The San Francisco Call. Newspaper, May 27, 1896, Page 16

16 THE SAN FRANCISCO CALL, WEDNESDAY, MAY 27, 1896 ASSESSOR SIEBE ARRESTED A SECOND TIME, Charged With Having Un- der-Assessed Judge Wal- lace’s Property. A QUESTION OF VALUES. Secretary Willcutt’s Opinion - of the Market- Street System. WORTH ONLY FIVE MILLIONS. Not Worth More Than Four Millions When Bonds for Seventeen and a Half Were Issued. There was & sensation early in the morn- ing yesterday in the preliminary examina- tion of Assessor Siebe. Secretary Willcutt of the Market-street Railway system bad just resumed the stand, with four big red- wood boxes of books and a pile of ledgers, when Mr. Freidenrich announced that the Assessor had been arrested on a warrant issued by Judge Campbell, charging him with perjury in having assessed Judge Wal- lace’s real and personal property below its actual cash value. The complaint had been sworn to by J. W. Darragh, and Mr. Siebe at that moment was engaged in get- ting bonds. “I think that some of those proceedings are a farce,” said Mr. Clunie, ‘‘and I move that his bonds be declared forfeited.” Judge Wallace remarked that he would wait for Mr. Siebe, and in a few moments that gentleman came in. Mr. Willecutt was on the stand for the greater part of the day, and he furnished the second sensation by ‘‘going dead lame on the track.” In other words, he seemed to have lost the power of speech when it came his turn to reoly to Mr. Clunie’s questions as to the property of the Market- street Railway system. He tinally said that the cash value of the system was not more than $4,000,000 when he as a director voted to issue bonds upon the property of the road for $17,500,000. Mr. Willcutt proceeded to read the reso- lution under which the different railway systems consolidated with the Market- street Railway Company, that corpora- tion assuming all debts and obligations of the old companies and being vested with the capital stock, franchises and all real and personal property. Freidenrich objected to the introduction of the minutes of the consolidation on the grounds that they were irrelevant and did not bear upon the matter at issue, but Judge Wallace promptly overruled the objection and Mr. Willeutt replied that the officers of the Market-street Railway did not make any investigation into the values of the roads and their bonded indebted- ness. “Do I understand you to say,” inquired Mr. Clunie, £that your company accepted a bonded indebtedness of more than $7,000,000 without any investigation what- ever into the values?”’ Mr. Willcutt replied that no investiga- tion was made because the officers of the company were conversant with the values of theroads about to be taken into the consolidation. He then vroceeded to read a statement of the earnings of the various companies constituting the consolidation. Among these were the Omnibus Railroad Company, which, starting with a profit of $55,561 01 in 1888 and $117,206 09 in 1890-91, dwindled to $18,446 60 in 1892-83. Also the North Beach and Mission Railway Company, with a profit in 1887-88 of $78,249 53, reached a loss of $1606 62 in 1890-91, of $8333 89 in 1891-92 and of $20,092 07 in 1892-93. The Market-street Railway Company started with a profit in 1890 of $247,281, in 1891 of $294,801, in 1892 of $394,729 and in 1893 of $156,744. Mr. Willcutt then read a long list of suits begun against the company for damages for injuries and deaths on the street railway system. Appended to most of these was the note: ‘“‘Got off the car while in motion.”” These were all the memoranda that he had. “Now, Mr. Willcutt,” asked Mr. Clunie, “did you, as a director of the Market- street Railway Company, after the cor- solidation, vote for the issuance of $17,500,- 000 of bonds on this road and was that resolution'adopted 2’ The Assessor'sattorneys objected to the question. He contended that it wasnot fair to go into the history of the railroad company, and that the proper mode of procedure was to, introduce the assess- mentroll and to take up each piece of property of the company assessed on the roll and ascertain whether or not it had been under-assessed. Mr. Clunie explained that he wanted to show that Mr. Willcutt was an expert as to the value of the property of the company, and Mr. Freidenrich admitted that the witness knew the value of the property. Judge Wallace remarked that the charge against the Assessor was not that he had made a mistake, but that he had delibe- rately violated his oath by deliberately under-assessing the property of the corpo- ration. The witness explained that the resolu- tion