The San Francisco Call. Newspaper, November 29, 1898, Page 3

/ HE SAN FRANCISCO CALL, TUESDAY, NOVEMBER "29. 1898 #T_—_—_————————__—___———fl SHERMAN TOOK SIXTY THOUSAND DOLLARS - TO BRIBE COUNCILMEN OF LOS ANGELES How the Great Manipulator Made Profit From the Consolidation of the Roads. Part the Examiner and Chronicle Played in the War of Bankers and Local Capitalists. he history of great events in Cali- probably no more re- that of Moses H. has shown how ity was intimately affairs of the Pacific jple’s Home Savings Sherman operated in for himself out . Pacific Bank and s Bank a tre- efore he began his passed through that come to few re is o pulsive an Call and i men their Hves. When he formed his great p place in his private P s sum of money that S in ey d poor people had en- trusted to r of the McDonald fa r himself the title adventurer. of these institu- was his own nscrupulous In th cret histor: tions Moses H. Sherman worst . By h hi handwriting he asked his con- owr federates and his dupes to believe him disho 1gh his own gions he was a corrupter of leg a tricky, dishonest competitor in busi- s and a briber of govérnmental of- ot the accusations of The shameless admission of 1 himself. siness ethies any dis- is legitimate. H any dishonest tra of that transaction fi fled its performance. Neither personality nor his. methods f public interest were it not an- lamentable fact that thousands of this city suffered from h The Call has already ex- anipulator from many 3 Where other black- ed_with dollars he handled of thou His career, is of general interest to the this State, and The Call will show this morning how in one deal he received from the shrewdest financiers who ever!Thved on this coast $60,000 for | b 1g the City Council of Los An- | no evidence to herman ever gave r to the Council of Los much to indicate that er did so, but in his horrifying 1 he took the names and the honor iecent men to fill his own purse, and the concluding scheme of his great electric road deal his word that he had bought the hanor of public officials was accepted and he received $60,000 as the price of other men’s honor. The history of this deal is from its very nature dramatic. The story is that of the creation of the: Los Ange- les Electric Railroad and the destruc- tion of the tr ous financil inter- ests that volved in the cable road of the y. It may be said to the credit Sherman that he never de things. When he gambled tations of other for he schemed to win ned to-make a great perations at Las An- millions. He seemed financially ‘mad, and sury of one of the fornia behind him began his corrupt manipulations th millioris of dollars. He had against s competitors such men as James iir, Thomas Brown of the Bank of nia and Lovell White of the San 0 Savings Union. . But Sherman to the task, and -when the he was mastér of the situ- with his own he played Whe st b, h the great st banks to ory 6f the transaction of the iribe of the City Council of Los cannot be understood thor- it is read in conection story ‘'of Sherman’s Electric Railroad deal. an entered Los Arigeles as tor he found that a popu- itable cable road was al- e. He had already met «nd had induced Frank orse and gupport ° the which subsequently proved to rous specula- tion to the Bank. and the Peo- ple’s Hom: Bank. Having won an unexpected sure of success in Phoenix, Shern in 1889, went to Los Angeles and ir tiated himself into the confidence of t wners of the To- peka Rapid ~Tr Campany. This concern possessed several franchises in Los Angeles, and:.operated a certain road. When Sheérman came upon the I scene the Topek 1pid- Transit Com- pany needed monéy. Through the ef- forts of Sherman the company receiv- ed from ‘the People’s Home Savings Bank a loan of $25,600. This was con- sidered, in-view of the condition of the company, as an unsually gracious ac- commodation on the part of: the bank. When the money tecame due, ever, it. was promptly paid. This started the great Los Angeles | electric deal. Certain officers of the| People’s’ Home Savings Bank had | strongly objected to th- loan, a..d for a time - there was considérable friction; but there was a Sugg ‘stion that the Pa- cific Bank would assume-the loan, and the affair was adjusted.’ Sherman, in all this deal, had acted secretly as the agent of the Topeka Rapid Transit Company.. At ‘hat time there was a real estate boom in' Los Angeles, and the people. of the city were eager to Bupport any enterprise that promised an improvement to the town. Sher- man, of course, was far-seelsg, and in- tended, if he could, to et possession of the company and the railroad which he own will and in | | how: i | | had supported. It was not long before | he had bought the raflroad and its | franchise to operate on certain streets of Los Angeles. In the meantime, cer- | tain bankers of tained a franchise for another road that was to parallel the road of the Topeka | Rapid Transit Company. These bankers intended seriously to enter the fleld as competitors to the Topeka people. When the competing franchise was | obtained a contract was made with the Pacific