About the time the 85-cent gas rate was fixed, one of the Pacific Gas and Electric Company’s stations was burned. Ruef stated to Gallagher that the fire would be used as one of the reasons for fixing the 85-cent rate: that it would probably appeal to the public as an excuse for fixing the rate at 85 cents when the platform of the party had mentioned 75 cents. See Transcript, The People vs. Ruef, No. 1437, page 784.
When McGushin refused to follow directions and give the Pacific Gas and Electric Company an 85-cent gas rate, Gallagher went to Ruef about it. At the trial of The People vs. Ruef, No. 1437, Gallagher testified: “I told him (Ruef) that McGushin was rather demurring at receiving the money, at taking the money, and that I had told Mr. McGushin that he had better go down and talk with Mr. Ruef. He (Ruef) said, ‘All right, if he comes around I will talk with him.’”
The Supervisors who accepted money from Halsey, acting for the Pacific States Telephone and Telegraph Company, to prevent a franchise being awarded an opposition company were: Boxton, Walsh, Wilson, Coleman, Nicholas, Furey, Mamlock, Phillips, Lonergan, Sanderson and Coffey. The amount paid in each instance was $5,000. Halsey promised several of the bribed members from $2,500 to $5,000 in addition to be paid them, if they remained faithful, after their terms had expired. The money, the several members testified, had been paid to them by Halsey in an unfurnished room in the Mills Building which had been temporarily engaged for Mr. Halsey’s use by Frank C. Drum, a director of the Pacific States Telephone and Telegraph Company. Examples of the methods employed to corrupt the laboringmen Supervisors who suddenly found themselves placed in a position of trust and responsibility will be found in the appendix.
This is the amount given by Ruef in his “confession.” He states that he received $25,000 when he agreed that the Home Telephone Company should have the franchise; and $100,000 when the franchise was granted. According to his statement he gave $65,000 to Gallagher for the Supervisors; $30,000 he gave Schmitz; $30,000 he kept himself. Gallagher testified on several occasions that he received but $62,000 from Ruef. The details of Ruef’s confessions are not dependable. On Ruef’s own statement of the basis of division of this particular bribe money among the Supervisors, Gallagher received only $62,000 of Home Telephone money from him.
Ruef was himself to blame for the complication, for he had given certain of the Supervisors to understand that the purpose of the Pacific Telephone and Telegraph Company was to prevail, and that the Home Telephone Company would not be granted its franchise. The Supervisors in taking the Pacific Telephone and Telegraph Company’s money, not unreasonably supposed they were taking from the favored of the administration. Supervisor Wilson in his confession said: “The first conversation I had with Mr. Ruef, affecting money matters, was on the Pacific States Telephone matters. I told him that I had been out to dinner with Mr. Halsey, and I understood that everything was going to be satisfactory with their company. He (Ruef) said that it would terminate that way.”