CHAPTER XXXII

THE SWAY OF BRIBERY AND “HONEST GRAFT”

1903-1905

Graft of all kinds was rampant, as later official investigation showed,

in Tammany-controlled departments, but in the public mind the question

of this form of graft was vastly overshadowed by the revelations of the

New York legislative committee investigating the great life insurance

companies.

The disclosures showed that Republican legislators as well as

Democratic were bought; that enormous corruption funds had been

contributed to both political parties, and that one political machine

was no better than the other.

Bribery expenditures, the committee reported, were classified on the

various insurance companies’ books as “legal expenses.” The committee

described the amounts as extraordinarily large. In the year 1904 alone,

the Mutual Life Insurance Company thus disbursed $364,254.95; the

Equitable Life Assurance Society, $172,698.42, and the New York Life

Insurance Company, $204,019.25.[1]

Andrew C. Fields, long engaged by the Mutual Life Insurance Company

to manipulate legislation at Albany, lived there in a sumptuously

furnished house jocosely styled the “House of Mirth.” The expenditures

were charged to “legal expenses.” The Mutual thus expended more than

$2,000,000 in “legal expenses” from 1898 to 1904.[2] And from 1895

to 1904, the total payments made by the New York Life Insurance

Company to Andrew Hamilton, its chief lobbyist at Albany, amounted

to $1,312,197.16, all of which sum was soberly entered as “legal

expenses.”[3] A present of nearly $50,000 was contributed in 1894

by the New York Life Insurance Company to the campaign fund of the

Republican National Committee, and similar amounts in 1896 and 1900 to

the same recipient.[4] All of the large insurance companies regularly

contributed funds not only for national political campaigns, but for

those in the States; the Equitable, for example, gave $50,000 in

1904 to the Republican National Committee, and had also, for many

years, been giving $30,000 annually to the New York State Republican

Committee.[5] The legislative investigating committee found it

impossible to trace all of the directions of this continuous great

corruption. “Enormous sums,” the committee stated, “have been expended

in a surreptitious manner.”

Under the pressure of public opinion, District Attorney Jerome finally

caused the Grand Jury to proceed against a few of the figureheads

involved; the great magnates who had profited so enormously from the

huge frauds, were, so events proved, left untouched. Although it had

been clearly proved by the testimony that the frauds and corruptions

consummated were gigantic, not a single one of those of great wealth

implicated was ever sent to jail or even incommoded by the formality of

a trial.

In the face of such disclosures, the opponents of Tammany could not

well point to Tammany corruption as an exclusive product. It was a

time, too, when what was termed “muckraking” was almost at its height;

magazines and newspapers, were filled with articles exposing in detail

the corruptions and colossal manipulations and spoliation done by great

corporations and other vested interests, and the close connection

between these and the “bosses” and machines of both old political

parties. Public attention was concentrated more upon these nationwide

scandals than upon local graft--petty, indeed, in some respects,

compared to the great extortions of trusts and other industrial,

transportation and financial corporations.

These factors had their influence in developing in New York City

a powerful movement called the Municipal Ownership League, later

passing under the name of the Independence League. The head of this

organization was William R. Hearst. He had inherited a large fortune

from his father, United States Senator George Hearst. The estate

comprised a San Francisco newspaper; and William R. Hearst had come to

New York, where he now had a morning and an evening newspaper. Of a

sensational order, yet written in popular style, these newspapers had

an extensive circulation, and their agitational matter were in reality

the mainstay of his movement. Two of the local objectives of this

agitation were the scandalous overcrowding of the street car system

and the methods by which the subway system in New York City, built

by the city’s credit, had been turned over to the profit of private

interests. At the same time, no means was neglected to awaken popular

resentment against the “plunderbund” fattening on the people, and to

arouse indignation against the bossism of Tammany Hall. Day after day

effective articles, editorials and cartoons were published; written

in a simple style, understandable by the crudest intelligence, they

produced a great effect among the voters. Nothing quite like this

original kind of political journalism had ever been known in New York

City.

