Category Archives: Finance

Power Broker by Robert Caro – Summary & Analysis of Chapter 31

Chapter 31 – Monopoly

Robert Moses still required power over the Tunnel Authority if his desires were to continue to be fulfilled. Moses asked that construction of the tunnel should stop for the period of the war as the steel linings to the tunnel would be required for war production, even though the linings were in fact cast iron and unsuitable for war production. Moses continued to lobby the La Guardia to hand the construction over to the Triborough Authority siting inefficiency. Moses also tried to smear the Ole Singstad, the Tunnel Authority’s Chief Engineer and Moses’s chief adversary over the Battery Tunnel, by attacking his brother-in-law, but a Port Authority hearing overruled him. Moses wrote directly to the Mayor. Eventually, Moses’s pressure won through and in 1945 the Triborough Authority took control of the Tunnel Authority. The tunnels and their revenues were now his. He now had a monopoly over all river crossings in the city, all future crossings and all of the combined revenues. Through all this the press had kept silent.

Although Ole Singstad was to design the Battery Tunnel, he had to hand the designs over to the Triborough Authority. Singstad was never to be given credit, and he was never to receive another commission from the city where he lived. Although Moses had deliberately underestimated the revenues to be made from tunnels during his fight with Singstad, Triborough was in a large part to be financed by the tunnels in the following years.

Analysis & Key Takeaways
  • La Guardia stood up to Moses. Moses was responsible for the Triborough Bridge so standing up to him was tough;
  • Don’t tell me, show me what your working with. Moses noticed that models of bridges had a superior way of manipulating people rather then telling them about bridges.
The Power Broker is a Pulitzer Prize Winner
Chapter 1Chapter 2Chapter 3
Chapter 4Chapter 5Chapter 6
Chapter 7Chapter 8Chapter 9
Chapter 10Chapter 11Chapter 12
Chapter 13Chapter 14Chapter 15
Chapter 16Chapter 17Chapter 18
Chapter 19Chapter 20Chapter 21
Chapter 22Chapter 23Chapter 24
Chapter 25Chapter 26Chapter 27
Chapter 28Chapter 29Chapter 30
Chapter 31Chapter 32Chapter 33
Chapter 35Chapter 36Chapter 37
Chapter 38Chapter 39Chapter 40
Chapter 41Chapter 42Chapter 43
Chapter 44Chapter 45Chapter 46
Chapter 47Chapter 48Chapter 49
Chapter 50

Power Broker by Robert Caro – Summary & Analysis of Chapter 32

Chapter 32 – Quid Pro Quo

In early 1945 Mayor La Guardia was dying of cancer. Roosevelt was dead, and President Truman was not an ally. His popularity had waned. He announced in the spring that he was not going to run in the next election. The Tammany candidate, William O’Dwyer, despite Moses’s lifelong antagonism towards Tammany Hall, received Moses’s blessing and support. In a paid announcement, four days before the election, O’Dwyer said he was to create a new post to cover all major infrastructure developments in the city. He also announced that Moses had graceful agreed to serve. O’Dwyer won the election by a landslide.

Most people thought that Moses would not last long working with the corrupt Tammany Hall, but most people underestimated how much Moses had changed. He was no longer the Reformer and idealist, but a hard-nosed, power hungry politician. Mayor La Guardia in his last years regretted the amount of power Moses had been given. He thought that now he was gone, nobody would be able to stand up to Moses.

