New-York tribune., 1886-06-09
SELLING OFFICIAL NEWS.
A LEAK IN THE INTERIOR DEPARTMENT.
THE POOL THAT WAS FORMED TO BREAK DOWN

THE POOL THAT WAS FORMED TO BREAK DOWN
BELL TELEPHONE STOCK.
For some time stories have been ahOat hero
that the Interior Department at Washington
thoroughly hOneycombed with the Pan Electric tee
phone schemes the Law Department itself These
stories have repeated in many quarters. but, with
out any positive information to back them have been
looked upon as nero rumors without foundation.
Within week two information into the posses
sion Of TRIBUNE reporter which fully confirms these
reports. While the question OF ordering Governments
suits was pending before Secretary Lamar persons
engaged in speculative enterprises several large cities
were approached by Chicago man, who proposed 10
form big syndicate for the purpose of buying selling
Bell telephone stock according Mr. Lamar's decision
should make that stock go up or down He said to
persons whose corporation he desired that the
ment had been made by which he and his friends in
Washington would know Just the terms OF tue decision
two three days before 1t announced. pool
made up of over million dollars for operaons in the
Bell stock. The members OF this pool were called
upon put mp their money have lately thought that
they sod olt and that other people reaped too
benefit OF the information Their suspicious caused them
to talk ts more freely than could be desired by tho
persons who at the fountain head OF the move
ment
broker who to put money into the pool told THs
TRIBUNE man few days that 1t had been formed by
A. Z. Davis OF Chicago Mr.. Davis is connected with
weekly newspaper of Chicago electrical mat
lie has been engagel in large speculative
enterprises. notably the Illinois land scrip affair He has
influence in Washington through John II. ODeriy,
William c. Goudy and other prominent Illinois Demo-
Gratis In 1854 he was connected with Chicago
publishing house which ma;e proposition 10 the
National Democratic COMMITTEES to Issue an Authorized
version of the lives OF Cleveland and Hendricks and
the Committee percentage OF the sales. The mOnoy
turned in from this source TO tho Committee
$4,000. The scheme worked through Oberly AMI
GOudy who got OF the ere lit for II with President
Cleveland and the Committee, AMI have since beea
ell with Fat Offices. The sketch OF Cleveland
prepared by Colonel Lamont, although another mans
name appeared the title page OF tas book ths
author Davis has been behind the at Wash
ingtOn. He is interested in large paint ors that
city which have obtained several Government contracts
under the present Administration Mr.. Davis has just
been in New York business. His story, told TO TIN
TRIBUNE reporter, Is Startling one The newspaper
had pulled at the threads Of Information which
into his hands until, when Mr.. Davis ap-
preached, the evidence was complete which fxei on
MIN the formation of this pool. What sIr. Davis SAID
was in substance as follows:
Ny connection with this matter simply that ofa
broker who had got pointer and proposed to utilize
1t. A man came to me in Washing gton, whose name
cannot now gIye you and told me that ne had arrange
ment. made for securing this information Before
would touch the natter made him give positive and
conclusive evidence that mi ,ht rely the lnorna
tion itself. He gave the most positive and
Ing proof that the Information would be authentic. Tha
decision OF Secretary Lamar was left in the hands OF ond
OF his assistants over nsht In a IoonI OF the nterioe
Department. The key of that room was handed to an
saw t to read the decision and ascertain the conclusions
formed by SECRETARY Lamar and the instructions which
ence 10 the institution OF the Government suits against
done was a southern mau ana NOT an ordinary
subordinate. | had nothing to do with any Of these
arrangements and only kno that tie Information
secured had 1t in my possession several days peiore
the decision rendered ard it every artcular
other that would think was reliable. We succeeded
IN S%nf S 70 e9 OF hs sG % magnitude w.
ourselves bocSet. There had been a rumor ahoat
knorked the Bell stock down seventeen points in ts
general market. Tnis fall only represented litta
bnik Of the Stock mmeaatey mads arrangements "a
tghten their hold on and by com6naton and concert
10 Boston he found that he could sell any quantity u
New York and Philadelphia. but it Would be impossible
70 dollar OF stock for actual delivery This
gone into camp agn to sell stock short, would have
been "oraered sure as fate and instead OF making the
would have lost every dollar We put in. Our intention
the first break TO 90 into the market with million
dollars and break it clear down Under the cIcum-
know anything about what gements were made in
the inter or Department to secure .hc information The
gains If We made any, and may have promised to
make dividend with bis own informant but OF that
know nothing.
In giving bis information Mr. Davis was sol citous
that his position should he clearly stated and his
language has been given nearly possible He prob
ably would have made no statement Whatever but tor
the Iact tnat tne reporter was aUeay III possession OK
all that wished put himself record
to his own position
Congressman A. A. Ranney OF Boston, whose pert-
inquiries during the Pan Electric investigation have
brought of the facts concerning that matter.
here Sunday and chatted for some time with
tue re about the phase OF the affair presented In
Mr. Davis's transactions. MI. Ranney said:
We hal several limitations that this sort o. thing
done ami at one time thought OF takng 1t up in the
committee but our Information that the particulars
of Secretary Lamars decision leaked out through
the mistress OF prominent man in Washington.
The uncoveriDg OF such thing would have made
sDcia scandal 1t was not wholly pertinent TO the
luton OF inquiry; let II The atmosphere Of
the Interior Department was As thoroughly permessd
with Pan Electric schemes as tho Law Department.
under Garland. Around Secretary Lamar there were
half dozen Southern men, all more less interested
directly indirectly IN the Pan Electric scheme.
Although they may said wcrd to secretary
Lamar the silent and all the more powerful influence Of
their relations with him exercised In bringing abone
tho institution Of the Government suits IL would noe
be surprising II they used this Information for stock
JObbng