The San Francisco Call. Newspaper, October 22, 1898, Page 1

Call to be tak the Library.++++ s o en fro “VOoLU PHE The “Purity” Candidate Swore to What Could Not Be True. LAN'S EXPENSE AFFIDAVIT WAS QUEER BB E-E-B-E-O-E-N-8--0-E-8-p-8-0-B-8-B-E8 B WHAT PHELAN = SWORE TO + e I, James D. Phelan, | do solemnly swear that B | have paid the sum of = e s B 8 o B " = 4 B = = B = 82650 for my expenses more; and that, except as aforesaid, | have not, nor to the best of my knowledge and belief, has any person, club, society or association, on my behali, directly or indirectly, made any payment, or given, promised, or offered any reward, office, employ- ment or valuableconsid- eration, or incurred any liability on account of or in respect of the | conduct or management | of said election. | efting”” per- ot the treasury for st expenses | were nat thet he more than ign, the that campaign say to the ‘extent of and up for him, »wledge and belief. n think that James ! to Itemized statement showing in detdl all moneys paid, loaned, contributed, or others | wise furnished to for the offi VL«M at said election, and no | | | s ok ESTIMATED ADVER- L TISING EXPENSES. T > [ ] Paid to Dem. 3 Committee. $ 180 00 Non-Partisan L Committee 70 00 m wasp ......-- 500 00 g Monitor...... 500 00 g Examiner 212 80 - Chronicle..... 189 60 Galll oS 5 100 00 Bulletin ...... 125 00 | Report....... & 210000 Dost & o 100 00 ¥ News Letter 100 00 ® Other papers = about... .. 500 00 ‘ S B G Total ......$2627 30 ¥ And his friends say B that he “loosened” to g the extent of $40,000. i -5 E-E-5-EE-@-B-B-E D. Phelan has neither knowledge nor bellef that more than $250 were spent for him during the «>mpaign of 1896? Such an idea is so preposterous that it brings a smile to the face of the mer- est tyro in politics. ut there is| something more than presumption that | this “‘pure” politictan spent much more | than the which, under oath, he | was the total expended duri | “by r in the city received money from Phelan during that campaign for | advertising— or newspa advertising—legitimate and in addition to this legitimate ad: vertising the $ubsidized Bulletin emit- | ted several thousand brays, and it did | not emit those brays for its health as | every one knows, nor is Phelan the first | man who has been fooled by an ass in a lion's skin. It is known that Phelan’s candid was extensively advertised in the Wasp during the campaign, and this could not i B SAN FRANCISCO, SATURDAY, OCTOBER 22, 1898. PRICE FIVE CENTS—.—‘ have cost less than $600. The strange part of it is the disparity in the amounts paid to the Wasp and the $ub- sldized Bulletin, for the Wasp is one press of the country and virtually revo- lutionized the printer's art; the $ub- sidized Bulletin is everything that a decent newspaper is not—decadent in its ideas and vulgar in its habits—a paper sordid in in its avarice and venal in its likes and dislikes—a paper that is notorious for prostituting its columns for pay—a paper devoid of honor and without consistenoy. During that campalgn the Monitor devoted a page to Phelan and his candi- PAID TO SILENCE HIS BLACKGUARDISM Hearst’s Secret St f Gt jéw Sy County of ST ¢ zatccac) | ) feDa d ’@Tl%d’:&/ . having Deen @ candidate for the office of__‘%i/(;«.y,_ttl.___._.. at the election held in bz > e y the s _M d Pt S AAKIED, State of California, on the __13 S day of . Hlureecastocar s 189 Codo solemnly swear ihat I have paid o the sum of $ALRSEO) 2 for my expenses at the said election, and no more, and that, except as aforesaid, I have not, -nor to the best of my knowledge and belief, has any person, clud, society, or association on my behaif, directly or indirectly, made any pay- ment, or given, promisea, or offered any reward, office, employment, or valuable consider- ation, or incurred any liability on account of or in respect of the conduct or management of -the said election, and except such moneys as may have been paid to or expended by the commiliee selected as prescribed by the Act of the Legislature of this State, approved Februnry 23, 1893 and I further solemnly swear that, except as aforesaid. no money, security, or equivalent for momey, has to my knowledge or belief been paid, advanced, given, or deposited by anyone, to or in the hands of myself, or any other person, for the purpose of defraying any expenses incurred on my dekalf, or in aid of my election, or on And I further solemnly swear that I will not at any future time make, or bc a party to the making or aceount of or in respect of the conduct or management of the said election. giving of any payment, reward, ofice, employment, or valuable consideration for the purpose of defraying any such expenses as last mentioned, or provide. or be a party tothe providing of. any money, security, or the eouivalent for money, for the purpose of defraying any such expenses. © ————— e Subscrided and sworn 10 before me, this 7/ L2k _dayof ZLer _4.D 7596} 19 Tsert here s sate . s a R A alemest of any fliegal paymest made by say other person In WRAN of Cancidute. 