New-York tribune., 1886-02-23
THE PAN-ELECTRIC BUBBLE.
pocpRs SAYS IT WAS A GIFT ENTERPRISE.
FURTHER EXPOSURE OF THE coNsPihA"
BROKEN CoNTRACr-wHo ROGERS L.
rpy TELEGRAPH TO THE rRrBuNs.l

| WASHINGTON, FeD. ZZ.-lho "" =.
scheme was comprehensive one Inc PFo,no'0 ,n.,s
go, ,nrs,ood ire scope Garland, Harris and their
ors unmarked I'm # with their eyes wide open NOT
ono of them has denied this Mr. Garland anu Ooohei
Young both na, @ tried show however hat tlo
orise was one in which each participa'or oo'"'"' ,
! share by legitimate purchase, In legitimate way ~
.n ortqipallv interested were Senators Garlan' anu
| U,rrs congressman Young and Atkins, ex-Congres'-
man Joseph t. Johnston and j. Harris ROGERS 'Ho i
| vaptor To n TmgUNE correspondent Dr. Rogers eaiu
to-day. 81 was greatly surprised 10 find that oaSo'
! Young who had remained silent more 'na' @
| four months after the publication III
| TRIBUNE OF my statement respecting lho la"
| Electric stock should say to newspaper roPoi''i
that ne Garland and others paid for the STOCK s'.
Them Wny here is letter from Colonel Young Ia "hIeh
he Acknowledges the gft and declares that MS sr'
Will be lasting; ard here is another gushing iet'er ~
which he atWIbutes his election 10 congress IL 80 80
part to my efforts" An extract from the second e''or
Is as follows:
Your efforts IN my behalf not thrown away upon upon
your old friends in Fayette County @Hl l sh'H "i"'
/ remember It with gratitude and frleniShip
"Paid for" continued the Doctor d'rsFeY' '""1
only fragments of this Electric business nave YET
been given TO the public As THE TRBuNE started ths
inquiry and raised the whole rumpus, consider II only
lust although Democrat myself that you should nave
ali he igt you desire the subject particularly as al
| my associates court a thorough htvestsatloh'
'How was the company stsred"
"Ny SON J. IIarri, Rogers, had "a number OF lnVeh-
tons or some Of which he had toiled from early boy
hood While school In Europe.as early as l7o7'he TO
ceved letters from eminent scientist III LOh'oh COM
/ mendins MS work among them one from NJ f. Many
of BeIszc Park London. Ny sou had spent thousands
Of dollars upon his inventions and although he hhd ac-
ouired mo crate fortune, he was unwlng 20 FISK IL All
10 develop so vast field rapidly ana suggested oihV
stock company with broad and comprehensive chdr'cr
which could not be obtained under any general act o III
corportIon TO cover whole field OF his clectc ais
] MI. Ia nf | MT,
| clad 10 risk fom 500 to $1,000 each, when
f. the aggregate would furnish large amount oi money
to establish the first prospectus setforth vast aOo"
tories and secure learned electricians ana s"eu me
cbauics to develop my sons inventions ~ well as the
future possibilities OF electricity This prospectus was
sprrad before IA on table basis OF an agreement
with senator Harris, J. ID. C. Atkins and Casey Young
proposed to give each of them onetenth anu also tue
same amount thr,o others whom We Wl-ht c"oo'o'
and we then selected General Joseph T. Johnston ana
Senator Garland, but deferred the~Nh selection ABOUT
a month afierward, March 3. 1883, we formed JOINT
sock company, ANA drew M articles Of association al
tnc Now, ork Hotel in NcwYork and set forth III ID
/ that the broad charter | have descH'o' Sh""I'
/ be secured 'as soon "a possible EN'"'c'"'i
Jhr & H,,On OF Tennessee. Jay Goulds attorney for
Western railroads. aud Colonel Loone} tho natter ao
customed to operations a' both senator HATTIE anu
C,ouri Soung expressed It In letters rccomnendlnG
him. were admitted to the as,ociltion Lo'ury receI
ixth and paying me SlJOOuO IN stocks anu 'hg"S
iu to
sales made los him. Who does not see that ~ Nu'h All
.ptcr,ri.e we must necessarily have men OF National
rcpuntton to sell the stock to raise money Not ohy
these but o. her great buSucss men Lot ~ ponies Nolc
selected Here letter from G. T. Huntington VINO al
once con,prchendcd the vast enterprise ana sa" u