Analysis & Key Takeaways
  • Moses’ reputation was very clean because he was relatively non-partisan and the general public thought he was the park manager for the most part;
  • Robert Moses knew how to work with Tammany Hall, not against Tammany hall which was an Irish catholic political machine in New York from 1789 to 1966. It was a political movement with ability to raise funds for candidates, coordinate voting blocks and retain a major controlling influence on the Democrat Party in New York. The organizations role evolved over its 200 year history. There were various bosses who ran Tammany Hall and directed political campaigns in order to extract move influence for the core cause of supporting new immigrants particularly new Catholic Americans which were the first non-England immigrant groups to define the New York culture and ambiance. In the Moses era, Tammany Hall was still very powerful although Mayor La Guardia became an new Italian centric political movement dissipating the political machinery of Tammany Hall. There were consistent concerns about corruption because the organization outvoted other coalitions within the Democrat Party to let your supporter know when the inspections is coming with a signal…corrupt. After the Lindsey mayoral election in 1966, Tammany Hall was no longer a factor in voting blocks, unions or otherwise.
The Power Broker is a Pulitzer Prize Winner
Chapter 1Chapter 2Chapter 3
Chapter 4Chapter 5Chapter 6
Chapter 7Chapter 8Chapter 9
Chapter 10Chapter 11Chapter 12
Chapter 13Chapter 14Chapter 15
Chapter 16Chapter 17Chapter 18
Chapter 19Chapter 20Chapter 21
Chapter 22Chapter 23Chapter 24
Chapter 25Chapter 26Chapter 27
Chapter 28Chapter 29Chapter 30
Chapter 31Chapter 32Chapter 33
Chapter 35Chapter 36Chapter 37
Chapter 38Chapter 39Chapter 40
Chapter 41Chapter 42Chapter 43
Chapter 44Chapter 45Chapter 46
Chapter 47Chapter 48Chapter 49
Chapter 50

Power Broker by Robert Caro – Summary & Analysis of Chapter 33

Chapter 33 – Leading out the Regiment

After the war, the federal government became more involved in urban development. During the New Deal, most federal funds had been channelled through the city governments. Moses’s new role, as Construction Co-ordinator was seen by many as far too powerful, but O’Dwyer signed it into law. Hidden in the enabling act was a provision for the co-ordinator to negotiate with federal funding bodies, in effect becoming the main broker for the city over desperately needed funds. All roadbuilding in the city was henceforth determined by Moses.

In 1948, Moses was visited by an old Yale classmate, Robert A. Taft, who talked to him about a new concept called “urban renewal”. Moses was already pushing for large projects as head of O’Dwyer’s Slum Clearance Committee and so news that this would attract large amounts of federal funds meant that these plans could be made real.

Moses continued to foster close relationships with the city and state machinery, especially those areas with jurisdiction over his plans. Governors Dewey and Harriman, who ran New York in the post war years, provided little control over Moses, due to the many directorships Moses held and by his control of the city press and his continuing public adulation. Harriman found himself often influenced by expert opinion, many of whom were employed by Moses.

He had also, due to his reorganisation of the civil service years ago, a unique understanding of civil service machinery. Moses offered lucrative consultantships to civil servants to gain favour. Moreover, his control over the Department of Public Works meant he had a veto over all highway projects. When Nelson D. Rockefeller became Governor in 1958, he received a letter from Moses recommending one of his men to the DPW board, continuing his control. Moses would continue to have a stranglehold over the state and federal governments with regards to public works projects.

With the demise of La Guardia, the post war years saw the old Tammany Hall practices begin to take hold. Public office more and more became a means to private profit. Bribery, or the giving of “retainers”, “handling charges” and “fees” in exchange for favours was now back in fashion. Without these, no public work would be forthcoming.

Through his control of housing, roadbuilding and slum clearance, Moses was able to control the sum of three billion dollars in the fifteen post-war years. Most lucrative of all to Moses himself continued to be the Triborough Bridge Authority, which in the fifteen years after the war raised three quarters of a billion pounds independent of state authority.

Moses continued to have a smooth ride from the press. Many attempts to open and audit Triborough’s books was followed by a stern editorial in one of the city’s newspapers, asking why the reputation of the great man should be questioned. Moses carried on spending Triborough funds with complete discretion. The only criteria Moses had to consider when distributing the money at his disposal was how much influence an individual had, and how willing the individual was to use that influence on Moses’s behalf.

