Either jointly or separately they controlled the gas and electric lighting companies of Philadelphia, Reading, Harrisburg, Atlanta, Vicksburg, St. Augustine, Minneapolis, Omaha, Des Moines, Kansas City, Sioux City, Syracuse, and about seventy other communities. A single corporation developed nearly all the trolley lines and lighting companies of New Jersey; another controlled similar utilities in San Francisco and other cities on the Pacific Coast. In practically all instances these syndicates adopted precisely the same plan of operation. In so far as their activities resulted in cheap, comfortable, rapid, and comprehensive transit systems and low-priced illumination, their activities greatly benefited the public. The future historian of American society will probably attribute enormous influence to the trolley car in linking urban community with urban community, in extending the radius of the modern city, in freeing urban workers from the demoralizing influences of the tenement, in offering the poorer classes comfortable homes in the surrounding country, and in extending general enlightenment by bringing about a closer human intercourse. Indeed, there is probably no single influence that has contributed so much to the pleasure and comfort of the masses as the trolley car.

Yet the story that I shall have to tell is not a pleasant one. It is impossible to write even a brief outline of this development without plunging deeply into the two phases of American life of which we have most cause to be ashamed; these are American municipal politics and the speculative aspects of Wall Street. The predominating influences in American city life have been the great franchise corporations. Practically all the men that have had most to do with developing our public utilities have also had the greatest influence in city politics. In New York, Thomas F. Ryan and William C. Whitney were the powerful, though invisible, powers in Tammany Hall. In Chicago, Charles T. Yerkes controlled mayors and city councils; he even extended his influence into the state government, controlling governors and legislatures. In Philadelphia, Widener and Elkins dominated the City Hall and also became part of the Quay machine of Pennsylvania. Mark Hanna, the most active force in Cleveland railways, was also the political boss of the State. Roswell P. Flower, chief agent in developing Brooklyn Rapid Transit, had been Governor of New York; Patrick Calhoun, who monopolized the utilities of San Francisco and other cities, presided likewise over the city's inner politics. The Public Service Corporation of New Jersey also comprised a large political power in city and state politics. It is hardly an exaggeration to say that in the most active period, that from 1880 to 1905, the powers that developed city railway and lighting companies in American cities were identically the same owners that had the most to do with city government. In the minds of these men politics was necessarily as much a part of their business as trolley poles and steel rails. This type of capitalist existed only on public franchises--the right to occupy the public streets with their trolley cars, gas mains, and electric light conduits; they could obtain these privileges only from complaisant city governments, and the simplest way to obtain them was to control these governments themselves. Herein we have the simple formula which made possible one of the most profitable and one of the most adventurous undertakings of our time.

An attempt to relate the history of all these syndicates would involve endless repetition. If we have the history of one we have the history of practically all. I have therefore selected, as typical, the operations of the group that developed the street railways and, to a certain extent, the public lighting companies, in our three greatest American cities--New York, Chicago, and Philadelphia.

One of the men who started these enterprises actually had a criminal record. William H. Kemble, an early member of the Philadelphia group, had been indicted for attempting to bribe the Pennsylvania Legislature; he had been convicted and sentenced to one year in the county jail and had escaped imprisonment only by virtue of a pardon obtained through political influence.

The Age of Big Business Page 38

Business Books

Free Books in the public domain from the Classic Literature Library ©

Business Ebooks
Classic Literature

All Pages of This Book