History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial TimesMyers, Gustavus
History
History of the Great American Fortunes, Vol. I: Conditions in Settlement and Colonial Times
Myers, Gustavus
United States -- Economic conditions; Wealth -- United States
A PROCESS OF SPOLIATION.
Neither Astor nor Goelet were directly active members of the changing
political cliques which controlled the affairs of the city. It is likely
that they bore somewhat the same relation to these cliques that the
politico-industrial magnates and financiers of to-day do; to all
appearances distinctly apart from participation in politics, and yet by
means of money, having a strong or commanding influence in the
background. But the Rhinelander brothers, William and Frederick, were
integral members of the political machine in power. Thus we find that in
1803, William Rhinelander was elected Assessor for the Fifth Ward (a
highly important and sumptuary office at that time), while both he and
Frederick were, at the same time, appointed inspectors of
elections.[106]
The action of the city officials in disposing of city land to
themselves, to political accomplices and to favorites (who, it is
probable, although not a matter of proof, paid bribes) took two forms.
One was the granting of land under water, the other the granting of city
real estate. At that time the configuration of Manhattan Island was such
that it was marked by ponds, streams and marshes, while the marginal
lines of the Hudson River and the East River extended much further
inland than now. When an individual got what was called a water grant,
it meant land under shallow water, where he had the right to build
bulkheads and wharves and to fill in and make solid ground. Out of these
water grants was created property now worth hundreds upon hundreds of
millions of dollars. The value at that time was not great, but the
prospective value was immense. This fact was recognized in the official
reports of the day, which set forth how rapidly the city's population
and commerce were increasing. As for city land as such, the city not
only owned large tracts by reason of old grants and confiscations, but
it constantly came into possession of more because of non-payment of
taxes.
The excuses by which the city officials covered their short-sighted or
fraudulent grants of the water rights and the city land were various.
One was that the gifts were for the purpose of assisting religious
institutions. This, however, was but an occasional excuse. The principal
excuse which was persisted in for forty years was that the city needed
revenue. This was a fact. The succeeding city administrations so
corruptly and extravagantly squandered the city's money that the city
was constantly in debt. Perhaps this debt was created for the very
purpose of having a plausible ground for disposing of city land. So it
was freely charged at that time.
THE CITY CREATES LANDLORDS.
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