!ar V ^,^/t^ T'V V, '■Mi^ " f^- r <^ -: hi i) '^yrs i V, 1 .:,*.■ S* .%\?«1 A.Sji^iA. ®i-! fyxMll IfttttojJSitg Jilrt:at:g THE GIFT OF 1i. 'hUi J^J9J4n kM/cs-. 12ij 3 1924 031 307 204 olin,anx Cornell University Library The original of tinis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924031307204 CHARGES FSEFEBSSS BT Mr. dA-Yid brooks, Late Sup't. of the Atlantic and Ohio felegraph Company, JAMES D. EE ID, SUP'T. HIS EEPLY, im^m TMHIilTTEE OF INVESTIGATION. PITTSBURGH: PBINTED BT W. S. HAVBN, OOENEE OF MAE^BT AND SBOOND STS. 1855. NOTE, I yield to a necessity in printing these proceedings, from which my personal feelings dissuade me and revolt. The wrong they exhibit, as intended me, has felt the bitter recoil of every desertion of truth. I would prefer the quiet endurance of the injuries heaped upon me, by one I have cherished these eiglit years but too kindly, to any public vindication, however triumphant. But I am, in part, at least, the representative of important interests, whose care is my duty. If the disparagement of my character has any tendency to render these suspiciously insecure, defence becomes a necessity I must not evade. In a ptu-suit requiring the highest integ- rity in those connected with it, the loss of personal reputation is an injury to all, especially so when lost by him who both by name and position superintends its operations, and gives character to its history and uses. Persuaded, moreover, that these charges had less in view the destruction of my personal reputation than, by that result, to dis- qualify me from suitably representing the tnie relations of the Atlan^ tic & Ohio Telegraph Company, now so much needed, I more readily yield to the otherwise unpleasant necessity to which duty seems to lead me. Denying, therefore, any desire of injury to my accuser, except as I jnay stamp his accusations with the falsehood which belongs to them, I leave these papers in the hands of those only whom they most con- cern. I have attended no meeting of the Board, or of either of the Committees appointed, and used no means of du-ect or indirect solici- tation, either to accomplish my return to my present duties, or to effect the result of this investigation, except so far as to read the answer to the charges against me, hereafter recorded. JAMES D. EEID. DAVID BROOKS VERSUS J^MES D. HEiD. At a meeting of the Directors of tbe Atlantic and Ohio Telegraph Company, held at their office in Philadelphia, Oct. 21, 1854, a Keport was received from the Stockholders' com- mittee, composed of Messrs. C. R. Keeney, R. C. Hale, and Wm. Heaton, in reference to the examination made by them of the annual Reports of the Treasurer and Superintendent. - This report had annexed thereto, but not- ^pt". ready, wl]i,^fley,er, the Company chooses to know its, own history and the|. bearing pf arrange- ments which, to my. pwn mind, are, deeply (QOijiii^fitpd. with j|t3 -fiiture prosperity. , , I disclaim in alj this. any disparagement of Messrs, Hale and Hcjaton. Deeply im^iJ^ed, as their minds eyidently were, with th,e,idea,j;hat great wrongs or isprjpjaSj fatbits had been commitj;^ chiefly through me, I cou],d,iBot expect, the cordiality, or the consideration which, under other, .circum- stances, wpuW have been due.tfl ,flie, but which I have pot claimed. Their report on the Superintendeut's,- statements respecting the business of the Company, I have. not yet ,se,en. I have taken this latitude in referring to matters ideeply hurtful to my own fcglings, because I believe it will ^ not^ be denied me under the circumstances. These things have a legitimate connection with your present investigation, inas- much as I hold that the assault on rqy integrity by qhai^'ges whiqh must have been knojpn.to the accuser tp be, false, were intended to impair my influence in the representation ;pf the affairs of the company, and to prevent . my election. It has succeeded so far as the former is concerned, failing only in the latter. My:§lection was pf, minor importan/ie. I came to Philadelphia on no such, errand. I asked no man for his vote. I maligned no one. Mr. Brooks elected me by the industrious malignity produced in part by my arrival, which -Kevealed to his former friends the ch^r^fiter of ,^s purposes. Qther^^ise he would have been your Q%er to-day, and these qbarges left to sleep until. another contest warmed them into, new. lij^p. Up to this hour I have used no effort , to , .hinder, the, progress of thes.Q ,atte,mpts upon my re,putatjpn, , £(nd no\r . I W^l i frankly and fully answer, seriatim, the accusations preferred against 2* 18 ide, leaving the merits of my reply to your own intelligent examination. To the first of these charges, viz : That I have used the revenues of the Company to purchase stock of the Harrisburg and Baltimore Telegraph line, I answer : The implication made by the accusation is, that this stock was purchased from your revenues for my personal use and possession. To a stranger it could have no other meani^. And this is the effect intended to be conveyed to the Board. Had Mr. Brooks intended to dispute the policy by which stock had been purchased by me as an officer ofthe Company for its use and pnrposes, other language would have been em- ployed. When it is known that the whole circumstances of the case were familiar to him, and almost to every man on the line at the time of the purchase complained of, the mode of presentment will be regarded by all who shall see it as only mali- cious. The purchase, if by that name it should be called, was a transaction openly done, never concealed, and' duly repre- sented by me to the meeting of Stockholders, in 1852, and to the Pittsburgh Directors before and immediately after it came into the possession ofthe Company. The occasion ofthe purchase was as follows : Sometime in 1849 or 1850, the Atlantic and Ohio Tele- graph Company leased the American Telegraph Company's line between Harrisburg and Baltimore for a term of years, to enable you to secure greater attention to that part of your business with the West. The business, as might have been expected, was at first inconsiderable, and I endeavored by every honorable means to increase it. We had secured a good location, an excellent and upright manager, Mr. J. H. Lar- combe, now of the Pennsylvania R. R. Go's, office, in Altoona, and endeavored to recommend the new connection by prompti- tude and attention. 19 Col. France, of Baltimore, had transacted his western iBusi' ness by the Western Telegraph Company, a rival line, in which I understood him to have been, to some considerable extent, a Stockholder. His business was large and uniform, and yielded a steady revenue to that Company of twelve or fifteen hundred dollars per annum. Col. France, iu fact,, nearly paid the whole expenses of the ofiSce of the Westerm Telegraph Company at Baltimore, and I had often expressed the desire to secure it, although I was unwilling to obtain it by underbidding, or by any dishonorable means. In the fall of 1850, however, an offer was made by Col'.. France to both Companies, to the following effect : " My busi- ness is worth one hundred dollars per month. I hold ten shares of stock of the American Telegraph Company. I will give my whole business to the Company who will purchase that stock at a valuation, I to-teceivo payment in telegraph, despatches, and my business to be continued exclusively by the line accepting this offer, after the payment of the stock."' To prove that such was the true nature of this transaction,. I ofier the following statement of Col. France to the committee.. COL. FRANCE'S STATEMENT. To Messrs. Berryhill, KoBnmir, and Wilson, Committee of the Atlantic 3; Ohio Tekgraph Go. Gentlemen : The circumstances relating to the sale of ten shares of stock of the American Telegraph Co. by me to your company, through Mr. Reid, your Superintendent, were these. Having the management of business which required the daily use of the Telegraph lines to the West, at a cost of about twelve hundred dollars per annum, I proposed to give my whole business to the line which would accept at a given price ten shares of stock I held in the Company named above, to be paid by the transmission of despatches, after which my business was to be continued exclusively by the Company,- accepting this offer. 