New-York tribune. [volume], August 19, 1913, Page 4, Image 4

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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DE?UES M'DEIO??
WJKEDH A1
McMichael Says He Was Offered
Place if He Would "Stick
By" Illinois Member.
ATTORNEY DISPUTES STORY
House Committee Hears More
Unsatisfactory Testimony
About the "Pawnbrokers'
Lobby" in Washington.
lYmm Th? Tribun? Bar?au ?
V ashlntrtnn. Aug '?^. Heaping further
Charges on th?- head of Repre?cntative
McDermott, of Illinois. nn.e his clone
friend I. M McMichael. formally ??hie?'
pace tg the ll" ?se. told the House lobhv
Investigating committse texlsy that Mr.
McDermott had ?promised him a .1??h under
the District government "If he would s;i?k
by him." Thla .?"i.. McMichael testified.
was to be obtained Indirectly through the
American Federation of Labor, who?;?
counsel challenged the use of the federa?
tion s name in Buch connection.
1 e House committee also heard further
unsnti?fsctor>- testimony regirding the al?
leged "pswnbrokere' lobby" In Washing?
ton, of Which, McMichael said. M?-Dermott
claimed to ha\e been a beneficiary. ISSSC
rieldenhelmer, b pawnbroker, testlfled
thet he contributed to a fund Of approxi?
mately p\bst to encage SttOtneyS to fight
the "loan shark" bill In (he SIM congr?-.??,
but Meldenheimir could only explain the
r.\r?ndlture of lest t;?a:; .?. tit*
McMlehssI said that after Mr. McDer?
?nott'B brothei ln-law had repeatedlv
urg?d him to "get together wrth the con
gressrr.an" McDermott hlmaSlf said
M.?'. yea know i ommlealoner Btddons
w?s a*?ociated afl a law partner With
Mr. Raiston. who la counsel for th??
Amerlcen Federation of Labor, i want
t?> stand good with the federation, and if
you help me ] will se- that v?>u get a .1ol->
with the District government under Com?
mlssioner sieKions."
Mi Michael and Jantes Kssby^dmlth, at?
torney oft McDermott, sparred constantly
durlnf the cross-examination, but the,
witness relterstsd hla chargea thsl m<
Dermoti w;is friendly with Martin M
MulhSlI and that the Illinois member had
admitted receiving t'.'fO from the "pawn
i rok-rs' lobby."
Mr Hetdsnhslmer t?stir?e<i mat he loft
everything to elrorge D. H-irning. an
pawnbroker, shoes testimony la
eaorly awaited by the committee. Hom?
ing, --aid Heldenkelmer, collected th<
money to pay lawyers to reprtaenl the
pSWnbrokera when the -loan Bhsrk" '
legielsttos was pending. Hsidenhelmer ;
sn ?I Only tire? contribut-?!. He gave
fi loo, represen ting forty per cent of the
t ts!. and for thla be as?ke?l no account?
ing
' We pe '1 "i?- law firm X?A and anoth- r
f- .: H.9B0,' sani Hetdenherimer. ''We
Spent sbOUl $'?"H for incidental expenses."
"Y\ hat became of the balance; that
lea\es almost half unaccounted for" de?
mande?) Chairman Gr.irett.
"YOU'll have t?? ask Horning." replied
the witness "He said he had laid out
eo much, and I contributed my share. I
have confidence in n\y fellow pAwnhrok- ]
en and didn't want any aeeo.inting.'
DEMOCRATS IN A TANGLE I
Fail to Straighten Out Alabama |
Senatorship Trouble.
[From Tha Trfll ma Boras? i
Washington, auk i? Efforts ot the [
D-?riv>crat!e leaders, In the Senat? lu ?
?Straighten oui the tangle |n th? Alabama
Penstorahlp situation were unavailing to
dsy Senator Bankhead decided not to
present the CredenUsls Of Representative
< leyten, who was appointed by Governor
O'Neal, and In the mean time some of the
Southern Senators were trying to c?-n
vlnee then colleagues that the appoint?
ment was \a!!d.
Inilications at the close of the day were
that a majority of the Demoeiats un?
aet ill of the opinion that Mr. Clsyton
could not be seated. The problem la vex?
ing the party l??ad<is. So long as Mi
ClsytOS and the 'Governor of Alabama
Inaist that the appointment la valid th*;?
there?, will be a deadlock and the Demo?
crats In the Fenat? Brill he without the
Alabama vote, which thev hadly need.
SEEKS RELIEF FOR BALKANS.
Washington. Aug lt.- Immediate need
for relief in the Balkan peninsula was re?
ported to-day by the American Red I roas.