Rolling Mills of this city to build the road. Sherman in some way | discovered this fact and then began his | great manipulations to destroy all rail- road competition in Los Angeles and to | control the local situation as far as transportation facilities were concern- ed. Sherman played the rolling mill against the bankers and succeeded In trightening both. The franchises which had been obtained by the bank- ers were turned over to Sherman, who then obtained new franchises from the City Council of Los Angeles. manipulators always contended that he had been forced to bribe the Council for these franchises, but there is abso- lutely no evidence to show that he told the truth. The town, as already de- scribed, was at that time enjoying a | boom and people residing in the outside districts were eager to give encourage- ment to any scheme that would ad- | cance the value of outside property. herman had entered the field with { new ldea—that of an electric road— which, he maintained, could be ope- rated for one-third less than it cost to run a cable road. His argument on this point frightened the Los Angeles bankers and the Pacific Rolling Mill people. Agents were sent to Oregon and Washington and to other northern places to ascertain what it cost to ope- rate an electric road. These reports | showed that Sherman was perfectly correct in his assumptions. The fran- chises, therefore, that had been obtained by the bankers were turned over to Sherman, who had thus become, even at this early stage, master of the situa- | tion. In the cable railroad, however, he | had a most formidable competitor, | which it was absolutely indispensable for him to crush. At that time Wil- liam Alvord, L. D. Benchley, the Pa- cific Rolling Mills, Thomas Brown and | the Bank of California were very much interested in the cable road of Los An- geles. They held hundreds of thou- sands of dollars of bonds of this road and necessarily for their own security wished to see it a permanent success. Sherman, however, succeeded in win- ning the confidence of the and directors of the Pacific Rolling Mills and induced them to build a com- peting electric railroad in Los Angeles upon conditions that were most favor- able to Moses H. Sherman. In the agreement of the Pacific Roll- | ing Mills to construct the road the local corporation declared that it would ac- cept the price of construction in a cer- tain way. | one-third in cash and for the remain- der the Pacific Rolling Miils agreed to take two-thirds of the bonds of the new electric railroad. Under the terms of { the agreement the Pacific Rolling Mills | promised not only to construct the road itself and to build the cars, but to erect the power-house. This promise was one of the most extraordinary business transactions ever undertaken in Cali- | fornia. The Pacific Rolling Mllis, as was already indicated, was vitally interested in the success of the cable railroad. The | rolling mills held hundreds of thou- sands of dollars of the bonds of this road, yet, notwithstanding this fact, it | entered into an agreement to build a competing road and thus become a great factor in injuring the value of the bonds it already possessed. The managers of the cable road nat- | urally became very fearful. The dom- | inating_spirit in the cable road of Los | Angeles at that time was J. F. Crank, | | who represented and showed clearly to | his principals in this city what they | were doing. These principals were deaf | to Crank’s arguments, and it was de- cided to carry out the agreement with Sherman. When the terms of this com- pact were made Sherman promised to obtain his share of one-third in cash. This cash was to be supplied by the Pacific Bank under certain conditions that are still of vital moment and which proper time. Sherman, as a matter of course, was not venturing any money of his own, and in order to obtain the coin from the Pacific Bank he entered into a secret compact with that insti- tution. | ""As soon as he had established a busi- ness relationship with the Pacific Roll- | ing Mills, Sherman saw the tremendous sdvantage of enlarging his field of op- erations and he sought new franchises from the city government of Los Ange- Jes. These privileges to operate elec- tric raliroads were most unusually generous, and Sherman, after he had concluded, had the power, if he wished to exercise it, of literally cobwebbing the town with electric roads. He claimed that it was absolutely neces- sary for him in order to obtain these franchises to bribe the City Council of | Los Angeles. His assertion was never a public one, as a matter of course, and was accepted by the men with whom Shérman dealt as the truth. It was known by those who were interested that Sherman had in his manipulations obtained the very valuable assistance of certain men very high in authority in the Southern Pacific Company. The al- leged fact of bribery, therefore, was accepted without question. The situation had now become a most Los Angeles had ob- | The | al managers | The money was to be paid | will be exploited by The Call at the | {(‘urinus one. The Pacific Rolling Mills, the Bank of California, the San Fran- | cisco Savings Union, James G. Fair and other capitalists in this city and Oak- land were placed in the dubious light of deliberately jeopardizing their own in- ‘t?r?