The operations of the New York Contracting and Trucking Company, in

particular, supplied facts which were used effectually by newspapers

and civic organizations to show the new methods by which Tammany

leaders were gathering in millions from contracts. This company, as we

have seen, was headed by John J. Murphy, brother of the Tammany Hall

chief, and by Alderman James E. Gaffney.

Its transactions revealed the great difference between Tweed’s methods

and those of the later leaders of Tammany Hall. Under the Tweed régime

tens of millions of dollars were stolen outright. The lesson of the

overthrow of the Tweed “ring” was not lost on his successors. Mr.

Croker refused to countenance such outworn, discarded and dangerous

methods of theft. They had resulted disastrously to Tammany in Tweed’s

day. In place of direct thieving methods of getting rich, indirect

methods, surrounded with secrecy and every possible precaution against

detection, were developed. Some Tammany district leaders became opulent

on blackmail and extortion, the circuitous route of which it was most

difficult to trace (in a legal sense) to its final destination. As for

Mr. Croker himself, the question was frequently put to him, “Where did

you get it?”[6] He could reply that his operations in amassing his

wealth were entirely legitimate; “inside” real estate speculations,

connections with trust companies and other corporations and stock

transactions. Knowing him to be the source of much legislation and

administrative favors worth tens, if not hundreds, of millions of

dollars to corporations, his opponents were by no means wholly

satisfied with such an explanation, but whatever their suspicions

they could never prove that he had personally profited from selling

legislation. Essentially, however, Mr. Croker never posed as a business

man; he was a politician.

But by the period when Charles F. Murphy became “chief,” the

“business-man” type of leader had evolved. Under this plan--a plan that

afforded the most plausible opportunities for explaining the sudden

acquisition of wealth--Tammany men became open or secret partners

in contracting firms, using the pressure of political power to have

large contracts awarded to their concerns. It was not necessary

for these leaders to know anything of contracting; they could be

ignorant of every detail; their one aim was to get the contracts; the

actual skilled work could be done by hired professional men. No law

penalized such methods, respectable in every appearance. At the same

time, inasmuch as speculating in the stock market was legitimate in

law, fortunes could be made in acting upon advance information of

legislative or other official means concerning certain corporations.

The first large contract obtained by the New York Contracting and

Trucking Company was a $2,000,000 contract for excavating the site for

the new Pennsylvania Railroad Station in New York City.

For a long time, notwithstanding reiterated protests from the press and

public organizations, the Board of Aldermen, controlled by Tammany, had

obstinately refused to vote for the franchise giving the Pennsylvania

Railroad power to use streets for its tunnel approaches and terminal

in Manhattan, New York City. Reports were circulated that the sum of

$300,000 had been demanded by the Aldermen, and that until that sum was

produced they would not vote for the franchise. It was noted that it

was “Big Jim” Gaffney, “outside man” for the New York Contracting and

Trucking Company and Alderman from Leader Charles F. Murphy’s district,

who, together with “Little Tim” Sullivan, Tammany leader in the Board

of Aldermen, took a leading part in persuading the Aldermen to hold

out against giving the franchise for the Pennsylvania tunnel. The

newspapers unanimously described the Aldermanic action as a “hold-up.”

Likewise, it was also noted that when from some mysterious quarter

orders reached Tammany Aldermen to vote for the franchise, it was

Alderman Gaffney who took the lead in rallying the Aldermen to vote it

through.

This sudden change of front after a protracted “hold-up,” puzzled

the public exceedingly, and sinister imputations were made. Not until

months later did the public begin to see illumination; it was then

announced that although the New York Contracting and Trucking Company

had not been the lowest bidder (its bid, according to report, was

$400,000 more than that of a competitor), nevertheless it had been

awarded the $2,000,000 contract for digging the Pennsylvania Railroad

site.