20 Both the Western and your Company aecepted this offer, but I gave your Company the preference, and placed, my Stock with Mr. George C. Penniman, the Treasurer of the Company, subject to the orders of the Atlantic amd Ohio Tele- graph Company as soon as paid for as agreed. In the prosecution of my business the stock was duly paid for, and I continued to give your Company my whole business until your office in Baltimore was closed- RICHARD FRANCE. Baltimore, Md., Oct. 25, 1854. Witness to the signature of R. France — ^F. Moeris. In further confirmation of the facts already related, Mr. Penniman sends the following : " I have read the above statement by Col. R. France, of . this city, and know the facts therein stated to be correct. The stock was placed in my hands as stated, and so remained, until the nineteenth day of October, 1854, subject to the orders of any duly qualified officer of the Atlantic and Ohio Telegraph Company, when it was transferred to your President, whose receipt I have therefor. GEO. C. PENNIMAN, Treasurer American Tekgraph Go. Witness — J. B: P. Boulden. Baltimore, Md., Oct. 25, 1854. COPY OF RECEIPT. Philadelphia, Oct. 23, 1854. Geo. C. Penniman, Escl. Treasurer, &c., Baltimore. Dear Sir : I hereby acknowledge receipt of your favor of the 19th inst., enclosing ten shares stock of the American Telegraph Company, transferred to me as Presi- dent of the Atlantic and Ohio Telegraph Company. Your obedient servant, ALLIN ROBINETT, President A. Sf 0. Telegraph Co. 21 The following also, from Mr. Larcombe, the manager of the Baltimore office, wiU close the proof of an arrangement, which Mr. Brooks does not need to convince him, was honorably made and carried out, but for the more complete satisfaction of the committee. STATEMENT OF J. H. LARCOMBE. Altoona, Oct. 27, 1854. AtLiN KoBiNETT, Esq., Pres't. A. & 0. Telegraph Co. Dear Sir : The ten shares of stock of the American Telegraph Company, respecting which inquiry is made of me, were procured from Col. France, of Baltimore, in pursuance of a contract made with him by Mr. Beid, the terms of which were as appeared by the despatches respecting it, which I personally received and transmitted. 1. Col. France's exclusive business, which was equal to about one hundred dollars per month. 2. That the ten shares of stock at a valuation should be received as payment until his business covered that amount, the stock then to be transferred to Atlantic and Ohio Tele- graph Company. This agreement was faithfully carried out — Col. France giving his entire western business to your Company, until your office at Baltimore was closed, and the stock placed in the hands of Mr. Penniman, the Treasurer of the American Telegraph Company, for transfer to the Atlantic and Ohio Telegraph Company. Respectfully, J. H. LARCOMBE, Late Manager Baltimore Office. While the stock thus lay in Mr. Penniman's hands, four dividends were declared — three of thirty, and one of twenty- five dollars, for all of Y?hich, except the la?t, I have ^uly. 22 accounted for to the Company. The last dividend was paid to Mr. J. K. Mingle, the former Superintendent of the Western Telegraph Company; but I have no item in my records by which to show how it came to be collected by him, or whether it was paid over to you. Should any error be' found in rela- tion thereto, it can readily be corrected ; but Mr. Mingle's absence in the South prevents my examination of it. It was probably used in some of the settlements with the Western Telegraph Company, but never, to my knowledge, passed through my hands. I do not deem it necessary to say more in relation to this matter, than simply to give my reasons for accepting Col. France's oifer. 1. It gave us for five hundred dollars, paid in telegraphing, a thousand dollars worth of stock paying six per cent. 2. It secured to us a business, after the first five or six months, of a sufficient amount to nearly cover the entire expense of the office service at Baltimore. 3. It gave us a voice in the direction of the Line's affairs. By the good will occasioned by this arrangement at Baltimore, the same business is now given to the Company at Philadel- phia on a contract at one hundred and ten dollars per month. This last arrangement was made by Mr. C. T. Miller, your book-keeper, while the agent of Col. France states that Mr. Brooks came to him after the contract was closed, and told him that had he came to him, he would have had it done for one hundred dollars per month, or ten dollars less. STATEMENT OF JOSHXTA HANNA. To the Gommittee of Investigation of the A. ^ 0. Tel. Go. The arrangements made by Mr. Reid with Col. France, by which the AfJantio & Ohio Telegraph Com- pany became possessed of stock in the American Telegraph Company, and by which a b^iness yielding a considerable 23 revenue was secured in addition, was presented to Thomas Bakewell, Esq. and myself, at the time, and entered into with a distinct understanding, on our part, of its merits. The