The Portland daily press., 1886-03-19
THE PAN ELECTRIC.
The Committee Continue Their In
vestigation-

WASHINGTON, March 17.-When the COM
mittee appointed to investigate the telephone
transactions, resumed its lab0rS at noon TO-
day, DR.. Rogers was further examined. Re-
ferring to the conversation held with Casey
Young in his room, about the government
suit the witness said that Young had told
him that other parties, the National Inn
proved company, had collected $4,000 worth
of testimony in Europe, and that they were
desirous of combination in the suit, so as
to put that testimony against some little in
fuence that the Pan Electric people
might have. That was about two weeks be-
fore the institution of the government suit.
1t was stated that the suit would be brought
in the name OF that company, but the witness
did not know the reason. The witness had
been party to the National Secret Tele-
phone company, organized two years before
the Pan Electric, by Messrs. Hine, Dean and
General Thomas Ewing of Ohio. The capi-
tai was five. million dollars, based on his
sons inventions. That company had leased
to the Pittsburg and New Orleans compan-
les. Van Benthuysen had been the organ
izer of the New Orleans company and the
National Improved Telephone company.
The witness had sold out his stock IN the
Secret Telephone company.
Objection was made to the line OF query, as
not being germane to the subject under in
vestigation and Mr.. Oates wished the COM
mittee to decide at this point whether it
would be proper to so outside OF the subject
matter of the resolution directing the lnyes-
tigatlon. He maintained that the committee
should not go into questions not pertaining
to the inquiry.
Mr.. Ranney said that it would seem that
all of these companies were more or less
closely connected and that the committee
should not attempt to shield anybody.
After some further discussion the objec-
on was sustained by the chairman.
The witness was then requested to state the
transfers of the Pan Electric stock or Pan
Electric Telephone stock made by himself.
He replied that he gave Colonel Robert E.
LoOney of Memphis, Tenn, sixth interest
in the Pan Electric company but as there
was no stock, of course there were no trans
fers. After the telephone and telegraph
patents had been taken out, Looney had
gone out with certificates and made sales to
individuals, of which sales the witness got
one half of the proceeds, giving Looney the
other half. The witness had other transac-
tions, but had no transactions with the man
named Cummings, that he could remember.
Another discussion sprang up at this point,
growing out of an objection made by Mr..
Oates to inquiring into the conduct of Mr.
Looney, as private citizen.
Finally the inquiry was allowed. Witness
said he knew Mr. Money was chairman OF
the post Office committee of the House. MI
Money was not candidate for postmaster
general at that time and witness had done
nothing to help him to that office Witness
had never sold any stock to member OF
Congress and knew of no sales of that kind.
Mr. Ranney asked how the witness had
Disseminated in distributing the stock to
members.
Witness replied that in the case OF the
New York postal company he, had offered
stock to MessrS. Cox and Beach rather than
to Mr. Ranney because the first named gem
teman lived in New York and he had de-
signed the stock to be fioated in the New
York stock market while Mr.. Raaney lived
in Massachusetts,
''Did you tell your associates about your
sales of Pan Electric Telephone stock?' in
quired Mr.. Rapney.
Il didn't conceal anything" replied the
witness. Whatever did was done on the
house tops. But that was my private busi-
ness"
Mr. Ranney wished to know why witness
had selected members of Congress as recip-
tents of stock.
OH did not distribute this stock with a
view to corrupt these great men in either
House of Congress, replied the witness.
Continuing he said he had selected Con-
gressmen rather than prominent business
men because they had wide reputation as a
| rule.
Mr. Ranney inquired whether Messrs.
| Garland or Harris had endorsed witness APP
| plcation for an Office, but objection was
made on the Democratic side and as the wit
ness stated in his application that all
| the payers pertaining thereto were in the
hands of subcommittee, answer to this In
| quiry was deferred for the present
| Witness did not get the position and had
! afterwards applied for a consular place and
| had written to Attorney General Garland
| about it, Mr.. Money had also seen the AZ
torney General in furtherance OF his appll-
cation.
Recurring to the subject of the government
| suit witness said he did not know until the
last meeting of the board that Van Ben
thuysen had made application to Attorney
| General Garland TO have the suit brought IN
| addition to the application made by the wit
4 ness.
| Mr.. Oates inquired as to the present feel
| ing between the Attorney General and wit
ness, to which he replied: Il expect he is
! friendly to me. would not say feel very
friendly; | think he has acted very badly
| towards me-.
Mr.. Oates-"Do you, because he would moi
| give you an appointment"
Witness-'From that and some other
things. l have no malice against Mr.. Gar
land, but | think when he had chance to be
| generous he acted meanly."
| Mr.. Oates asked if the witness had ever
! written any satirical poetry directed against
| the Cleveland administration, especially
| against Attorney General Garland.
| just got it this morning from Baltimore
| replied the witness cheerfully, as he drew
| out pamphlet Here it it, want to see 1t
| The cover of the pamphlet bore the follow
| ing inscription:
| The great mugwump, Canto l. Pan Electric
| sale of government property to be followed by
| Parthenon congressional whitewash and the las
OF the d9g satcheP By I W bv Pc o. R9om
| Parthenon Heights, Bladensburg, Nd, 1880.
| A smile ran around as Mr.. Oates put the
| next question and received answer.
| Q-Was it Intended to be satirical?
| A-You might read it.
Several of the members here threw uI
| their hands in. an eloquent protest.
| 1t is the best evidence added Mr.. Ranney
| apparently enjoying Mr.. Oates discomfit-
| ure.
| knew of no legislation sought to be. pro
| cured to further his sons inventions. There
| was small matter, some bill in connection
with an underground wire, that Col. Young
| had spoken of. He said Mr.. Garland had
| been requested to endorse his application fol
an office. So had Senator Harris, and he hat
| written letter requesting his appointment
| to a position in the Department of Justice
He did not charge Mr.. Garland with his
| failure but felt disappointed.
| Mr.. Ranney then took the pamphlet put In
| evidence this morning and questioned tht
witness as to his personal knowledge OF the
| statements touching the institution of the
| government suit and Mr.. Van Benthuysen'
| connection with the same. Reference was
| Mau6 10 Ile StdteuenI III nc pdhphIoe. Sna
| Mr.. Van Benthuysen had become convinced
that the Interior Department might repor
| adversely, and that if he withdrew his ap
| plication and made a certain agreement, a
direct order from the Department of Justice
would be issued to bring the suit and thus
| forestall an adverse decision of the interior
| Department. Mr.. Ranney wished to know
| the ground for this statement
| Witness replied that it was probability.
| He believed Messrs. Van Benthuysen
| Young and Garland all understood perfectly
| we'll that the suit was to be brought in g
| short time.
The testimony of the witness closed at this
| point and the committee adjourned till to
| morrow.