In the case of the awarding of a contract covering several million

dollars in February, 1905, to the New York Contracting and Trucking

Company for the six-track local improvement of the New York, New Haven

and Hartford Railroad, the circumstances were much the same.

A franchise had been asked for a project called the New York,

Westchester and Boston Railroad Company. At the same time, another

company calling itself the New York and Port Chester Railroad Company,

made a similar application and opposed the other company. Both

companies, as subsequent developments showed, were in fact owned by the

New York, New Haven and Hartford Railroad; the opposition of one to the

other was evidently for mere effect.

For three years the Board of Aldermen refused to give the franchises,

either one of which would give the New York, New Haven and Hartford

Railroad its own independent entrance into New York City. Somehow and

from somewhere the announcement was now made that unless the Board of

Aldermen acted, a law would be passed by the Legislature stripping it

of all power of granting franchises. This threat was executed; the

Legislature passed an act vesting franchise-granting power in the Board

of Estimate and Apportionment. It may here be parenthetically noted

that with the great powers increasingly vested in it the Board of

Estimate became the most compact and powerful instrument of government

that had ever been developed in the government of New York City.

This body is composed of eight officials. Of these, three

officials,--the Mayor, the Controller and the President of the Board of

Aldermen,--have, by reason of a greater vested plurality of votes, the

dominance of power. The other five members are the Borough Presidents.

The first point passed upon by this Board was the question of whether

or not the New York, Westchester and Boston Railroad Company was or

was not a defunct corporation. On March 30, 1904, Corporation Council

Delany (elected by Tammany Hall) reported to the Board of Estimate and

Apportionment that the Board had no jurisdiction to examine the legal

capacity or incapacity of the company.[7]

On June 24, 1904, the company received its franchise. The company was

really an adjunct of the New York, New Haven and Hartford Railroad,

and its franchise gave it the right to operate more than sixteen

miles of four-track line within New York City; the company secured

practically all the available routes for entrance and exit to and from

New York City by way of the Bronx. It was the $6,000,000 contract for

constructing this railroad improvement that the New York Contracting

and Trucking Company secured.

The declaration was made that no other contractor had ventured to

compete for this work; and the explanation was offered in some quarters

that inasmuch as a large part of the work was located inside the city

limits and as an unfriendly city administration might do much to

hamper the carrying out of the contract, the New York, New Haven and

Hartford officials, with a cautious eye to the railroad’s interests,

were willing to award the contract to the Tammany firm and pay higher

prices. Mr. Gaffney asserted that politics had nothing to do with the

obtaining of the contract and that his company “had bid with other

contractors and won out,” but politicians did not take this statement

seriously. In February, 1907, the New York Contracting and Trucking

Company surrendered its contract for a consideration of $500,000

to another company, the Holbrook, Cabot & Daly Company, which had

previously done much of the New York, New Haven and Hartford Railroad’s

construction work. It was not until seven years later that the fact,

originally suspected, as to why the contract had been given without

competition to the Gaffney-Murphy company, was authoritatively stated.

On May 20, 1914, Charles S. Mellen, long president of the New York, New

Haven and Hartford Railroad, testified before the Interstate Commerce

Commission that the contract had been turned over to that Tammany

concern “to avoid friction with the city,” meaning that by giving

the contract to the Tammany company, city officials would attempt

no “hold-up,” such as placing obstacles in the way of carrying the

construction work through.

Further disclosures strongly indicated that during the time when the

Westchester franchise was acquired by the New York, New Haven and

Hartford Railroad, certain powers in Tammany Hall “had to be taken care

of,” and that they benefited financially.

After being looted of large sums in financial jugglery, the New York,

New Haven and Hartford Railroad had been thrown on the verge of

insolvency. It was revealed in 1918 that a certain $12,000,000 of New

York, New Haven and Hartford Railroad money put into the Westchester

project had mysteriously vanished in unexplained directions. The

Interstate Commerce Commission, in 1914, conducted an investigation

to find out specifically, if possible, what became of those missing

millions.