308 » dictiimer @ MAYOR PHELAN’S AFFIDAVIT. of the brightest weekly papers in the West—a papér standing in the community—a paper of enterprise and brains—the paper that inaugurated colored cartoons dacy. Those who have had business deal- | ings with the Monitor know that a page | in the Monitor costs about $500, and it | 1s not reasonable to presume that the | Monitor gave this page for less than | it would to other advertisers. During with character and in the Candidate's Statement of Weceipts and ‘Expenbimrcs, with Afidavit. AS— 7° self or through any other person, in aid of his election. RECEIPTS P ____at the élection held in 1‘7 ecemiiss Slale of California, on the. ’ Lornieit ecar__189%or for his use, directly or indirectly, in aid of his election and all moneys, contributed, loaned, or expended by him, directly or indirectly, by himn | that campalgn Phelan’s political card appeared in nearly all of the weekly and daily papers in the city, and these cards were paid for at regular adver- tising rates, which amounted to about $2600. How does this purifier of poli- | tics reconcile this fact with his affi- davit? Either he, or some one for him, paid for this advertising, and it is past belief that it was paid for “without his knowledge.” Thousands of dollars—his managers say $40,000—were pald out by and for Phelan during the campaign of 1896, yet this is what Phelan states under oath: “I, James D. Phelan, having been a candidate for the office of Mayor, at the election held in the city and county of San Francisco, State of California, on the 3d day of November, 1896, do solemnly swear that I have paid the X OXOJONORORONOXOROROXORORCROROXOROXOROXOROXOROROJOROROROJORORONOXO) ® a candidate by d —_-day of FROM WHOM. OR FROM WHAT SOURCE RECKIVED | NATURE OF ITEM sum of $250 for my expenses at said election, and no more, and that, except as aforesaid, T have not, nor to the best of my knowledge and belief, has any person, club, society or associa- tion on my behalf, either directly or in- directly, made any payment, or given, promised or offered any reward, office, employment or valuable consideration, or incurred any liability on account of or in respect of the conduct or man- agement of said election, and except such moneys as may have been paid or expended by the committee selected as prescribed by the act of the Legisla- AMOUNT ve ‘ 2dJ0. wo ture of this State, approved February 23, 1893; and I further solemnly swear that, except as aforesaid, no money, se- curity or equivalent for money, has to my knowledge or belief, been paid, ad- vanced, given or deposited by any one, to, or in the hands of myself, or any other person, for the purpose of defray- ing any expenses incurred on my be- half, or in aid of my election, or on ac- Fac-Simile of Receipts Given to Phelan by the Committees. SctiiFetraine Qoriin i Sy - 07 I NCu) CAA,..;;C“,M ot Mans! (R sy e @\,.,2 count of or In any respect of the con- duct or management of said election. And I further solemnly swear that I will not at any future time make or be @ party to the making or giving of any payment, reward, office, employment or valuable consideration for the purpose of defraying any such expenses as last mentioned, or provide or be a party to the providing of any money, security, or the equivalent for money, for the purpose of defraying any such ex- pense.” s The affidavit could not be madé more specific and sweeping. It covers every possible contingency of expenditure. It leaves no loophole of escape, except it possibly may be that clause which states “except such moneys as may have been pald to or expended by the committee selected as prescribed by the act of the Legislature of this State, approved February 28, 1893.” The act of the Legislature snecifled Ho el o5 Pkt ('7 AL Compact With the Southern Pacific Com- The terms of the secret agreement be- tween the Examiner and the Bouthern Pacific Company are at last public prop- erty. It will be remembered that consid- erable Interest was created by the in- formation that the Examiner had re- cefved $30,000 from the rallroad, ostensibly for advertising space on a World's Falr edition. The railroad at that time, need- ed no advertisement from the Examiner. The sum of money exacted by W. R. Hearst and paid by the Southern Pacific Company did not represent value re- ceived in the sense that Hearst and his managers asked the public to belleve. The money was pald for another pur- pose, that was clearly understood by Hearst and the Southern Pacific people. The