authorizing the issuance of the bonds was adopted, aad thatin pursuance thereof & meeting of stockholders was held on June 28, 1894, at which meeting a resolu- tion was adopted confirming the action of the board of directors and authorizing the e —— NEW TO-DAYX. board to take the necessary steps for the issuing of the bonds. This issue of bonds amounted practically to an increase of the old indebtedness of §7,000,000 to $17,500,000. The subsequent steps in the matter of the bond issue were next detailed by Mr. Willcutt at the suggestion of Mr. Cluni and pending this matter the court ad: journed till 2 p. M. After recess John W. Darragh, the man who bad caused the second arrestof the Assessor, was cailed to the stand. Darragh was put through a rigid exam- ination by Mr. Clunie as to his knowledge of the subject-mtter of the complaint to which he had sworn, *and also as to whether his action had been instigated by Martin Ke)ly. ‘When Mr. Clunie asked Darragh whether he knew Martin Kelly Darragh did not pretend to understand the import of the question and he asked back, ‘“Which Mar- tin Kelly ?” Before Mr. Clunie had®an opportunity of informing Mr. Darragh as to the identity of the particular Martin Kelly referred to Lawyer A. Barnard, Martin Kelly’'s attor- ney, popped up from behind Mr. Clunie and in an agitated manner objected to the question on the ground that it was irrele- vant and simply a waste of time to inquire which Mr. Kelly it was the witness knew. Judge Wallace overruled the objection, and Mr. Darragh confessed that he knew a Martin Kelly who lived on Fremont street. Again Lawyer Barnard objected, and again Judge Wallace sat down on him. Darragh went on to say that he met Mar- tin Kelly, the ex-polifical boss, in the Baldwin Hotel on the evening before, but had gone as high as $47 during the last three months. With reference to the cost of the road, the witness said it was built by the Pacific Improvement Company at a cost of $3,000,000, including power-house, rolling- stock, ete. Mr. Clunie returned to the question of values, ana asked Mr. Willcutt whether at the time he, as a director, voted for the $17,500,000 issue he knew the cash value of the road. Mr. Willcutt evaded the question. He said that it would depend upon the condi- tions, “But,” interrupted Judge Wallace, show- ing considerable surprise, ‘‘you knew what those conditions were at that time. Now, what in your judgment, taking into con- sideration all the conditions, would it be worth in cash ?” “That would d:}wnd upon the condi- tions,” repeated Mr. Willcutt. ‘““We pro- DOSE({ issuing those bonds for the purpose of improving the road and thus making it more ulualfie"' After more shuffling on the part of the witness Judge Wallace asked, a little im- patiently: “Was it worth $1000?”" “Yes,”” replied Mr. Willcutt promptly, *“Was it worth more than $1000?" “Yes; I may venture to say that it was worth M.OO0,00({” “‘When you voted for the issue of $17,- 000,000 of bonds you believed that the cash value of the property which was the security for those gonds was $4,000,000—is that correct?” asked Mr. Clunie. ‘‘Yes, sir; the cash value.” ‘‘Suppose somebody came along and offered you $4,000,000 cash, would you have sold the road for that?’ asked Judge Wallace. *‘That would be a matter for the consid- eration of the directors, the larger owners, Crocker, Huntington, Stanford & Co.,” re- ptied Mr. Willcutt after a long pause. The affidavit accompanying a statement of the company’s property as returned by E. Blackburn Ryan to the Assessor was handed to the witness. He recognized his signature thereon, but ‘did not remember had no conversation with him except to say, *‘Good evening, Mr. Kelly.” He did not go there for the purpose of meeting Kelly. He was sifmply taking a walk. He aenied that he had had any conversation with Kelly on the subject of the contem- plated arrest of Assessor Siebe for under- assessing Judge Wallace’s property. Darragh finally admitted that he had never seen the assessment roll except that part of it or that page of it on which his own property was listed, and that Martin Kelly’s attorney, Barnard, had prepared the type-written complaint, which he had signed and to which he bhad sworn. r. Willcutt was recalled and testified that he did not think he would give $5,- 000,000 for the Market-street Railroad sys- tem, as it stood on the first Monday in March, 1895. “Was it worth $5,000,000?” asked Judge Wallace. “I don’t think it wss,”” replied Mr. Will- cutt. ““Was it worth $4,000,000?" “That is a matter of individual opinion,” ‘was the reply. “What 1s it worth now?"” asked Judge Wallace. “I object to the question,” said Mr. Friedenrich. Judee Waliace overruled the objection and repeated the question. *‘That is simply a matter of opinion.” “Are your bonds above par ?"’ ““Yes; sligntly above par.” “Now,” continued Judge Wallace, “if the property would augport a bond issue of $17,500,000 under a deed of trust, sup- pose that only ten of those bonds are on the market and they are all at par, would that indicate the value of the property, especially when the buyer of the ten bonds knows that the other bends will follow?"” | “If the other bonds were placed upon the market,” said Mr. Willcutt, “‘it would require additional property to secure them—but I don’t think [ understood your question.” Judge Wallace repeated, ‘‘Say that ten bonds have been put uvon the market and are above par, would not that indicate that the property is good security for $17,500,0007"" : “‘Not necessarily,” replied Mr. Willcutt, hesitatingly. % “When a financier buys one bond of an issue of $17,500,000 does he not look to the security for the other bonds that may be laced on the market?” persisted Judge allace. 4 *‘Certainly,” replied Mr. Willcutt. He revlied to other questions that, after the issuance of the $16,000,000in bonds, the stock sold for $40 per share. But he explained that, while a few bonds might bring $40, yet the market was so sensitive that if more bonds were put on the market their value would fall. They are selling to-day at $44, he explained, and the price the first Monday aiter the 1st day of January, , he nas {egn, and now is, the duly elected, qualified ana acting Assessor of said City and County of S8an Francisco, State of Cal- e " at between the first Monday in_the mon! of March, 1895, and the 20th day of July, 1895, said John . Stebe as such Assessor pre- pared and completed an essessment-book in which he purported to have listed and assessed all property within the City and County of San Francisco subject to assessment and tax- ation within said City and Countv of San Francisco for the fiscal year commencing July 1,1895, and in which he purported to have set down and assessed the same at its full cash value, and which purported to contain the matters and things required by section 3650 of the Political Code of the State of California. That on the 20th day of July, 1895, and after the completion of said assessment book of the City and County of San Francisco, State of Cal- ifornia, said John D. Siebe, as_such Assessor, appeared before Hon. James M. Troutt, who then and there was the duly elected, qualified and acting Judge of the Superior Court of the City and County of San Francisco, State of Cal- ifornia, and who as such then and there had suthority to administer such oath, and then and there before the said Hon. James M. Troutt, as such Judge, after the administration to him by such Judge of an oath, said John D. Siebe, as such Assessor, did willfully, corruptly, felsely and felonious!y subscribe, depose, swear and make oath to the " truth of & certain aflida- vit and the matter and things therein con- tained,said affidavit so subscribed and sworn;to being then and there entered upon said assess- ment book end being in words snd figures as follows: STATE OF CALIFORNIA, City and County of San Francisco. J. T, John D. siebe, Assessor in and for the City and County of San Francisco, do swear that be- tween the first Monday in March and the first Monday in July, 1895, I have made diligent in- quiry and examination to ascertain sll the prop- erty within the City and County aforesald, subject t0 assessment by me, and that the same has been assessed 1n the assessment book, equally and uni- formly, according to the best of my judgment and bellet, at its full cash value, and that I have faith- fully complied with all the ‘duties imposed on the Assessor under the revenue laws, and that I have not Imposed any unjust assessment throngh malice or ill will, nor allowed any one 1o escape & just as- sessment through favor or regard. Subscribed and sworn to before me this 20th day of July, 1865. JAMES M. TROUTT, Judge of Superior Court. JOHN D. SIEBE, Assessor of the City and County of San Francisco. Whereas, in truth and in fact,as the said John D. Siebe as such Assessor then and there well knew, all the property situated within the City and County bf San Francisco, State of California, subject.to assessment by him as such Assessor for the purposes of taxation for said fiscal year beginning July 1,1895, had not been assessed upon said assessment book equally and uniformiy