In an appeal th? Red Or.ss said the re?
sources of the countries which have been
engaged In war are inadequate tO deal
with the serious emergency that has
arisen lately.
KING GEORGE TO VISIT ITALY.
' g] ' ?Me m The Trlhun?. 1
Rome, Aug. I"? From well Informed
sources It was stated this moaning that
King 0?orge and yueen Mary of England
will pa> a vlalt next fall t<> the sort reigns
Of Italy. In Rom? '
MB LOCK HOHNS
OVER SUGAR SCHEDULE
Debate Likely to Last Several
Days and Final Tariff Vote
Stil! Far Away.
BRISTOW ATTACKS METHOD
Kan8an Declares Aidrich at
Height of Power Never Used
Such Outrageous Means
as Democrats Adopted.
[l-'ri.m Th? Tnlun* Hureau I
Washington, Aug ut? with the prospect
that a fl'ial vote on th? tariff is as far
away as ever, it'i?ubinans and D?mo?
crate In the Senate locked horns to-day
over the scuger schedule ami brought
erorh on th? mensure te a standstill, it
is probable that the sugar problem **"'"
be ?i? i.?it, d s> verel ?lay?.
geoetors on hi.th sides are becoming dis?
consoiste over tbe slow progress of the
bill, with currency legislation looming up
behind it The taritT bill eras pPSBSd by
the House "i. Mey I, three months ami
I ?. days ago, snd at the rate the scbed
ules art non b ing disposed of the tmai
\o?, cen very easily be delayed for two
or three montl s longer.
The methods of the D?mocratie !?-ao>rs
weie bitterly attacked by Senator Urli
t??\?. of Kansas, tn-day.
Ssnetor Bristow proposed smendssents
to-day providing for a graduel reduction
of ths tariff on refined sugar until it would
reecb $1 M a hundred pounds In lfll The
genstor assert?, thai the American sugar
Refining Company, which several years
ago start? il cut to acquire the best smear
fa ?tori ? B, sbsndoned the plan because
"they found it would be cheeper and
easier to destroy this Industry through
fiee sugar than to contiol it bj purchas?
of stock."
Senator William All.n Smith, support
Ing the Bristouf amendments, declared:
? i venture the assertion that the Ameri?
can sugar Refining Compeny, noi am of
it?? nvMieis, has not purcbaaed any beet
sugar st?iik sin? ?? the Democratic party
?.ame Into power. aa?l will not buy an\
until you ha\e passed your bill and your
three year? of BtrsngulstiOn have ??fi?e
euted the beet trusl men and tremen?
dously reduced the p/lce of their Stock
"If the industry is going to be ruined."
aaked Senator William?:, "wh; should th??
BtOCh bS bought, then :
"Bi?(?u.'. the Democrats' lease of I
power.'' replied Benatoi *?mith. "is but
temporary, and there later Drill be o re
h. tmn."
"If this party's lease Of power is tem?
porary." Senator Williams replied, -wh
picture all this despair? Why tt-t p.?--?
th? bill, turn the Democrats out re-estab?
Hah your lines and ???> ahead""
The amendment of the j-enat,- Finance j
? lotnmlttec to th. 11 ? %* - t, ? ? i i?.
which would make the proposed retei
eflfectlv* beginning March I, lilt, but not
affecting the pr???ision for free sugar *<n I
_Mg e as appro? ed.
BRYAN LECTURES TO GOON
No Thought of Abandoning the '
Platform. Says Secretary.
Washington. Aug II Secretary Bryan
made this formal statement t .-da ar" 11
plans for his leiti.r* tOUffl
"Ther* has nol been the ihgl I
?hange in my plans and i have n,.
thought of abandoning lecturing I I I
pOCl To lecture lust ?ii? I said I u
and for the reason? that I gave, T take
n foi granted that i will have a chai I
to tak- ', .?t BI ''her official?,
have and during m? vacation I expect
to lecture as m; need? may require.
"The only reoeon why my lecture dates
h?-e been csnoelled during th* las? three
werk* Is be<_uf?e I have felt that I should
remain here owing to the work that the
department has at hand Rut these con?
ditions will not continue Always. When
the time ?-ornes ?"or me to take ?nv vaca?
ron I ??hall utilize so murh ?if M hi t
may find necessary for lecturing.'
- o
ELLIS ISLAND UNDER FIRE
Caminetti to Investigate the
Immigrant Station.
Was hingt on. Aug 1*.?< 'ommlssioner
?M?nerai ("aminettl of the Immigration
Bureau will investigate conditions at th?.
