The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-30
IT BEATS CREDIT MOBILIER.
The Formation of the Pan-Electric Tele-
phone and Telegraph Companies.
$3.50 and Form a S., 100000 Company
Attorney General Garlands Bride.
New York Worlds Washington Special.

will therefore be not amiss, before commencing
its history, to say few words as to his antece-
dents. The Hon. Casey Young was elected to
represent the Tenth Tennessee district as Rep
resentative to the Forty fourth Congress After
taking his seat, in December, 1875, he succeeded
in having Mr. j. Harris Rogers appointed elec-
trician of the House of Representatives. Whilst
in that position Mr.. Rogers claims to have made
a number of discoveries in telephony and teleg-
raphy, which, after his retirement from Office,
he patented. These patents were transferred to
an organization known as the 'Secret Telephone
Company" and this company, after the lapse OF
some years, transferred its patents to the Ma
tional Improved Telephone Company
After the sale of his patents Mr.. Rogers con-
tinued his experiments in electrical matters, and
after time secured other patents. Upon these
latter patents company was formed by Mr..
Rogers and his father DR.. j. Webb Rogers,
called the Pan electric Company which was
located in the city of New York
The management of the ''Pan-e electric" failed
to attract capitalists as investors in its stock,
and the Messrs. Rogers bethought them of the
old patron of the inventor. Col. Casey Young,
who was again in Congress.
In the spring and summer of 1883 the organi-
cation of new company was determined on.
DR.. j. Webb Rogers, a gentleman Of ability,
standing and culture, and an enthusiastic be-
lever in the genius of his son, ]. Harris Rogers
saw the advantages that company controlled
by men of high political position and character
would have over any other in the event a post
al telegraph bin should become law. He knew
Senators Harris, of Tennessee, and Garland,
of Arkansas, two Senators than whom
none stood higher in the South, and also Col. j.
D. c. Atkins, one of the leading Democratic
Representatives from the South, who had for
years been chairman of the appropriations COM
mittee. All these gentlemen agreed to take an
interest in the organization Of the company, and
as this was to be an enterprise appealing to the
South for its political aid it was now only neces-
sary to secure a distinguished general to put at
the head of 1t. This was done by getting Gen.
Joseph E. Johnston. and the combination was
complete.
1t was determined to divide the Geographic
and telephone inventions, and form two compa-
MES, and accordingly there was organized, in
the spring Of 1888. ''The Pan electric Telephone
Company" and THE Pan electric Telegraph Com
pany."
The companies were identical in their stock.
stockholders, organization and officers, so that a
statement as to the one covers the other.
The Pan electric Telephone Company has
So, OOO, 900 capital stock, divided into shares of
81, 900 each These shares were held originally
by the following named persons:
J. E. Johnston. 100000 J. D. c. Atkins $500 900
Isham G. Harris 500 900 J. Harris Rogers q 600 600
Casey Young.... 100000
1t will be observed that these five gentlemen
each held onetenth of the stock, but knowing
the vagaries of inventors, they required that an
other tenth, making majority, sntuld be put
under their control, so that they could have the
business in their own hands This $500 900
worth of company stock belonged to the holders
of the other shares in proportion to their hold
ings. but controlled by the board of drec-
tors and could be used in any way it saw fit
These directors were old politicians, and had
not forgotten that notable saying of Cakes Ames
as to placing stock where it would do most
good"
The board of directors of the company was
composed of Joseph E. Johnston Isham g. Har-
ris A. H. Garland Casey Young. J. d. G. At
kins and j. Harris Rogers. The officers were
Joseph E. Johnston president; Isham G. Harris
vice. president; Casey Young, secretary and
treasurer; A. H. Garland. attorney; j. Harris
Rogers, electrician.
Messrs. Johnston, Harris and Young were
made an executive committee with all the powers
of the full board.
The telephone company was chartered by the
State of Tennessee with its principal office in
Memphis and another in Washington City
Under the laws of that State as to corporations
all that was necessary to be paid in of the five
millions capital stock was the fee to the Secre-
tary Of State for using his seal, amounting in
this case to 81 90.
The agreement by which these gentlemen be-
came the owners Of the Rogers patents was that
they should put up what money was necessary
to take out patents manufacture telephone
instruments and to put up experimental wires
All this work was done in the summer of 1889
In November of 1883 the incorporators of the
Pan company were assembled in Washington
and as the experiments had been pronounced
successful, the directors determined to com
mence operations. In the meantime, Mr. Rog
ers had disposed of one-third of his interest
1898 1888, to Colonel Robert F. Looney a LAWYER
and Spectator of Memphis, Tenn, and he was
added to the board of directors, and took an
active part in its management. The directors
determined to issue licenses to local companies,
that is, sell territory in which the Pan-electric
instruments were to be used.
The terms upon which the sales were to be
made were agreed upon, and were as follows
Forty per cent of the capital stock of the local
company to be held by the Pan company: all in
struments to be furnished by the Pan company
at stated price. A royalty of $40 Der annum
to be paid by the local company on each instru.
ment; a bonus, in cash, to be paid by each local
company"
Under these conditions eight local companies
were formed; one for Pennsylvania with the
Hon. Robert Kotz, formerly in Congress, as the
principal promoter; Gen. Frank Armstrong, now
Indian inspector being the secretary One in
Baltimore. the Hon. Eli j. Henkle, formerly in
Congress- being the promoter to which the
States of Maryland, Virginia and the District
of Columbia were sold. One in St. Louis, for
Missouri. One in Wisconsin. One in Tennes-
see. One in Alabama. of which General Up
shur. now chief clerk of the Indian Bureau, was
promoter. One in Texas. and one in Louisiana
ho tva frSf- m mi
quired to pay any bonus, but, In all their con
tracts, the Pan company agreed to defend the
validity of its patents at its own expense
An opinion was asked for and given by the at
torney of the company, Senator Garland, as to
the validity of the patents, which reads as fol-
lows:
NATIONAL HOTEL.
WASHINGTON, d. c.. Jan. 4, 1884.
Hon. A. II. Garland:
Dear Sir-My attention has been called to the stock
of the Pan.eectric Telephone Company as an invest
ment. l therefore desire your opinion as to whether
the telephone owned by said company or any part of