necessity of acting immediately in the case prevented its refer- ence to the Board, but the facts respecting it were duly reported at the annual meeting succeeding, by Mr. Eeid, and the pos- session of the stock, and how acquired, duly announced. JOSHUA HANNA. Pittsburgh, Nov. 2d, 1854 To the Second Charge, that I had taken advantage of my official position to tax the citizens of Westchester five hundred dollars for the right of connection with your Company, without accounting to you therefor, I answer : It has been well said by a member of the Board, that could this charge be sustained, I could not consistently remain con- nected with the Line. I add to such a statement, that were I not satisfied of its utter falsehood and baseness, I would never have accepted my recent election. Mr. Brooks knows as well as any man living, that I made no such trade of con- science for plunder, and the gentlemen then in your office knew distinctly the whole facts in the case, and which I now relate. Several requests had been made at different times, by gen tlemen from Westchester, that a telegraphic connection should be formed with that town. That the contract for the construc- tion of your line permitted such a connection of your wires, I did not entertain a doubt. Westchester was only a few miles from the route of our line, not over four from the nearest point. The intermediate points of connection were specified by the contract with the patentees to be Harrisburg, Pittsburgh, Wheeling, &c. The other intermediate connections were left discretionary. I regarded the town of Westchester as strictly 24 within the purview of this contraot. Had the Company assumed this right, the line would probably have been built under some distinct consideration, by the Atlantic and Ohio Telegraph Company. Your President, General Moorhead, objected. He did not deny the question of right, but refused to assent to anything which might farther complicate the relation of the Company with the Patentees. He assented, however, to my construction of the line as a distinct work, under an arrangement with Mr. Kendall in reference to the Patent. This I undertook to secure, and build the line on my own account. In undertaking this, however, I found another Kichmond in the field, in the person of Mr. J. H. Painter, who had made some progress in procuring subscriptions for the same purpose. T need not say here that I did not undertake to build a line of telegraph for the people of Westchester for the mere pleasure of doing so, or for any glory attending such an achievement. Of both such kinds of remuneration I had had a surfeit. My object in building the Westchester line was alike to meet the wishes of its citizens, and from them to receive a suitable ■ reward for my labor. When, therefore, Mr. Painter asked me to give the work to him, I declined, for the reason stated. I had no idea of the amount of profit to be made by the work, but I declined giving up the prospect of making any. Thereupon, Mr. Painter ■ made me an offer of five hundred dollars, less the cost of material furnished, to surrender my undertaking to him, which I, on the principle that a bird in the hand is worth two in the bush, and reflecting that there might be more in the hand than in the bush, accepted, pocket- ed, and spent. This is the simple truth in relation to the whole matter. In the letter of Mr. Painter, which follows, allusion is had to the securing a connection with your line in so close a con- 25 neotion with the giving up of the work of construction, as to need an explanation. The Westchester line is like no other side line in the United States. It commences in Westchester, but ends nowhfetis. That is, it ends at a point on your line where there is no town, and is connected directly with your wires by bringing two wires from Westchester, thus throwing Westchester into what is called, in telegraphic parlance, the main circuit. Could the right to so connect not be obtained, of course the line could not have been built. With such an explanation, an ingenuous mind can readily see the necessity for the qualifying phrase appearing as it does. Mr. Painter knew, as I did when I undertook the work, that unless the Atlantic and Ohio Telegraph Company gave per- mission to connect on the same terms as was usual with side lines elsewhere, neither he nor I could have dreamed of con> structing it. 1 had already received Mr. Moorhead's assent to