Evening star., 1937-03-27
R0SS| AIDE LINKED
TO GRAFT INQUIRY
Inquiry of San Francisco
Police Extends to
Mayors Office.
BY the Associated Press.

''''NN'NN-s
SAN FRANCISCO. March 27.-
Repercussions of San F'rancisco's police
graft inquiry. which has led to the
resignation of a police commissioner
and an order for the district attorney
to appear before the grand jury, ex-
tended into the Mayors office today.
The San Francisco Examiner said
Maurice Rapheld, executive secretary
to Mayor Angelo Rossi, told Of fire.
quently borrowing small sums from
Peter j. McDonough, bail bond broker,
whose concern was described by an
investigator as "fountainhead CT
corruption
The Examiner said Rapheld eX-
planned he had known the broker for
q years and had paid back all money
he borrowed
LAS a matter between friends the
newspaper quoted him, II borrowed
small sums from McDonough-lO 10
or 20 dollars at a time Our financial
transactions went no farther than
that. l paid back all of the loans"
Tells of Favors Done.
The newspaper said Rapheld told OF
doing many small faVors TOR NC
Donough, while Rapheld was chief
deputy tax collector before he became
the Mayors secretary. There was
nothing wrong about it, the secretary
said.
District Attorney Matthew Brady,
technical head of the current vice in
vestigation, was ordered to explain to
the grand jury today charges the
broker holds note Of his. Police
Commissioner Thomas Shumate re-
signed when it was revealed he owed
McDonough $4,000.
THE jury is entitled to satisfy itself
that it can or cannot have complete
confidence in the prosecutor Of the
George J. Steiger.
The graft matter" reference was TO
a report by Edwin N. Atherton, former
Oman, alleging police are raaping a
S1,000000 annual pay-off for protec-
ton given gambling and prostitution
The grand jury now is studying the
Investigators report.
Police Control Charged.
Atherton, who suggested legalization
of vice as a means Of eliminating graft
charged that the bail bond brokerage
firm of McDonough played con-
trolling influence in police matters
Judge Seiger directed Brady to ap-
pear before the jury after he had ques-
toned the prosecutor about charges
! made by Eddy Martin. automobile
alesman, concerning a note issued in
1914.
Martin asserted Brady gave his
note for s1,170 to McDonough, bail
bond broker, to obtain funds for a
new car.
Brady, prosecutor here for 20 years,
angrily denied the assertion. He de-
clared he gave the note to Martin, who
assigned it to McDonough.
Obligation Is Denied.
To Judge Seiger, Brady admitted
existence Of such note On which he
said he had been unable to make pay
ments for more than 20 years, but de-
MED ANY obligation, moral or legal to
McDonough."
i told Brady that although the note
may be legally outlawed, a moral OBJ
legation may remain" Judge Steiger
said.
Il belieev I am doing the fair thing
by calling the grand jury and direct
ing Brady to tell his story under oath.
I vii also give the jury both sides OF
the question by putting Martin on
the stand"
Let Brady and Martin fight it out, y
was McDonough's reply to request for
comment
Under California law a promissory
note becomes uncollectable four years
after falling DUE if no payments are
made.