&(& The Pacific Rolling Mills had nearly $200,000 in the cable railroad of Los Angeles. The rolling mills had a very large overdraft in the Bank of California. James G. Fair was not | long in becoming aware of this situa- tion. He saw that the construction of the electric raflroad would cost a vast sum of money and he determined to | take a hand in the game himself. He demanded a thorough investigation ahd asked why it was that the Pacific Roll- | ing Mills, of which William Alvord was then president, and in which James G. Fair was deeply interested, had tried to kill the cable bonds it owned by con- structing a competing electric line and accepting for the cost of construction the bonds of the new electric railroad. There was atout that time a series of very important changes made in the di- rectory and management of the Pacific Rolling Mills. William Alvord was re- tired as president and James G. Fair | succeeded him. L. D. Benchley gave up | his position as manager and Patrick | Noble took his place. Fair considered the time opportune to demand from | Moses H. Sherman and Frank V. Mec- | Donald a strict accounting of the af- fairs of the Los Angeles electric rafl- road. The Pacific Rolling Mills had al- ready expended a vast amount of mon- | ey and material in the construction of | the road, and Fair demanded to know where and how the money had been spent. As a matter of necessity Moses H. Sherman had handled much of these funds. Fair's secretary, Bresse,smade the investigation and submitted his re- | port. There was in the item of ex- penses a sum aggregating several thou- sands of dollars which created séme discussion. Sherman declared then in making his accounting that he had been forced to expend a large sum of money in bribing the City Council of Los An- | geles to obtain necessary franchises for the electric railroad. Fair made abso- lutely no objection to this item and accepted it as an ordinary expense. On incidental matters of construction, however, he fought over items no larger than a hundred dollars. In matters of | | absolutely honest business he was con- | servative even to the point of parsi-/ affairs,” as Fair had no “greasing them, | mony, but in Sherman termed comment to make. - The Los Angeles electric rallroad had lalready {ssued $1.480,000 in bonds. This issue was divided up among the various interests. The Pacific Bank accepted 586 bonds at an average cost of 60 cents. Several of Sherman’s personal friends had accepted the bonds and the Pacific | Rolling Mills, as already described, had agreed to accept two-thirds of the amount of money it expended In the construction of the road in bonds. After Sherman and Frank McDonald made their accounting to James G. Fair the actual plot to ruin the cable | raillroad of Los Angeles began. Sher- man is authority for the statement that any dishonorable transaction was per- sonally legitimate in this scheme to ruin the cable road. This concern at that time had nearly $1,300,000 issued in bonds. It had received a grace of six months in which to pay its interest on these bonds. When this period of grace had expired the managers of the cable company were unable to meet their ob- ligations. Sherman had used every ar- tifice to discover the secrets of the cable company and he employed agent after agent to spv into his competitor’s af- fairs. J. H. Woodard, who subsequent- ly became Sherman's uncompromising enemy, was employed to betray the cable company. When the cable railroad defaulted in the payment of its interest. and J. F, Crank, the manager of the road, knew that Sherman and the managers of the Pacific Bank, and incidentally the di- rectors of the People’s Home Savings Bank, were scheming against him, he came to this city. Shortly after his ar- | rival he was In earnest conversation with some of the heaviest holders of the cable bonds. He went to Thomas Brown of the Bank of California and Lovell White of the San Francisco Sav- ings Union. ~Whatever practical re- sults came from these consultations the public never knew. A few days after the arrival of Crank, however, a most extraordinary incident startled the town. Two of the morning papers of this city—the Chronicle and the Examiner—published an article on the same morning in ref- | erence to the Los Angeles Electric Railroad bonds, and particularly to the | fact that the Pacific Bank and the People’'s Home Savings Bank held large quantities of these bonds. These | articles, published on the same morning, | contained thesamefacts. They were, as far as their statements were concerned, | absolutely identical. To a casual ob- | server it might have seemed that both | articles were written by the same man. | The result of the publication of these articles was a run on the People’s | Home Savings Bank. This was in June, 1891, and was the first practical result of the tremendous war between | the cable railroad