5. To set aside $2,500,000 for the acquiring of suitable and convenient land on which to build dwellings that might be sold for cash or on the instalment plan to residents who were in business or had other employment.
Before passing on to the matter of the incorporation of the funds, one must record the final act of the Executive Commission. On July 31, after six weeks of precarious, and one might almost say uneventful life, the Commission voted to turn its records over to the corporation just created, and to make an inventory of its supplies and equipment for transfer to the same body.
June and July mark a clearly defined transition period. In spite of the politically directed episode of the abortive Commission, rehabilitation plans were being successfully shaped, even though the ordeals of the withdrawing of the army as a factor in relief administration and the introducing of the political appointees were being faced. In spite of temporary set-backs, the work was getting on a strictly business basis. Delays meant suffering, yet ultimate community gain, because the Rehabilitation Committee, in keeping outside the province of the Executive Commission, drew to itself the best experienced service that was available, and escaped the danger of being directed or diverted by any force other than that controlled by right motives.
6. INCORPORATION OF THE FUNDS
Now to return to the suggestion of incorporation. From as early a date as May 4 the question of the incorporation of the relief funds had been discussed within and without the Finance Committee. The New York Chamber of Commerce as a large custodian of relief funds had the matter brought personally to the attention of members of the Finance Committee through its representative, James D. Hague, and in writing by its president, the late Morris K. Jessup. The latter stated, however, that the determining of the question of incorporation lay with the Finance Committee. Correspondence in early July with Mr. Hague, the returned envoy, showed that there was in contemplation the incorporating of an independent body of men, the majority of whom should be appointed by the chairman of the Finance Committee. To this proposed corporation it was suggested should be transferred the $500,000 then held by the Chamber of Commerce, with such other moneys as might be entrusted to it.
If such a plan had been carried out there would have been two authorized bodies administering relief with an encouragement to other foreign custodians of funds to create similar independent agencies. The pressure to incorporate came therefore from without because of the jealous guardianship of funds by the non-local contributors; from within because of the exigency of the situation itself.
In the month of July, as has been said, the imminent need was known to be to provide suitable shelter against the fall and winter rains. The members of the Finance Committee considered the question of incorporation from the standpoint of the provision of a body legally empowered to acquire land and to loan money for building purposes. As a committee, therefore, it decided on July 13 to carry out the recommendations made in the letter written by Dr. Devine to its chairman, three days earlier, which recommendation, it should be recalled, embodied the earlier bonus plan suggestion made by one of its own members.
The certificate of incorporation[31] was issued July 20 to hold for a period of five years. The president of the corporation, the “San Francisco Relief and Red Cross Funds, a Corporation,” was James D. Phelan; the first and second vice-presidents, F. W. Dohrmann and W. F. Herrin; the secretary, J. Downey Harvey. The president and first vice-president, with M. H. de Young, Rudolph Spreckels, and Thomas Magee, formed the Executive Committee. The personnel of the Corporation, with the exception of the governor of the state and the mayor, who were ex officio members and directors of the Corporation, was identical with that of the Finance Committee of Relief and Red Cross Funds which it superseded, and whose funds it immediately took over.
[31] See [Appendix I], [p. 398].
The newly incorporated body held its meetings at the St. Francis Technical School on Geary and Gough Streets, which took the place of the Hamilton School as headquarters for all departments of the relief work. Later a warehouse was added to the building to hold the remaining supplies. The meetings were open to the press, and to officers and employes; and others with whom the corporation had business were invited as was deemed expedient to meet with the Executive Committee. At the third meeting, held late in July, five departments were created:[32]