Analysis & Key Takeaways
  • Moses’ reputation was very clean, the reality was less so: Moses was anti-union, pro-banks. Moses would work with a politician then get some incriminating misdeed on the man that is quantifiable and then leverage the threat of private or public exposure…Moses would have a politician do a favour for Moses. And then there would be a dossier. Moses also had private detectives and turned the dark secrets of men’s past. If you ever went out into the cold because Moses wanted these guys to be killed for life from politics. Moses was powerful and so were the banks and legal work as well. They can give you loans. Make them rich beyond their dreams…
The Power Broker is a Pulitzer Prize Winner
Chapter 1Chapter 2Chapter 3
Chapter 4Chapter 5Chapter 6
Chapter 7Chapter 8Chapter 9
Chapter 10Chapter 11Chapter 12
Chapter 13Chapter 14Chapter 15
Chapter 16Chapter 17Chapter 18
Chapter 19Chapter 20Chapter 21
Chapter 22Chapter 23Chapter 24
Chapter 25Chapter 26Chapter 27
Chapter 28Chapter 29Chapter 30
Chapter 31Chapter 32Chapter 33
Chapter 35Chapter 36Chapter 37
Chapter 38Chapter 39Chapter 40
Chapter 41Chapter 42Chapter 43
Chapter 44Chapter 45Chapter 46
Chapter 47Chapter 48Chapter 49
Chapter 50

Power Broker by Robert Caro – Summary & Analysis of Chapter 35

Chapter 35 – RM

Age had not slaked the appetite of Moses for work and power. Every morning a vanilla envelope would be ready to be picked up, bursting with Moses’s orders. He was still working long hours, many of them in his Cadillac cum office. Nothing seemed to deflect him.  His impatience was legendary. He would pace his office like a caged tiger and his treatment of anybody who displeased him was brutal.

His physical strength was awesome. He would swim daily, often for hours. He wrote a full-length novel at the same time as running eight departments. Work seemed to make him stronger. This work made him a lot of money, but he spent this money in an attempt to make more by buying influence. His bank account was often nearly empty.

He did however, divert enough Triborough funds to entertain on an epic scale. He had a number of dining rooms, fifty feet long, at a number of his properties. He entertained around one hundred and fifty times a year, with guests numbering between ten and fifty diners. All of the guests were people Moses needed something from.

As for his employees, all were on tenterhooks in case Moses needed their services. His aides referred to him almost as if he were a god. They nodded when he wanted them to nod. They laughed when he wanted them to laugh. They acted as functionaries for his many banquets and entertainments for clients, including lavish shows at the Long Beach Stadium.

For opening ceremonies for large projects, the feast provided, both of food and entertainment, were of a scale rarely seen in a democracy. Attendees were often in the thousands, including Moses’s own court, often flown out of town in a specially chartered plane if it was required. Moses used his hospitality as a subtle reward for services rendered.

Robert Moses held shaping power in New York for forty-four years. He changed the course of rivers. He reshaped the hills surrounding the city and the beaches. He created the parks and parkways. He altered the region’s skylines with his civic buildings and apartment houses.

Robert Moses believed his works would make his name immortal. Barring catastrophe, the works of Robert Moses will be part of New York for centuries to come.

But as well as being an elemental force, he was a blind force. His arrogance, gorged with power, became absolute. As he was above rules, he was above the law. His ego became as titanic as his imagination. His detractors compared him to Hitler. His supporters compared him to Lincoln. His most frequent pose was one of lofty indifference, his arms crossed with hands gripping the opposite bicep, his head tilted back, like an emperor surveying all his works. He surrounded himself with sycophants, the only opinions sought being confirmations of his own opinion.

Three aspects helped to sustain his myopia. Robert Moses had never driven a car, even though his mobile office was in one. His work however was devoted to highways and transportation. These plans had no basis in a lived reality. His work ethic forced him to create projects, not always for the benefit of the city, but to fuel his desire for work and power. And Robert Moses was going deaf. This deafness was partly symbolic, an inability to listen to anybody else. However later that deafness became a physical disability. Then, he couldn’t listen even if he wanted to.