proprietor of the “Monarch of the Datlies”” demanded $30,000 as his price to cease malicious attacks upon the rail- road and the varied interests it repre- sents, The officials of the road recognized the wisdom of acceding to the demand, but in doing so they forced from Hearst a secret agreement that in consideration for the money received he would show no malice nor malignity in his paper toward Southern Pacific interests. The rallroad men did not ask for fairness. They framed a contract that Hearst accepted, and in accepting admitted that he had been paid $30,000 to be decent in his treatment of a great corporation. The terms of this agreement have been closely guarded, both by Hearst and Southern Pacific officials. By the con- sent of those interested both parties to the transaction decided to feign what the | interests. public believed to be their true relation-| were | The Examiner was permitted to| the Examiner was worth $30,000 the Afln.h-l ship. @@'@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ HEARST’S SECRET AGREEMENT WITH THE SOUTHERN PACIFIC AND ITS ACCEPTANCE BY THE RAILROAD OFFICIALS. The company is to enjoy immunity from hostility in the col- umns of the Examiner, and is not to be the victim of malicious attack or criticism or of misrepresentation; that the Examiner will not seek to create hostile sentiment in the minds of this community against the Southern Pacific Company or any of the interests it represents, and that while not stipulating as against all criticism, it agrees that criticism shall not proceed from any motive of malice or malignity, and that such criticism as may be found necessary to keep and maintain the confidence of the pub- lic, to the extent that any public sentiment may have been created from other sources, is to be avoided as much as possible. COLONEL CROCKER: The above is my understand- ing. How does it conform to your understanding? W. H. MILLS. [CXOJOYOXOXOXOJOXOXOXOROXOXO continue its bogus attacks upon the rall- road, but Charles F. Crocker, A. N. Towne and W. H. Mills bad in their pos- session a document that guaranteed that all attacks of the Examiner would mean nothing serious. g In order to deceive its readers the Ex- aminer was given a document that read as follows: SAN FRANCISCO, June 29, 1892. C. M. Palmer Esq., Business Man- ager of the Examiner, San Francisco, Cal.—Dear Sir: We hereby agree to engage space in the Grand Special World’s Fair Edition of the San Francisco Examiner, matter to be fur- nished by us, including cuts, of twen- ty pages or one hundred and forty columns, for which the Southern Pa- ¢ific Company agress to pay Thirty Thousand. Dollars ($30,000), Gold Coin of the United States, payable at the rate of One Thousand Dollars ($1000) per month, the first month- ly installment to become due and payable August 31, 1892, and run- ning thence at the rate of One Thou- sand Dollars ($1000) pey month, or in large installments, at the option of the Southern Pacific Company; and all in accordance with an agreement pany. entered into between the Examiner management and C. F. COrocker, A. N. Towne and William H. Mills, on behalf of the Southern Pacific Com- pany; it being understood that the said edition shall have a minimum issue of Five Hundred Thousand Copies, and the same shall be pub- lished simultaneously in San Fran- cisco and Chicago, on or about the date of the official opening of the| Columbian Exposition. And it is further agreed that the said matter shall be subject of en-| largement, alteration and revision at | the option of the Southern Pacific! Company at any time prior to Feb- ruary 1, 1893. Yours truly, W. H. MILLS, For the Southern Pacific Co. CHAS. F. CROCKER, Vice President. Ban Francisco, July 21, 1893. To a casual reader this contract is a certificate of the falsehood that the Ex-i aminer received from the Southern Pacific | Company $30,000 for space in a World's | Fair edition. The contract seems noth- | ing more than a simple business proposi- | - e | celved $30, Company the has attemptes that personall; tion. The raiflroad certainly had a right | to exercise its own discretion in reference | to what it believed was its best financial convinced that an advertisement in | This agrees with my understanding quite fully. Certainly nothing less would be satisfactory. CHARLES F. CROCKER. June 18. The above contract was duly entered into by the Southern ~Pacific Company, and the money® will be paid by the Treasurer of the company to the San Francisco Examiner or order when due according to the terms thereof. San Francisco, July 21, 1893. (-)@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ could not reasonably be the concern of any one else. This was the Impression that both Hearst and the railroad people sought to