The Shame of the Cities

by Lincoln Steffens

Filbert and Porter got all the public contracts they could handle, and the rest went to other contractors friendly to them and to the ring. Sometimes the preferred contractor was the lowest bidder, but he did not have to be. The law allowed awards to be the “lowest and best,” and the courts held that this gave the officials discretion. But since public criticism was to be considered, the ring, to keep up appearances, resorted to many tricks. One was to have fake bids made above the favorite. Another was to have the favorite bid high, but set an impossible time limit; the department of the city councils could extend the time afterwards. Still another was to arrange for specifications which would make outsiders bid high, then either openly alter the plans or let the ring firm perform work not up to requirements.

Many of Martin’s deals and jobs were scandals, but they were safe; they were in the direction of public service; and the great mass of the business was done quietly. Moreover, the public was getting something for its money,—not full value, but a good percentage. In other words, there was a limit to the “rake-off,” and some insiders have told me that it had been laid down as a principle with the ring that the people should have in value (that is, in work or benefit, including a fair profit) ninety-five cents out of every dollar. In some of the deals I have investigated, the “rake-off” over and above profit was as high as twenty-five per cent. Still, even at this, there was “a limit,” and the public was getting, as one of the leaders told me, “a run for its money.” Cynical as it all sounds, this view is taken by many Philadelphians almost if not quite as intelligent as my college professor.

But there was another element in the policy of conciliation which is a potent factor in the contentment of Philadelphia, and I regard it as the key to that “apathy” which has made the community notorious. We have seen how Quay had with him the Federal resources and those of the State, and the State ring, and we have seen how Martin, having the city, mayor, and councils, won over the Democratic city leaders. Here they had under pay in office at least 15,000 men and women. But each of these 15,000 persons was selected for office because he could deliver votes, either by organizations, by parties, or by families. These must represent pretty near a majority of the city’s voters. But this is by no means the end of the ring’s reach. In the State ring are the great corporations, the Standard Oil Company, Cramp’s Shipyard, and the steel companies, with the Pennsylvania Railroad at their head, and all the local transportation and other public utility companies following after. They get franchises, privileges, exemptions, etc.; they have helped finance Quay through deals: the Pennsylvania paid Martin, Quay said once, a large yearly salary; the Cramps get contracts to build United States ships, and for years have been begging for a subsidy on home-made ships. The officers, directors, and stockholders of these companies, with their friends, their bankers, and their employees, are of the organization. Better still, one of the local bosses of Philadelphia told me he could always give a worker a job with these companies, just as he could in a city department, or in the mint, or post-office. Then there are the bankers who enjoy, or may some day enjoy, public deposits; those that profit on loans to finance political financial deals; the promoting capitalists who share with the bosses on franchises; and the brokers who deal in ring securities and speculate upon ring tips. Through the exchange the ring financiers reach the investing public, which is a large and influential body. The traction companies, which bought their way from beginning to end by corruption, which have always been in the ring, and whose financiers have usually shared in other big ring deals, adopted early the policy of bribing the people with “small blocks of stock.” Dr. Frederick Speirs, in his “The Street Railway System of Philadelphia,” came upon transactions which “indicate clearly that it is the policy of the Union Company to get the securities into the hands of a large number of small holders, the plain inference being that a wide distribution of securities will fortify the company against possible attacks by the public.” In 1895 he found a director saying: “Our critics have engaged the Academy of Music, and are to call an assemblage of people opposed to the street railways as now managed. It would take eight Academies of Music to hold the stockholders of the Union Traction Company.”

But we are not yet through. Quay has made a specialty all his life of reformers, and he and his local bosses have won over so many that the list of former reformers is very, very long. Martin drove down his roots through race and religion, too. Philadelphia was one of the hot-beds of “know-nothingism.” Martin recognized the Catholic, and the Irish-Irish, and so drew off into the Republican party the great natural supply of the Democrats; and his successors have given high places to representative Jews. “Surely this isn’t corruption!” No, and neither is that corruption which makes the heads of great educational and charity institutions “go along,” as they say in Pennsylvania, in order to get appropriations for their institutions from the State and land from the city. They know what is going on, but they do not join reform movements. The provost of the University of Pennsylvania declined to join in a revolt because, he said, it might impair his usefulness to the University. And so it is with others, and with clergymen who have favorite charities; with Sabbath associations and City Beautiful clubs; with lawyers who want briefs; with real estate dealers who like to know in advance about public improvements, and real estate owners who appreciate light assessments; with shop-keepers who don’t want to be bothered with strict inspections.