and the electric rail- | road of Los Angeles, with Sherman and the Pacific Bank on one side and | Crank, Tom Brown of the Bank of | California and the San Francisco Sav- { ings Union on the other. The McDon- alds were in the greatest consternation | when they learned there was a run on ‘ the People’s Home Savings Bank. It | 80 happened that at that time there was in the vaults of the Pacific Bank a i large sum of money. The McDonalds ! and their agents hired express wagons, | loaded sacks of gold into them. and 1 with great spectacular effect appeared | at the doors of the People’s Home Sav- ‘ ings Bank.. The run was stopped and the bank was saved. The night before the McDonalds had tried thefr utmost to prevent the Ex- aminer and the Chronicle from publish- ing their articles. It was represented . to the managers of these newspapers that the attack on the bonds of the electric railroad was the result simply of the intense competition between the two great street railway corporations of Los Angeles. Every effort, however, to prevent the publication of the article was in vain, and when both news- papers appeared on the following morning with the statement that the People’s Home Savings Bank had un- wisely accepted the dangerous securi- ties of the Los Angeles Electric Rail- road the run on the institution fol- lowed. The bank, as already describ- ed, was fortunately saved by the time- ly arrival of gold from the Pacific Bank. Sherman had now advanced very far in his scheme. He had behind him the tremendous resources of the Pacific Bank and against him the Bank of Cealifornia and several other powerful institutions in this city. The war between Crank and the electric and the cable railroad of Los Angeles became more bitter. Those who had invested hundredsof thousands of dollars in this concern recognized that one of two alternatives must be accepted. One or both of the roads must be destroyed as the result of the war or both roads would have to be consolidated. After the run on the Peo- ple’s Home Savings Bank there were a series of negotiations between repre- sentatives of the electric railroad and those of the cable railroad. Time after time these men met and discussed the situation. John McKee, who was at that time president of the clearing-house and cashier of the Tallant Bank, and Lovell White, the president of the San Fran- cisco Savings Union, sent for Frank McDonald and Sherman. There was a preliminary conference, each represen- tative discussing the interests he pos- sessed. White in his official capacity as president of the San Francisco Sav- ings Union had a quarter of a million dollars in bonds of the Los Angeles Cable Railroad. McKee, as agent of the Protestant Orphan Asylum of this city, had $50,000 of these bonds. The Bank of California in its own capacity and in its relationship with the Pacific Rolling Mills had nearly two hundred thousand dollars in these bonds. A series of conferences, as already described, were held. There were infor- mal dinners at prominent restaurants Sherman and railroad in this city and long consultations at | | the rooms of Sherman in the Baldwin Hotel. It was at first decided, after the representatives had determined to consolidate both roads, that a $4,000,000 issue of bonds would be made. This was subsequently changed to a $3,000,- QDo issue, in which $221,000 remained for outside parties after the cable interests and the electric interests had been satisfied. In arranging an equitable distribution of the bonds between the cable railroad and the electric railroad Sherman de- manded that the company be given sixty bonds, representing $60,600, which Moses H. Sherman declared was neces- sary to cover his expenses in ‘‘greas- ing” the City Council of Los Angeles. In the negotiations there was much | discussion over this item. Sherman in- | sisted that he had paid the money in | bribes and he must become compen- sated or the deal would not be effected. The other representatives finally acept- ed Sherman’s terms and he received the bonds. This incident was the last in the negotiations that culminated in the consgolidation of the two roads. In the preliminary stages of the war between the electric rallroad and the cable railroad, when James G. Fair worked a revolution in the Pacific Roll- ing Mills and demanded an accounting from Sherman and Frank McDonald, there was no discussion of the tremen- dous item that Sherman claimed rep- resented bribery or, as he termed it, with a wink, “greasing.” James G. Fair was a thorough man of the world, a practical business man who understood the efficacy of ringing arguments when sometimes made to public officials. When Lovell White and John McKee were asked, however, to audit Sherman's “greasing fund” of sixty thousand dollars they hesitated. They did not possess the wide range of knowledge that Fair displayed. Unlike him they did not know the busy scenes of Legislatures and the ways that are devicus and dark in the chambers of City Councils and Supervisors. But McKee and White had willing instruc- tors. MecKee particularly had been in- troduced by Sherman’s