The Portland daily press., 1886-07-01
THE PAW ELECTRIC SCANDAL.


the Pan Electric committee which is
drawn by Mr.. Ranney, is published.
1t makes a long document. and exhaustive
ly reviews the testimony in the case. Sub
sequent to the granting of patents to Prof.
Bell for a speaking telephone Mr. j.
Harris Rogers patented some improve
ments on that instrument, which his
father, DR.. Rogers, who managed the matter,
tried to dispose of to New York capitalists.
Not meeting with success DR.. Rogers devised
plan of disposing Of them in another way.
He got up company with paper capital of
$5,OO0OO0 $3000000of this stock was given
to prominent gentlemen for the use of their
names. Not one of the persons among whom
the stock was distributed was capitalist.
All were politicians-Dr Rogers called them
statesmen. What the Rogerses wanted first
was influence. Later on, they no doubt an
ticipated that the influence would bring
money. One Of the men who got the stock
as Mr. Garland, then senator, now attor-
lley general. Early in 1884 the Rogerses be-
gan to turn Mr.. Garland to account, to
convert him into money. They got an opin-
ion from him that the Pan Electric instru-
ment was not an infringement on the Bell
patent and on the strength of this sold
large amount of stock in the Southwest,
where Mr.. Garland was well known and his
reputation as a lawyer stood very high. An
opinion of Commissioner Marble, which was
tl-rn in existence, in which he said that as
2 as the courts sustained the Bell patent
SeAheen doing the Pan Electric tele-
-asempte ptesecondary to the Bell patent,
Nerican out of sight.
schemS and Mr.. Casey Young
connection with the
sslegraph Company, but
.nought to be ne, More influence was
stock was offered /, accordinglNRore
whom accepted it, IA 'ssflen, some OIL
Next an attempt was mao IT'S decnneo'
er Rogers appointed electricfsN me young
of Representatives. in which SlS House
land and Harris took an active pa Gar
view of introducing the Pan Electricyl.-
ment into the two houses of Congress. VII !
When Mr.. Garland became Attorney Gem
eral the Rogerses thought the time had come
for bold move. The courts had been en-
joining their sub companies, and no money
was coming into the treasury. The Pan-Elec-
trio was languishing and bound to die unless
some powerful stimulant was administered.
So the idea was conceived of getting the
government to test the validity of the Bell
patent. The purpose was not TO oust the
Bell company, but rather to frighten it into
the payment of a large sum of money to be
> let alone. With Garland, one of the direc-
tors at the head of the department of justice
they thought the suit would be managed ac-
cording to their wishes-pressed vigorously
or left to languish and die, as circumstances
indicated to be for the best interests of
the Pan-Electric. To carry out this
scheme they vigorously set to work
"They obtained the permission to bring
the suit" says Mr.. Ranney, "when they
wanted it, and as they wanted it, without
any preliminary investigation worthy of the
name, and in defiance of all the rules and
practice of the department, and in direct dis
regard of decisions made within a month by
its head" When the matter became public,
and the great personal interest of the Attor-
ney General in the case became known there
was an out-burst of public Indignation, and
the permission to grant the suit which had
been given by Solicitor Goode, was withheld
by order of the President, until the case
could be investigated by the interior depart
ment. Concerning Solicitor General Goodies
action Mr.. Ranney says:
"The statement of the solicitor-general,
who appeared before the committee, is in
substance that Mr. Garland never spoke to
him on the subject; that when he received
the communication of the district attorney,
ON Sept. 2, he had never heard that Mr.. Gar
land was interested in the Pan-Elecric COM
pany, and had never heard of the existence
of such a company that it was only in the
ordinary course of business for him to take
up this application, examine it himself, pass
upon it, act upon 1t, and grant it, without
any reference to the interior department.
and in the course of an afternoon, and that
he did not refer 1t to the interior depart
mrnt, not because he was ignorant of the
practice to make such references, but be-
cause he already had in the papers all that
he could have learned by reference to that
Department. He says that he was not aware
that there had been any litigation about the
Bell patent or any decision in its favor. He
himself had had no experience at all relating
to patents. There are number of facts and
circumstances, however, which leave it be-
yond doubt that Mr.. Goodies recollection
is so seriously at fault as to a large part of
what took place that it cannot be safely re-
lied upon in any portion.
Mr.. Ranney further finds that the action
of the Attorney General was contrary to the
rules Of the department and against all prec-
edent, and taken without any pretence of
competent examination or inquiry Such ac-
ton, he says, is proof either of fraud or at
least of gross negligence, which to person
in Mr.. Goodies position is equivalent to
raud.
OF Mr.. Garland's part in the transaction,
he report says;
Mr.. Garland S testimony and his undisputed
ofC w q 10 fa,
senator and Cabinet Minister He testifies
$40 that when the Pan Electric scheme
s first : 'gested by Gen. Atkins:
tol' ad never attempted to make any
ng but law and poker; that l al