Salt Lake Telegram | 1905-05-25 | Page 7 | Smith Protected Gang of San Francisco Bankers

SMITH PROTECTED GANG ; OF SAN FRANCISCO BANKERS , SAN FRANCISCO, May 25 The Bulletin Bulle-tin savs: . ' "It Is definitely, known that a gigantic ring operated with Edward 3. Smith, th defaulting- tax collector, who yesterday was sentenced to ten years in Fotoom. -' "The ring was composed of banker of San Francisco, who, through a dishonest deal with Smith, gambled with enormous Sums of the city's money. "Smith pleaded guilty in Judge Law-tor' Law-tor' court yesterday - to save, th banks from serious financial embarrassment or, perhaps, complete collapse. "He took his punishment at th entreaty en-treaty of the banker who had been interested in-terested with him and who knew that a trial of the case would bring out all the ruinous facts. .' "The bankers went to 8n?ith and borrowed bor-rowed from him vast sums. Th money was used In speculation for quick returns. re-turns. Smith's compensation was S per Cent Interest on th money he allowed the banks to use. The loans wer for a few days at a time, but afterwards, when the deals in which the financial men risked the city's money went wrong, they were not repaid for months. At times during th three years of Smith's incumbency the amount out in private speculation exceeded ex-ceeded a million dollars."