create. Hearst did so to sustain his bur- lesque antagonism to the Southern Pacific Company, and the raflroad people did so for the same reason that a wayfarer throws up his hands when he is com- manded to do so on a lonely way. The raflroad sought to protect itself against malice and what some people call black- mall. In the contract that the public was al- lowed to read is a line that was deeply significant. Hearst knew that $30,000 was assured to him,and he felt he had been clever enough to conceal the real purpose of the payment of the money. The World’s Fair edition of tne ‘“‘monarch’ was certainly large enough to hide a transaction that would not look particu- larly pleasant in the light. But the Southern Pacific people were cleverer than’ W. R. Hearst. One part of the pub- lished contract reads: ‘And all In ac- cordance with an agreement entered into between the Examiner management and C. F. Crocker, A. N. Towne and Willfam H. Mills, on behalf of the Southern Pa- cific Company.” These words tell the story of the secret contract and explain the reason why the Southern Pacific Company paid W. R. Hearst $30,000. The raflroad did not pay that sum of money to the Examiner for an advertisement. The Southern Paclfic 0600600000800 000080000000000000080060624600 @ ciscdo. Continued on Seventh Page. DP900009900000900066@ HEARST'S ASSIGNMENT OF BOODLE. For value reeeived I hereby assign the within claim againstthe Southern Pacific Com- pany, balance due thereon at this date being $19,000, tothe First National Bank of San Fran- The Examiner, Witness: 1. C. STUMP. i 0600000000008 000000 000000000000000000¢ July 24, 1898. W. R. HEARST. 0990000090000 006060 It Southern Pacific officials | transaction. CHARLES F. CROCKER, needed no newspaper support that the Examiner could give. The money was pald to silence the malice and the malig- nity of the “Monarch.” W. R. Hearst ac- cepted another agreement for the $30,000 he received. He promised not to be ma- liclous nor deliberately to misrepresent the Southern Pacific Company to the pub- llc. He agreed not to seek to create a hostile sentiment Iin the public mind against the corporation. He promised to criticize the railroad only on a basis of justice. But in promising all this he asked the Southern Pacific Company to allow him to wear his mask of false an- tagonism and to continue to deceive the public into a belief that his *“Monarch™ wt:s still hostile to Southern Pacific inter- ests. Under these conditions the secret agree- ment was made and signed. The Call publishes the document in full this morn- ing. In connection with the contract are published also the comments made by Charles F. Crocker, A. N. Towne and W. H. Mills. These gentlemen knew what they were doing and with whom they were dealing. They seemed to know that $30,000 was a bait for the proprietor and | managers of the ‘‘Monarch” and they de- termined to have at least a small hook below the bait. If they were forced to throw up their hands they could at least demand immunity from malice. Since the information was first given to the public that Hearst had actually re- 000 from the Southern Pacifio roprietor of the Examiner to create the impression he knew mnothing of the e has striven to throw the odium of the affair upon his employes in his business office. e public contract As [ understand the talk the above covers the understanding fully. A. N. TOWNE. Vice President. [oJofoJojoJojojoJoJoJoJoJoJoRoJoJoJooyoyoyo¥otoYoXoYoYoXoYoYo Yol Rore R XeoRoee oy oYoyoxel has been flaunted in an effort to prove this untruth. Presumably the whole in- cident was inspired and carried to a con- clusion in the Examiner business office. The records publiished this morning tell another story. The following figures show when and how part of the money was paid: MONARCH OF THE DAILIES. San Franeiseo, July 21, 1892, W. H. Mills, Southern Pacifie Land Agent, To Examiner, Dr. 1898. June 4, 1893, for advertis- ing World’s Falr edition.$30,000 September 1, 1892, by eash. 1,000 October 1, by eash. 1,000 November 23 *¢ 1,000 1898. February 15 * 1,500 April 25 a8 8,500 June 8 3¢ . 2,000 July 10 s SR BRANE, T $11,000 Balance... ..$19,000 1893. August 10, paid on account.. $1,000 September 11 *¢ S 1,000 October 10 A5 ie 1,000 November 10 * 4 1,000 December 10 - 1,000 1894. January 10 ¢ . ¢ 1,000 February 14 % 1,000 Mareh 12 8 L 1,000 April 11 G 55 1,000 May 10 e .« 1,000 June 11 « 38 1,000 The assignment of the remainder of the money to the First National Bank of San Francisco shows who conducted the ne- gotiations with the Southern Pacific and. who received the money. R. Hearst made the assignment over his own signa- ture. He knew of the entire affair, and he as well @s the Southern Pacific offi- cials knew for what purpose the money was paid.