MUNICIPAL CORRUPTION IN SAN FRANCISCO

New Zealand Graphic, Volume XLIV, Issue 10, 9 March 1910, Page 8

MUNICIPAL CORRUPTION IN SAN FRANCISCO

THE “GRAFT” INVESTIGATORS’ REPORT.

THE recent “awakening” of San Francisco to the existence of an alarming State of bribery and

corruption in connection with the administration of its municipal affairs; the arrest and prosecution of Mayor Schmitz and his notorious “lieutenant” Abe Rued as the ringleaders in a long series of “graft” exploits; the long-drawn-out trial, with the sensational

shooting down in open court of Heney, Prosecuting Attorney, and the mysterious death of his would-be assassin while in a gaol cell; the ultimate conviction of Schmitz and the sentence of two years’ imprisonment awarded him (a conviction, however, appealed against and upset on technical grounds), these facts will still be fresh in t-he memories of all who have followed the progress of events in this endeavour to “dean up” the Golden Gate city. And now the last mail gives news of further developments which furnish an interesting sequel to what has already taken place.

First, let it be stated that amongst other things it was the lot and portion of those who organised, and of those who supported t.he campaign against the Neiiniitz-Ruef “machine” to 'be subjected to endless abuse and misrepresentation of the motives which induced them to begin their work of investigation and suppression, ami when Mayor Taylor was elected to the chair from which Schmitz had 'been unceremoniously deposed, one of his first acts was to appoint a committee “to investigate all .matters connected with municipal ‘graft’ in San Francisco, to report thereon, and to make recommendations calculated to prevent a recurrence of such evils.” None of the men on that committee was connected with the “graft” proaeeution. All are men of high standing, and possess an .enviable reputation for fair-minded-ness and integrity. Mr. Win. Denman, chairman of the committee, is a leader at the San Francisco bar, and son of the founder of the public school system of the city. Mr. Alexander Goldstein has a wide reputation for honestly won success in business and for a large public spirit. Rev. Wm. K. Guthrie is one of the foremost clergymen of the Presbyterian Church in California. Mr. Wm. Kent is a successful business man, who has also had a wide practical training in reform politics in Chicago. Di Henry Gibbons, junr., is the Dean of the Cooper Medical College, and one of the most distinguished ■aan nbcra o 4 lua profeauivu.

SOME RADICAL RECOMMENDATIONS.

Mr. Will J. French (formerly of Auckland, N.Z., but now a naturalised citizen of the U.S.), is the editor of the “Labour Clarion,” and is recognised as one of the ablest and most conservative of the local labour leaders. Father Craw-ley, who concurred in the recommendations, though unable through sickness to attend the later meetings of the committee, and hence sign their findings, is universally beloved for his rescue work, and honoured by all men of every faith who know him. Such a committee should surely be above any suspicion of wilful mis-state-ment, hasty judgment, or the charge of being disgruntled or irresponsible agitators. Inspired solely by a desire to learn the truth, this group of citizens turned the searchlight on the “graft” prosecution. They reviewed every stage of the proceedings, carefully considered every charge made by Patrick Calhoun <President of the United Railways Organisation), and the anti-prosecution newspapers, and at the close of their long report, rendered the following verdict:— “An unprejudiced study of the facts must bring belief in the entire sincerity of the prosecution, and the highest appreciation of the splendid results accomplished in unmasking the real forces behind the corruption in San Francisco’s political and commercial life.” No incident of the campaign for civic decency was overlooked. The committee brought out the truth everywhere, and in every instance the truth was to the credit of the “graft” prosecution. After reviewing the various forms of bribery and corruption known to exist in the city, the incidents which led up to the organisation of the campaign' against the Schmitz-Ruef combination, and the crimes for which indictments were brought against the latter by the Oliver grand jury, the committee attaches to its lengthy report the following recommendations, “believing that in these they suggest some remedies which may help to protect the community till a maturer and more vigorous public sentiment itself keeps in suppression the evil tendencies and influences we have pictured.” The committee’s recommendations are as follow: — (1) The charter should -be so amended as to prohibit partisan nominations for election to municipal offices, aa4 kfee ballot, when print-

