Gallagher testified further (see same transcript, page 853) that within a week after the fire Ruef stated to him that the United Railroads still wanted its electric permit, and directed that Gallagher find out whether such a permit could be put through the Board. Gallagher testified that he saw members, put the question to them, and reported back to Ruef that in his judgment the permit could be put through by paying each member of the Board the amount which Ruef had specified, $4,000.
Supervisor Gallagher testified at graft trials that Ruef had told him the payment of this $75,000 to the Relief Fund was a good thing, as it would tend to shut off adverse criticism. But the Home Company people had asked that the money be not turned over to the Relief Fund until such time as the ordinance granting the franchise had been approved or the matter definitely determined.
As early as May 5, C. E. Loss, a railroad contractor, came out with the proposition that the city should abandon all idea of conduit systems, because the cable slots had been closed by the earthquake. In this, Loss was disputed by City Engineer Thomas P. Woodward. Woodward, in an interview printed in the Examiner on May 5, 1906, said:
“I think Mr. Loss was mistaken when he said the earthquake closed the cable slots. I have not made a careful examination of the various roadbeds in San Francisco, but from what I have seen as I have gone about the city, I am inclined to think that no injury was done the cable slots by the earthquake.
“The lines on Sacramento, California, Geary, Sutter and Haight streets appear to be all right outside the burned district. Where the metal was subjected to the intense heat, the slots are warped out of shape, and in some places closed.”
Loss’s allegations called forth the following editorial comment in the Examiner of May 5th:
“Even an earthquake shock and a conflagration do not long obscure the vision of certain wealthy gentlemen where there is a chance to turn a calamity to their individual account.
“Before the catastrophe, San Francisco had indicated with great emphasis to the United Railroads that it would not permit the reconstruction of the cable system into an overhead trolley, but would insist upon a modern up-to-date conduit electric railroad, the safety, utility and efficiency of which had been demonstrated in New York and other Eastern cities.