On April 24, 1914, Oakley Thorne, a New York banker, who had been the

agent of J. P. Morgan & Company in handling the $12,000,000 for the

purpose of secretly purchasing the Westchester and the Portchester

franchises for the New York, New Haven and Hartford Railroad, gave

certain testimony before the Interstate Commerce Commission. He averred

that he had burned the books containing the particulars as to how he

had spent at least $8,000,000; he explained that he therefore could

not give names, amounts and dates. A letter written by Mr. Thorne in

October, 1906, to C. S. Mellen, president of the New York, New Haven

and Hartford Railroad, was produced. In this letter Thorne wrote that

“there are people in Fourteenth Street who are very strongly in favor

of Westchester and others in favor of Portchester,” and suggested that

“both sides will have to be taken care of.” Asked what the reference

to “Fourteenth Street” meant, Thorne replied, “Why, I believe, Tammany

Hall.” Mr. Thorne testified that he could not possibly remember the

names of any individuals in “Fourteenth Street” who “had to be taken

care of,” but he admitted that he knew that “Big Tim” Sullivan was

“friendly” to the Westchester “enterprise” and owned stock in it; at

the time this testimony was given Sullivan was dead.

Mr. Thorne asserted that he could not recall definite particulars,

but he could vaguely remember that there were persons in “Fourteenth

Street” who had, at the time, been “interested in the Westchester

City and Contract Company, the New York Development Company and other

concerns that subsequently formed a part of the Westchester combination

turned over to the New Haven [the New York, New Haven and Hartford

Railroad Company] through Morgan & Company.” Certain “persons in

Fourteenth Street,” Mr. Thorne further testified, had to be bought off

because of their “nuisance value,” but precisely what was the nature of

that “nuisance value” was not explained. In the disposition of the many

millions of dollars placed in his hands, Mr. Thorne was not required to

make any accounting or give any vouchers.

Further details of later developments were given in the testimony of

Charles S. Mellen, president of the New York, New Haven and Hartford

Railroad during the years when the above franchises were acquired.

On May 14, 1914, Mr. Mellen testified, at a hearing before the

Interstate Commerce Commission, that the directors of that railroad

set aside a fund of $1,200,000, the value of 8,000 shares of New York,

New Haven and Hartford Railroad stock, which sum was distributed

among “people of influence” in the politics of New York City for

the procuring of certain much-desired changes in the charter of

the New York, Westchester and Boston Railroad Company. Mr. Mellen

further testified that Inspector Thomas F. Byrnes, who, for many

years, had been head of the New York Police Department (and who was

deceased at the time of this hearing) had acted as the go-between in

this transaction; that Byrnes agreed to obtain thirteen different

modifications or “amendments” to the New York, Westchester and Boston

Railroad charter from New York city’s officials; and that to bring

about these results stock, or its equivalent in cash, to the sum

of $1,200,000, was given to Byrnes for distribution among Tammany

politicians whose identity Mr. Mellen declared that he did not know.

Mr. Mellen’s testimony revealed that some of these persons accepted

stock made out in the names of dummies, but that the majority demanded

and received cash for their “services.” All but $50,000 of the

$1,200,000 was distributed.

The records of the Board of Estimate in 1908 and 1909 bear out Mr.

Mellen’s testimony; they show that nearly every request for alterations

of the charter or extensions of time made by the New York, New Haven

and Hartford Railroad was granted. The Board of Estimate during the

years in question consisted of Mayor McClellan; Controller Herman A.

Metz; Patrick F. McGowan, President of the Board of Aldermen; John F.

Ahearn, President of the Borough of Manhattan; Bird S. Coler, President

of the Borough of Brooklyn; Louis F. Haffen, President of the Borough

of the Bronx; Lawrence Gresser, President of the Borough of Queens,

and George Cromwell, President of the Borough of Richmond.[8]

Continuing his testimony, Mr. Mellen stated, on May 20, 1914, that

upon further recollection he found that the amount distributed to

politicians in connection with securing the Westchester franchise and

alterations to the charter, really totaled $1,500,000 or $1,600,000.

