The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1886-02-03
"HELLO, CENTRALp'
THE BIG TELEPHONE SCANDAL
Facts About the Pan. Electric stOoI-sOms
of the Investors and Their Investment.
The Favorable TOTms-AttOrnsy
GsnsraI Garland's Position.

ington special says Attempts ar
making to create the impression tina
Mr.. Garland and his "confederates
TO adopt word used by Genera
Marcus j, Wright, to describsthe Pan
Electric stcckhoIders-oecupy a posi-
ton analogous to that OF public mel
who have made Investments Ia bushes
enterprise the success Of which was no
wholly or mainly dependent upon tn
use Of official influence aud power, |
should be remembered, however, that /
was clearly understood by the Democratic
tssnators and Representatives who EN-
bMked In the scheme that thel
names and influence were to constitute
q large sharg Of y the working cap
ital Of the company. The SAINT
thing was understood by meI
to whom stock was offered asa donation
and who declined 10 accept IL on the
terms proposed. Among those who thus
refused we're Samuel j. Randall, John G,
Carlisle, Abram s. Hewitt, 5. s. Cox, ex'
~
Apparently they did not regard the aG-
Ceptation Of the speculative shares on such
terms Us consistent with their duties US
legislators, DR.. ]. W. Rogers, who con-
ducted most OF tho negotiations, declares
that he did not suppose that no was "deal-
ing with innocent babes but with business
men and men Of the world who under
stood the whole matter and who have
since shown that they know how to take
care OF their own interests"
THEY KNOW TIE sCHEsE.
There is sufficient evidence tOshow that
Messrs, Garland, Harris, Johnston, Atkins
and others concerned knew what the
scheme involved. On February lS, 1883,
Senator Harris saw mo impropriety in
gentlemen holding official positions as
Atkins and myself do, becoming interest.
cd in an enterprise such as you suggest. {"
Mr.. Atkins at that time was a member OF
the Appropriation Committee OF the
House Of Representatives. In the follow.
ing December h0 waB Democratic caucus
candidate for Clerk Of the House and was
defeated by the change OF a aIngle vote
alter the roll had been called. a pam
phlet prepared by DR.. J. w. Rodgers
which was in the hands Of the persons
interested, at the date mentioned, sst forth
fully the nature and scope OF the enter.
prise, which included not only u general
telephone and telegraph business but q
postal telegraph system to he established
on the Rogers patents by the Government,
The fret company was the Pan.ElectriO
which was formerly organized in TIE city
oil New York by Garland, Harris, Atkins,
Johnston, Casey Young and j. Harris
Rogers. Among themselves the value OF
the improvements, discoveries and inven-
tions oi Rogers were to be estimated at
81 100000, Of which iOurtenths were
allotted 10 Rogers, oue-tenth was TO be the
property Of the company and one. tenth
tho property Of each Of the other inCor.
porators.
CHEAP STOCK.
The capital stock Of the company wss
to he s5,OQO,OOO, -$5OO,OOO each to Senators
Garland and Harris, Congressman Atkina
aud Young and Congressman Josoph
u. Johnston. Each ni these men was to
pay the prinpsly Bum OF $3.50 In cash for
bis 100000 Of stock. Each OF them also
held an undivided interest ot onC.tenth In
the $500 900 retained for tho Joint benefit
Of the company and was also to receive d
proportionate interest In the stock of two
other companies to be formed thereafter
under the Rogers patentb. One OF these
Is the Pan-EIeCtriC Telephone and Tele.
graph Company which was organized
under the laws OF Tennessee In October,
1883, by the Same persons. In that com.
pany the amount Of shares held by each
Of the original stockholders was the same
as his share in tho Pan.EleCtriC-$500 600
The other otIshoot Of the pan.Electric Is tho
Rogers Telegraph and Telephone Compa-
ny, in which, according 10 the letter Of
Or. ]. W. Rogers published in the Tribune
Of September 80, 1855, Mr.. Garland and
the other Pan.EleCtrlC stockholders were
entitled to shares amounting TO $500, 600
each. The statements contained in that
letter have not bBen denied. In a pub.
lished circular OF the Rogers Telegraph and
and Telephone Company occurs heiollow.
ing: "Aminiature United States postal tele.
graph and telephone Is now being worked
In Washington City from Capitol Hill to
Fourteenth street, and from near the river
landing To Indiana avenue, to represent
the two trunk lines proposed across the
ContlnOnt and from tho North to the Gulf
OF Mexico. A bill will be presented to
Congress asking an appropriation Of Sl0,.
600, 600 10 construct these lines. The
probable value Of this stock Is illustrated
In the fact that this company Combinps
the Chiefadvantages ot all telegraph com.
panies, and In addition 10 them, lts own
valuable patents, and especially its low
resistance Hire.H
NAMING NAMES.
Ono Of the directors OF the Rogers Tele.
graph and Telephone Company when h
was organised In 1884 was Representative
Il. D. Money, Of Mississippi, who was
then chairman Of the House Committee
on postoilIceS and Post Roads. The other
directors we're General j. w. Denver,
President; Dr.. T. W. Rogers, viCe-presi.
dent; General Frank Armstrong, OF Texas,
Secretary; ex.Congressman Klatz, Of
Pennsylvania, Treasurer General Thomas
7. Crittenden, Of Indiana, Counsellori j.
Harris Rogers, Supervising Electrician;
Colonel K. +. Looney, oil Tennessee, and
Congressman Manning, ot Mississippi.
General Armstrong has since been ap.
pointed an Indian Inspector by Secretary
Lamar. Colonel Looney is, q member Of
the Democratic National Committee, and
he is also one Of the directors OF the Pan.
Electric Telephone and Telegraph com.
panied. The other officers and directors
Of the latter organization according 10 q
recent published advertisement we're
General Joseph y. Johnston, United States
Commissioner Of Railroads, President; /.
g. Harris, United States Senator, Vice.
President; A. II. Garland, United States
Attorney General, counsellor; Casey
Young, ex.Congressman, Secretary and
Treasurer; John O. brown, ex.Govefnor
ol Tennessee, ]. D. Q. Atkins, United
States Commissioner Of Indian Affairs,
and ]. Harris Rogers, The inventor. BE.
sides the persons whose names have al.
ready been given great many other