Читать книгу "The System," As Uncovered by the San Francisco Graft Prosecution - Franklin Hichborn - Страница 13

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Within twenty-four hours after organizing, the Grand Jury had begun investigation into graft charges. Tenderloin extortion, especially in connection with the so-called “French Restaurants,” was the first matter taken up. The inquiry involved both Schmitz and Ruef.

The term “French Restaurant” in San Francisco is used in connection with a particular type of assignation house. These establishments contain a restaurant on the ground floor, and sometimes banquet hall and private rooms without assignation accompaniments. The stories overhead are devoted to private supper bedrooms. Some of these assignation places are several stories in height. Before the fire, among the establishments alleged to be “French Restaurants” were Marchand’s, Delmonico’s, the New Poodle Dog, the Bay State and the Pup. The extent of the business conducted by these places is indicated by the testimony of A. B. Blanco, who stated under oath at the graft trials that he had $200,000 invested in the New Poodle Dog, while Joe Malfanti testified that he had about $400,000 invested in Delmonico’s.[118]

French Restaurants had long been a scandal in San Francisco. Toward the close of 1904, the Police Commission, then absolutely under domination of Schmitz and Ruef, gave evidence of proceeding against such places. The commission, as a beginning, revoked the liquor license of a “French Restaurant” known as Tortoni’s. Without a license to sell liquor a “French Restaurant” could not continue in business. These licenses had to be renewed once every three months. The Police Commission had arbitrary power to grant, or to refuse, application for renewal. One by one renewal applications of other French Restaurants were held up. It became a matter of common report that all the “French Restaurants” were to be treated as Tortoni’s had been, namely, driven out of business by having their licenses to sell liquors revoked.

And then Abe Ruef appeared before the Police Commissioners as attorney for the “French Restaurant” keepers.[119] Ruef asked that consideration of the French Restaurant cases be postponed for two weeks. This was accorded him. But his request that during those two weeks the places be permitted to conduct their business as before, namely, that they be allowed to sell liquors in the private supper bedrooms, was denied by a tie vote, two commissioners of the four voting for Ruef and two against him.

Before the two weeks’ extension of time which Ruef had secured had expired, Mayor Schmitz had removed from office one of the commissioners who had opposed[120] Ruef’s request that the sale of liquors in “French Restaurant” bedrooms be continued.

The opposing commissioner out of the way, the board by a vote of two to one, adopted certain rules submitted by Ruef for the management of French Restaurants.[121] By the same vote, the commission then granted the French-Restaurant licenses, action upon which had so long been delayed.

All this was done before the public. There were, of course, charges of graft and extortion, which most people, although without definite proof, believed. Heney, nearly a year later, in his speech in the Partridge campaign, referred to in a previous chapter, charged graft. A Grand Jury had made[122] an honest attempt to get to the bottom of the scandal. The efforts of this early Grand Jury came to nothing.

The Oliver Grand Jury had not been in session a fortnight, however, before the whole miserable story of Ruef’s connection with the French Restaurant cases had been spread before it.

Thomas Regan, who had served as Police Commissioner during the Schmitz administration, testified that as early as the summer of 1904 Schmitz had told him that the “French Restaurants” were bad places and should not be permitted to exist. When Tortoni’s was closed, Schmitz stated to Regan, according to Regan’s testimony, that the French Restaurants were all run alike, and should all be closed. Acting upon the Mayor’s suggestion, the Police Commission ordered the investigation into the methods of the French Restaurants which created such a sensation in San Francisco during the closing months of 1904. Licenses were denied in some cases. In others, hearings of applications for renewals were postponed from time to time. Some proprietors were called upon to show cause why their licenses should not be revoked. Of all of which, Commissioner Regan testified, he kept Mayor Schmitz informed.

The course of the commission threw the keepers of the French Restaurants into a panic. Their attorneys found themselves helpless and could give their clients no encouragement. Marcus Rosenthal, for example, who appeared before the commission on January 3, 1905, on behalf of the Bay State Restaurant, testified at the Schmitz trial, that he was not permitted to say anything; that the commissioners would not listen to him, nor hear testimony. After that meeting he had advised his client, and a little group of “French Restaurant” keepers who had gathered about him, that it would be useless for them to appeal to any court, because under the law there could be no review of the action of the Police Commissioners; that the commission could arbitrarily dispose of any saloon-keeper, and he could not seek remedy in the courts.

