New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-09-25
PRICE THREE CENTS.
MR. GARLAND A SPECULATOR
THE ATTORNEY-GENERALs TELEPHONE
STOCK.
USING TIE UNITED STATES COURTS TO ADVANCE
THE VALUE OF HIS sHARvs
TBY TELEGRAPH TO THE TRIBUNE

WASHINGTON, Sept. 24.-rhe Pan Electric Telo'
phone Company is one Of the strongest and moss
powerful opponents of the American Bell Telephone
Company. Its power and strength lSe not alone ID
the capital which it can command, but IN the
commanding influence of its officers and promoters
One of the chief OF these is A. H. Garland Attorney
General of tie United States. He subscribed for
not less than 100000 OF Its $5.000.00O capital
stock He has also been the companys attorney
and legal adviser since it's organization. This
telephone company has been engaged in protracted
and unsuccessful legal contests with the Bell
company, so have a number OF other companies
which have been more less lea -ued together
against this, their common adversary. An
extraordinary course has recently been adopted,
under the authority of the Attorncy-General
himself in his official capacity, to break down the
Bell company This is the commencement of suit
by the United States Government to set aside the
Bell patents
The Bell company has gone through contest after
contest against the nrngers of its patents aud has
been successful in every case. IL is now suing the
Pan Electric Telephone Company in some Of the
Southern courts. just before the time arrives
when the Injunction is to be moved for against tie
Pan Electric Company and the other companies
that are its censees the Government suit Is begun,
In which all the old claims against the Bell patent
that have been overruled in the ltgated cases are
again set up the part Of the United States and
United States District Attorney actually appears in
court when the irjunetlcn motion against the Pan
company comes on for n hearing. and urges the
court that il ought not tD issue the injunction
while the Government suit is pending. Tho part
that tho Attorney. General has played in this
extraordinary proceeding is not concealed In court
Although Diention is made of the fact that he IL
a very heavy stakeholder in the chief Company
sought to be enoned it is openly stated that he has
authorized the Government suit. and that factis
itself used as additional argument TO persus do
the court not to proceed against the defends Mt
companies.
The comments made upon the Attorney. Generals
course OF action as the facts arc gradually coming
to light would interest not only him but all tho
supporters of the Administration responsible
for his official conduct. Tho facts may lie
briefly told. The other chief promoters and officers
of the Pan Electric Telephone Company, with
Attorney ey-Gereral Garland, were General Joseph +.
Johnston, president, row United states Commis-
sioner of Railroads. lsham G.. Harris of Tcnnessee,
vice-presidont of the company and United states
Senator; Casey Young. secretary and treasurer.
formerly member of Congress for the Memphis
District; J. d. c. Atkins, director. now United
States Commissioner of Indian Affairs X. +.
Looney. q director. and member of tho Demo-
cratic National Committee for Tennessee; and j.
Harris Rogers q director. All of the above hlvo
not held large amount of stock rs the
attorney General. but the amount held by each OF
the persons named was large.
The new company thus provided not only
with an abundant amount of capital. bat also with
plenty of Democratic Influence from the Attorney
General down. 1t was incorporated ia the state OF
Tennessee. J. Harris Rogers was formerly
electrician of the House of Representatives when it
n r
upon patents obtained by hm at that time that tho
Pan Telephone Company was organized Soon
after its incorporation the company began 70 sell
territory in which the exclusive right to its
telephones given, and the licensees or purchas-
ing companies guaranteed against loss by
legal interference. Ono organized in ST. Louis.
one in Memphis. one in New-Orleans one in Dallas,
Tex, all of which paid considerable sums in cash
besides giving the parent company a percentage OK
stock aud a royalty for al; telephones used.
Two companies were also formed in Baltimore
and Washington with Bradley T. johnson at their
head to control the States of Maryland and Virginia
and tine District of Columbia company was
formed IN Pennsylvania, in the establishment Of
which Congressman Klotz was prominent Work
was begun near Philadelphia. but the company was
sued jointly with the Pan Electric Telephone
Company and the result rs an injunction.
The National Improved Telephone Company was
formed in New-Orleans upon sone of Rogerss
patents. The proceeding Of the Bell company
against that company for an injunction
brought to q hearing before Judge McKcnuon at
Pittsburg. Ex-COngressman Casey Young. who is
an able lawyer, and Colonel George CAN'T Of
Memphis, after meeting of the directors OF tho
Pan Telephone Company, went by their authority
to Pittsburg to watch the progress of that aud
to aid in the fight against the Bell company. The
ground taken by the opponents OF the Bell company
in all these contests that the principle patented
by Bell was known and used in this country and
Germany long before his patent issued. II this
could be established the Bell patent woald fall but
their minor patents, which claimed as
subsequent improvements, might still stand. Tho
Iesult IN This case was the in all the other
many injunction suits brought by the Bell company.
The defendant broaght in q book of aiidavits to
support its side of the case Judge McKennon
announced to the defendant the usual rule in such
cases, that he would hear any new defence which
had not been passed upon in the final decisions in
othcr courts that rs he had himself heard the old
defenees, he was satisfied that they were
Intellectual. The judge found that the defendant
had no new defences and 50 epjoined It.
But the promoters of the Pan Electric Telephone
Company were not dismayed. All of their resources
had not yet been exhausted Several Of thoir
officers were highly influential in Democratic
politics and with the Administration One Of their
principal stockholders was the Attorney General.
The powers of the Government itself might be
employed against tho Bell company. A sbrewd
course was adopted.
Henry McCorry, of Casey Young's own city, was
appointed United States District-Attorney for the
Western District of Tennessee Mr.. Young, Bradley
T. johnson and other members of both the Pan
Electric Telephone Company and the National
Improved Telephone Company bad long oonsata-
tons, tie last one, 1t is understood, having bccn
held recently in this city. On September q. ex-
Congressman Young left Washington for Memphis,
after three days conference and on
september 10 United State Disrict-Att,rnoy Nc