New-York tribune., 1886-01-31
THE TELEPHONE SCANDAL.
RAsIrIcArIoNs OF THE PAN-ELECTRIC.
4 COMPANY or DEMOCRATIC POLITICIANS AND CoN-
tEDERATE BBIGADIERS.
~, r., TIE TRIBUNE.

IEDERATE BBIGhDlEHS'
icy TELEGRAPH 70 TIE TRIBUNE
! WASHINGTON, Jan. 30.-It is understood tnaV
tbo p,ptIectrc eople have been informed that the De
partment of Justice will issue order about wednesday
to eein the suit recommended by Secretary Lamar 10
,e aside the Bell telephone patent In what Disttlc'
Court the proceedings will he Instituted Is St
Of conjecture Tho opponents OF tho Bell Comp'"' ''o
! extremely anxous that tho suit shall DO pro"6n' ~
! Memphis for reasons which may he easily uh''el't
Casey Young the secretary and treasurer OF Tue 'n
Electric ana Colonel Cant, WHO are expected " H''p
the United states prosecute the are residents ol
that town, also United states Senator i'n",n
| G. Harris, vicc-pre.ldent OF tho fah'Eic',iio
| Company, and r. L. Looney' nlolno''
| OF the Democratic National Coh'h' 'o'
who is another OF tie original stockho'uor' u"u 4"
| director Of tho same company. The eX'C0hle"cr'''
MajorG encral Marcus j. Wright also OF MemptiS' WHO
has been employed by he Government for several 1en''
to collect Confederate official records relating 10 'no
! War OF tho Rebellion, is another st0ckhoidor HO"
many other prominent eX-Confcdcrates IN ana OUT VI
/ Memphis are stockholders is not known.
After the expiration the last Congress United states
Senator Harris vice.pr,sIcnt aud director Of the Pan
! Electric Company. persuaded his brother DIRECTOR
Attorney Gcaera Garland to remove the uhitru 0ta''S
Attorney the western District of IenHesee
whose term had not expired and to appoint H. W. '
Corey that Office. There were no charges az "HS
tho officer rcmovoi On tho contrary he was known I'd
he one OF the most efficient and faithful officers in the
| service IIe lackeI however. some OF the peculiar
/ qualifications desired In Dlstrict-Attofhcy ]"
| that particular place Mt that particular H"'''
\ man was waited who could grasp the telephone s"o
Iect with firm and prompt comprehension. and McCorry
was such "A man. With the help Of secretary and Treas
urer isoy Young who after six weeks Of earnest stuoy
coupaiueI that he id know the difference between
trausmitcr aud a receiver the new DIstrc-AtlOIhe9
in three days discovered that Bells invention was not
original and recommended that suit he brought Dy te
United states annul the patent The change In the
office OF District Attorney made after the failure OF
the Van Bouthuysen bill in Congress- which oI author
led the Attorney General to begin a suit
Othcr Tennessee mon deeply interested IN the
pending litigation ono Of them Is sc&-Con2rr~san Al
kEs Commissioner Of Indian Affairs, who J, an original
,iockno.3cr aud director Of Mr. Garlan"s company
and another IS General" j. i. Upshaw, VINO
was appointed chief clerk OF the Indian Bu-
rcau by Commissioner Atkins some months
aco Il seems that Mr. Up,haw had invested largely 10
Tie STOCK OF one of the local companies organized under
license granted by Mr.. Garlanis company and h"l
ao tut money into the stock OF the parent com
r,uy These investments were uurcmuncratye and Mr..