And then, having explained the situation fully, Rosenthal told them, what every observer in San Francisco knew, “There is only one man who could help you, and that is Mr. Ruef.”[123] The French Restaurant keepers received this advice from all sides. Joe Malfanti testified at the Schmitz trial that “numerous friends advised me to see Ruef.”

And to Mr. Ruef the “French Restaurant” keepers finally found themselves compelled to go—at the urgent suggestion of a fellow French Restaurant keeper, Jean Loupy.

Loupy was proprietor of the French Restaurant known as the “Pup.” At Loupy’s place Ruef maintained a sort of headquarters. There he took his dinner practically every night, entertained friends and received his henchmen.

Ruef had from time to time acted as Loupy’s attorney. He had also loaned Loupy money. At the time of the French Restaurant troubles, Loupy, according to his testimony, owed Ruef $1000.

When the closing of the French Restaurants seemed inevitable, this Loupy brought word to the French Restaurant proprietors that Ruef would represent them all before the Police Commission for $7000 a year,[124] on a contract for two years. The sum was finally cut to $5000,[125] $10,000 for the two years. For the first year “Marchand’s,” “Delmonico’s,” “The New Poodle Dog” and the “Bay State” paid $1175 each. Loupy for the “Pup,” on the grounds that he had been put to considerable expense and was a poorer man than the others, paid only $300.[126]

The money being paid over to Ruef,[127] Ruef appeared before the Police Commissioners, as has already been told, with his plan for regulating the French Restaurant business in San Francisco.

Ruef’s arrangements with the French Restaurant keepers were concluded during the first week in January. Police Commissioner Regan testified that sometime after January 3, Mayor Schmitz asked him to vote to restore the French Restaurant licenses.[128] Regan objected on the ground that it was not right to ask him to vote first one way and then another. With Commissioners Regan and Hutton voting against issuing the licenses, the licenses could not be granted. Either Hutton or Regan had to change their attitude, or one of them had to be removed from office. Police Commissioner F. F. Poheim testified at the Schmitz trial that at a conference on the French Restaurant problem held early in January, 1905, which he and Schmitz attended, Schmitz announced: “We will have to give these people (the French Restaurant proprietors) their licenses if we can. If we cannot do anything else we will have to remove Hutton.”

And during the week following Ruef’s first appearance before the commissioners as representative of the French Restaurants, Mayor Schmitz removed Hutton.[129] The licenses were then issued to the “French Restaurant” keepers.[130]

Much of the story of these transactions was presented to the Grand Jury. But the evidence was not secured without effort. Many of the witnesses were unfriendly; others afraid of the consequences of frank statement of facts. Witnesses disappeared and could not be found. Several known to have testified were threatened and even assaulted. One French Restaurant keeper, before the investigation had been concluded, had been indicted for perjury. Three attorneys who were more or less in touch with the tenderloin situation had been cited for contempt for refusing to answer questions put to them in the Grand Jury room. But point by point the evidence was presented.

The Grand Jury, on the evidence, indicted Schmitz and Ruef on five counts for extortion.[131] Bonds were fixed at $10,000 on each charge, $50,000 for each defendant.

Ruef[132] was released on $50,000 bail.

Schmitz, the day after the indictments were brought, was reported to have started for home from Europe.

Schmitz’s probable reception on his arrival at New York apparently gave keen anxiety at San Francisco.

Heney states that Justice F. W. Henshaw called at his (Heney’s) office and asked Heney, as a favor, to tell him whether Schmitz would be arrested upon his arrival in New York, as William J. Dingee of the Contra Costa Water Company, wanted to arrange for Schmitz’s bail in New York City. William F. Herrin of the Southern Pacific Company is credited with interesting himself in Schmitz’s behalf in arranging for the bond that was furnished when Schmitz reached San Francisco. Schmitz’s bond was furnished by Dingee and Thomas Williams, president of the New California Jockey Club. The New California Jockey Club operated the notorious Emeryville racing and gambling establishment. Mr. Dingee was at the time one of California’s most prominent capitalists.