New-York tribune., 1886-02-14
THE TELEPHONE SCANDAL.
GEORGE T. CURrISs WEAK DEFENCE.
TIE TRUE INwARDNEss OF THE Pan ELECTRIC-A
CHARTEELFSS COMPANY.
tpv rrIEaRIP. 70 THE TRIBUNE-1

TIE TRUE INwARDNFss OF THE Pan ELECTRIC-A
CHARTEELrSS COMPANY.
tRY TELEGRAPH THE TRIBUNG.l
WASHINGTON, Feb. 13.-Thc House Com
nttee ON Expenditures in the Department OF Justice
today submitted its report under the Hanback, reso-
ip,ion the main features OF which have already
hecn rcpored in THE TRIBUNE. In the Interior Depart
eot the expense incurred account OF the Telephone
Investigation has been $50. No money has been PAID
out by Department Of Justice. but the committee Is
officially informed that contract bas been made with
Uupton Il Chandler who TO receive $1,000 for their
service A like contract with Lawyer Whitman calls
for 5000 The committee is not inforncd as to what
amounts ex-senator Thurman and Mr. LOwrCy OF New
York. TO receive. In the meeting OF the committee
this morning there some discussion OF ahOther
resolution prepared by Mr.. Hanback,, which proVldes
for the thorough investigation of the Telephone scandal
The publication to-day of George T. Curtlss Sreca pea
in defence of Garland is regarded by many as an at
tempt by him and his friends TO prevent OohSresSIo
Investigation, but it will not succeed Inc oeIeHce Is
regarded as extremely weak. Many OF the statements IL
contains derived from Mt GaFh1 ana some VI HIS
associates In the speculation.
Mr. Curtis says that in February. 1883. Mr Garland
and other persons founded "The Pan Electric ana Iec-
phone Company which was formed to acquire ana op-
crate the Rogers patent for telephone an enterprise
which 1t was supposed could be developed without
n large outlay of the incOrporators being wealthy
men, "Mr Garland became the owner or 5000 shares,
mar value 500 "A share Four thousand five hundred
shares issued to him and he left 800 in the treas
ury OF the company for its use Mr. Curtis laOOrs 10
support Mr.. Garlands denial that the stock was gt
T. him Mr. Curtis also refers TO the incorporatoIs
Of the Pan-Electric Company lie has been msled
The Electric Company has obtained an act OF
incorporation, although it to have assumed TO
grant licenses local telephone companies IN seven or
eight states Tue facts hese On March 49, 1885,
Messgs Garland Harris Young, Atkins, Johnston ana
Rogers signed articles OF agreement to form aJolht
stock company. The agreement specifies number OF
patents and improvements obtained and made ana
owned by Rogers not only for telephones nut also IOr
teegraphs, land and submarine electro liEhts o"rs M
alarms" In the articles IL Is set fJfth thdt - inc
inventors desiring 10 develop ana ut INTO ldeH(ai
operation" the said improvements dlscoIeres ana i
ventions and to secure FOR tha purpose ho d anu anu ~
assistance of Garland and his friends nave agreed 10
give eacn OF them an interest OF 0ne-lehin IN III 'no luz
the as socaies estimated at SlOOOOOo, nut III
dealing with outsiders at five times that amount. IL
agreed that las soon as the same can oc uono
they will procure charter ,,oain OF neoi PPodv
nUder nOd the Maine and style OF the Pan
Electric Company" Stock certificates were engraved;
printed apd signed, and the aid and assistance OF
GarIand Harris co. were frequently invoked to secure
the promised charter Some inquiries were Hauc MIN @
aud several other states but nothing further was uoe
and to ms day The Pan Electric Company is without
chatter The refusal and neglect Of Garland Harris
this OF tie agreement
Tie inventor lie gave away sixcnths Of the value OF
everything OF Ia9e IN me enc enterPtST pas % s" of
the stock company IN opposition to his wishes IN tnGG @
anxiety to dca| nonIy Iey s2% rockrtcd MS Share Of
the "swag" and left the licensees 10 tight their
heir own battles with the powerful Bell Company
Ou October Is 1883 the Pan Electric Telephone Com
pany was lncOTpOl ated under the laws OF tennessee
with a capital stock OF Sj.0OO,OOO The ncorpordtors
were Garland, Rogers, Johnston, Harris "hi LoOne!,
eacn holding Onc-ifth OF the stock lhis Is STATE
company and is authorized TO do telephone business
onIyIn tennessee Mr. Garland received his million
dollars Tennessee stO X 10y virtue OF his interest III
the Pan Electric joint stock Company. II Rogers had
not gwen the half million dollars IN STOCK OF
the Joint stock Company Mr. Garland would not nave
the nDr
Mr. Curtis seems to have forgotten al ABOUT the patent
bin which passed the House and went 10 the senate
while Nj. Garland a member OF That b0dy. Nj.
Garland interested himself III that measure. but the
Senate Committee Patents declined TO favor II. IL
was a bill to empower the Department OF Justice TO DO
precisely what the Department Is now dOn5 without
the authority of any statute.