Note 77 — Chapter V · Graft Prosecution Opens.

Rudolph Spreckels, although connected with large enterprises, had steadfastly refused to employ Ruef as an attorney, or to join with him in any way. Given control of the San Francisco Gas Company, for example, although he was importuned to do so, Spreckels refused to employ Ruef as attorney for that company. Spreckels testified at the trial of The People vs. Patrick Calhoun, that he had first realized the necessity of proceeding against Ruef and the Ruef-Schmitz administration when Ruef proposed to him to organize a syndicate to purchase San Francisco municipal bonds. Spreckels testified that Ruef set forth his plan as follows:

“He (Ruef) asked me if I would get together a syndicate for the purpose of bidding on these bonds; that he would guarantee that if I did get up such a syndicate, our bid would be a successful bid; that we would not be obliged to bid above par, and that he would guarantee that we would be the successful bidders. My reply to Mr. Ruef was that I could not understand how anybody could make such an agreement or promise, and how did he propose to make such a statement—to carry out what he had stated. He said: ‘Why, that is a simple matter. You know my connection with the Labor Unions and the Labor Union party. Just at the time that the bids are about to come in, I will arrange to tie up this town; we will have the biggest strike that the community has ever known, and I would like to see any of your bankers or your capitalistic friends bid on the bonds under those circumstances, excepting yourself, those that are in the know’—words to that effect, was his expression. I said to Mr. Ruef: ‘Do you mean to say, Mr. Ruef, that for the purpose of making money you would bring about a strike which might entail even bloodshed, for the mere sake of making money?’ And Mr. Ruef flushed up and said: ‘Oh, no; I was only joking.’ And he soon withdrew from my office.”

It is interesting to compare Spreckels’ attitude toward Ruef with that of I. W. Hellman, as shown by Hellman’s testimony at the trial of Tirey L. Ford. See footnote 7, page 15.