Los Angeles herald., 1910-04-07
Indictment of Frank HoffStot Is
Sequel of Presentment
by Investigators
BANKER MAKES CONFESSION
Emil Winter Admits Payment of
$4,000 to Morris Elm
stein, Councilman
Associated Press1

4 III Inc GlILSDuTB BIdlI thpOSulO Q
h came as promised late today with
the presentment by the grand jury Of
a. lengthy report in which is recon-
mended the indictment of Frank Hoff-
stot president of the Pressed Steel Car
company, one of the most prominent
business men in the country Tho
court ordered an indictment drawn.
simultaneously in open court came
plea of Emil Winter, president of the
Workingmens Savings and Trust COM
pany, that he had no defense to make
to the charge that he gave a $4,000
bribe to former Councilman Morris
Einsteln.
The following in abbreviated form,
are some of the most startling findings
in the grand jury presentment made
public tonight:
First-That Frank N. Hoffstot. pres
ident of the Pressed Steel Car company,
and president Of the German National
bank of Allegheny and prominently
identified with other banks, paid to
Charles Stewart, a former select coun-
Gilman, the sum of $4,000.
Second-That the money was a bribe
used in influencing the votes of coun-
cilmen to pass an ordinance making
three banks in which Hoffstot was in
terested as official depositaries of the
citys millions.
Third-That the arrangement for the
payment of money to Stewart was
made in the spring of 1908, and the late
James w. Friend, at that time an
official of the Pressed Steel Car COM
pany, was an associate in the trans
action.
Fourth-That the original plan that
Friend had was to obtain the services
Of William A. Blakeley, then a prac-
ticing attorney here but now the dis
trict attorney in charge of the graft
prosecution, as a stakeholder of the
bribe money until the ordinance had
passed.
Fifth-That Attorney Blakeley de-
clined to act In the capacity named,
and warned all parties of the criminal
ity of the proposition and of the la
bility TO prosecution II II went further.
Sixth-That subsequent to Mr..
Blakeleys refusal, Messrs. Friend and
Hoffstot completed an arrangement
with Stewart whereby Hoffstot would
pay, or cause to be paid, to Stewart
the sum named-S52,5OO.
Seventh-That the transaction was ar
ranged to be made in New York city,
and took place there in June, 1908, in
order, If possible. to avoid criminal
liability in Allegheny county.
Eighth-That Hoffstot also solicited
from one James n. Young, cashier
of the Second National bank of Pitts
burg, $21,O 900 to be paid Stewart to
insure the selection of the Second Ma
tional bank as one of the favored city
depositaries
Ninth-that Stewart did demand from
the now deceased Friend, who was act
ing as agent for the Second National
bank, bribe for Stewards vote In ia
Vor of the bank ordinances.
Tenth-That in accordance with the
findings 1t be recommended that IN
dictments charging conspiracy and
bribery be returned.
BANKS WHICH BENEFITED
The banks named as ultimate prin-
cipals to profit by the bribes alleged to
have been paid by Hoffstot to Stewart
are:
The Farmers Deposit National bank,
The Second National bank Of Pitts
burg
The German National bank of Allie
gheny.
In addition to those three, the Co
lumbia National bank of Pittsburg, the
German National bank of Pittsburg
and the Workingmen's Savings and
Trust company of Allegheny were
named as city repositories in the ordi-
nance passed July 8, 1908, over the may
ors veto.
President Emil Winter of the Working
mems Savings and Trust company to-
day was no less a sensation than the
report of the grand jury. He was
charged with the payment of a $4,000
bribe to Morris Einstein, a former Sc
lect councilman.
When Winter appeared in court
Judge r. S. Fraser, who is presiding
in the graft cases, asked to be excused
IT, loo, INV1tasT
explained that on account of his long
and intimate friendship with Mr.. Win
ter, he wished to have nothing to do
with the case. Winter was then taken
before Judges Thomas ID. Carnivan and
J. M. SWearington, and entered the for
NAL plea. Sentence was postponed.
Frank N. Hoffstot, as president of the
Pressed Steel Car company one of the
largest industries of its kind in the
country, recently figured prominently
in the public eye while a strike was on
at his plant in McKees Rocks. During
the long months suspension there were
many riots, many persons were killed,
and the state troops were called out.
The reference to the alleged plan to
have Attorney Blakeley act as a stake
holder is as brief in the report of the
grand jury as it is in abstract given
above, and the district attorney tonight
would not comment upon it for publ
cation
ORDERS HOFTST0T INDICTMENT
The court ordered indictments drawn
against Hoffstot, in accordance with
the grand jury's presentment, namely,
on two counts of bribery and one of
conspiracy to defraud the city.
The presentment reads that Hoffstot
shall be ordered to appear as witness,
and in case he does not do so the dis
trict attorney proceed forthwith TO
eXtradite him.
The presentment concluded with an
order that the investigation continue
along the lines already pursued, which
Is to moan more men, higher up, are
yet to be named.
Just before President winters ap-
pearance in Judge Frasers court James
hContinued on Page Three)