friends to the grape-vine route that frequently leads to official favor. He and White listened patiently to the arguments in favor of Sherman’s “greasing fund.” Both gen- tlemen were resting in easy digestion of a comfortable dinner and with a shrug of the shoulders and a genial smile they acceded to Sherman's de- mand and the compact was complete. If things were as they were and in the naturalscourse of events had to be the only alternative was to submit. Messrs. ‘White and McKee had some aspirations to be considered philosophers as well as bankers. The union of the two concerns was effected in 1892, and the new corpora- tion became known as the Consolidated Electric Raflway Company of Los An- geles. Sherman, as a matter of course, remained in control. He demanded in the new issue of bonds that two years’ interest be sacrificed "y the bondhold- ers. This new issue of three million of dollars earned nothing, therefore, dur- ing the period of two years which Sher- man demanded. The manipulator had absolute dictation of all the affairs of the road, which, it is claimed, earned from forty thousand to sixty thousand dollars a month. This enormous sum of money, as well as the expediture of every dollar for the operation of the road, was under the control of Sherman for two years. This man did not have to account to any one. The bondholders could not expect any return on their investment for at least two years. Sherman was absolute master of the situation. He had re- ceived an enormous sum of money for himself. He had obtained in addition to his own share $60,000, and in all the negotiations that led up to the final consolidation of the roads he had met with only one stumbling block. After the negotiations leading toward consolidation were under way Sherman found no difficulty in securing the sat- isfaction of his demands. When he de- clared that he had ‘“greased” the City Council of Los Angeles the men with whom he was negotlating accepted his | as cause for comp assertion as the truth. Antecedent to that acceptance, however, Sherman had to remove a stumbling block in the per- son of John McKee. It has already been shown that McKee in a fiduciary capacity was deeply interested in the cable railroad of Los Angeles. When the scheme of consolidation was pro- posed McKee showed a tendency to be fractious. He was not willing to take part in the deliberations and Sherman as usual was equal to the emergency. There were some private talks with Mr. McKee and certain very close friends of Sherman and the president of the Clearing-house opened another set of negotiations. Sherman’s friends possessed a cer- tain persuasive eloquence and sub- mitted such convincing arguments that Mr. McKee became a factor in the de- liberations that culminated in the con- solidation of the two roads. His apathy was transformed into energy and in consideration of certain labors that he performed in Chicago he received $7000, represented in seven bonds of the Consolidated Electric Rallway Com- pany. Some of those who had the privilege of knowing the inside history of the consolidation believed that Mr. McKee’'scompensationshould have been $12,000. Others, who certainly had a right to know, understood that the sum should have been $15,000. As already described, Sherman had absolute control of the electric railroad for two years after the consolidation. He had won agreat triumph and with his wit had wrested a fortune from shrewder men than himself. In win- ning his fortune he” had shamelessly declared that he had bribed at least two of the City Councils of Los An- geles. The facts in reference to the of- ficlal grant of franchises to the Los Angeles Electric Railroad are interest- ing. The first franchise for the Los Angeles Consolidated Railway Com- pany was secured in October, 1890. It was granted in the name of an indi- vidual and was transferred for a con sideration about eighteen months afterward tp the electric road corpora- tion. This franchise covered a great many of the streets of Los Angeles. It was Sherman’s habit never to ask for | anything in his own name, and on a subsequent day a large number of new franchises was granted to different private persons. There were fifteen of these franchises, which were again transferred to the electric railroad corporation. In all | the negotiations Sherman never ap- peared on the surface. Property-own- ers and speculators asked for the rail- road privileges and received them in every instance by a unanimous vote of the City Council. What it cost Sher- man to effect * these deals, either through the City Councils or with the private individuals, no When the first franchise was granted | in October, 1890, the City Council Los Angeles consisted of the following men: First Ward, H. Van Dusen: Sec- ond Ward, George P. McLain; Third Ward, W. H. Bonsall; Fourth Ward, Jacob Frankenfleld; Fifth Ward, A. C. Shafer; Sixth Ward, E. M. Hamilton; Seventh Ward, James T. Brown; Eighth Ward, Theoflore Summerland; Ninth Ward, R. E. Wishing. The franchises that were received by Moses H. Sherman in 1891 were granted to him through his