according to the best of his judgment, information and belief at its full cash value, in this, that on, at and prior to March, 1895, one William T. Wallace, residing at 799 Van Ness avenue, said Cil?’ and County of San Francisco, was and continually after A. J. Clunie in Meditation, With Assessor Siebe Behind Him ; Secre- tary Willcutt and His Wagon-Load of Books ; Martin Kelly’s Law~ yer, Mr. Barnard, Who Was Sat Upon by Judge Wallace. that he bad ever seen the statement be- fore, and he was not sure whether he had sworn to it, although Notary ' Public Ryan’s seal was on it. He had no recol- lection of having signed it, although he did not dispute the signature. Mr. Ryan made out all the taxstatements. E. Blackburn Ryan was the next witness. He said that he sent the slip around to Mr. Willcutt and obtained his signature to the affidavit. Then he called upon Mr. Wilicut and administered the oath. The dggu was prepared from the books in ‘Willcutt’s office by a son of Mr., Willcutt. The blanks in the Assessor’s statement were made b{IMiss Mary Hull, a clerk of Mr. Ryan. e called upon the Assessor and was informed that Mr. Siebe would raise the assessment. He did raise it be- tween $600,000 and $700,000. Ryan had no conversation with Siebe other than to say that i e thought the statement as turned in by Ryan was a high enough valuation. He never paid Mr. Siebe or Fred Siebe a dollar. Here the court adjourned .until 10 o'clock this morning. AT A THE COMPLAINT. Allegations Respecting the Value [ of Judge Wallace’s Property. The following is the complaint sworn to by J. W. Darragh after the preliminary recital: That on the 20th day of July, 1895, at the City and County ol San Francisco, Siate of California, the crime of perjury was commit- ted by John D.Siebe in manner and form as follows, to wit: That ever since and prior to the 1st day of January, 1880, the City and County of San Francisco has been a now is & municipal corporation organized and existing under and by virtue of the laws of the State of California; at at an election regularly held at the City and County of San Francisco on the 6th day of November, 1894, for the election of officers of sald City and County, John D. Siebe was elected Assessor of the said City and County {or the term of four years from and after the first Monday after the lst day of January, 1895, and that thereafter said John D. Siebe duly qualified as such Assessor, and ever since said time, to and including the time of the making of said affidavit by said John D. Siebe, as he thenand there well knew, the owner of real and personal property subject to taxation under ihe laws of the State of California and situated within the City . and County of Sam Francisco, State of California, and that as deponent is in- formed and believes a part of said property, to wi the said personal property at all of sald times was of the full cash value of $10,- | 000 and over, and deponeut therefore alleges that said personal pr?erty ‘was of the value of #10,000 and over, and at all of said times it would have been taken in payment of a just debt due from said Willlam T. Wallace for said amount, and that at all said times said John D, Siebe, as such Assessor, well knew the cash valne of said personal property to be the sum of $10,000 and over, and then and there dur- ing all of said times, he, said John D. Siebe, well knew that sald personal property was the property o d William T. Vv.rm, and that the same was subject to assessment b; him for the purposes of taxation for said fiscal eer commencing July 1, 1895, and tnat dur- n: all of said times the same would have been taken in _Fuvgnen: of & just debt, due from said William 1. Wallace for the sum of $10,000 and over; that notwithstanding such knowledge on his part, said John D.Siebe as such Assessor, knowingly, willfully and corruptly assessed suid personal property upon said assessment book, for the purposes of taxation for the fiscal gelr commencing July 1, 1895, at the sum of 1900 instead of at the sum of $10,000 and over, its full cash value, and that at tne time of the making of said affidavit by said John D. Siebe, as Liereinbefore set forth, said personai property was listed upon said assessment book, and was assessed thereon at the sum of $1900, instead of its full cash value of $10,000 and over, as said John D. Siebe as such_ Assessor then and there weil knew. < That at with all the duties im: Ast ss~r under the revenue laws of the State of Californie, in this: That he had willfully, knowingly and corruptiy fatled and naflecler‘ to nssess the property of the