Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1907-11-02
CIVIC FEDERATION'S PURCHASE.

In the midst of the scandal over
the street railway manipulation of
New York City. the National Civic
Federation comes into the limelight
IN most unlOvuly COIUrs. Posing as
an authority ON good government.
the testimony before the investigut-
ing authorities shows that It has been
little more than Il tool to do the bid
ding Of rrrnzied and corrupt finance.
Bu let II readers will doubtless
remember that not many months ago
the papers devoted much comment
investigation made by the National
civic Federation of municipal owner
ship of street railways. The major
ity of the committee, after having
made a thorough study" at great eX-
lCnse, decided against municipal
ownership. The conclusion had not
little weight. 1t was supposed to
he an unprejudiced investigation.
The real facts are Illuminating.
They expose the hypocrisy in high
places. They point to purchased
opinions. and guaranteed conclusions
for the benefit Of corrupt finance.
Recent developments, brought out
IN the investigation of the affairs of
the Metropolitan Traction Company
Ct New York. show that all the eX-
pcnses Of the committee that made
this investigation were paid out of
the pocket of August Belmont, now
under fire in New York City, with a
number of other distinguished finan-
Ciers, for spectacular finanCiering in
the management of the Metropolitan
Street Railway Company.
The total expense of the investiga-
ton was something like $4,000. Ev-
cry penny of 100000. of this sum
came from the treasury of the Metro
Tulitan Street Railway and every
check, $1,000. each on the instalment
plan. was authorized by Mr.. Belmont
The remainder of the 100000. came
from other sources than the cash-boX
OF the traction company. Not di-
rector Of the company, nor Il stock
holder apparently. except Mr.. Bel
mont, had the slightest knowledge of
the expenditure, according to testi-
mony just brought out by the Public
Utilities Commission that is probing
into the financial history of the Met
rOpolitan Company. The lack of au-
thorization from the COmpany's OFF,
Clals for this expenditure is the least
significant feature of this startling
transaction in high finance.
The idea that all the cash neces-
sary to pay for such an inquiry
should come from Il public service
corporation will impress people as be-
ing amazing. 1t was just such COM
pany as was being Investigated that
footed the bills for the investigation.
August Belmont was financially in
lerested in this very company and
!ery likely in many similar compa-
Tiittee was on a tour to search for
facts that would Justify or not justify
the claim that such corporations
should be owned by the municipali-
ties.
With belmont paying all the bills
OF the committee, with the cash COM
Sag out Of one of the corporations
that was under investigation, indi-
rectly, the committee came back to
the United States from study OF
municipal ownership of public utili-
ties in Europe and brought its ver-
diet. A majority of the committee
found that municipal ownership is
not a feasible plan. Belmont paid
all the bills for the investigation, and
all the cash came out of the Metro
pOlitan Traction Company.
Such IN investigation into this
great question was supposed to be
conducted entirely free from the in
fuGnCes OF the capital from all cor
poration influence or prejudices, an
independent, fearless, impartial in
quiry.
After this record, the brand CIV
ic' Federation" arOuses the immedi-
ptp SIgnirinn nc Tn who nut nm tho