Kill? Island Immigrant station. < om
pla'.nts against food will be taken up first
?'ommlajioner ? aminettl will organise a
board of Inveatlgatlon. composed of the
most experienced men In his bureau, and
thev will begin work aa soon an they can
teach New Vork. The men are In various
rarts of the Country, engaged ?n other
work, and their names will not be an?
nounced until It Is known whether they
?an leave their present investigations.
The beard Will be instructed to fully In?
vestigate conditions at Bills island under
which the government cares for Immi?
grants Other Immigration stations will
not be investigated
WESTEB8 UNION
_i, . ,?? ??
TELE0RAM
THIO. M. VAIL, PRESIDENT
^viyvu, Id-U?X /fi?i!_^?w^
4teiA?vr, U
d<??^np_4n-^v> (5H</4?!t_-4L t
cJtf?^^??^ fhtvy ?r^a/Y?c
THE WESTERN UNION TELEGRAPH COMPANY
Its Sentence in Case of P
roaster Arms Inad?quat
Says Secretary of Navy,
I Krirn The Tribune Bnr?>aa 1
V. a.?hin??tun. Aug. 18.-Severe critie
is made by the Pecretarj- of the NST*
the flmlinga of the tourt-marlUil e?f i
master Theodore J. Arms, who wa? in
jsuiity of Only one count and not g?j
on four others in connwtion with
scandal attending an alleged ronspir
between the chief commissary stewar?
the LtSUlSlSaa, ?ieurge T. Davis, and ?
tain contrai-tors
It was t?llele.1 that the government 1
defrauded out of "efi.OeVi, or iipwanie."
a result of the auepected conspira
which consisted of a system of sh
weights and MSSUree particularly In
psrchsse of pinesppleo 1'aymaster At
was foutid guilty of "culpable Inofllelsi
in the performsnce of duty" and was b
tenced to lose three numbers In hi* gra
"The seilten? e m thla ca?>f is ,-ntir
inadequate for the offence of which l\
master Anns wss found ?guilty by t
court," declares ?Secretary Daniels in 1
statement. Which Is made a part of t
record In the case. Continuing, Mr. Da
lela i?)?:
"Aocordina to the admissions of t
accused himself, the enliste?! men ??f t
LoUislsns were deprived of Qjusntttles
food t?> which thoj were snUtled by i.
during a period of more than rifte
MA> BE WOMAN'S SLAYE
Laborer Seen Near Scene (
Crime, New Witness Asserts
Whether Gregorio Giordano, husbend
the woman found df*?l In CoM Bprll
r,r?-?\e a wseh ago. will be ehsrgsd Wll
th? ?rime will Isrgel) depend upon test
mony of tw-> persons Thej s.iui >e>ie
?lay that they .ah positlvel) Identlf) ?
Hallan Mhorer Ihei me I ne ar the
Bhortl) af'er the ?rim?? was committed
?lordann, who Is a prisoner In Bellevu
Hospital, ha? i?eet. unable lo give
statement of his where i the Is*
??ti ?lav? A?ccordlng to the dstertlvi
e hari*- Muehlet .i i" i in, Hein
al N" l?fi V'ermlly? even ????? nssr th
?pot where the woman w.in killed
i.ef.'ie ahi was struck down.
A pooslble n?"ti\' f"' the murdei wa
fi'imd yesterday when several t- .
i?.hi that Mi - Uturetano had
Iremel) iesloua of hei husband. Sh< ma
1 i\ fnllowerd her hushsnd t.? tue lonel
r. ad where ehe was found, they bs d
DIGGS SECLUDES HIMSELF
Can't Be Found for Service o
Assault Warrant.
Sail Francisco \ it I? l? C Flam??;
B fi .end '?f Maun 1 I nag?, w^s fin? ?I 'l'"
in ?police co?t t i" da for
ien?in??r pltotogrsphei i ill.?' after?
noon after adjournment of ti ' Digga
Hs hite Blave" li ?.ii !.- appealed
A arsrranl foi Diggs, ehsrglna
end aworn to t?> another nan
? . btt, Bfl B BSqUel tO the ?-ame .iftr.is .
remained unserved te?dej Th re h no
foSI however, that Digg- hie? "
la thought to be secluding himself tosvol
further sotorlet* so fsi aa possible
The wive? of Diggi and I D-?
Inettl will nek' th? Btsnd M " I
foi the defence to-morrow. They will
be .isked to tell of their knowledge of
ti t relations between their husbands .en-:
Marsha V*,air'.r>gt'?n a-id LeOlS Nc
ARMY AND NAVY ORDERS.