such an equitable arrangement, which is embodied in the article by which the terms of connection are defined as de- livered to Mr. Painter. In that article there is no allusion to a cash consideration, but only to legitimate equivalents natural to such an agreement. If the people of Westchester were mulcted five hundred dollars for the advantages of a connection, how is it that a conveyance, was accepted in which no such consideration appears ? Are the people of .Westchester greener than all the world beside 1 Unfortunately, however, the yery necessity of the qualifying phrase referred to, is assumed as the argument by which gross corruption is proved. And by thus deciding, I am proved the veriest fool that ever lived, giving siwaj for nothing mj prospective profits, and materials which cost me money, to make my gift the more acctotable, while charging for that which was not mine to bestow ! 3 26 When, therefore, Mr. Painter, says : " I will give you five hundred dollars for surrendering the work to me, providing materials, &c., *' if the Atlantic and Ohio Telegraph Company will give a connection on the terms of the Columbia line," he said what he could not avoid saying, inasmuch as the one without the other was useless. Mr. Brooks himself, with a sagacity peculiar to his race, would scarcely even buy a mule without learning its powers of locomotion and wind, much less a line without a terminus, and the ability to give which de- pended upon another party. It is curious to note the date of the accusation thus made. In July, 1853, as I have before stated, I resigned my super- intendency. Mr. Brooks and I were then apparently as loving as brothers, and would have so continued, had my resignation been at once accepted. But the Board were un- willing to let me go, Dr. Pettit, than whom a clearer head never entered your Board, insisted upon my remaining ; and when I assured him I was bound to the step I had taken, told me that his wish was, that as soon as I could release myself from the south, he was for uniting the Presidency and Super- intendent in me. But I went away. My resignation was still unaccepted, a fact the strongest I can render of my acceptance with the Board. But with my departure commenced this charge, cautiously and ingeniously made, until in August, the month following, so irritated did Mr. Cummings, your Trea- surer, become with such serious charges against me, that he requested Mr. Painter to give him the facts of the case, and, as I have reason to believe, wrote also to the President of the Company to learn his views of my integrity. All this occurred wbile I was in the far South, unconscious of any of the opera- tions then at work. 27 ME. PAINTER'S STATEMENT. Philaddphia, Aug. 9, 1853. A. B. CuMMiNQs, Esq. Dear Sir : From some intimations and questions that have been made known to lue, I am led to believe that a wrong impression, exists in relation to certain monies paid by me to J. D. Reid, Esq., your Superintendent. la the summer of 1851, I had an interview with Mr. Held upon the subject of oontieoting the borough of Westohostor with the Atlantic and Ohio line of Telegraph. Ho remarked upon this occasion, that he had had in contemplation such a line himself, and had received applications of a similar nature from other parties. After this, in order to obtain the work for myself, I agreed, in consideration that he would give up tlio work of construction to me, aud let me erect the lino, supply certain materials, &c., and if the Atlantic and Ohio Company would secure to mo the terms of connection granted to the Columbia line, I would pay him the sum of five hundred dollars. There was no idea expressed or understood that tho money thus paid or any part thereof was due to the Atlantic and Ohio Telegraph Company, but only to himself for surrendering to mo tho work of con- struction, and his prospective profits therein, as already stated. The article guaranteeing the connection to myself and asso- ciates wa ' executed by the President of the Company, speci- fying, as I believe, the same terms given to the Columbia lino, and commonly granted to short side lines like ntine, giving each line the right to retain, under certain restrictions, the tariff collected to go over both. The five hundred dolWs was paid to Mr. Reid in the pre- sence of all the occupants of the office. 