Analysis & Key Takeaways
  • Moses was a highly social animal. He would entertain guests 150 times per year;
  • He pushed for projects because he enjoyed it, the project would strengthen his power rather than the city needed it.
The Power Broker is a Pulitzer Prize Winner
Chapter 1Chapter 2Chapter 3
Chapter 4Chapter 5Chapter 6
Chapter 7Chapter 8Chapter 9
Chapter 10Chapter 11Chapter 12
Chapter 13Chapter 14Chapter 15
Chapter 16Chapter 17Chapter 18
Chapter 19Chapter 20Chapter 21
Chapter 22Chapter 23Chapter 24
Chapter 25Chapter 26Chapter 27
Chapter 28Chapter 29Chapter 30
Chapter 31Chapter 32Chapter 33
Chapter 35Chapter 36Chapter 37
Chapter 38Chapter 39Chapter 40
Chapter 41Chapter 42Chapter 43
Chapter 44Chapter 45Chapter 46
Chapter 47Chapter 48Chapter 49
Chapter 50

Power Broker by Robert Caro – Summary & Analysis of Chapter 36

Chapter 36 – The Meat Axe

The history of road building and urban development through the ages has been one of immense constructions through relatively unpopulated areas, such as the Silk Road bringing goods from the Far East to Europe. But the developments carried out by Moses could only be compared to the reconstruction of Paris carried out by Baron Haussman, in that they were constructed in a heavily populated urban environment. This involved not only a substantial engineering effort, but the management of multiple disruptions in a busy city. In order to construct the new highways which criss-crossed the city, Moses’s engineers had to hack their way through whole communities. In terms of size, Moses’s development was comparable to anything in history. In terms of complexity, it would dwarf them all.

As impressive as the engineering feats were, Moses’s ability to raise the funds for these developments were equally impressive. To Moses, wars were mere inconveniences. Even during the height of the Second World War, Moses was still able to obtain the necessary funds and materials.

Moses manipulated the city like a player moving buildings around on a Monopoly board. He was never happier than when he was developing plans that would totally transform communities as if they were blocks on a child’s game. This also involved complex political manoeuvring. It took the mind of a dictator to carry out these plans, when the persuasion of a specific mind is sufficient. In a democracy, the scale of the public works carried out by Moses was unprecedented. This was carried out, in effect, by ignoring democracy. Moses just laughed at the protests against the highways he built. He said, “You can indulge your every whim on a clean slate…but when you operate in an overbuilt metropolis, you have to hack your way with a meat axe.”

Analysis & Key Takeaways
  • He loves the public but hated the people, especially the poor anyone who intervened in his vision was a threat, in a democracy, there would always be a significant group willing to block progress in exchange for rents;
  • A Man For All Seasons; “I would rip down all the laws to get at the devil, but the problem is what if the devil were to turn on you what tools would be left to defend yourself with?”
The Power Broker is a Pulitzer Prize Winner
Chapter 1Chapter 2Chapter 3
Chapter 4Chapter 5Chapter 6
Chapter 7Chapter 8Chapter 9
Chapter 10Chapter 11Chapter 12
Chapter 13Chapter 14Chapter 15
Chapter 16Chapter 17Chapter 18
Chapter 19Chapter 20Chapter 21
Chapter 22Chapter 23Chapter 24
Chapter 25Chapter 26Chapter 27
Chapter 28Chapter 29Chapter 30
Chapter 31Chapter 32Chapter 33
Chapter 35Chapter 36Chapter 37
Chapter 38Chapter 39Chapter 40
Chapter 41Chapter 42Chapter 43
Chapter 44Chapter 45Chapter 46
Chapter 47Chapter 48Chapter 49
Chapter 50