I ?"r?-?m 'I Ye TrtSssa B ir?-?u I
Washington I is lal
ORDER! IS8UBD Thi following army
and nsvy orders ?have been Iseut i
A Y. M 1
Colonel H EX Ft T r t?e\i- ,
r.-.RF.nT F. WTt.l IB ? -???' art
iv,?. ||e.ni ? ?? -, ?? ml ?
for on? .. ,. apt
MnjAr HAIIP I li|k,l . ,.
?ral. t?a An ??? i I <?? ., ?.
Ko? Borlas?
Rl rer.riT n RATMONt? -p. ?f
?ngfnterei Walter Reed
? ''' .
? -i tain ?OH? p h ?'. i ?, i- , ?nedleal
DANIELS CENSURES COURT
I months, while the accused was ?-nrarma
?ar officer of that vessel. Admitting, as
represented bj in,, acensad, that be had
not the slightest knowledge that such
condition* existed in the general me** of
I ubi, h he was m ?harge. it rs evident that
I he failed absolutely In the discharge of
duties with which he had be?*n Intrusted
"There was BT***BilT reoorered from the
chief commissary steward Of the Louisi?
ana a sum of tn-mm\ which he had oh
tained at the SSPOnse of the general DM? |
?luring the period covered by the charve
In this cas?-. That frauds of such msgni?
tude could be perpetrated by an enlisted
man in the verj preSSnOS of the rommis
sary ofTiYer in ?harpe of his work, with?
out even arousing the latte.r's suspicions.
is difficult to eompre.lHind.
'"In s;.ite of the fact that the sejitence
in this ?as?- is totally inad?v|uate, six
members of the court, three of them offl
cera of the pay cirps. apparently regard
ed e\,-n this iight senten? e as too severe
and reoommended the _<?'used "to th_
?lein? n? \ of th.. reviewing authority.' The
Oflb ? rs who thus recommended clemency
bave placed themeehree on r_??ird u? in
f.ivor of ? onooning an offence which any
one. bavin, the real interests of the aer
\i, ? at beert must regard as calling for
severe punishment, I regret that the in
adequate sentence adjudged in this ?ab?
cannot be Increased, and In approving
mu h senten re i <". so only because it is
Impracticable to reconvene the court and
in order that thi accused may not who!!.
,,.? punt, hineilt
.',1 IM.lHlon Kort I/?vinwfift>i
, i ..r' i...?.,m
Captain IV1I.I.IAM It DORRES. oeeet ?r
iul*:\. 1?. Wahn Tie?.I .???'leriil Hospital,
..|., i, ROBERT E \\ VI.Ill) "?as? ?r
nil?-?! from i Kith to itBd Compeer, c?,?.?.
artillery
Piral Lieutenant DK WITT C GUI BHS Ittk
Infant i fror? Pert Lawias to Letterman
Oeaeral Hospital. l?r??i?iio of K?n rran
Flisl i.i.i.i?! ;.m pnii.li. P rONNOM.T.
from ('amp r??rr>. ?o pr?.r,>.r
?' MOM.
- ' ibthtni ? Major 1 HOM kt Q **H
p. Rv nuartermsstsr ? orp?. an? moatl
' ;>\\ Mtii \ Mil.I.At?. SU* Held
..ii? month frnin AugUS? 13
L ROORR <: POWEl.l .'..r? at
... | usual 21 ? , ???..'?'? 1$; ? ?r
MATTHEW \ REA80NER medical
?.. !?>. , -..ii ,!?,?. First i.t?ui??n-in
Wll ii\?.t ii rOWL.ES, Uta Cavalry, sat
?
Ueutenani ': V Dlt.LET, ietaeeed th?
liana
?? in it '' \? ' i i.i.? ?i OH d?> .
ill, petrol
? K'.i.i- , i: \ l.tCHTBN
BTEIN detached the Mar?, land, h'tn?
.. ,n order*
ade) ?; r. i> v\ If ?:?
? > ? lapolla; Ihe M i
I.nsic. H \ BAD : d< I ,? hed th.- Call
tornla If
' u IRMH dataehed th. Kei
foil, S stall Mea Toril
? it ei \ ? ". H E A BN B de>
* ll K Ship n? . ? ,r '. S?..
\ -
PATRH'K RARSFIEI.D. d?
. ? ?. ?.. ? the Kent
? ? ? ? ': M - H.x If. MH< .i.N
, i ?
MOVEMENTS ?OF VCARSHIPf Th??
following movements of naval \esseis
nave I ? sn r?
vt.r
v i -.resr. m Hun.?? ih?. Mlehl
?
V .. !. . ?? ?? ?,.??,?? ,r ,
? ' V ? ?.
? ?. ......
It Nanking. .s.n
?
... , .
...
? ? . -.'
'' ' , ' M- ? .