28 I regret that any misunderstanding should exist in relation thereto, as the whole trausaotion was public, open, and honor- (ible. Most respectfully. Tours, &o. J. H. PAINTER. It is a source of satisfaction to me to find that the truth has been so clearly stated by a. gentleman who bad iw motive to make it lean in my favor, but the love of truth, done too in my absence and without my knowledge. To this is added the letter of General Moorhead, your for- mer President, which, though expresang sentiments towards me of the most genuine confidence and esteem, the result of a long intimate and personal knowledge of me, and worded in language of ebaracteristio warmth, I am compelled to use in elucidating this matter : Pittsburgh, Oct. 25, 1854. Allin Robinetx, Esq , President, &c. Dear Sir :, With regard to the construction of the Westchester line, my recollection is not now very dis- tinct. This, however, I do remember, that Mr. Reid informed me he was going to erect it under contract with the people of Westchester, and that he would arrange with the patentees about the right. I was very earefUl that we, as a company, should not go beyond the letter of our O'Reilly contract, but could see no objection to Mr. Reid doing it on his own account, and was glad that he should make something out of bis skill and capa- city as a telegrapher and constructor of lines. I also agreed that the line should connect with ours, on the same terms of other side lines. I learned afterwards that another party bad the construction of the Hue vx eoAtemplation, aud had given Mr, Reid five hundred 29 dollars to relinquish to him all his arrangements with regard to it, which he informed me he had done. I supposed then, and believe now, that this was a matter of contract between Keid and Painter, and cannot, for the life of me, see wTiat the Atlantic and Ohio Telegraph Company have to do with it. Mr. Beid, I knew, had involved himself in h;s untiring efforts to procure Western and Southern connections to make our line productive, and if he could turn his know ledge and skill m his profession to account, I was pleased to learn it, and hope he has, as I think he is, entitled to the good wishes of his numerous friends. ' KespectfuUy yours, J. K. MOOKHEAD. If these statements cannot convince the Board of the purity of my course in this affair, nothing that I can add to them will be more successful. The application for the Patent I did not make, presuming that Mr. Painter would give that his suitable attention, his offer making my application unnecessary. To the TniKD Charsb, that I received two hundred and fifty dollars from the citizens of Shippensburg for opening an office there, without accounting therefor to the Company, I answer: Nothing can be more outrageous than a charge like this, knowing as Mr. Brooks does all the facts in the,c»se. The line between Harrisburg and Chambersburg had be- come much decayed, needed considerable repair, and, at least in part, to be rebuilt. Mr. Brooks was sent by me along the route to inspect it, and also to see upon what terms a contract for poles could be procured. This he did, and duly reported. I was unwilling to make a large contract, but wrote to Mr. Brooks, that if a contract could be made, by which poles could be paid for at the rate of fifty dollars per month, they might be secured at the prices named. 3* 30 Instead of this, howeyer, a contract ^as made without thp provision for payment, contemplated by me, as follows : 1016 poles at 62| cents, . - $635.00 25 long pplee «it $1.12^ cents, - - 28.12 Total, - - - $663.12 These pplps had lain some time unpaid ioi^, when I directed Mr. Jackson Duncan, pf Pittsburgh, to propQse to the people^ of Shippensbqrg to ppen ap office ioij; their use, provided they iroald subscribe the sum of five huiidred doUai? to secure i^. This sum could not be obtained, aitd, on reference to me, two hundred and fifty dollars y^ere accepted and paid for that object. My purpose in d,oing this was to provide for the pay- ment of the poles. Mr. Brooks knew the arrangement so ^ell, that he claimed the credit of haying made it himself, and for the object as contemplated by me, but aligning as hia reason, that he wished to screen me from the censure of the Board for making so large a purchase. In the meantime, I went South, leavii^ the matter in Mr. Duncan's hands, who made final arrangements for the payment of the poles, for tlje delay of which a bonus pf twenty dollars was to be granted- ME. DUNCAN'S STATEMENT. To