would take his whole time to run 1t successfully ana
/ for that reason declined / ha1 thus ch"'oh some ol
| our most eminent mcn. General Joseph T. John
sion. OF military fame, senator, Garland ana H"i'''
eminent lawyers; General Atkins. statesman ana
Mc-srs Brown and Looney FOR the reasons stated ana
/ Iot Coonc! Casey Young In because he had "A largo
acaua ntauce with spc,ulators who would probably DE-
b frat 10 bay stock President Cleveland sup'eguehty
auproycd my selections by calling nearly all the ram
Electric propc around him TO hop run the Governments
"The business Of obtaining tho charter now
ever was delayed. Here are several letters Hon
our associates promising expedition Ia securing H. Ont
the charter not yet been obtained Here are letters
from General Atkins nd Colonel Young dated In APRIL
l--I promising to push forward Ihc telephone now
ever as would yield the most rcddJ c1s4 was ch'r-
tired undera general Incorporation act. and all my
! friends but two drew back from the main enter
prise. Ny son and assisted In ooia'h'N Z
the telephone charter In Tennessee "ul 'o'on''
Ioou-y paid all the money FOR H. think about ~" o"r
associates, a, ncorporator>. as you said In iIiE Ib' L.
rot their millions Tn tho telephone hy reason oi the orE
nal grant The money collected wcntt" pay Tor SOME
e1urriment, the securing OF lines from NeWnofA 10
Washington, improvements. etc. They each paid ABOUT
$3.50 IN cash. assessed as the work went on NV son
paid ont four tines that amount besides -iV'hR
his constant services without compensation Tor more
than two years. Now Mr.. Young may call TINS "hoIe
business l.rchasc' II he likes, but business m'n VIII
are that we gvc 10 our associates aud 10 the corporation
the sxenhs for their and services 70 secure Tue
cbarter which latter has not been obtained to hs "a
Can t Donation, gift,' purchase, or what you hke
these are the facts"
THEIR EYES WIDE oPEN.
That the scope and limitation OF the original agree
mcut fully understood by the partners Is shown DS
the following extract from letter written by Genera
/ f. Johnston president the joint stock company OF
April Z, 1883:
DEAR SIR: Tho pamphlet for which you propose q
substitute was contra upon wch our @ ' ~ .
founded No one person. therefore, 'Hh P. ~ "'u ~
The association established its Once IN Mshnso ~
your pamphlet offices are proposed AS permanent
without authority, II seems 10 me-
Tho tecphone business. however only one par
OF the scheme which included also new telegraph sys
tenn to be based upon the Rogers Inventions Tho
charter for Pan.Llectrc Telegraph Company was Oh
ned and course. the original Pan-Electrc associates
were entitled to interest I'm H. In IA letter dated
August l. 1888. Congressman Young not only explains
the inner workings OF Jay GOuds mind and sets forth
his purposes but poetic phrase, deinoates Colonel
Looney's character and describes his own disposition
| lie writes
agree with you perfectly IN tho conclusion that we
| should "be up and doing" The present dis.
tlrbed condition Of the telcgrapnic world
presents peculiarly favorable opportunity
ut we should careful 10 do II In such way as would
start IL on solid far commencing To pubc
cn, ndcnc- j. concerned ft seems that might
make most favorable terms with tho Am Postal lele-
graph Co." II lIarrys repeating sys,
thak IS and can be put Into practical
OprratiOn A. r. r. Co. could by cheapenng tue cost
compete upon more equal with W. u. Then II the
Govt as it certainly Will, should establish postal
te,graphc system OF It's own, II would be IN btlei
condition to the Govt Its plant, improvements,
&c, other comptnyor II II should not soil tu
the Govt, but conclude to keep Its lines
operating, other company could success
A fully compete with It. think | see what
Gould proposes do. lie that the days
. of the W. ~. are numbered. that II must go
Hence his Indifference tu the strike which nj one tune
reached such formidable proportions lilo Ia therefore
switching telephone and every day engdsed