The Age of Big Business: A Chronicle of the Captains of IndustryHendrick, Burton Jesse
History
The Age of Big Business: A Chronicle of the Captains of Industry
Hendrick, Burton Jesse
Big business -- United States -- History; Industries -- United States -- History
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. 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.
Public-domain text, read in full here on John Shaqi.
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