Matteo Sandrin
about work objects photo

33. Leading Out the Regiment

Summary of "The Power Broker" by Robert Caro

index

This chapter offers a sweeping, critical look at how Robert Moses rose to dominate New York City’s public works, urban development, and political landscape after World War II. Once a reformer with idealistic ambitions, Moses transformed himself into the city’s most powerful figure, orchestrating a vast network of influence that shaped New York’s infrastructure, politics, and economy for decades. By skillfully navigating legislation, forging strategic alliances, and manipulating finances, Moses consolidated power in ways that often sidelined democratic processes and public accountability.

The postwar era brought a surge in federal funding for housing and highways, and Moses quickly recognized the opportunity. Drawing on his legislative expertise, he created new agencies and positions that concentrated authority in his hands. One of his most significant moves was establishing the City Construction Coordinator, a vaguely defined role that Moses molded to suit his needs. Through a carefully worded amendment, he gained the power to represent New York City in dealings with state and federal agencies, making himself the essential intermediary for all major projects. This allowed him to present his own opinions as those of the federal government, pressuring city officials to accept his plans or risk losing crucial funding. His close ties with federal road builders, whose priorities matched his own, further solidified his control.

Moses’ influence extended well beyond city government. When new mayors or governors tried to assert authority over housing or public works, Moses moved quickly to install loyalists in key positions, ensuring agencies like the City Housing Authority and the Mayor’s Slum Clearance Committee remained under his sway. Even powerful state leaders such as Governors Dewey and Harriman struggled to challenge him. Harriman’s efforts to protect local residents from disruptive projects were ultimately defeated by Moses’ command of publicity, professional opinion, and administrative machinery. For a decade, Moses, without any formal ties, effectively dictated the city’s housing policy and urban renewal efforts, consistently outmaneuvering political opponents and preempting federal initiatives.

Central to Moses’ enduring power was his ability to reshape government structures to his advantage. He placed trusted “Moses Men” in influential administrative roles, ensuring his reach extended into every corner of decision-making. Secretaries and aides kept tabs on officials who opposed his projects, and he reorganized the State Department of Public Works to centralize control over the New York City-Long Island region. Moses secured legal veto powers for his commissions, rewarding loyalty with promotions and lucrative contracts, while punishing dissenters with career stagnation or undesirable transfers. Even as new governors took office, Moses retained decisive control over highway planning, construction, and the allocation of federal and state funds. He also exploited internal city politics, especially after the decline of the city’s Democratic machine during the La Guardia administration.

The chapter then shifts to the resurgence of political corruption in New York City after the reformist La Guardia era. The once-powerful Manhattan Democratic machine, weakened by demographic changes and the loss of patronage, lost ground to boroughs like the Bronx and Brooklyn. The sale of Tammany Hall to a labor union symbolized this decline. Despite new leadership, the corrupt practices of machine politics returned, with public office once again serving as a vehicle for private gain. Graft became more sophisticated, moving from overt cash exchanges to hidden payments disguised as legal fees and retainers. Politicians received secret payments for public works contracts, making corruption harder to detect but no less pervasive.

Moses, who had once refused to engage in political deal-making, adapted to this environment by paying whatever was necessary to get his projects approved. His control over agencies like the City Housing Authority, State Department of Public Works, and especially the Triborough Bridge and Tunnel Authority gave him access to billions in largely unsupervised funds. The secrecy surrounding Triborough’s finances allowed politicians to accept payments without fear of exposure, as audits were rare and the press, swayed by Moses’ reputation for integrity, seldom questioned his methods. This financial power, combined with the public’s trust in public authorities, created a system where deals and payoffs became routine and scrutiny was minimal.

One telling example of how Moses’ discretionary power fostered corruption is found in the allocation of insurance contracts. Moses could award millions in insurance business without oversight, attracting politicians eager for financial gain. These contracts shifted with changes in political leadership and alliances, serving as a form of patronage that reinforced Moses’ network of supporters. He distributed insurance commissions and legal fees to key political figures across party lines, ensuring bipartisan backing. Legislative leaders openly demanded more business in exchange for political support, and even fellow Triborough Authority commissioners benefited through family interests. Legal fees were similarly used to maintain the loyalty of powerful lawyers with political connections, such as Samuel I. Rosenman and Monroe Goldwater. Moses never directly asked for favors but expected recipients to support his initiatives, as illustrated by Rosenman’s intervention with Governor Harriman. This careful allocation of financial rewards created a dependable network of political allies, reinforcing Moses’ power over New York’s public works and political landscape.

While Moses was not personally corrupt in the sense of taking bribes, he wielded financial influence to consolidate authority. He built a network of loyal supporters—people “on his team”—who were often on his payroll and who championed his proposals in government. The chapter introduces Tom Shanahan, a banker whose rise was fueled by the intersection of profit and politics. Shanahan used his banking connections to reward contractors with city contracts in exchange for political contributions and kickbacks, becoming a central figure in New York’s political machine. Moses and Shanahan’s alliance exemplified how money and influence shaped city governance, with Moses ensuring that Shanahan’s considerable influence served his own agenda.

