Municipal government -- United States; Political corruption -- United States
As I have said before, however, unlawful acts were exceptional and
unnecessary in Pittsburg. Magee did not steal franchises and sell them.
His councils gave them to him. He and the busy Flinn took them, built
railways, which Magee sold and bought and financed and conducted, like
any other man whose successful career is held up as an example for young
men. His railways, combined into the Consolidated Traction Company, were
capitalized at $30,000,000. The public debt of Pittsburg is about
$18,000,000, and the profit on the railway building of Chris Magee would
have wiped out the debt. “But you must remember,” they say in the
Pittsburg banks, “that Magee took risks, and his profits are the just
reward of enterprise.” This is business. But politically speaking it was
an abuse of the powers of a popular ruler for Boss Magee to give to
Promoter Magee all the streets he wanted in Pittsburg at his own terms:
forever, and nothing to pay. There was scandal in Chicago over the
granting of charters for twenty-eight and fifty years. Magee’s read:
“for 950 years,” “for 999 years,” “said Charter is to exist a thousand
years,” “said Charter is to exist perpetually,” and the councils gave
franchises for the “life of the Charter.” There is a legend that Fred
Magee, a waggish brother of Chris, put these phrases into these grants
for fun, and no doubt the genial Chris saw the fun of it. I asked if the
same joker put in the car tax, which is the only compensation the city
gets for the use forever of its streets; but it was explained that that
was an oversight. The car tax was put upon the old horse-cars, and came
down upon the trolley because, having been left unpaid, it was
forgotten. This car tax on $30,000,000 of property amounts to less than
$15,000 a year, and the companies have until lately been slow about
paying it. During the twelve years succeeding 1885 all the traction
companies together paid the city $60,000. While the horse vehicles in
1897 paid $47,000, and bicycles $7,000, the Consolidated Traction
Company[5] (C. L. Magee, President) paid $9,600. The speed of bicycles
and horse vehicles is limited by law, that of the trolley is
unregulated. The only requirement of the law upon them is that the
traction company shall keep in repair the pavement between and a foot
outside of the tracks. This they don’t do, and they make the city
furnish twenty policemen as guards for crossings of their lines at a
cost of $20,000 a year in wages.
Footnote 5:
All the street railways terminating in the city of Pittsburg were in
1901 consolidated into the Pittsburg Railways Company, operating 404
miles of track, under an approximate capitalization of $84,000,000. In
their statement, issued July 1, 1902, they report gross earnings for
1901 as $7,081,452.82. Out of this they paid a car tax for 1902 to the
city of Pittsburg of $20,099.94. At the ordinary rate of 5 per cent.
on gross earnings the tax would have been $354,072.60.
Public-domain text, read in full here on John Shaqi.
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