Ur.uaw became stranded financially What more
proper under circumstances. than that the eeuer-
Gus a. well as Just, Con mlssi"ncr Atkins should APP
poI.t Mr. Ups! aw to lucrative Office I'm the Indian
Bureau 100 order that he might repair his losses In tho
telephone business at least temporarily tide over his
Icruuilry mstortuuooi
c,.cd WI, the one lu Alabama This company paid the
Tau $500 iu cash and - per cent oil stock
OF -jooO.oUO for It's license. The local com
rarics organized in Missouri, Texas and Iennes-
secs each paid $4,000 In cash aud - per cent
az H. r,pt,l stock lu all tuc,' states the promoter
and a., t' o. holders 81 the local compAn were prom
mont r tpnrdrrtt"- IpI"ct so noticeable was the eA-
element lu the Pan Electric lctphnhc '"
i, several local ,ompluio- from Maryland and Missouri
10 Ir1a- that Washington ban kcr. after scanning ih'
i. of directors. remarked: NUu to need only ono
i. bIy name IN tn~ Iirrct6ry" lie forgot Jacob
Tuon.f-pn but h. too. WIS the owner of th"nsauI
,,' r IN q" 1o,,, Lone, 81 NcmiI - coiupuuy ~,
organized u Illinois wnIch paid fl'oOp c''n ana one
/ fourth of l, capital stock 10 the parent com,
rlny. In hrntncty the protector, oI tAs iH,,I
GoNr1ny NJ r ,,al,Ji @lg'I f,o, anG IT, g. Pcy'on
of Nreiuin. appointed 10 an Office m the lalAn
@ % fn Scw.Yora contract wa, made
with N-,-r Meyer and jacobs. from VIII great lhhS'
wrrr ,rprctcd. rhey took some steps toward the or
c,nil,f.,u OF a company hut their license revoked
Drcuusr tncy led 10 iuIt come OF the CONDITIONS oi
Tho Pan.Elcc,ric control Of Maryland, Virginia West
'rsinin and tho p'trct uf Columbia was turned over
L. company composed Ot I"hduG
which paid no cash hut gave on"olrih ot lts capital
and agreed to pay royalty "E All u7r
by Among ihr officers. directors 'hn SO hni ,is ="
tins comptuy et-tOuItdrritc BU-a lrr- tfHcr'l
states SENATOR ornnn It has been asserted that Mr.
GOfmuu j. also EfockhOder ~ the parent COMPANY
IA the tuit l'sLi cpnptny ID. Rb;ers ana h''
son tho inventor. specially Interested AMI thI'
company to way nothing 10 the llrrht coWplAH cN
cent n royalty ON the instruments T. us-d Inc company
.,r,u,lrd A good deal Of money An attempt WAS made
- organize company IN Louisiana. but II wh- folri 10y
tie National Improvement Company, which owned some
Of the early patents ~ Rogers ami which was not iheu
a. IL row IT, tu u3"'iuuN with the Pau-ltctrc
Conpany some steps taken looking to the organ
tftou OF u compAry Georgia, but tn matter seems
Ia have fallen through In all the states mentioned the
ue seems 10 have hrou observed TO keep the business
mn lcr the control of leading Democratic politicians
/ ON Monday thrrc viii be u large gathering or tho
members of the Pau-lrctrc combnntionn Washington
II il undcrstooi that cN Congressman Hmto' OF VIZ
,..nla and Jcn" Chandler Of this city nave hceh
,urrG 10 assist -ocl orGcncra Goodc aud the oiher
.urcll counsel rmpioycd to prosecute tho Hel Com
nv Al the conference Of Pan Electric directors ~ the
Ibbltt House last night Dr. Rogers and his son we're
mo- present, and thr meeting entirely hhruunsu'.
n f. uul,r.tnod that the Pan Electric and National
Improvement companies have agreed 10 pool Their
issue" IN the pending LITIGATION and, perhaps, nnhl-
rnv Indications wanting that the Pan Electric
dircctorauteud unload their sOr quietly before tho
.ifl,atnu 4. ended EX-EIamiuer wilbur, who passed
Ies application for his patent niuo years ago. SAID 10
friend day or two that ho had made contract 10
20 10 England In April at salary Of 5000 month ana
expenses, lie al.o nmHtcd that he expected 10 repre-
sent the interests abroad OF the PaiEeoric Company