ed, should show nothing more than the name and the eflice of the candidate. (2) A separate tribunal of a permanent character should be established for the judicial determination of the rates and charges for public utilities. (3) The laws creating the crime of bribery should be so amended as to provide for the punishment of corporations in their corporate capacity. Very heavy fines should be imposed, and the forfeiture to the State or city of prior acquired franchises should be made a part of the punishment. (4) Laws should be enacted for the cancellation of franchises procured by fraud or crime of the owners of the franchises, or of their predecessors in interest. These laws should be of a civil nature, cognizable in a court of equity, so that the extreme technicality of our criminal procedure will not embarrass their enforcement. The Mayor and the District Attorney, each on his own motion, should have the right to initiate such proceedings in the name of the municipality upon which, the fraud has been committed. Their power should be concurrent with that of the State to take similar action in quo warranto proceedings. (5) The law of evidence in criminal eases should be so amended that a corporation accused of crime cannot claim immunity from producing or giving evidence against itself, and the testimony of its officers, and al! its documents should be admissible in criminal proceedings against it. As a corporation can commit a crane only through an officer or an employee, in a prosecution for such crime the officer or employee should not be permitted to remain mute on the ground that his testimony would tend to incriminate him. (6) Laws should be enacted requiring all quasi-publie corporations to keep their books in collaboration with the communities they serve, and according to a system prescribed by law. (7) Law’s should be enacted making it a crime for any newspaper to publish as news any matters for which compensation is directly or indirectly paid, or agreed to be paid, unless the fact that such compensation has been paid or agreed to be paid is indicated by some plainly distinguishing mark next the news so printed. The jury or judge should be given liberal power of inferring complicity from considerations indirectly given. A person paying such compensation should be permitted to recover the consideration given by him, and immunity granted him, if he discloses the crime. A part of the punishment should consist in forbidding the publication of the paper for a period fixed by the judge. (8) The trial of Mr. Calhoun disclosed a considerable number of citizens who, when examined under oath as to their qualifications for jury service, complacently declared that they would not convict a man for bribery, however convincing the evidence, if, since his crime, he has successfully broken a strike which was threatening his investments. A system of public education which produces such men must be radically defective in both its ethical and political teaching. It is our be'ief that no child should be permitted to leave the Grammar School until he has had thoroughly instilled into him a strong sense of his obligation to the State to set aside all prejudice or private interest and act as juryman in any ease in which he may be summoned, He should be taught that this obligation is sacred, that its performance is the highest kind of public service, outranking the mere physical courage and devotion of a soldier. It is our opinion that the schools have not kept pace in their ethical instruction with the many complex changes in our commercial organisation, due to the universal conduct of business through corporations. Every child should bo

taught that in all probability 1M will, for a very large period of hW life, be an agent for some corporation. He should be taught the elemental facts concerning the workings of the corporate erganisac tion, and particularly the location of the immediate responsibility for any wrong doing with the director!, who elect the manager, and the ultimate responsibility of the stockholders who, in turn, elect the directors. He should he taught that if a disclosure of any impropriety in the relations of the corporation to the State does not receive the attention of the directors, he can make a direct appeal to the stockholders through the ageney of the press. Above all, he should be faugh € that the corporation is a mere creature of the State, and that it is as much the duty of the citizen to cry “Stop thief” to its attempt to steal a public franchise as it is io raise the cry when it discovers the treasurer, or any other official, robbing the public of its coin. No child should be permitted tn leave the Grammar .School without a keen appreciation of the rights of every citizen to good servico from public service corporations. He should be instructed what ha is to expect from transportation, water, gas, electric, telephone, and telegraph companies, and how to make effective his complaint if he does not receive his just due. Our High Schools should deal more specifically with the problems of corporate organisation and each, year give their quota of trained minds to cope with the sophistries offered to justify fictitious valuations, inadequate service, or criminal relations with public officials who have the gifts of franchise. If it be true, as has been suggested, that the overwhelming preponderance of women among our teachers makes such an addition to the curriculum impracticable, then we submit that the matters are of such importance as to warrant the employment of a sufficient number of male teachers of political and business ethics. We do not believe, however, that these problems present any difficulties to the intelligence of women which a proper normal school training cannot overcome.

The struggle against greed and social injustice will not be ended with our generation. Those who come after must continue the battle for the preservation of sanei democratic government, and the “vigilance” which is the price of our liberty must be intelligent and organised as well as eternal.