If there is no other hold for the ring on a man there always is the protective tariff. “I don’t care,” said a manufacturer. “What if they do plunder and rob us, it can’t hurt me unless they raise the tax rates, and even that won’t ruin me. Our party keeps up the tariff. If they should reduce that, my business would be ruined.”

Such, then, are the ramifications of this machine, such is its strength. No wonder Martin could break his own rules, as he did, and commit excesses. Philadelphia is not merely corrupt, it is corrupted. Martin’s doom was proclaimed not in Philadelphia, but in the United States Senate, and his offense was none of this business of his, but his failure to nominate as successor to Mayor Stuart the man, Boise Penrose, whom Matt Quay chose for that place. Martin had consented, but at the last moment he ordered the nomination of Charles F. Warwick instead. The day that happened Mr. Quay arose on the floor of the Senate and, in a speech so irrelevant to the measure under consideration that nobody out of Pennsylvania understood it, said that there was in his town a man who had given as his reason for not doing what he had promised to do, the excuse that he was “under a heavy salary from a great corporation (the Pennsylvania Railroad) and was compelled to do what the corporation wished him to do. And,” added Senator Quay, “men in such a position with high power for good or evil ought ... to go about ... with the dollar mark of the corporation on their foreheads.” Quay named an the new boss Israel W. Durham, a ward leader under Martin.

Martin having the city through Mayor Warwick fought Quay in the State, with Chris Magee for an ally, but Quay beat them both there, and then prepared to beat them in their own cities. His cry was Reform, and he soon had the people shouting for it.

Quay responded with a Legislative committee to investigate abuses in the cities, but this so-called “Lexow” was called off before it amounted to much more than a momentary embarrassment to Martin. Martin’s friends, on the other hand, caught Quay and nearly sent him to prison. The People’s Bank, James McManes, president, failed. The cashier, John S. Hopkins, had been speculating and letting Quay and other politicians have bank funds without collateral for stock gambling. In return Quay and the State Treasurer left heavy State deposits with the bank. Hopkins lost his nerve and shot himself. McManes happened to call in friends of Martin to advise him, and these suggested a Martin man for receiver. They found among the items money lent to Quay without security, except the State funds, and telegrams asking Hopkins to buy “1000 Met” (Metropolitan) and promising in return to “shake the plum tree.” Quay, his son, Richard R., and Benjamin J. Haywood, the State Treasurer, were indicted for conspiracy, and every effort was made to have the trial precede the next election for the Legislature which was to elect a successor to Quay in the United States Senate; but Quay got stays and postponements in the hopes that a more friendly District Attorney could be put in that office. Martin secured the election of Peter F. Rothermel, who was eager to try the case, and Quay had to depend on other resources. The trial came in due course, and failed; Judge Biddle ruled out the essential evidence on the ground that it was excluded by the statute of limitation. Rothermel went on with the trial, but it was hopeless; Quay was acquitted and the other cases were abandoned.

Popular feeling was excited by this exposure of Quay, but there was no action till the factional fighting suggested a use for it. Quay had refused the second United States Senatorship to John Wanamaker, and Wanamaker led through the State and in Philadelphia a fight against the boss, which has never ceased. It took the form of a reform campaign, and Quay’s methods were made plain, but the boss beat Wanamaker at every point, had Penrose made Senator, and through Penrose and Durham was gradually getting possession of Philadelphia. The final triumph came with the election of Samuel H. Ashbridge as mayor.

“Stars-and-Stripes Sam,” as Ashbridge is sometimes called, was a speech-maker and a “joiner.” That is to say, he made a practice of going to lodges, associations, brotherhoods, Sunday-schools, and all sorts of public and private meetings, joining some, but making at all speeches patriotic and sentimental. He was very popular. Under the Bullitt Law, as I have said, all that is necessary to a good administration and complete, though temporary reform, is a good mayor. The politicians feel that they must nominate a man in whom the people as well as themselves have faith. They had had faith in Warwick, both the ring and the people, and Warwick had found it impossible to satisfy two such masters. Now they put their faith in Ashbridge, and so did Durham, and so did Martin. All interests accepted him, therefore, and all watched him with hope and more or less assurance; none more than the good people. And, indeed, no man could have promised more or better public service than Ashbridge. The result, however, was distracting.