agents by the fol- | lowing City Council of Tios Angeles: | First Ward, F. M. Nikell; Second Ward, sall; Fourth Ward, —. | W ard, J. Q. A. Tufts; Sixth Ward, C. H. Alford; Seventh Ward, D. McGarry; Eighth Ward, Theodore Summerland; Ninth Ward, Samuel Reese. These are the men that Moses H. Rhodes; Fifth There is nothing absolutely to indicate that these public officers were corrupt- ed except the uncorroborated word of Moses H. Sherman He received. how- ever, $60,000 on his word that he cor- rupted these men. At the time the { franchises were granted there was no scandal in connection with the trans- actlon. The men who occuplied posi- tions in the City Council were men of high standing. Frankenfield was presi- dent of the California Bank of Los An- geles; McGarry was a director in the First National Bank; Bonsall was pro- prietor/of the Nadeau Hotel; Summer- land was County Assessor of Los An- geles; Tufts was a bank director; Nik- ell was a merchant, and Innis a cap- itallst. These are the men whom Moses H. Sherman declared had been corrupted. For two years after the consolidation of the cable railroad of Los Angeles and the electric railroad Sherman was absolutely in command. The great fied with the enormous profits that he had obtained, and he secured another franchise for himself for a road {Pasadena and Santa Monica over the very tracks of the Consolidated Elec- tric Railway Company. He holds this come a competitor to the Los Angeles expired after the consolidation Sher- man was in duty bound, under his contract to the bondholders, to begin the payment of interest on the bonds. The road defaulted on this interest, and Sherman manipulated to get a new bond issue. This he succeeded in do- ing. He wanted at first to obtain an issue of $5,000,000, but he failed in this. He succeeded, however, in getting a new $3,000,000 issue, with a quarter of a million dollars on the side. The Con- solidated Electric Railway Company became the Los Angeles Railway Com- pany, and Moses H. Sherman had con- summated another tremendous deal. .- The Call will continue to-morrow morning the extraordinary history of this man's extraordinary operations. May Be Called Another Victim. the old Baldwin grill room, is indirectly another victim of the fire. On the night ably excited and since that time had been indulging in liquor continually. His heart was weakened by the experiences he had, and this, with the liquor he has been drinking, is responsible for his death. Grady was taken to the Receiving Hos- pital yesterday afternoon by ‘‘Bogie” O'Donnell, but was past medical assist- ance and succumbed in fifteen minutes after his arrival — ee—————— Divorce Suits Filed. Emily Adams has applied for a divorce from M. J. Adams, alleging cruelty as a cause of action. Annie E. Johnson filed sult for divorce from Frank R. Johnson yesterday. The pll.lntLl! alleges desertion Sherman received $60,000 for bribing. | franchise yet, and at any time may be- | Electric Railroad. After two years had | of the fatal blaze, Grady became consider- | | tives in doing what he did, and that no | one knows. | of | Danlel Innis; Third Ward, W. H. Bon-~ | | | | | i manipulator was not even then satis- | to | | that the fight was “on the level.” | whatever questions they pleased of the | of ceremonies, Charles J. Harvey, an- CORBETT SAYS ~ McVEY SOUGHT 10 SAVE HIM Statement Made by His Second. FEARED FOR EX-CHAMPION ENTERED THE RING TO PRE- VENT A KNOCK-OUT. Californian and Sailor Almost Come to Blows While the Lenox Club Inquiry Is in Progress. Spectal Dispatch to The Call. NEW YORK, Nov. 28.—James J. Cor- bett declared to-day that he believed “Connie” McVey innocent of any inten- tional or prearranged wrongdoing when he entered the ring during the ninth round of the Sharkey-Corbett contest last Tuesday night, and conse- quently forfeited the contest to Shar- key. This statement on Corbett's part was made at the close of the inquiry which was instituted by the directors of the Lenox Athletic Club to fix the respon- sibility for McVey’s actions. The in- quiry, or investigation, took place in the presence of a large number of sporting men, the principals, with their hand- lers, and the club officlals being pres- ent. The only absentee was McVey, whose invasion of the ring caused all the trouble. It was said that McVey had left the city, but his whereabouts could not be ascertained. State Senator Timothy D. Sullivan, representing the Lenox Athletic Club, acted as chief inquisitor and invited any and all of those present to ask witness W. B. Gray, “Kid"” McCoy’s manager, was the first witness. He sald that six or seven days before the fight, while in company with McCoy, he met two representatives of a local newspaper in the Astor House. He told them that a friend of his, whose name he was not at liberty to disclose, had informed him that the bout was to end in the ninth round, and that Sharkey would be de- clared the winner. Senator Sullivan asked Gray to produce his informer and promised to give $300 to any charitable organization or institution if Gray would bring his man and have him re- peat