The morning call., 1894-09-02
LEvYTNG BLACKrlAIL.
Corporation Buy Immunity From
Legislative Attack.

SOTpOfaLOL ony immunity FROM
Legis sative Attack.
striking story Of sbe legislative black
mailing of corpoEstioas in New York State
is given by JoSsph b. Bishop, in The Gen.
tury for SEPTEMBER. Mr. Bishop gives the
following incidents, which are, he says. of
unquestlonable authenticity: Toward the
close OF the campaign OK 1928, the pres
ldent OF powerful and wealthy corpora
ton called a meeting Of its directors to
consider special matter There was
some delay in getting them al lagether
anu the meeting was not hel1 Ri tiFe FIJI
DAY preceding election day. WbeE the
directors assembled the president STATED
to them that the corporation had Been
asked TO contribute $4,000 to tins DamCc-
granting of the demand, saving
that the amount was the same
that they had paid the year before, hat
they had got all they had bargained
Tor. that he considered the payment
good business investment for the CON-
pany, aud that as careful custodians of
the interests entrusted to them they could
not afford to refuse. The directors voted
the payment. 1t was stipulated by the
peace" negOtiatOrs that the money should
be divided into three equal paris--one
check for $1,000 to go to a State machine
u
local boss and the third to a campaign
committee fund. The checks were drawn
and were to be called for by one of The
benefciaries on Monday following They
were locked IN the cOmpany's safe. On
saturday the cashier or other emplOye iu
charge OF the safe was called away, eX-
pectiug to return on Monday. He was de-
layed. the safe could not be opened, and
when the checks were called for the person
calling was told that they had been ordered
and drawn. but could not be reached for
the reasons given; he was told, however,
that II was all right. and if he would call
Oh wednesday, the day after election, ne
could obtain them. On Tuesday the cleo
tlon was held, and the result showed that
the Democrats had lost control of the
Legislature. When the checks were called
for on Wednesday they were withheld, on
the ground that the Democratic bosses
had no goods TO deliver" In return for the
money.
Another instance, no less authentic, is
equally Illuminating. A meeting of the
board of directors had been called few
days before election to consider the question
OF contribution of an amount similar to
the one in the foregoing case. 1t was voted
to pay it. One of the directors said that
In his opinion there was considerable
doubt as to the outcome of the election
and he suggested, therefore, that il might
be expedient to have the check which had
been drawn "mislald quite accidentally"
till after election. If the Democrats car
ried the election, be explained. it could be
sent to them with a note stating that it had
been mislaid and no harm would be done.
Ii they failed TO carry the election the
check could be destroyed. 1t was de-
stTOyed.
Whatever else these instances show they
reveal perfect understanding on the part
OF the contributors as TO the real object of
their c0ntrl buttons. They are not giving
TO the campaign fund because they believe
IN the principles of the party receiving the
money, but because they are buying
peace" One prominent head of great
corporation, the assessment" on which
by IammaDy in one campaign was $780,
coo, and the regular contribution OF which
Is fully half that amount says in CONVEX
satlon that he aud his corporation are well
satisfied with the present system: "We
get what we paw for and think it we'll
worth the money"
While il is probably true that in some
instances the peace" money is paid to
protect a corporation in the main
tenance OF privileges that are hos
tile 10 the public interests in the
great majority Of cases it is paid to secure
immunity from all kinds of Matchmaking
attacks. Of course it is itself black
mail, but il is a fixed sum as against
an indefinite outlay for defense against in
Vulnerable and incessant attacks. All
those who refuse to pay it find out sooner
or later that 1t Is much cheaper to yield.
Not only Is the legislative power in the
hands OF the men who ask the tribute. but
the local administrative and police powers
as well. A corporation carrying on its
work in New York City, and subject to
local regulations, will soon find that unless
IL makes peace" contribution, its busf-
ness is practically at a standstiil have
In mind one instance, the full details of
which nnGaAacinn hur
eupy too much space to be set forth here,
in which corporation which had refused
to buy peace was compelled TO fignt in
the courts, all the way up to the Court of
Appeals, fof permit to which it was
justly entitled from the local authorities.
to carry forward operations under its
franch Sc. Ii got its rights in the end, but
only after more than year OF delay. dur
ing which time the development of its
business had been virtually stopped, en-.
failing upon 1t In business injury and legal
expense loss Of not less than 100000 A
peace" Offering Of $4,000 or $4,000
would have prevented unQuestionably all
this annoyance and expense.
1t would be q mistake 10 infer that when
the outlook concerning an election is
doubtful no contributions "for peace are
made. In such campaigns they are made
IN smaller sums to both sides. I'VE
always give to the funds of Tammany
Hall, the county Democracy and the Re-
publicans." said the head of a great cor
poration who was asked for contribution
a few years ago. He was making himself
solid" with all sides, in the way in which
Jay Gould declared that he was wont to DO
In the old Erie campaigns: ''In RepublI-
can counties l was Republican, in Demo-
cratic counties l was a Democrat, in doubt
ful counties too was doubtful, but in all
counties L WAS an Erie man."