Evening star., 1907-10-27
SCANDALS UNCOVERED
investigation of Street Rail-
ways in New York.
THE "YELL0W DOG" FUND
Hundreds of Thousands Spent to In
fuence Public Opinion.
DISCLOSURES UNDER OATH
Revelations Made to the Public
DISCLOSURES UNDER OATH
Revelations Made to the Public
Service Commission-Cons
ton of Surface Lines.
By WILLIAM f. CURTIS.

! Special Correspondence Of The Star and the Chi
cago Record Herald.
! NEW YORK, October 25. 1907.
| The Investigations OF the public service
commission into the affairs of the railway
companies of New York have uncovered
many scandals: they have destroyed the
credit of the surface railroads have
| knocked the stock from above par to al
most nothing and have forced the COM
pany that controls them into the hands of
receivers. one of whom. Douglas Robin
son, is the brother-in-law of our Pres
/ ident. They have confirmed a fact already
known to everybody who takes an interest
in such things-that the syndicates which
have consolidated the various lines of
transportation on Manhattan Island have
made enormous profits by the use of their
rare talents and extraordinary nerve. 1t
has been disclosed that more than three
quarters Of million dollars has been dis |
bursed during the last ten or twelve years
TO Influence public opinion by various |
methods. and that several eminent cap
taiES of industry" have received large |
checks which they find difficult to ex-
plain.
1t also appears that the New York street
railway companies paid the expense of
the investigation of municipal ownership
in Europe made by the Civic Federation d
year ago. 1t was supposed by, the men
who were engaged in the work and by
others who took an interest in it that the
money was raised by subscription among
the rich members of the federation. Mr.
August Belmont, president of the railway
lines. was treasurer of the fund which
made 1t very easy for him to handle the
matter quietly.
First Information Under Oath.
None of these disclosures except the last
| has been new to people who keep track of
| such things, but this is the first time the
| information has been given under oath in
an official form. The scandals have been
exposed in the newspapers and magazines
! again and again; the opera tions of the
! street railway syndicate of New York
! city have been perpetual theme of writ
/ efs. politicians, tirancierS, reformers no
/ ntical economists and others but now the
! FACTS nave been developed in q tangible
and complete manner by the energetic in
| quisitiveness of Mr.. William M WINS the
| counsel OF the commission who has been
aChlng FOR suoh an opportunity for several
| years. Some of the newspapers are de-
nanHng that the information be laid be-
| fore the grand jury and that special coun-
sci be appointed by the governor to take
| charge of the prosecution because Mr. Je-
rome. the district attorney has Intimate
| personal relations with several of the
heavy financiers involved In the disclos-
ures 1t IS probable, however that the
| commission will proceed in its regular
| way as required by law and submit the
evidence 1t has obtained with its annual
report TO the governor. who can then take
such action as he considers necessary
There is a good deal of politics in the
investigation. although both republicans
and democrats have suffered from the
enclosures. Lemuel Eli Quigg. ex-repre-
sentative In Congress, ex-chairman of the
republican county committee. who was
in6
vermtform appendix is the goat in con-
nectlon with ''the education Of public
OPINION and had charge of the dsburse-
ments Of what newspaper reporters have
called the yellow dog fund" According
to the disclosures this fund amounted TO
three-Quarters of a million dollars, and
his own admissions have shown that
more than S2OO.ODU was disbursed by Mr.
Quigg personally.
Another republican involved in the scan
dal IS Mr.. Thomas DoIan Of Philadelphia
but that is no surprise, for he has always
been associated with p. A. b Widener.
W. L. Elkins and the other traction mag
mates of that city who have interests in
street car lines al! over the United States
In connection with the late William C.
Whitney and Thomas f Ryan they re-
organized and consolidated the surface
roads of New York city. making enor-
nous sums of money by buying them at
low prices and selling them at high prices
to new corporations organized for that
purpose That is the way Mr. Whitney
obtained his enormous wealth. and he
made It in few years. When he was
Secretary Of the Navy in Washington he
was a comparatively poor man. Upon his
return to New York after the close of
| the Cleveland administration Mr.. Whit
ney Joined the PHILADELPHIA syndicate and
managed their interests In that city.