the assertion. Gray left the build- ing, promising to try and get his friend to reiterate the statement. “Honest” John Kelly, the referee, said: Up to the ninth round I thought it was an even thing. and I firmly believe that there was no faking on the part of the principals, who were fighting to the best of their ability. As to Mec- Vey’'s actions, I believed then, and am still of the opinion, that McVey was | ‘had’ by some person or persons. The reason that 1 declared all bets off was to protect the public, as it was clear to me that McVey’s interfering was a prearranged plan. I cannot say who ‘had’ McVey. I don’t believe | that he got into the ring to save Cor- bett from defeat. Before the master nounced all bets off, John Considine called on me to declare all bets off, bat | I told him that I had instructed Har- | vey to anounce that fact three or four | minutes before that time.” Announcer Charles J. Harvey stated that Kelly told him to announce that Sharkey had won, and after a little de- | lay he requested him to add that all bets were off. George Considine, Corbett's manager, | was emphatic in his denial of any knowledge of a put-up job. Charley White, Corbett’s trainer, | said he knew nothing of any deal or| job, and no man in the world could get him to be a party to any crooked work. He knew nothing of McVey's ! intentions until Connie had jumped into the ring. He declared dramati- y: “I would kill any one if necessary to prevent such an infringement of the | rules.” Tom O'Rourke, Sharkey’'s manager, thought Sharkey had undoubtedly the best of the fight. In fact, Sharkey was the only one in it. “All T am sorry for,” said he, “is that,| the contest ended as it did, but such a | thing cannot occur at the club again, as a new rule has been made. In case any man attempts to enter the ring in the future he will be promptly ar- rested and the fight will be continued and decided on its merits.” O'Rourke denied all Knowledge of | any telegrams or documentary evi- dence which would tend to show col- lusion, and stated that the amount of money which Sharkey received was $16,845, while Corbett’s share was 84; Those sums were made up of 65 and 35 per cent of a $20,000 purse and 50 per cent of the receipts exceedine $40,000. While O'Rourke was making his statement Corbett and Sharkey growl- ed and snarled at each other, but they desisted when requested by Senator Sullivan. Sharkey, on his own behalf, stated He | | went into the ring to win, and was con- | | bet continued: ! when a compliment is paid you, Shar- John Grady, the well-known waiter of vinced that he would have knocked out Corbett in another round had the | fight gone on. Corbett, the last witness, sald: “I won’t believe McVey was bought. He has been with me for many years. | | T have supported him, and he has eaten | my bread and butter. After we re- turned to my dressing room on Tuesday | night McVey said to my brother Tom: | ‘T could not see the big fellow licked, | and I got into the ring. That is all | there was to it.” I had the best of the fight from the second round.” | Sharkey interrupted Corbett, saying: | “Why, you didn’t have a dead man’'s chance.” Corbett replied: my life.” “Neither did 1,” retorted Sharkey. Both men then assumed menacing at- titudes, and it looked for a moment as if there would be a brawl; but Senator Sullivan, who stood betwc-n them, re- quested them to keep quiet, and Cor- “I never faked in “You're too ignorant to understand key, but I'm ‘Gentleman Jim," and al- | ways will be.” Corbett then went on to say that Mc- | Vey was impelled only by honest mo- man could,make him beMeve otherwise. Senator Sullivan reviewed the evi- dence, and said: “It seems that McVey thought Cor- bett was being beaten, and jumped into the ring to save him.’ No evidence to the contrary is forthcoming, and the club directors have done all that they could to set the matter right in the eyes of the public. As to the bets, we have nothing further to do with them.” This ended the inquiry, so far as the club was concerned. o After it was over Corbett declared that Sharkey should give him another fight, and O'Rourke promised to give the Californian a chance. 1 | disease. Onme ‘‘Pellet” is a gentle laxa. FERRY DEPOT CONSTRUCTION INVESTIGATED An Admirable Witness Is Expert Reid. READY FACTS AND FIGURES CONTRACTOR AND ARCHITECT ARE IN ACTION. The Expert Before the Senate Com- mittee Responds With Minute Details of Measurements and Prices. The Senate committee charged with the responsibility of investigating -State in- stitutions held two sessions at the Har- bor Commissioner’s office yesterday. BEx< pert James W. Reid replied to all the in- quiries addressed to him by Senators Dickinson, Prisk and Boyce, and under a certain form of cross-examination re- sponded promptly to inquiries from Con- tractors C. F. McCarthy, Wiliam Cronin, Architect Edward R. Swain and Lawyer- E. B. Young. The subject under eonsideration was Expert Reld’s report showing that the State had been plundered of'a vast sum of money by a process of. jugglery with specifications and the introduction of ma- terials of construction in the ferry depot other than those originally specified: P. F. McCarthy, contractor. for masonry, said that he appeared for the sole pur- pose of defending the acts of the Harbor Commissioners and Architect Swain. Mr. McCarthy conducted the cross-examina- tion with skill and persistency, but ut- terly failed to weaken the case of the ex- pert. Mr. Reid was so well equipped with facts and figures, and displayed such masterly ability in elucidating every point, clearing away all technicalities and pre- senting the plain truth, that the commit- tee and spectators listened with admira- tion to his ready, calm and comprehensive replies. 