Much of this amount was presented in the form of due bills sent in

by Tammany politicians by means of messengers; Mr. Mellen personally

handed over cash for the due bills, but the names of the recipients he

said he could not remember. “Do you know,” Mr. Mellen was asked, “what

all this Westchester and Portchester stock was doing in Tammany Hall?”

“I know,” he replied, “what it was doing to me when I took it on. It

was costing me lots of money.” “Do you know how all this stock reached

Tammany Hall?” “I have not the slightest idea. I could suppose a lot of

things, but I do not know anything about it.”

Submitting, on July 11, 1914, the results of its investigation

to the United States Senate, the Interstate Commerce Commission

reported that the facts as to the New York, Westchester and Boston

Railway transaction constituted “a story of the profligate waste of

corporate funds.” The fullest details are set forth in that report of

the magnitude of the corruption used. Commenting upon Mr. Mellen’s

testimony, the report declared: “The testimony is somewhat occult,

but the character of the transaction is no less certain. This money

was used for corrupt purposes, and the improper expenditures covered

up by the transfer to the New Haven [New York, New Haven and Hartford

Railroad Company] of these worthless securities.… It seems very strange

that Mr. Mellen was not able to identify with any particularity any one

with whom he had these transactions except the late Thomas F. Byrnes.

No comment is necessary to make clear to the mind the corrupt and

unlawful nature of this transaction, and it would seem that the amount

illegally expended could be recovered from Mr. Mellen and the directors

who authorized it.…”[9]

There is now pending (1917) a suit in the United States District Court

brought by the stockholders against the former directors of the New

York, New Haven and Hartford Railroad Company and against the company

for the return of $165,000,000 alleged to have been lost to the

treasury of that railroad in various ways.

To return, however, to the operations of the New York Contracting

and Trucking Company: Another contract secured by that concern was a

contract from the Consolidated Gas Company for grading the site for the

Astoria gas plant; the franchise for the Astoria “Gas Grab” had been

supported by Tammany.

By 1905 it was estimated that the New York Contracting and Trucking

Company or its offshoots had received contracts aggregating

$15,000,000--all contracts from corporations and interests benefiting

from the city government or depending upon favors from it. Yet

two years previously this very company was a nonentity as far as

securing large contracts were concerned, and none of its heads

had any experience in the contracting business. Now in a certain

well-understood field, it was virtually free from competition.

None could now fail to note the great transition from the Tweed

period when Tammany leaders used only the vulgar and criminal methods

of stealing money out of the city treasury. Under Murphy’s leadership

the obvious methods used were those of “honest graft”--the making of

millions from contracts with public service corporations, and this was

represented as legitimate business. Fully six Tammany district leaders

were members of or “interested” in large contracting firms, although

the heads of these, often of a nominal character, were not known as

Tammany leaders. These concerns employed a total of many thousands

of men, all of whom were expected to be useful at the primaries and

elections.

At this time there was discernible the beginnings of a growing feeling

that reform officials, while prosecuting gamblers and comparatively

petty offenders of all stripes, somehow were singularly ineffective in

bringing about the prosecution of corporation magnates charged with

looting on a large scale. This feeling had not crystallized as yet, but

it was felt in some quarters.

Some of District Attorney Jerome’s former supporters were impressed

by the fact that despite his campaign promises, he had not caused

the indictment or other prosecution of the men who had looted the

Metropolitan Street Railway Company. James W. Osborne, a noted

attorney, had declared in open court in 1903, that the “insiders” had,

by means of duplicating of construction accounts, manipulation and

in other ways, stolen $30,000,000. Mr. Amory declared and specified

that an additional $60,000,000 had, by various processes of devious

manipulation, gone to enrich the “insiders”--a total of $90,000,000.

