New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-06-30
THE PAN-ELECTRIC REPORTS.


The Pan Electric investigation has been more
thorough than the most sanguine friends OF
clean and honest government expected that 1t
would be- The committee was not considered
strong one at the outset, and while the resolu-
lions adopted by the House were broad ana ex-
haustive, it was feared that the scope OF the in
oury would be narrowed for partisan enect.
Since the Administration had become involved
during its first year in one of the most disgrace
full scandals ever known in American public
life it was natural to suppose that the majority
of the committee in the interest OF the party
which had not been in power for twenty-four
wears would deal specifically with the subject
and not conduct an exhaustive, far-reachlng in-
vestigation. 1t was expected that the Demo-
cratic members would sum up the case in
pettifogging spirit and make the best possible
plea for the prominent officials and statesmen
implicated in this scandal. This Mr. Hale has done
with very Door grace, while dissenting from the
wholesale "vindicatiOn" prepared by his col
leagues. But the evidence has been cOllectedwlth
fairness and rainstaking care, and there can be
no ground for dissatisfaction on the part OF
advocates Of good government with the results
of the inquiry. Reputable journals OF both
parties united in the demand for thorough In
vestigation. 1t has been had. The evidence is
before Congress and the country. On that evil
dence the Pan Electric type of speculative
craftsmanship stands convicted before the par
of public opinion. Special pleas and partisan
defences are of no avail.
The report of the minority headed by Mr..
Ranney deals with the whole body OF evidence
and is not an ey-parte Statement like the
labored and nsincere defence signed by the con-
science stricken Mr.. Hale. 1t is mas
terly review of the 1,200 printed pages
of evidence, and is characterized alike
by critical acuInen, analytical power and
iudicial gravity. Mr.. Ranney has not only
shown himself to be one of the most adroit
cross examiners ever known in Congress. but
he has also revealed in the preparation OF this
report the highest order of talent for lucid ex-
position. He not only cOnvlcts Interested ana
dissem bling witnesses out of their own mouths
but renders their motives ineligible and re-
stores to its original hue the testimony which
they have vainly sought to color. The running
outline of the report presented elsewhere con-
veys only an inadequate idea of the thorough
mastery of the case which the complete text
reveals but it is full enough to illustrate Mr.
Ranney's lucidity of method, argumentatlve
force and the drastic nature of his structures
upon the speculative statesmen.
- In this report unity is impaired to the various
operations of. the Pan Electric riEg from the
organization of the company to the Intervention
of the Government in telephone litigation.
The fundamental principle of Pbi-Electriclty
is shown to be banking on names and influence
for the purpose of creating artificial and specu-
lat;ve values. The Rogers family possessed
patents which had no marketable value. They
gave away %, 800 0OC out of So, 00O 600 of paper
capital in return for names and influence which
would enable them to sell what no one would
buy on its own merits. Mr. Garland not only
supplied his name, but legal opinion respect
ing nOn-nfrlngement, which induced many
persons to pay money to the Pan Electric Com
pany. This opinion was advertised and con-
tnued to be used, although the company had
received from Mr.. Marble, formerly Commits
siOner of Patents, a decisive refutat0n OF It, 1t
was by banking directly on Mr. Garland's Opn-
ion and suppressing Mr.. Marbles that the con-
fcderates raked in $35. 900 in cash, $24, 900 of
which they divided among themselves after
limiting at the outset individual liability to $3.50.
1t was by banking on the names and influence
of leading Democrats in both houses that the
more ambitious and mercenary spirits hoped to
promote Congressional legislation in favor OF
the postal telegraph scheme. The same
agencies were employed when the cOIpOratOrs
sought to have the younger Rogers appointed
as electrician of the Capitol so as to introduce
their telephones there and to obtain the official
Endorsement of Congress for their whole
scheme. With the same end in view blocks of
stock were, as Mr.. Cox said, &" huently offered"
and indecently peddled ON the floors of both
houses.
In the course of time it became necessary to
bank upon the name and influence of the Gov
ernment Mr.. Garands opinion only created
market so long as no infringement suits were
instituted. When the sub-cOmpanes purchas-
ing State rights were sued for infringement,
the opinion that there was no infringement be-
came worthless The parent company had
guaranteed to defend them, but as il had no
money, neglected to do so. The corporators.
who had limited their liabilities to $3.50 and
greediy divided s24 900, instead of meeting
their obligations, determined to bank on the
Governu ents name long enough 10 enable
them to force the Bell Con pany to compromise
with them. This was the real purpose of the
secret agreements signed by the National In
proved and Electric Companies. suit
backed by the power of the Government, with
a Pan Electric director at the head of the De-
partment of Justice, and yet controlled by
themselves, might brighten the Bell Company
into settlement. The terms of the contracts
show that a strike" was contemplated and
that it was compromise rather than the vaca-
ton of the Bell patents which the cOnspiratOrs
had in mind. They banked on the Department
of Justice at the head of which was a statesman
with 81 900, 900 of gift stock. They obtained
the permission tn bring suit when they wanted
it and as they wanted it, without the usual in
yestgation and with pI ecpitate haste, and in