The Chemical Bank was a more modern instance. The report of the joint legislative committee in 1824 had shown that its promoters set apart $50,000 worth of stock at par value[6] to buy the votes of members, Gen. Robert Swartwout—he who had defaulted for $68,000 in 1820—acting as one of the lobbyists and claiming $5,000 for his services.[7] Other scandals throwing strong light on legislative practises were those of the Ætna and Chatham Fire Insurance Companies. The testimony brought out in the investigation of these companies in 1826 showed that William J. Waldron (one of the line of Grand Sachems) gave $20,000 in certificates of stock to Gen. Jasper Ward, a State Senator, and $20,000 more to various other persons to get the Ætna charter through the Legislature.[8] The Chatham charter, passed in 1822, cost $20,000 in stock at par value, additional sums being paid for the passage of certain amendments in 1824.[9] Ward wrote from Albany to a friend in the city, complaining that the Jefferson Fire Insurance Company, which secured a charter at the same time (1824), had paid only 5 per cent. of what it had promised, giving notes for the remainder.[10] These were but a few examples of the general legislative corruption. The men who profited by these charters brought about, in 1830, the exemption of bank stock in the city from taxation. That nearly every Tammany leader held bank stock was proved by the testimony before an investigating committee in June, 1833, which set forth how the organizers of the newly founded Seventh Ward Bank had distributed thousands of shares among over one hundred State and city office-holders, both Tammany and Anti-Masonic. Every Tammany Senator was involved. James Perkins, the principal lobbyist for the charter, swore repeatedly that $5,000 in stock at par value had been taken directly by State Senators and from $10,000 to $25,000 in stock distributed indirectly.[11] Perkins charged Thurlow Weed with accepting a $500 bribe.[12] The investigating committee reported finally that it could find no proof involving any but one of the accused.[13] As the bill for the charter had originally passed the Senate by a vote of 27 to 2,[14] and as the members of the investigating committee had been chosen from this majority, its conclusions were naturally viewed with a good deal of suspicion.
The Equal Rights men complained that 75 per cent. of the whole of the bank notes circulating in New York City consisted of depreciated paper. The circulation of these in notes of $5 or under amounted by March, 1835, to nearly $1,500,000. One establishment alone, whose weekly payroll in 1834 amounted to $40,000, paid the greater part of this sum in depreciated notes. The wage-earner was in constant fear that any morning he might wake to hear that the bank whose notes he held had failed. Frequently the worst deceptions on the public were connived at by the officials. The Hudson Insurance Company, for instance, with a nominal capital of $200,000, was permitted to issue bonds to the amount of $800,000, upon the most fictitious resources. This was far from being an isolated instance. The law allowed a bank with only $100,000 capital to loan $250,000, thus receiving interest on more than twice the capital actually invested.[15]
The Council was more than ever a hotbed of venality. Numberless small “jobs” were perpetrated without public notice; but when it was proposed in October, 1831, to give the Harlem Railroad Company the franchise for the perpetual and exclusive use of Fourth avenue, free of all payment to the city, Alderman George Sharp, one of the few public-spirited members, drew general attention to the matter by an energetic denunciation. After every other means had been resorted to without success to influence his vote, he was told that he would be excluded from the party by certain persons at Tammany Hall. Alderman Stevens, who declared that he had seen stock given to members of the board and to the “corps editorial” to secure their influence, was also threatened. The words of these two men proved conclusively the truth of what for a long time was common report: that the group of Tammany leaders not only controlled the party nominations but threatened public officials with their displeasure, with all which that implied—exile from public life, loss of political influence, perhaps ruin of fortune—in case they did not vote for certain measures whose “merits” were recommended to them.
The laborer had other grievances. For seventeen years the Council had refused to grant any additional ferries between New York City and Brooklyn. During that period the population of New York had increased 150,000 and that of Brooklyn 15,000. This growth involved a vast amount of marketing and increased the business intercourse between the two places more than fourfold. The lessees of the Fulton Ferry—the sole ferry—had made an agreement in 1811, it was alleged, with the New York City Corporation, by which the latter undertook to bind itself not to establish any additional ferries from south of Catherine street to the Village of Brooklyn for twenty-five years. The large landholders influenced the Common Council to continue this monopoly, their aim being to force the people to stay in New York, where rents were 35 per cent. higher than in any other city in the Union. The exactions of the water, gas and steamboat monopolies likewise had a share in causing the formation of the Equal Rights party.
Besides the dispensing to favored knots of citizens of trading privileges and immunities which were withheld from the great body of the community, the laboring element believed that there was a gross inequality of taxation in the interests of the rich. Taxes rose from $550,000 in 1832 to $850,000 in 1833, but the increase fell upon the poor. The Merchants’ Bank was assessed at $6,000; the lot and building had cost that sum twenty years before, and were now worth at least twice as much. The Merchants’ Exchange was assessed at $115,000, yet it was known that the land and building had cost $800,000. Dozens of like instances were cited by the reformers and they now determined upon a concerted effort looking to better government.
A powerful influence came to the aid of the Equal Rights men when William Cullen Bryant and William Leggett assumed the editorship of the Evening Post. This journal now advocated industrial and political reforms with singular independence and ability. It revived the original conception of the nominating committee’s functions. It urged the electors to remember that the nomination by a nominating committee was but a recommendation to the people of certain candidates whose merits and qualifications were as fair a matter of discussion as any under Heaven; and that it was for this very purpose that nominations were made so long before the great popular meeting was convened. Besides his editorial support of the movement, Leggett participated in the practical work of its organization and management. The clear thought and definite expression shown in most of the Equal Rights manifestoes and resolutions are perhaps directly due to him.
The Equal Rights faction became especially active in the Fall of 1884. Its orators raised such a stir that both Tammany Hall and the Whigs suddenly developed an astonishing care for the workingmen. To conciliate them, the Tammany Nominating Committee exacted a written pledge from every one of its candidates requiring an expression of his sentiments on the monopoly question. To counteract the Wigwam, the Whigs gathered a meeting of “Whig Mechanics” at Masonic Hall, October 14, at which opposition to monopolies, especially banking monopolies, was declared. Not to be outdone, the Wigwam got together a meeting of “Democratic Mechanics,” who resolved to oppose monopolies and to restore the constitutional currency. Tammany also began to recognize, even more liberally than before, the naturalized citizens. As a consequence, it won the Fall (1834) election by over 2,300 majority, most of the Equal Rights men voting with it. One-third of its 18,000 voters were estimated at this time to be of foreign birth.
Nearly all the Tammany Assemblymen proceeded to forget their pledges, only four of the delegation voting in the February following against the bill giving exclusive privileges to the Peaconic Company.
The first clash between the Equal Rights faction and the Tammany monopolists occurred at a meeting at the Wigwam on March 31, 1835. Certain that the Aldermen would never grant additional ferries, the Equal Rights men favored a measure, then pending in the Legislature, for the establishment of a State Board of Commissioners clothed with that power. Gideon Lee,[16] a Wall Street banker, called the meeting to order and nominated Preserved Fish for chairman. Many objections were uttered, and Fish retired. The radicals howled down the Tammany speakers and ran the meeting themselves, adopting resolutions prepared by Joel P. Seaver, declaring for the creation of the State board. A bill for a new ferry—the present South Ferry—was passed the same year.
The Equal Rights men still hoped to gain their ends inside the organization. When Cornelius W. Lawrence[17] stood for reelection as Mayor in April, 1835, there was scarcely any opposition to him from any quarter, he receiving 17,696 votes out of a total of 20,196.