not
been fO- this accident the world would
not know now Of the grating. and the in
vestigatioIs and plots against the graft
| ers would still be going forward in order
/ 10 obtain the most complete evidence.
/ The situation came about in this way:
/ Pittsburg had been receiving up 20 six
months ago ~ Per cent on It's bank de-
( posits on daily balances. which were held
I by seven banks The city treasurer car
7 ried about sl5,09o,0o0 in these institutions
I An ordinance was introduced into coun-
els providing that certain city depositor-
I les be designated by councils. the city 70
receive only 2 per cent on daily balances.
Out Of = votes cast az the bsllOting on
+ this ordins nee in common councils IS
were in favcr Of It. William H Melaney.
one OF the men now under arrest and
charged with bribery, vas the only man
I who voted against IL IN Melsney's ab-
senCe IN Philadelphia the ordinance was
I vetoed by Mayor Guthrie. Councils
passed the bin over the veto
Brides for Councils.
( the measure was the German National.
Of which ". ". Ramsey is president and
A A Vilsack. cashier. On December Is
a special national bank examiner, a Mr.
1 Nesbit. came IN quite Unexpectedly, as
examiners have a habit Of doing. and in
I spected the German Nationals books.
he found notation in one ledger which
read:
( For councilnlen. 81, 500.
/ This brief but comprehensive memoran-
/ dun led TO the whole expose. Mr Nesbit
fcOrnered Ramsey and VjIsack. after seiz-
/ ing the book, gave them a third degree
examination. and from subsequent devel-
Opments il appeared that they admitted
( the whole transaction II had been car
ried On presumably without the knowledge
/ Of the directors, although this point has
not yet been cleared up According 70 the
story told at the preliminary hearings in
the matter later. the 1880 was laid in
cash on a table in the bank Common
! Councilman John ?. Klein came into the
room after the bank officers had left.
When they returned Klein and the money
had disappeared.
The reformers had started their fnves-
/ tigatiOn into the doings Of councils last
Of the Voters League, and its counsel.
was directing the work Mayor Guthrie
knew about IL but Well was the man
behind the gun. Whether the bank ex-
aminer, through United States govern
ment sources, knew Of what was going
on in advance has not been positively as
certained. although it has been intiniated
/ that President Roosevelt had been IN
/ formed Of the graft inquiry At any rate,
/ Mr.. Nesbit notified Mr.. We'll Of his dis
COvery. He told him that he was about
70 transmit news Of what ne had stumbled
upon TO the authorities at Washington
You would better make arrests quick
/ ly," ne advised, for must act at once. -
But. my God. sir, you cannot and must
not do that. You viii ruin all Of our
plans Of many months il you make publiS
your discovery row" Mr. We'll is re-
/ ported to have said.
The Warrants Served.
The special examiner. whose duties dfd
not comprehend cooperation with the
Civic Voters League, was firm. however,
in his warning for Mr.. Bell 10 act. though
: the latter begged for a week OF ten days
Of grace. Nesbit compromised by wiring
/ the details Of the situation to Washing
{ LUu- 0ckALl5 AuA duAlLt- LIE 1OfIDAIOltI
OF the Treasury, 1t is admitted, then did
take Up the matter with the President.
whose dictum was:
! Tell the examiner to do his duty. II
he has found evidences Of graft OF crook
edness in a national bank. let him expose
it Immediately and wait on nobody.
Nesbit acted. and the German National
/ exposure went out to the world the next
day, a Saturday On the following Mon
day there came about the arrest Of the
seven counciimen- Fearing fight Of the
men upon whom they had pinned the
badge OF guilt IN their secret activities
and the rCination altogether Of their
work Of months. which had cost thou
sands of dollars and many sleepless
nights Of toll, the Voters League struck
It's blow
Among the politicians it was as though
a bomb had been thrown into their camp.
There was a panic, not because Of the
single case of the bank. for that affair
was infnltesimal in comparison with the
bulk Of the graft-it was merely a small
instalce-but because OF what the reTels-
ton might lead TO subsequently. The