On April 25, 1903, Mr. Osborne gave out this statement: “We have

produced evidence before Magistrate Barlow which shows a crime has been

committed, and now it is up to the District Attorney to say whether he

will avail himself of that evidence and proceed against those who have

committed the crime. We have charged in open court that $30,000,000

has been stolen, and that [statement] never has been disproved by the

Metropolitan Company or its counsel. I told Mr. Nicoll, counsel for Mr.

Vreeland [president of the Metropolitan Street Railway Company] openly

he would not be able to disprove my charges.”

Mr. Amory openly declared that Mr. Jerome’s investigation of the

matter in 1903 was not undertaken in good faith. “It was,” he wrote,

“a deliberate whitewash. I have documentary evidence to prove it.” Mr.

Amory charged that of the twenty-seven distinct written charges filed

with Mr. Jerome against the Metropolitan management, Mr. Jerome’s

accountant reported on only seven, and these latter were of minor

importance, involving chiefly technicalities of accounts and not

serious crimes. Yet Mr. Jerome, was Mr. Amory’s indignant comment,

represented that the accountant’s report was “very clear and full and

takes up every charge” and that Mr. Jerome had reported that “the

specific charges so far as they involve criminal wrong-doing are

entirely without foundation.”[10]

While thus declaring that he could find nothing on which to base

prosecution of the Metropolitan Street Railway Company magnates,

District Attorney Jerome showed by other acts, it was complained,

that petty criminals would be prosecuted to the limit of the law. He

was charged with discriminating between rich and powerful business

offenders, on the one side, and on the other, poor and relatively

uninfluential violators of the law.

On one occasion Mr. Jerome appeared before labor unions, delivered

homilies on the virtues, and warned them that he would make short

shrift of labor grafters. This lecture had reference to the case of Sam

Parks, a labor leader, charged with grafting on employers and receiving

money for prompting or “calling off” strikes. District Attorney

Jerome waited for no elaborate formal investigation; he immediately

started the machinery of his office against Parks and caused him to be

convicted. Already a dying consumptive, Parks was sentenced to prison,

where he died shortly after. But no action, it was pointed out, was

taken against powerful construction companies that had bribed Parks

and other labor leaders to declare strikes on buildings for which

competitors had the contracts.[11] Another much-discussed incident

was the result of a collision of railroad trains in the Park Avenue

tunnel--a collision maiming and killing many persons. The obsolete

and dangerous condition of this tunnel had long been known. It was

commented that District Attorney Jerome did not make the slightest move

against the railroad directors; he hurriedly caused the indictment

and arrest of Wisker, a railroad engineer, as the sole culprit and

proceeded with despatch to his trial. The jury, however, refused to

convict the engineer.

Considering that Mr. Jerome was a leading reformer, such contrasts

were gradually calculated to make the very mention of reform odious

to the observing of the working people. The complaint was generally

heard that the big grafters were safe and immune, while petty offenders

were dealt with rigorously. Nevertheless, a large number of voters,

influenced by a stream of praise from the press, still believed in Mr.

Jerome’s promises and motives, and his action in 1905 in not securing

a renomination from political bosses but procuring it independently by

means of a petition circulated among electors, strengthened the old

belief that he was sincere and was independent of political and other

domination. Much was made of the fact of his independent renomination.

The Republicans withdrew their candidate for District Attorney and

nominated Mr. Jerome, and the press in general enthusiastically

supported him. He was reelected. It was not until some years later when

the full effects of his administration could be popularly realized in

perspective, that Jerome fell into general disfavor with the voters.

As an instance of the methods of contractors under the Tammany régime

during this time, it is only necessary to mention the facts, later

disclosed in an investigation by John Purroy Mitchel, Commissioner

of Accounts, as to how in 1904 defective hose was sold to the Fire

Department. The Windsor Fire Appliance Company (of which the president

and chief stockholder was Michael F. Loughman, later appointed Deputy

Commissioner of Water Supply) sold 25,000 feet of hose to New York City

for $23,410.25. Although this hose did not answer the specifications

of the contract, it was accepted. The consequence was that it burst

many times at fires, some of them serious. The same was true of equally

worthless hose supplied by other contractors.