? ' ? ? ? rork ?
4 ? " ' V .rk ? ??.)
no Raleip - ?? . ?
S'ewport
for Nt ? | . -
* ? ? ?
t ?.
'
II ,
' ?
? .? ,-?????,.., A .
AGRICULTURAL SOCIETY ROBBED
r? Jewli ? - ? altur ?i and i-> lustrlal
orgs i ? ? ???
fund 'eft bj the late n?-i?i d? n ?
obbed of 11 ? ? ir pe writ ins
machines veoterde* m^-r ?? | ? , ..
? ? ? ? ? '?-'.,??, ??
??-,??' ... ?...,?,,
p. utile
HARMONY DISAPPEARS
IN CURRENCY CAUCUS
Democrats Come Close to Blows
in the Long Wrangle Over
Administration Bill.
RUMORS STIR UP STRIFE
President Insists There Must
Be No Compromise on the
Measure and No Agree?
ment Is Yet in Sight.
(Krnm Th* Trlhun?* fl.treau I
Washington, Auk 1? With ?the rre?l
?Ii?nt insisting that there will he no c??m
pr<imise on the ?administration currency
bill and with a wl.lenlng hrea?h h'-tween
the conservative ami radical winK.? of the
party, the House Democrat? aren! bsi k
Into their CUITSncy caucus to -day an.l ?II?
slpateil hopes nt an early and hsrmonleMM
agr??ement on the administration mCSSUTS.
A near fist fight hf-tween Representative
Donovan, of Connsctieiit, sad Represents*
litre Ragsdala of South Carolins, was in
dl'-attve of the general dlBeSfd.
Sharing at'er.tlon with the?* hostilities
'e-cre mysterious rumors, e\ Pl.ntlv drcu?
Istsd for polltl? .' 1 effect, regarding th?*
influences for and .?.gainst the hill. A
CUUasrestire as.semhled a few ?lose ad
Ui?>rs an?l whiapered that "Tammany
Hall b against the hlil " Then he glided
KOftly a ?ay, to let tin- atartllng Informa?
ll.?n spread and probably aid tl>i measure
While this byplay WSa In pH_TC8S
Represents tiros Henry. Callswsy ami
other in.-eurgcnts were prSCtlcatly ?-rnirg
mg that the l.lll had heen drafted or ap?
proved bj .i hanker?' clique before it? in
tro.iin'tiori. Mr Henry Inctdentally men?
tioned the name of John V. Kar?ell. of
? 'u'ago. who la far from popular In
r? xa.-e Chslrmsn ellas? Indignantly ?le
nlsd that an\ bsnksr had had snythlng
10 on with th? prensrstlon of the Mil, an.l
mM he Intended '?> snswer "aome of
sftttaeleoa mouthlngs" nin-n he
?leeed th- ?? n?sral de bete <?n the mrseurer
Th?* tbrssten?ed physical ?mounter lr
tWSea Mr DoOOTSa and Mr. I{a*,S'luIe
was th? culmination of ala hours <?f gusr?,
telling among the Democrats, who chaf<*?l
under the caucua restrslst ?m an eS?
trersely torrid ami sultry afternoon.
Mr. Dono\an Objected t?? th.- RsgSdsle
method of Interrupting speakers and se?
il the Insurgent South ? srollnlsn of
"breeklsg ??' ! ? can mm rule Hi<im |i
Ml Donaren "-ir- -.?-.I the frank opinion
that Mi RSdadsle's eondtJCt ?luring the
e caucug bad hf^n Inexcusable an?i
unsesmly, and he read his colleague a
?tinging le, tir?
Mr rtngsdale delated that he WOUM
not be le fure?<l b) Mi Donovsn an?l.
walking ?n? to the n ?*me? State member,
. ei * in? ompllme ntarj thli -
which were drowned oui In the upi
Mi i. - de mended to know
why the ??-.??.? chslrmsn, Mr Palmer.
? . i ,?i ewed Mr ?Donovsn t?> make ?such
?talen.e??t-. Mr Psimsr ?aid he had no
? ? f knowing ?hat a member purposed
11 -.i when he aasursd recogalttoo
a
TOREN'S BAIL FORFEITED.
Henr; I rsn? s "for?a who wsa arrest?
.-?i f..? ? ?i ictlsg :? lotterj In the shape
??f ? hsaebsll POOl did not appear ves
terda) ?h?ii hi? ?ase WAS ?-alle?! In th?
Tomba polie? courl Magistrate Barlow
declared his ISM bell forfeit
KILLED WHEN SCAFFOLD FELL.
