Charles T. Yerkes, one of his partners in politics and street railway enterprises, had been less fortunate, for he had served seven months for assisting in the embezzlement of Philadelphia funds in 1873. It was this circumstance in Yerkes's career which impelled him to leave Philadelphia and settle in Chicago where, starting as a small broker, he ultimately acquired sufficient resources and influence to embark in that street railway business at which he had already served an extensive apprenticeship. Under his domination, the Chicago aldermen attained a gravity that made them notorious all over the world. They openly sold Yerkes the use of the streets for cash and constantly blocked the efforts which an infuriated populace made for reform. Yerkes purchased the old street railway lines, lined his pockets by making contracts for their reconstruction, issued large flotations of watered stock, heaped securities upon securities and reorganization upon reorganization and diverted their assets to business in a hundred ingenious ways.

In spite of the crimes which Yerkes perpetrated in American cities, there was something refreshing and ingratiating about the man. Possibly this is because he did not associate any hypocrisy with his depredations. "The secret of success in my business," he once frankly said, "is to buy old junk, fix it up a little, and unload it upon other fellows." Certain of his epigrams--such as, "It is the strap-hanger who pays the dividends"--have likewise given him a genial immortality. The fact that, after having reduced the railway system of Chicago to financial pulp and physical dissolution, he finally unloaded the whole useless mass, at a handsome personal profit, upon his old New York friends, Whitney and Ryan, and decamped to London, where he carried through huge transit enterprises, clearly demonstrated that Yerkes was a buccaneer of no ordinary caliber.

Yerkes's difficulties in Philadelphia indirectly made possible the career of Peter A. B. Widener. For Yerkes had become involved in the defalcation of the City Treasurer, Joseph P. Mercer, whose translation to the Eastern Penitentiary left vacant a municipal office into which Mr. Widener now promptly stepped. Thus Mr. Widener, as is practically the case with all these street railway magnates, was a municipal politician before he became a financier. The fact that he attained the city treasurership shows that he had already gone far, for it was the most powerful office in Philadelphia. He had all those qualities of suavity, joviality, firmness, and personal domination that made possible success in American local politics a generation ago. His occupation contributed to his advancement. In recent years Mr. Widener, as the owner of great art galleries and the patron of philanthropic and industrial institutions, has been a national figure of the utmost dignity. Had you dropped into the Spring Garden Market in Philadelphia forty years ago, you would have found a portly gentleman, clad in a white apron, and armed with a cleaver, presiding over a shop decorated with the design--"Peter A. B. Widener, Butcher." He was constantly joking with his customers and visitors, and in the evening he was accustomed to foregather with a group of well-chosen spirits who had been long famous in Philadelphia as the "all-night poker players." A successful butcher shop in Philadelphia in those days played about the same part in local politics as did the saloon in New York City. Such a station became the headquarters of political gossip and the meeting ground of a political clique; and so Widener, the son of a poor German bricklayer, rapidly became a political leader in the Twentieth Ward, and soon found his power extending even to Harrisburg. A few years ago Widener presided over a turbulent meeting of Metropolitan shareholders in Newark, New Jersey. The proposal under consideration was the transference of all the Metropolitan's visible assets to a company of which the stockholders knew nothing. When several of these stockholders arose and demanded that they be given an opportunity to discuss the projected lease, Widener turned to them and said, in his politest and blandest manner: "You can vote first and discuss afterward." Widener displayed precisely these same qualities of ingratiating arrogance and good-natured contempt as a Philadelphia politician.

The Age of Big Business Page 39

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