The second class of bribes included those which were paid directly to the Supervisors. They included the bribes paid by T. V. Halsey, agent of the Pacific States Telephone and Telegraph Company to a majority of the Supervisors to prevent their awarding the Home Telephone Company its franchise. Gallagher did not participate in these bribery transactions, and could only indirectly throw light upon them. But in the other cases Gallagher was the pivotal witness. He received the bribe money from Ruef, and, after taking out his share, he paid the balance to the other Supervisors.
With a wealth of detail, Gallagher told how he had received the money, when and where, and went into the particulars of its distribution among his associates. He had received from Ruef in all, $169,350.[169] Of this, he had retained $27,275 for himself; the balance, $142,075, he had divided among his associates on the board.
This enormous corruption fund which Gallagher divided with the Supervisors had come from four sources. The so-called prize-fight trust had furnished $9,000 of it; the Pacific Gas and Electric Company, $13,350; the Home Telephone Company, $62,000, and the United Railroads, $85,000.
The first money that passed from Ruef to Gallagher and from Gallagher on to the Supervisors, the confessions showed, was for the prize-fight monopoly. This particular bribery seems to have been intended as a trying-out of the several members to ascertain which of them would take money in connection with the discharge of their duties as Supervisors.
Every member of the board accepted the package of bills which Gallagher tendered him. Indeed, several of them displayed surprising alertness to secure all that was their due. Ruef, it became known among them, had given Gallagher $9000, which evenly divided, meant $500 for each of the eighteen Supervisors. But Gallagher gave them only $475 each. An explanation was demanded of him. He stated that he had taken out 5 per cent. as his commission.
So strong was the dissatisfaction created by the holding out of this 5 per cent. that Ruef arranged to pay Gallagher a larger amount than the others received to compensate him, no doubt, for his extra services as bribe-carrier.
The new arrangement for the compensation of Gallagher was followed when the Supervisors were paid after fixing gas rates at 85 cents per thousand cubic feet, instead of 75 cents,[170] the sum pledged in their party platform.
One of the Supervisors, McGushin, refused to break his platform pledge, and held out for the 75-cent rate. In distributing the gas money, Gallagher paid nothing to McGushin.[171]
But to each of the remaining sixteen Supervisors, Gallagher confessed to giving $750. Following the new rule that he was to have extra compensation, Gallagher kept for himself $1350.
At the time of the gas-rate bribery, Supervisor Rea was making it unpleasant for his associates. Mr. Rea had accepted $475 prize-fight money from Gallagher, without, he testified before the Grand Jury, knowing what it was for. A few days later he told Schmitz of the matter. Schmitz contended that no such work was going on. Rea, when he received his $750 in the gas-rate case, went to Schmitz with a statement that money was used to have the gas rate fixed at 85 cents. Rea asked Schmitz what he was to do with the money. He testified before the Grand Jury that Schmitz replied: “You keep quiet. I will let you know.”