BflWSrd Hildi rhmnd. a l-r|. k'aver.
twent) s!i ubi? old. living at irfiih
it reel snd ?Psrs avenue, whs kiiie.i ? e?
aftamexon ?h??ii ? scaffold ??
N'o ?,'i Ja? k.son *? enu*. The Bronx, fell
H? was w?''k''is ?et ih* third fl??or when a
! I? ?- f !??!? 1.? fall "? the ? tffold upsetting
the ?supporta
TtuS sample irvehu of the $ 1.00 Dinner served on the 5 and
* 6 P. M. trams to Philadelphia is indicative of thi
te service
A la carte meais of excellence served on the 7 8
and 11 A. M., 12 Noon and 1 P. M. trains
The pleasure of vour meal is enhanced by the smoothlv riding cars, the beautiful
scenery, the lack of smoke (hard coal used) and the courtesv of the attendants.
You will be pleased
with the every hour on the hour service of the New Jersey
Central to Philadelphia. Your watch is your time table, as
trains leave Every Hour on the Hour from 7 A. M. to to P. M.
and at midnight with sleepers from Liberty Street. Ten min?
utes before the hour from West 2 3rd Street.
TRY IT ONCE AND IT WILL BECOME A HABIT.
ADVERTISEMENT. _____
ADVERTISEMENT.
MIMIl RELATIONS HD I1TERESTS
01 TIE SELL SYSTEM AND HE PUBLIC
The suit brought by the T'nltec
States questioning the purchase of cer?
tain telephone properties In the north*
west, as well as the pending Interst.it*
Commerce Commission telephone in?
vestigation, have ?aimed many ir.
riuiries. * Without taking up anything
going to the merits of these pnxeeJ
Ings, It has seemed to us proper t.c
state general!; what has been our pol?
icy and puni?se In the conduct of our
business.
We have found, or thought that ?re
had. that our interests were best served
when UM puMk Interests were best
served; and we believe that such suc
eCM a* we have had has been bOCaUCO
?Mir business has been conducted un
these llnM,
V*."??? beli<*ve that our company has in
interest hh vital as that of the public
in the propor ndminintrntion o? the
problems Of ?tee ricdl tntenommur?.:
?atl.in. Th?? success and prosp?-?nty ??f
our company depend upon a solution
if these proMtOH ?hliH shall be sound
from l-oth tlM standpoint of the coin
pnny and Um public whi? h it serves.
Following OUf own best Judgment,
I ippMOOntOd I'.v th?* best obtainabl.
ad. Ue, we have endeavore?! to do what
would best serve the public Interest;
wherever possible our plans have bOOH
diOClOMd to UM pttblk In a'han? e. and
what has been done In carrying them
out hi?s been along ordinary b isin???.s
linca, with the implied, and gcncfnlly,
with the expressed approval, author?
ization or concent of the municipal and
.??tut?, authoritlea directly interested.
? lur effort has been not only to ob y
t?o- law. but to a?oi?l everything which
tmnht >?en have th?? appearance Of -in
alt? nipt at cva -ion.
< ?iir bualacca methods and policy, and
practically all of the detalla as to th?'
tranaaction <?f oar bustnoaa, are mat?
IMI of common knowledge and are,
and f?.r man. >?-ars have been, weil
known to the government We vs..i
willingly furnish th? government any
Additional information whi? h || la i IT
possession or under our control, ami
win cordially co?opcrata with it in ob?
taining such further information as it
HM] require. Every possible assist?
ai!'' will he gr.t-n by us t?i the courts
m their effort to determine arbether
" ir policy 1? or has been inimical 10
th?? public interest. Wt ?1? sir?? tll.tt
an>thinif wrong be corrected; we ?,?.!!
voluntarily rectify an; arront that
ma) be pointed oui to us, and. so f.ir
an It may be ?letcrmined that o;,r pol-!
M any aci under it Is against tne
publk Inter?*!, we will promptly con?
form t.? sii'h determination.
We bellsvs that if each of our <-x
ehanges were mad?* an Independent]
unit and It etch connecting line were
DUl under h separat?* control, th? .?f- j
feet upon^be telephone service of tue;
country would be a condition so lntol- |
? thai the publie would refuse toi
submit t.? it and arOUld Immedlatelv
le.-juire such physical connection nnd
?.?mmon control of these various unit.
?? would amaUam.it? them Into S s'n
ci?. ?) item. Ph; s|. al conn? < tion In t .?e
? a??' of telephone or telegraph d ?? >
not mean transfer "f meeaagee f t > ?m \
..H?, line to the other, it means su ii
i connection a? will permit one person
to have the actual possession of tn>?
particular line of communication fr?iru
one end of it to the other, and this ran
only be given efficient!' by exchange
?yatenu ?*n?l connecting lines under a
. emmon control; sn?l that Is what the
Fleil Swem Is.