Moses directed lucrative financial opportunities to Shanahan and his bank, Federation Bank and Trust Company, funneling large sums in deposits and securities that greatly boosted its assets and Shanahan’s wealth. In return, Shanahan wielded influence within the Housing Authority and Slum Clearance Committee, steering contracts and business to favored parties and ensuring that projects aligned with Moses’ interests. Political maneuvering was evident as Shanahan resisted oversight and demanded further power, while Moses protected and empowered him, even against mayoral wishes. Moses’ broader strategy involved bypassing elected officials to deal directly with political power brokers, distributing favors and resources to secure their loyalty. This system of “honest graft” allowed Moses to maintain control over major urban projects and political outcomes for decades.

Moses ruled through a mix of patronage, fear, and strategic alliances. He kept detailed files on politicians, documenting favors and potential scandals, which he used to ensure compliance. Loyalty brought lucrative jobs and lifelong support, while dissent could mean lost opportunities or even, allegedly, interference with pensions. His influence extended to institutions, especially banks, whose financial interests he aligned with his public works projects, ensuring their support through mechanisms like revenue bonds. This blend of personal leverage and institutional alliances made Moses a dominant, nearly unchallengeable force.

Banks, flush with surplus cash after World War II, were eager to invest in safe, high-yielding securities. Public authority bonds, especially those issued by the Triborough Authority, became highly desirable. Moses made these bonds even more attractive by maintaining large cash reserves and providing extra guarantees, ensuring bondholders’ security. His reputation for protecting investors’ interests led to rapid sellouts and substantial underwriting profits for banks. Moses deliberately set interest rates higher than necessary, resulting in windfall gains for bankers and making Triborough bonds the hottest investment in postwar New York.

He arranged lucrative service fees for banks involved in bond transactions and deposited large sums without requiring interest, further benefiting them. By favoring private placements over open bidding, Moses ensured that banks with political influence supported his projects. These banks, in turn, used their clout to push political leaders to approve Moses’ proposals. Despite his general disdain for labor unions, Moses cultivated relationships with powerful union leaders, aligning their interests with his own to secure labor support for his projects. This alliance of financial and labor power was crucial to Moses’ ability to realize his ambitious plans.

The chapter also discusses the world of postwar construction, where union leaders and contractors depended on large-scale public projects for steady employment and profits. Moses was admired by both groups for his ability to secure and execute massive projects, ensuring continuous work and overtime. Contractors and unions benefited from Moses’ ambitious vision and his willingness to bulldoze opposition, seeing him as a champion of progress. The close, sometimes ethically questionable, relationships between contractors and politicians further illustrate the mutual interests that fueled New York’s postwar building boom.

Moses’ control over access to lucrative public works projects made contractors, architects, and other professionals dependent on him for their livelihoods. He used this leverage to secure political contributions and loyalty, offering patronage jobs and financial favors to the political machine. He also forged alliances with influential groups like the Catholic Archdiocese and major business leaders, exchanging favors and support to advance his projects. These relationships enabled Moses to mobilize political and economic power, ensuring his plans were realized and reinforcing his dominance over the city’s development.

The chapter contrasts Moses’ top-down power with the traditional, pyramid-shaped political machine, where borough presidents and district leaders, though often corrupt, were ultimately responsive to public opinion because their positions depended on local support. Despite the flaws of the old system, it allowed the public to influence public works, highlighting the tension between centralized authority and grassroots democracy. Reforms that centralized municipal services and public works under the mayor and citywide agencies stripped borough presidents of control over jobs, contracts, and local patronage, undermining their political influence. The rise of independent public authorities, especially under Moses, and the city’s financial constraints rendered their authority largely symbolic.

Moses filled the resulting power vacuum by offering borough presidents ready-made public works projects that promised jobs, contracts, and political rewards. However, accepting Moses’ proposals meant forfeiting input on project details or alternative solutions. When challenged, Moses wielded his control over funding to punish dissent, as seen when Bronx Borough President Lyons lost millions in highway funds for questioning Moses’ plans. Ultimately, borough presidents had little choice but to comply, lacking both the resources and authority to oppose him. Despite the appearance of democratic oversight, real power rested with Moses and his public authorities, not with the city’s elected officials or governing bodies.

The Board of Estimate, made up of elected officials, was supposed to have significant control over land use and public works. In practice, though, Moses’ grip on funding and his strategic use of public authorities rendered these powers ineffective. He routinely bypassed or ignored the Board, presenting completed plans for approval without real input or modification, as seen with major projects like the Verrazano-Narrows Bridge. Unlike elected officials, Moses was not accountable to the public. He prioritized efficiency, engineering, and the interests of influential economic groups over democratic responsiveness. The chapter concludes that Moses’ dominance undermined the city’s democratic processes, shaping New York’s development in ways that would have lasting, even permanent, effects.

In the end, the chapter paints a sobering picture of Moses’ thirty-four-year reign over New York’s public works. Economic interests—banks, labor unions, insurance companies, and big businesses—rather than the general public or elected officials, dictated the city’s development. Moses unified and empowered these forces, making them the decisive factor in shaping New York, while sidelining democratic input. The result is a powerful account of how one man’s vision and mastery of political and financial systems could so thoroughly reshape a great city, for better or worse.

index