The municipal election in 1905 was a triangular contest. Tammany Hall

did not fear the Republican ticket headed by William M. Ivins for

Mayor. But it did have intense uneasiness over the possibility of Mr.

Hearst triumphing; his movement was too plainly making inroads among

large numbers of voters that ordinarily would have voted the Tammany

ticket. Tammany was particularly bent upon winning inasmuch as by the

provisions of the revised charter the term of the incoming Mayor and

other officials had been changed to a four-year incumbency. Hearst

was the Municipal Ownership League’s candidate for Mayor, and Tammany

renominated Mayor McClellan. So effective were Hearst’s onslaughts

on “Boss” Murphy and the elements represented by him that during the

campaign Mayor McClellan repeatedly made promises that he would

thereafter pursue an independent course, should he be reelected.

Mr. Hearst’s vote returns came in so heavily after the polls were

closed that it looked as though he were certainly elected. That very

night there was a strange interruption, lasting about an hour, in the

public giving-out of the returns. Then as the returns were resumed,

it appeared that although the vote between McClellan and Hearst was

extremely close, McClellan had a little the better of it. The next

day it was announced that Mayor McClellan was reelected by a close

margin. Mr. Hearst and his followers declared that manifest fraud had

been committed, and took steps to have a recount. Meantime while this

process was dragging along, Mayor McClellan was widely criticized for

his action in immediately claiming his reelection, opposing a recount,

and not showing faith in the legitimacy of his claims by waiting with

dignity until there had been a careful official recount.

The final official recount gave this result: McClellan, 228,407 votes

Hearst, 224,929 votes; Ivins, 137,184 votes. It may be added here that

in the very next year--in 1906--Hearst accepted a Tammany indorsement

when he ran for Governor, but he was defeated by Charles E. Hughes,

who, as counsel for the Legislative Insurance Committee, had achieved

wide popularity for his exposure of the insurance company iniquities.

With the reelection of Mr. McClellan, Tammany Hall confidently looked

forward to four more years of unquestioned control of the immense

budget and enormous opportunities embodied in the rule of New York City.

FOOTNOTES

[1] _Report of the New York Legislative Insurance Committee_, 1906,

Vol. X, p. 16.

[2] _Ibid._

[3] _Ibid._, p. 50.

[4] _Ibid._, pp. 62 and 398.

[5] _Ibid._, p. 10.

[6] Mr. Croker, in 1900, had admitted his liability to an English tax

on a yearly income of $100,000.

[7] The company had filed articles of incorporation in 1872, but

was charged with being an abortive corporation in that it had never

completed the necessary formalities required by law.

[8] As we shall see later, the political composition of the Board of

Estimate was at this time considerably mixed; during his second term

Mayor McClellan was fighting Mr. Murphy, leader of Tammany Hall, and

had the backing of Senator McCarren and of McCarren’s lieutenant,

Controller Metz. Mr. McGowan, president of the Board of Aldermen,

was supposed to be a Tammany man, but was not on good terms with the

“Organization” and was credited with being aligned with McClellan and

Metz.

[9] _Interstate Commerce Commission Report No. 6569_, In re _Financial

Transactions of the New York, New Haven and Hartford Railroad Co._,

July 11, 1914, pp. 35, 38, etc. The above are but a few extracts from

this comprehensive report.

[10] _The Truth About Metropolitan_, by W. N. Amory, pp. 60-64.

[11] In an effective article in _McClure’s Magazine_, Mr. Ray Stannard

Baker showed how one of these big companies bribed walking delegates to

declare strikes on buildings being put up by rival contractors in order

that it--the briber--might be able to get a reputation for building

within contract time, and thus exclude competitors from getting further

contracts.

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