In this connection, and f??r general
Information, we u.\l\ restate the policy
which controlled the building up of ih??
Re?| System, and our belief as to what
a telephone s\*tem should be. and what
sr? it? relation* to the public.
We believe in and were the first *o
advocate state or government control
?n<l regulation of public utilities, that
this control or regulation should be by
permanent quasi-Judicial bodies, acting
after thorough Investigation and gov?
erned by the equities of each case: and
that this control or regulation, beyond
re?iulrlng the greatest sfflClency and
economy, should not interfere with
management or operation. We believe
that these bodies, if they are to be
permanent, effective and of public
benefit, should be thorough!?, repre?
sentative, th?.' should be of auch
.har?? ter an?l Should so conduct th*ir
Investigations and deliberations as to
command such respect fr??m both the
public and the corporations that both
will without question accept their con?
clusion*.
We believe that the public would in
this way get all the advantages and
?void all the manifest disadvantages
of public f?? nershlp.
We believe that centers <>f business
and population exist for the conveni
OnOO of the public as a whole, and that
no su. li center can prOBOCr without
sufficient and efficient means of Inter
eouras with other cantera and trib'j
farv territories; that such means ?all
only be afforded by prosperous utility
and service companies and that fair
rates nie essential to proeperouO com?
panies. We do not believe that my
public either desires or can obtain. .i.?r
can any servi? e or utility furnish, per?
manent and I'ffi? lent service at l*??s
than cost, tin ludtng capital charges.
We believe that ultimately the publi.
fither directly or indirectly pays 'he
losses Involved In the efforts to furnish
?UCh service at less than Its fair cost,
either through the loss of the capital
involved, th?? loasen Incident to poor
nervio? or the necessary Increase In
charge? required to pay for duplication
nf capital.
We believe that the highest comm?r
rlal value of the teleph?ine service ?de?
pends on Its completeness?on the ex?
tent and comprehensiveness of tne
facilities for Intercommunication, not
_nly between Individuals but between
?enters of population, that no isolated
section can be considered Independent?
ly of any other section or of the whole;
that rates must be so adjusted a? |
make it possible to obtain the niaxi
mum develes, ment by making it p0tt\
ble for every one to he connected wh
will add to the value of the aystem
thus giving the greatest value t0 t;,,
greatest number; that the interd?
pendenee of the telephone service an,
the valu?? of complete and untvera1
intercommunication Justify and reqji.r
some services partly at the expense |
the whole for the benefit of the whole.
We bSHeva that this highest corn
menial value can only be attains! b?
on?- system under one common costra
anil that it ?annof bg given I
pendent systems unlegd they are oper,
atcd kinder agreements whl? h result \,
one common ?control and one commo.
Interest, In effect making them a ?Ing!?
ayatsm,
We l,i lleve that rate? should he? g,
adjust? ?1 as to afford the compsny suf.
fldenl revenue to pay BUCh wages amj
compensation as grill so. ure the most
efficient servi? e; to maintain the ver;
highest and most sdvsnced Btsndsidk
of plant and apparatus, t?? carry g*
such scientific an?1 "experimental re.
search and Inventions as to apparatus
and meth'ids as to insure* the highest
standards, and to carry to reserve and
depreciation such amounts as will en?
able the company at anv time to r?.
place old pla.it and old metho???, w|tB
new plant and new methods as fastas
they may be developed and found t?j
he to th?"- advantage of the servie*.
We bettSVS that in addition aucfe fair
"harges should be pai?l upon tha In.
ve?tmenf in plant as will enable ths
compsny at any time* to obtain money
necessary ,r> provide the plant r*.
rjiilr-id to meet the continuing demands
tt the public, and in order that wast?
and duplication of effort may be)
avoided an?i uniformity e.f purpose sad
EOmmotl control be enforced, that th??}
ihOUld be a centralized genera] admin?
istration '.n close rommnniia'ion with
snd having general authority nver the
whole <?n matten eommon to all or
matters of general policy.
We believe that any mirp! ?s heyond
ihat necssssry to antis Usa dividende aa
a fair bssla ?houid be used by ttie com?
pany f??r the benefit of the publie and
ihouM I"- inalienable for any other
purpose, and should be either Invaatad
In revenue-taming plant until n?*c?8
sar> t.i substitute plsnt which may be.
? >me inadsojuats rr ol should
le ussd to .make the servi?.- beepers?
better.
