The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-06-30
The Object Was Not to Beat the Bell Patent,
but to Bleed It-A Strong Indictment of
Mr.. GOode and the Attorney General.
The Quarrel Between the Houses Over
the Northern Pacific Forfeiture.
The Recent Exchange of Personalities Between
Messrs. Cobb and aird-Resignation Of
Assistant Secretary w. E. Smith.
THE pAN-ELEcTRIc INQUIRY.
Severe Arraisnment of Garland, Goode
and Other Prominent Democrats.

WASHINGTON, June 20. Three documents in the
nature of reports will be presented to the House
by the Pan electric telephone committee, but as
neither will be signed by majority of tho COM
mitteee, technically speaking there will be no
report before the House for action. The re-
port drawn up by the chairman will be signed
by himself and Messrs. Oates, Eden and Hall
all Democrats. Mr.. Ranney has secured the
signatures of Messrs. Millard, Hanback, and
Moffatt-all Republicans-to his report; while
Mr. Hale, Democrat, has presented his views
in an individual report Chairman Boyle's re-
port will not be made public before Thursday.
In the report signod by the Republican mem-
bers, the testimony is cited to show how the
Pan-electric company was organized, and &c.
100000 of it's stock given to gentlemen for the
use of their names and regulations The opinion
of Senator Garland, declaring that tho Rogers
patents do not infringe the Bell patent is
quoted. with the statement that it had been GOT
ten because the Pan-electric could not sell
rights without it, and it was. as it was intended
to be. the inducement which led large numbers
of persons to pay in money. part of which was
divided among Mr.. Garland and his ass ociates
At the same time, the Pan electric knew that
The report then refers to the postal telegraph
bill explaining the motives Of the Pan electric
organizers, and stated that 81 100000 of the
stock was held by members of Congress, when it
was expected that that bill would be a sub.
ject of legislation 1t is charged that the
Pau-electric people, including Mr.. Garland, tried
to get congressional Endorsement for their
scheme and the evidence is cited where it
touches upon the effort to secure the appoint
ment of young Rogers as House electrician. 1t
is alleged that Senators Garland anl Harris and
General Johnston busted themselves personally
to accomplish this. Mr.. Young pat up tele-
phone in his committee-rooin, and this, says the
report. was pretty near to a con sressional in
dorsement' The report then treats OF the sales
Of State rights to sub-companies. and says
THE Bell company sued the sub companies.
The Pan-electric company declined TO defend. on
the ground that it had no noney. The stock
holders would not refund what they had divided,
although it was the money Of those very COM
panies; and then they went to the Department of
Justice at the head of which was one gentleman
who had some of this money in hs pocket and
asked the government to take up and carry on
the litigation"
Continuing, the report States that, LATTER the
failure of the parent company to defend the
Philadelphia suit the sub-companes became
alarmed and refused to pay any more money,
and the business came to a standstill. There
Upon they determined to secure the name of the
United States to bring suit against the Bell COM
pany, to frighten it and drive it TO buy peace So
they obtained permission when they wanted it,
and as they wanted it. without any preliminary
examination worthy OF the name, without the
usual investigation, and in defiance of all the
rules aud practices Of the departments and in
direct disregard of decisions made within o
month by its head When this result and the
became known there was a public outcry, not
because the public knew cared who had
done this thing, but because the public
knew that such things must not ba
done. Had all the facts developed before the
committee been known at that time, says the rs-
port, the Department of Justice would have
driven these petitioners from it's doors for pub
lie sentiment would have constrained it to do so.
The investigations OF the committee have demon
strated that the pretense that the Pan electric
people appeared before the Interior Department
as private citizens was false; they were merel.-
stalking horses to cover their real purposes and
to blind the public. The agreements between
the Pan-electric and National Improvement COM
panies are quoted. with other evidences aud il
is charged that the suit not wanted to bs
tried but to be settled; that they were so sure
Of this that they agreed, beforehand about the
division and the opinion each had about the read
iness of the other to accept his price' was such
that they stipulated twice over that neither
should betray his ally"
Referring to the Washington conference Of
the two parties. it is alleged that they wished to
recall their first application to the Department
of Justice without leaving trace" and then
to get the Attorney general, either in person or
by one of his subordinates. TO order the suit
without any reference to it, and without any
more than pro forma inquiry by officers likely
to be quito ignorant of all telephone litigation.
This was their object. They set about it, and
they accomplished it. But if they concealed
their ways from the public, they did not dis
guise them from Attorney general Garland
Here reference is made to his letter TO the
President to support the assertion. Touching
the interview with the Attorney general, the re-
port finds that something took place at that in
tervew which left all parties in the certainty
that new application would be made that it
would be made through the district attorney;
that it would be pressed by Mr.. Goode, when it
came there, and that he would pass on it prompt
ly and without reference to the Interior Depart
ment That was what the parties, by their own
statements, went to Mr.. Garland on the 31st OF
July TO obtain
1t is stated that the Pan-electric and National
Improvement companies stopped their efforts to
secure a government suit for three weeks, until
Mr. Goode returned to Washington and Mr..
Garland was about to leave. According to Mr.
Young, they did not want to come to trial. even
If they had defense which would succeed
They did not want to break the Bell patent, but
to bleed it. OF course, il was the duty of the
Department of Justice to stop such q scheme
certainly not to let itself be dragged into it.
Touching the Attorney general. the report
holds that it was his duty, considering how much
he was interested, to make sure by calling Mr.
Goodies attention to the application. that whom
ever it did come it should receive the fullest and
most impartial investigation, according to all the
usages and practices of the Office. The report
says that he should have been socitous enough
Of the honor Of the department to have made
-, ,of hfa 6,ra htrff faas A n fNnt
The report then proceeds to comment upon
Mr. Goodies share OF the transaction, and de-