National Republican. (Washington City (D.C.)) 1872-1888, 1886-02-03
A HEAVY LOAD.
Tho Great Telephone Scandal and ITS
Effects on the Administration.

lno bfeAt IelepnOue hCanuhi anu its
Effects on the Administration.
Correspondence New York SUM-
WASHINGTON, Feb. lit Is most unfor-
tunate for the administration that an eX-
posure Of private interests in q speculative
scheme should more or less compromise two
members Of the Cabinet, the solicitor gen
cral Of the United States, the commissioner
Of railroads, the commissioner Of Indian
affairs, the chief clerk OF the Indian Office,
and an Indian inspector, to say nothing Of
several senators and several ex-members Of
Congress, all Democrats.
These interests in the so-called Pan-Elec-
trio Company were acquired without any
actual investment Of capital by the favored
parties.
The telephone business had become n
great popular and pecuniary success. This
prosperity stimulated rivalry, excited envy,
and encouraged jealous hostility, which
were exhibited in adverse claims and con-
tests of the only recognized patent for
talking telephone. The courts uniformly,
in different states and with the most accred-
tied judges, decided against the contestants,
who were left finally, after costly litigation,
almest without even technical resources TO
carry on the war.
In this dilemma the Pan-Electric Com
pany proposed to enlist political influence
in and out Of Congress to secure legislation
for now proceedings In the courts, and,
falling in that end, to obtain a standing be-
fore the public, whereby It's alleged rights
might be sold to unwary purchasers.
This is the explanation Of the fact that
Mr.. Garland, Mr.. Harris, and other sena-
tors, Mr.. Atkins, Mr.. Casey Young, Gen.
Joseph Johnston, and other prominent per-
sons were invited into the original organi-
zation, and were allotted shares running
into the millions. II is astounding that
senators and representatives who respected
their public trusts and valued their good
names could have been induced to accept
these fayors. They were, OF course, OK
pected TO render some equivalent In service
for the shares they pocReted, either by
votes or by the credit Of their names TO
attract public confidence to the enterprise.
In either case they committed grave
wrong.
When Mr.. Garland entered the Cabinet
he was encumbered with this acquired in-
terest, having knowledge of all the litiga-
tion respecting the telephone patent, and
having given an opinion that there was no
infringement OF IFS rights by the company
with which he was connected. He failed
to dispose of his stock He preferred to
take the chances of possible fortune, and
was willing TO assume all the responsibility
Of q false position.
During the summer, when Mr.. Garland
was absent in Arkansas, the United States
district attorney Of Memphis wrote TO the
Attorney General proposing that the gov
ernment should commence suit to test the
validity of the Bell telephone patent on
various charges. The uniform practice is
to refer such applications TO the Secretary
of the Interior In order to obtain full infor-
nation from the patent office.
Mr. Goode, solicitor general, was then
acting In Mr.. Garland's place, and 1t SO
happened that some Of the latter's asso-
ciates in the Pan-Electric Company visited
Mr.. Goode when the application Of the dis
trict attorney reached Washington. Whether
they exerted influence or not, the fact is
not disputed that Mr.. Goode decided TO
bring suit inside OF twenty-four hours, and
without consulting the Interior Depart
ment.
That decision provoked much harsh crltl-
cism, and Mr.. Garland returned to his post
in the midst of It. The subject was brought
up in Cabinet meeting, and Mr. Garland
wrote an explanatory letter to the Presl-
dent, which was published without his
pnvity. Mr.. Goodies decision was arrested.
Here was second chance for Mr.. Garland
to have washed his hands Of this unclean
thing, and to have peremptorily forbidden
any participation in suit by the Depart
ment OF Justice. He was not equal to the
occasion.
Subsequently the case was virtually re-
opened by referring all the papers TO the
Secretary of the Interior. Mr.. Lamar, in
stead Of dismissing It, and allowing the
courts to determine the contests now pend
ing, created court Of his own, with two
assistant secretaries and the commissioner
of patents as his associates, and finally de-
cided that suit should be brought IN
the name Of the United States TO try new
case, made for the occasion!and for the
benefit of Mr.. Garland's company and other
speculative enterprises like It,
1t is not charged that any Of these parties
acted corruptly, or that they intended to
commit fraud; but the whole business, from
the beginning, when the principals were
senators and representatives, is tainted with
dark suspicion, which follows them now
into high office.
The administration suffers seriously from
this cause. The people demanded reform
They know that the presence of Mr.. Gar
land and Mr.. Lamar in the Cabinet, and oi
Gen. Johnston, Mr.. Goode, Mr.. Atkins,
Mr.. Upshur, and Mr. Armstrong in office is
positive injury to the Democratic party