said William T. Wallace, situated in l{u sald City ahd Count; San Francisco and subject to taxation an Assessment by him as such Assessor within said City and County of San Francisco for said fiscal year commencing July 1, 1895, at its full cash value, but had knowingly, willfully and corruptly assessed the unfl’&c but $1900, When iis full value, as he then and there well knew, was $10,000 and over. And that at the time of the making of ssid 12 o'clock meridian of the first Monday in | affidayit and the taking of said oath he, John D. Siebe, as such Assessor, had, as he then and there well knew, knowingly, willfully and corruptly permitted William T. Wallace to escape & just and equsal assessment upon his said personal property, subject to assessment by him as such Assessor for the purposes of taxation for the fiscal year commencing Jul 1, 1895, through favor shown by him as sucl Assessor to William T. Wallace ‘in his not as- sessing the ssid personal property of the said William T. Wallace at its full cash value. Deponent further says upon informstion and belief that on, at and prior to 12 o’clock meri- dian of the first Monday in March, 1895, the said William T. Wallace was and continuously after said time to and including the time of the making of the said affidavit by the said John D. Siebe, as he then and there well knew, the owner of real property subject to taxation under the laws of the State of California, and situated in the City and vounty of San Fran- cisco, State of Californias, and that as deponent is informed and believes, and alleges upon in: formation and belief, the said_ real property consisted of thirty-three different par- cels of land so situated as aforesaid; that the said real property at all of such times was of the full cash value of $600,000 and more, and deponent, therefore, alleges that the said real property was of the value of $600,000 and more; and that at all of said times that it would have been taken in payment of a just debt due by the said William T. Wallace” for said amount; and that at all of said times said John D. Siebe, as such Assessor, well knew that the cash value of said real property to be the sum of $600,000 and more; and thenand there duricg all of said times he, said John D. Siebe, well knew that sad real property was the vroperty of said William T. Wallace, that the same was subject to assessment by him for the purposes of taxation for said _fiscal year com- mencing July 1, 1895, and that ufln% all of said times the same wonld have been taken in payment of a just debt due from saia William T, Wallace for the sum of $600,000 and over; that, notwithstanding such knowl- edge on hie part, said John D. %Sebe. as such Assessor, knowingly, willfully and corruptly assessed'said real property upon said assess- ment-book for the purposes of taxation for the fiscal year commencing July 1, 1895, $291,540 instead.of at the sum of £600,000 and more, its full cash value. and that at the time of the making of said afidavit by said John D. Sicbe, as hereinbefore set forth, said real property was listed upon said assessment-book, and was assessed thereon at the sum of $291,540 in- stead of its ful] cash value of $£600,000 and more, as said John D. Siebe, as .such Assessor, then and there well knew. That at the time of the making of said affi- davit, as he then and there well knew, said John D. Siebe had not faithiu!ly complied with all the duties imposed on him as such Assessor under the revenuc laws of the State of Cali- fornia in this: that.he had willfully, know- ingly and corruptly failed and neglécted to assess the said real property of the said William T. Wallace, situated in said City and County of San Francisco, and subject to taxation and assessment by him as such Assessor, within said City and coumf of San Franeisco, for said fiscal year commencing July 1, 1895, at {ts full cash value; but had knowingly, willfully and corruptl assessed the same at but the sum of $291,540, when its full cash value, as he then and there well knew, was $600,000 and more. That at the time of making the said afidavit and the taking of said oath, he, Jonn D. Siebe, as such Assessor, had, as he then and there well knew, knowingly, willful'y and corruptly ermitted said William T. Wallace to escape a Just and equal assessment upon his said real Pproperty, subject to assessment by him as such Assessor for the purpeses of taxation for the fiscal year commencing July 1, 1895, shown by him as such Assessor to said William T. Wallace in his not assessing the said real prop- erty of the sald William T. Wallace at