"Don't all akc yorkies carry the same genes? I mean somewhere down the line they all got started the same way. Did they kill the undesirable looking dogs when they where making the breed? If so I think that is horrable. I have heard of that. Who set the standard look for the yorkie? Didn't the first yorkies have curly hair?"
Well, this is a multiple question post and I've got 2 minutes, so here goes!

Yes, all AKC Yorkies came inititally from a selected few dogs. Their pheno type varied greatly though as did their size. However, as generations and generations of progeny were produced the Yorkie became more and more consistent in Pheno type. Coat texture varied greatly, but the colors produced did not, not when carefully bred anyway. Otherwise you'd see creams come out;black

arti's and so on. Size really didn't vary greatly, not as much as it does today anyway. Culling of Yorkies when the breed first originated (and some even today) did exist, yes. They based their selection on coat color and size mostly before the pup turned a week of age.
...this really deserves so much more time than I have right now, but there are answers!

I'll check back later if I have a chance today. Have a good one!