We believe that under proper jov.
prnmental control and regulsttoa th?
profits from promotion or ??,?-ration al?
lowed i?? be distributed she ild ? ?t p%
so large eg t?. warrant or tempi
pleta duplication of ; ? rgani
KStlon, with as ?. ; of its capi?
tal cnarges an I its org ' B, oper?
ating, maintename and dsprscistiel
expenses, and we ??or - ,-ve th.it
utilities giving at fair ra-.? an efl
md sufficiently comprehenetre anlver
?ai aarvlca should b? aiibjsct to
competition, not giving men ?servi ??.
Competition wht?'h igr.?>rea the obliga
tlon to furnish a complete and COapro
?ensive service is not ? omretitmn. la
not for the heneflt of the public in that
it does n?>t reach the whole public in?
terest.-?1
If. therefore. c?->m;>r?
with Its dual exchan^'
dual Mils for service s a prere i
to complete competition, government
control and regulation csnn ?' go han?i
In hand with til Ion.
We Pelieve that the r f tha
Hell System will be
public as fully in SCCOrd with these
?e, la rations i'onslstent adherence te
this poliC) haa given the I ? ? ?' IN
I'nited State* the bes*, moet < ompre
hensive an?! cheapest telephone ?
In th<> world and ma.!
snis the standard- of si
To i amo* a enj p*? ? ? i ?** inr
mlaapi rehension <?ti ?' th?
many misleading statements which
bava leen circulated sa to the gad
unn?' eaaary and ovsi a asi
?xcesalvo < harges of the }<? ? ;; System.
the following Btatlstlci are given, *M>
cept where stated, the Bgursa are fv
the? Reii gjrstsm; that is she Asn?*nc8n
Telephone and Telegraph, an 1 Its Asso
?lated Companies.
The entire Ben <5:. stem on Juna 30,
1918, had outstanding In the hands ot
?he public obllgationa CI e., note? onin
???.-counts, bond? and ?hares? t" the r*r
value of fTT'V'??"?<??
The book value of the? total tangir?!?
?esets. which Is consideraba ISM than
their replacement vali.e, am?' Intel t?)
fO^OtjO.-OOO Many appraisals of pWP1
r-rtv included In these assets have heel
made, and most of them umlrr th?* J!
rectlon of pubito authorities. In to
??ase has the \alue ns it stan?ls on th?
hooks failed to be sustained, and lit
most .??.?s It has been mi; largely
exceeded.
The total dividende and Irrerest psfl
luring the year 1912 amount? d 10 e^niy
_.1% on the average of its outstanding
??bligatlons. and t<> !??ss than .">'"- on the.
average value of its MSStS.
The sOtUSl ?ash which has been P*i"l'
Into the treasury of the American Tele?
phone un l Telegraph Compsny on ae
*ounl of the capital obllgationa n,1(
?nitstandlng amoun?s to $_2.?flni^?W
more tlian the pur of such out standes!
>bligati??ns.
Ths Associated Compsnles collected
from the public and pai?l ba ? -n
taxes over $10,000,000 during the fust
191? ,
Th? atsadlly increasing ne.-es-itle* et
the public not onlv for additional but
for new telephone ?service can only N
met bv n?*w conatructton. InvolvlM
-apital outlay. To meet these dent?e*
luring the six and o,,e-half years trota
10u7 t?. June. UUS. Inclusive the SV*
cresse in telephone plant was a.< MP
lows Toll line wire increased troft
|.4ar?,non mllea to 2.242.onn miles; *y
hange ?re Increased from rt.??M"*
miles to iS.OOfi.OllO; the number *\*Tm
?hange stations increased from -?' ,
m?ii to R.200.000; the number of ?tstlo?
of Independent companies ? ,',l,n^J*n
with the Hell System Increased tf0mf
M3.000 to 2.fi20.fiOO. The number ei
Independent companies conne? ted ST>
the Roll Svstem Is about 2\<*t\ Tn?
number of employees In the Pell ">^
t?nv not including the employed ,,
connected companies, on ?December a*
1012. was HI.?**?. ^
fining this same period the nurnew
?f shareholders of the American T'1
phone and Telegraph rompany, n?'? '
?"hiding either the sssoclated or rl.
nected ronipunlM, Increased fr?.ni? h^
<9st to about M.fHell About ???.
?hareholders hold less than 1?>' ?"?{S
each: ?,.%<V> shareholders hold ir?m,,'rl
to l.ilrnt shares each: rUT sharehoia?
hold from l.eMM? to ."..tMiel shares ???-.
while there are e.nly 1? ?'?Br* ,0'?J:
of Ti.CbX) shares or over in <n<>'r.,^
right. A majority of the sharchoiuf*
?re women.
\mcrican Telephone and Telegraph
Th EO. N. VAIL Preeident.