“The business (of the French restaurants) is very prosperous, and, as is usual, the landlord shares in its prosperity. People of social prominence were known to accept a portion of the profits of such establishments, through the extremely liberal rentals paid, and the system is received with easy toleration. One of the largest of these assignation places was located on a prominent corner of the downtown shopping district where hundreds of women daily passed its doors. The building, five stories in height, had four stories devoted to the private supper bedrooms. The land was owned in trust by one of the largest, if not the largest, trust company in the West. A lease was sought and obtained by a man notorious in the line of business above described; the building was constructed by the trust company according to plans satisfactory to him for this purpose, and the enterprise was conducted there for seven years until the building was destroyed by fire. The significant thing about such a transaction is, not that there are people who are willing to accept money from such a source, or financiers willing to put trust moneys to such uses, but that the facts, though well known, did not seem to detract in the slightest from the social recognition accorded to the persons so taking a share of the profits, while the officer of the trust company which made the lease of that particular house situated in the shopping district, was appointed a regent of the State University.”
During the reading of the first of the five indictments, Schmitz stood, but Ruef remained seated. When the second indictment was read, both the defendants kept their seats. Heney demanded to know what was going on. Judge Dunne announced that the arraignment must proceed as in ordinary cases. During the reading of the remaining indictments both defendants remained standing, but Ruef kept his back turned toward the court. Commenting upon this incident, the Chronicle, in its issue of December 8, 1906, said in an editorial article:
“In Judge Dunne’s court a rogue on trial insolently refused to stand and be arraigned like any other criminal, apparently on the assumption that a political boss was above the courts. He was finally compelled to stand and let his shame be seen. He sat, however, through one arraignment, and the people have reason to complain that the trial Judge did not earlier enforce the respect due to the majesty of the law. In another instance there is a more grave offense. A lawyer presumed to bandy words with the Judge on the bench, and is reported to have said to the Court in a loud and insolent tone, evincing evident disrespect, ‘And I have heard considerable oratory from you.’ Nothing was done about it, and Judge Dunne owes it to the people to explain why he did not promptly commit the insolent fellow to jail. The Judge on the bench represents the majesty of the law. He sits for the people in solemn judgment on offenders. He is expected to enforce due respect for the tribunal, and for that purpose is invested with the power of summary punishment for contempt. Our alleged administration of criminal justice is disgraceful, and the evil permeates the entire machinery, from the policeman on his beat to the highest tribunal.”
The attack upon the Grand Jury had, however, been begun the day before, and was progressing in another department of the court even as Ruef and Schmitz were arraigned. Investigation into graft conditions had by this time got beyond the tenderloin. Several minor indictments had been brought. Supervisor Fred P. Nicholas had been indicted for accepting a bribe of $26.10. As chairman of the Public Building and Grounds Committee, the Grand Jury found he had accepted a 10 per cent. commission on $261 worth of furniture purchased for the city. Several witnesses had been indicted for perjury in connection with the graft investigation. That the investigation was going far was now conceded. The defense concentrated to disqualify the Grand Jury. On behalf of Nicholas and Duffy, the Grand Jurors were haled into Judge William P. Lawlor’s court December 5, the day before Schmitz and Ruef were arraigned. The defendants were represented by Frank J. Murphy, who was to play a prominent part in the graft defense. The following taken from the examination of Foreman B. P. Oliver, as printed in the San Francisco Chronicle of December 7, is a fair sample of the nature of the inquiry:
“Did you say to anyone that this is just the beginning of the investigation of municipal corruption?”
“I have said that from the statements I have heard in the Grand Jury room that the corruption of the municipal administration was so great that the present Grand Jury could hardly expect to make any impression upon it. As to when and where I made that statement I cannot tell,” replied Oliver, who proceeded: “As to myself, the mere testimony I have heard in the Grand Jury room has filled me with horror and disgust.”
“Does it fill you with such horror that you believe everyone connected with the administration is corrupt?” asked Lawyer Fairall of counsel for the defense. “I do not believe anyone to be corrupt until he is proved to be so.”
“Could you act fairly and impartially, as a Grand Juror, while having your present feeling of horror and disgust?” “Yes, absolutely so, for I have a conscience.”