its full cash valne. Whereby he, said John D. Siebe, did then and there, as aforesaid, feloniously, willfully and corruptly swear falsely and feloniousiy and commit willful perjury, contrary to the form, force and effect of the statute in such case made and provided, and against the peace and dignity of the people of the State of California. Wherefore, complainant prays that said John D. Siebe may be arrested anda dealt with ac- cording to law, The Motive of the Arrest. Itis believed that the second arrest of the Assessor and the bringing in of Judge Wallace’s name was done for the purpose of preparing the ground for an appeal to the Supreme Court should the Judge hotd Mr. Siebe to answer for perjury. It will be urged in that contingency that Judge Wallace is an interested party, his own as- sessment being alleged to be in the same condition as the railroad assessment, and for that reason he is disqualified irom sit- ting in the case. Judge Wallace would not be interviewed on the subject last night and denied him- self to the reporters. COYLE AND WARSLAWIAK, Two Speakers Address the Pres- byterian Ministerial Union. Oakland Divine Finds Many Faults With Applied Chris- tianity. The Herman Warszawiak, superintendent of the American Mission to the Jews, who is on a preaching tour throughout the West, attended the Presbyterian Ministerial Union Monday morning and urgea the ministers present to take the evangeliza- tion of the Jews among the needs and regular work of the churches. “You eannot do anything mnobler, grander and more opportune than to aid the Jewish work,” he said. “Take this City of 30,000 Israelites, many of them rominent men. To my knowledge, there s the most ungodly condition among the Jews of this City of any in the United States. They are littte more than infidels and have adopted the almighty dollar for their God. You will meet with great op- sition at first, but you will have success Y: the end.” The speaker stated that at the mission’s headquarters in New York he had been requested to take back a letter from each of the ministerial bodies he had addressed, and he handed the secretary a letter from the United Ministerial meeting of Wy- oming, heartily indorsing his labors in that place. 2 ‘A motion with rezard to a letter is in order,”” said the president. At this point of the proceedings Rev. Dr. Bovier said that though they were all tingling with enthusiasm ,to evangelize the Hebrew race, they had met to hear Dr. Coyle speak and that he ought to be invited to take the floor without delay. ¥ This suggestion met with such favor that Herman Warszawiak withdrew with- out his letter. Dr. Coyle beean a paper on ‘‘Applied Christianity,” in the course of which he expressed little sympathy for what be con- sidered newfangled notions on the subject of religion. He said: “Too much stress is laid; these people on surroundings. ‘Only improve tae homes of the poor and give them educa- tional advantages and their uplifting will be secured,’ they say. I believe that the whole idea that men would be better if their surroundings are better is dangerous to society. To teach people that the poor creatures of the slums dre hardly responsi- ble for their acts makes them say: ‘My misdeeds are not my fault; they lie at the door of society.’” In combating this view of the case Dr. Coyle said: *All history is on our side when we say that character does not de- nd on environment. 1t is not true that denic environment can lead men to the heights and keep them there.””. 5 Tio speaker emphasized this point by alluding to the fall and the comfortable environment of Adam and Eve when they ate the apple in the Garden of Eden. “Christ saw that there was but one way to improve social conditions, and that was to give men new hearts. In institutes of applied Christianity the talk is about con- ditions and not about souls.” In the discussion which closed the meeting the sentimenss expressed were all in favor of Dr. Coyle's paper. Dr. Mac- kenzie said he would have been proud to have written it. Ocngregational Club. _ The Consrentlonxl Monday Club, which met Monday morning et the Grand Hotel, was addressed by Dr. Lucas of Oakland on the subject of ‘‘Prayer as an Evangelistic Agency.”” The speaker said that the churches had fallen into the habit of depending too much on sermons and had too much neglected prayer as a means of grace, The session closed with a special prayer tervice. ; NEW TO-DAY DRY SILKS! GOODS. SILKS! SPEGIAL ANNOUNCEMENT ! 25,000 YARDS NOVELTY SILKS AT ABOUT '/ REGULAR PRIGES! 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