1e was ready at all times to- go into the most minute detail as to measure- ments, prompt to quote the price of ma- terials when the contracts were award- ed and when substitution of material and changes of plans were allowed.. He cal- culated the number of Roman -pressed brick and the enameled brick to the cubie foot, he quoted the prices of galvanized fron’ according to weight. Where. points were in doubt he calcufated that the ma- terials were supplied ‘and the work was erformed in good fajth, thus reinforcing is position- that -his report. was.fair to the Harbor Commission, the :contractors and the architect. 5 S When Mr. McCarthy retired -from " the attitude of cross-examirier Contraetor, W Cronan, through his atterney, - E. " B: Young, availed himself: of the. privilege to ask questions concerninig’ the ~ méthods employed by the expert. ‘Again Mr. Reid replied with readiness_to 4 long liné.of questions. When ' the ‘information as’to measuremerits and calculations were: not given.in the most minute detail he segre- gated items and computed -the cost ac- cording to the fashion desiréd by: the at- torney. % R Mr. Reid readily admitted’ that' there could be an:honest difference of opinion | as to whether galvanized iron. or brick should be used according to drawing No. 8, but construing the specifications and the drawings ~together doubt was dis- pelled. Architect Swain insisted. that the draw= ing clearly established the intention of the architect that brick.should be used. Mr. Reid maintained that as both were not used there should have been a re- duction to the State for one:or the other. It was contended by the cross-question- er that Mr. Reid’s report speeified a loss to the State on both brick and iron.. If the reduction were charged against Mc- Carthy, the brick contractor, it.- should not have been reckoned ainst Cronan, the fron contractor: The architects, Commissioners, con- tractors, Senators and spectators inspect- ed drawing No. 8, :-which was tfelephoned for by Chief Engineer Holmes. “When the cross-questioners ~ were congratulating themselves that brick was indicated ‘Mr. Reld referred to a paragraph of the speci- fications which ieft no doubt that gal- vanized iron was specified ‘as.the mate- rial. He did not acknowledge that the architect had authority to omit galvan- ized iron 5 The committee will hold another ses- sion this forenooh. ADVERTISEMENTS. The athletic woman is the wo- man of the day. years has seen wandegfnl‘hp ro- gress in this re- spect. That this tendency will re- sult in a more ro- bust womanhood, better able to bear the burdens and duties and pleas- ures of life, there can be no ques. tion. But this result ]wflll’ ?le :’c- com; e y fie: Duildfing i of those women already in rea- sonably robust health, and the killing off of their weaker sisters. Athletics will make a naturally strong woman mo:er and healthier ; they will make a naturally weak, sickly woman weaker and more sickly, and if indulged in to excess, may result fatally. : A woman who suffers from weakness and disease of the delicate and important or- gans tinctly feminine, cannot hope to recover her general- health through ath- letics, so long as she: remains locally weak. A woman suffering in this way is unfitted to bear the strain of athletics just as much as she is unfitted to bear the duties and burdens of wifehood and motherhood. There is a sure, safe, speed(’ and perma- nent cure_for all disorders of this descrip- tion. It is Dr. Pierce’s Favorite Prescrip- tion. It acts directly on the organs con- cerned in wifehood and maternity, making them strong and healthy and vigorous. It soothes pain, allays inflammation, heals ulceration and tones the nerves. It fits a woman to indulge in, and be benefited by, athletics. All good medicine stores sell it. ““Your valuable * Favorite Prescription’ cured me of female weakness and a catarrhal dis- charge from the lining membrane of the rts,” writes Mrs. T. H. Parker, of Brookl Jackson Co., Mich. *Tam now perfectly wel Dr. Pierce’s Pleasant Pellets cure consti- tion. Constipatjon is the cause of many iseases. Cure the cause and you cure the tive, and two a mild cathartic. ts - sell them, and nothing is *‘ just as g % PAINLESS DENTISTRY. Teeth filled by Care- ful, Experfenced Den- | tists at the usual cost’ PAINLESS EXTRACTION A SPECIALTY. METROPOLITAN DENTAL PARLORS, DR. 1. §. HIGGINS, Prop.. 937 Market St. Over Cafs Binkand. 'TAKE ELEVATOR,