New-York tribune., 1886-03-23
PAN-ELECTRIC STOCKS.
SOME ASSESSMENTS AND "DIvGDEy05.
coioNEI YouNG's STORY OF WHAT TIE "GROUND
FLOOR" STATESMEN RECEIVED.
GBY IELEG3AFL TIg TRIBUNE.

of the PanEectric Company seems to have bceh con-
Quoted in of "goasyoupicase' fashion, some of
tho methods adopted being peculiar as the enterprise
ITSELF Casey Young the secretary and treasurer Of
| tho original company auI It's two elder children-the
telephone and the telegraph companies In October or
! November 1888. ho sali General Johnston paid In
Sl0j. "or about that amount" entry OF which was
made upon the books until within last fortnight 1t
appears that after the advanced hy the coned-
crates under the orila contract had been repaid
! well assessments which they subsequently
levied upon themselves the grand being about 800
each, Garland, Harris. Atkins, Johnston and Young
each received mis- share OF the divlenis of the
scheme about ~, ,337. The items given by Colonel
Young up only $500 ~ the amount of each mans
assessments but he testified subsequently, that since
Dr. Rogers his evidence he has discovered an error
OF $4,000 against the doctor In stock account OF
Sl17 900, the smaller discrepancy BE- overlooked
The company pad out In "diviienis" about $4,000,
! but he accounted for only S1S370; 50 1T seems
| that there must have been fourth "div-
dend" which hc forgot to mention The
total cash receipts from all amounc to 5 OO2
generous for the $500 invested 10y each OF tae
! "confederates." According 10 the figures given by
/ Colonel Young the Pdn-Elcctrc Telephone Company
owns stock in six Local compancs-2) to 40 per cent OF
the entire stock Of each-lmOuutnS In the aggregate TO
$209l 6G7 This interest has not yet Ell divided but
J Mr.. Garland and each Of the other &" ground hOor'
entitled local stock to the amount Of
1GG SO that the sam total OF Dr. itogcrss dOBa-
ton" to each in stock II Sl709,lGG, All amount
than three times great caused senator Harris
to declare that Rogers Was "too generous" Yet Mr.
Harris who daily attendant tine sttinss and
fully listens To al the testimony, does not seem TO wear
Il grateful couutenance
MI. Young I'D that after ii had been agreed that no
stock should be sold individual account Dr. Rogers
transferred Ss5333O IN stock 10 Colonel LoOncy who
wanted something to show that he held an interest OF
that amount Finally the witness signed paper certi-
] hat I,or I,
it should be issued. number OF these papers came TO
him ard he signed them at first to obge Dr. Rogers but
VIXEN learned the certificates being peddlsd
about he resolved to resign rather than continue
party to the practice, lie called meeting
OF all the stockholders at the Ebbett House
| on January 2G 1855. AMI it agreed
that al the outstanding papers that the witness md
been foolish enough to give" should bccale In ana re-
placed with certificates showing that the holders Of the
paper would become entitled to stock wden the validity
OF the patents had been established. Mr. Young went
a balance sheet which had been drawn at the time
showing the interest OF each shareholder all hfty.one
persons 1t appeared that J. Harris Rogers had
PAP 40 remaining his credit, his mother,
Rogers 90 shares. and j. W. Rogers Dr. Rogers
/ 2,79O shares 1t also appeared that Mr. Young mai
given blocks Of $1,000 to the children OF personal
trends named after himself and had given another
block OF $4,000 Old friend In distress. The
pany sold dollars worth OF interest In this con-
cern excepting Senator Vest Mr.. Howard and those
| ladies, Senator HGrT1Ss frend5,' SAID MT. Young
| emphdticaly.
General Johnston's account showed several assess
in the latter part OF the year 1883 and in the early
part OF 1854 ranging from S23 to SIG which the wit
explained based upon his interest and were
intended defay the expense Of experiments and tests
General Johnston received three dividends in June and
July, Iss4. OF $29s, $3.50 and $3.50, and " General
Johnston's account a counterpart Of the Others"
SAID Mr. Young. Altogether the company received from
all sources $50 OO2. Out OF that $4,000 was divided
the stockholders and the balance was expended
shown III the account books IN the prosecution OF the
enterprise the company paid an electrician $1,000 to
prepare book ne telephone to be used In the pros
ecuton defence of any suit that the company might
have respect the telephone. The book cost over
$1,000 the balance was expended in preparations for
| tria-makng models. etc.
Mr.. Ranney-Preparations for trial wherel
! Colonel Young-Whereyer IL might occur. After tho
Pennsylvania we knew that we had 10 meet trial
and we prepared for IL whom 1t might come
| Mr. Boyle-Iow much have you in the treasury nowi
Colonel YOung-Ihere IS a balance on hand OF about
$1,000 or $500 have never charged for salary
professional services, but have put in charges for
travelling expenses models etc. There has been much
comment the fact that made dividends. The
have stated. did not want to be held respon
sble for the money good deal OF annoyance and
troube. The gentlemen wanted their and
understood that II the company had need OF II 1t should
he refunded. In addition TO The balance Oh hand about
$1,000 is Own- To the company
the witness sad that General Atkins was not member
Of Congress at the time that the contract was drawn
The witness .5 a Congressman elect, but General
Atkins went out March A. 1888, while the contract
was entered into on March 10
Colonel Young remarked that he wanted to some
thing reply All of this talk about drumming up
Congressman, and having no money IN the treasury
Ghe originator he said had contributed about $1,000 at
means In putting the thing in operation" While
body had objected yet that course hd not been followed
and while they were talking about II the Memphis people
mad offered to buy tGe state rights. We were taxing
about selling stocks said the witness, and said \
never Offered to sell or rve share in my life TO any
member of Congress- did not want scatter it around
said TO Harry Rogers they were not tho sort
OF people wanted did not think members
Congress worth much In business matters No
member offered to buy dollars worth Of stock from me,
The inquired If he had not said at the
ing Of the company that members wanted the stock.
what took place the meetings about matters that be
regarded OF 10 Importance. All lie did remember was
that he had sald number OF people had come TO nm
and offered TO buy Stock and they the orginaiors had
gcsted $50 share and somebody else had urged that
$lObe fixed. IL was mere informal conversation. Mr.
Dunn, OF Arkansas had talked with him about the stock
and asked what he thought about exchanging house
for to whch the witness had replied by advising him
to keep the house and let the stock co. as he had advised
five hundred other persons.
OF Congress he had converSed with about the Pan
Colonel Young replied that he had talked with Messrs
Dunn. McMlin. Taylor Hopkins aud stockslager There
hfty more. at least and he could not mention
all OF them The company did not dream that Congress
would ever have anything 10 do with the telephone
tnat legislation would ever result.
Mr.. HaubdcB-What was the nature OF the converse
tiOns2
Colonel YOung-Witb respect to the telephone gene
rally. and II 1t good thing and The reason
talked about II was that had one of my telephones
put mp in my committre-rOOm- public buildings aud
grounGs-and good many OF the members who came in
the room saw the instrument aud talked about it.
Mr.. RanDey Gnsinuatlngly)-They seemed to know all
about
Colonel Young-They seemed to know nothing about
II.
The Chairman-Dld you gather that they wanted to
become interested III the enterprise merely
peal
Colonel YUung-Merely OF the character OF the nstru
ments. expect tnat might have sold some stock II
hal tried. In order 10 satisfy the committee OF my
pose VIII say that have in my over 800 letters
from people who wanted TO buy the telephone or the
right TO IT, stock, and TO all of these people have
written that IL litigation; that there would be
IhaI when [ Xrr Mnnld