Messrs, Robineti, Wilson, and Bekeyhill, Committee, S^c. This certifies, that under orders from Jam^isf D. Keid, Esq., Superint;endeftt of your Company, I opened a,n office in the fall of 1852, at Shippensburg, after the pay- ment to me of two hun,dred and fifty dollars, as agreed upon between J. Bomberger, of that place, a,nd myself, and approved of by Mr. Reid, as the consideration therefor. I further cer- tify, that on the receipt of the money, I paid therefrom to Mr. 31 Kimmel, of Shippensburg, wth whom Mr. David Brooks had made a contract for poles, and which lay at Shippensburg, unpaid for, the sum of two hundred dollars on account of said contract. That I paid the. further sum therefrom of fifty dollars for machinery, &c., purchased by me for the Shippens- burg office, from Clark & Co. and others, of PhHadelphia and Shippensburg. It having been stated to me that the whole or a part of this money was received by Mr. Reid, I hereby deny the same, the whole amount having be^n received by me, and used in the manner I have before stated. Witness my hand and seal, at Pittsburgh, this 23d day of October, 1854. JACKSON DUNCAN. City of Pittsburgh, ss. Personally appeared before me, an Alderman in and for said city, Jackson Duncan, who being duly sworn, does depose and say, that the foregoing is a just and true statement, and correct account of money received and ex- pended, at the times and places, and for the purposes set forth. JACKSON DUNCAN- Sworn &c., this 23d day of October, A- D. 1854. Thomas Steele, Aldsrmcm. STATEMENT OF J. BOMBEBGER, ESQ. Shippenshurg, Oct. 25, 1854. To THE PbBSIBENT OP THE AtI-AIITIC AND OhiO TbLEGEAPH CoMPiiNY. Dear Sir : I will endeavor to comply with your request of this d^te, respecting the opening of the Telegraph Office in this place. On the ist of December, 1852, Mr- Jackson Duncan 32 opened an office for me in this place, for which I paid him the sum of two hundred and fifty dollars, being the amount in full, for opening the said office. The following is a correct copy of the receipt which I hold from Mr. Duncan. •■* Shippenshurg, Dec. '2, 1852. " Keceived from J. Bomberger the sum of two hundred and fifty dollars in full, for opening Telegraph Office in Shippens- burg. Jackson Duncan." Very respectfully yours, J. BOMBERGEK. I can prove, if necessary, that at the time this transaction took place, Mr. Brooks was in Shippensburg, and occupied the same bedroom with Mr. Duncan, and knew how the money was appropriated. I have the evidence of Clark & Son, of Philadelphia, also, that Mr. Duncan paid the money to thetn for machinery, in the presence of, and accompanied by, Mr. Brooks. I exhibit also the accounts of the Company, show- ing the items of the contract for poles contracted for by Mr. Brooks; with items of machinery, labor, &c, , amounting in all to - - . - - $776.16. Cash paid by the Atlantic and Ohio Telegraph Company, Nov. 16, 1852, - $200.00 " " " Mar. 28, 1853, - 200.00 " ' " " Sep.' 9, 1853, - 126.16 Subscription at Shippensburg, - . 250.00 $776.16 It is difficult to conceive how such an accusation could be brought against me, unless its intention was to effect a tempo- rmy and injurious purpose. 33 To the FotJETH Charsb, that I sold the machinery of your Company to the State rail road officers, without accounting for the same, I answer ; There are only two offices opened for the convenience of the State officers, one at West Philadelphia, and one at Parkes- burg. In opening the first it was necessary to bnild over half a mile of new line with two wires from the Pairmount Bridge, the actual cost of which can be shown at any time by your Treasurer, who ordered the work done, as also for the opening of the office at Parkesburg. The bill presented to the Com- monwealth, was as follows : Commonwealth op Pennsylvania, To Atlantic and Ohio Telegraph Co. Dec. 1, 1851. To two instruments and fixtures for Telegraph Offices, one at West Philadelphia and one at Parkesburg, together with wire and poles, and setting same, from Pairmount Bridge to the West Philadelphia Office, .... $200.00 Received September 22d, 1852, of Joseph B. Baker, Superintendent of the Columbia and Philadelphia Railway, the above sum of two hundred dollars in full. A. B. CUMMINGS, For A. Sf 0. Telegraph Co. I certify the within to be a true copy of bill as paid to A. B. Cummings by the Commonwealth, per voucher 103, filed in Auditor General's Office, Harrisburg, by J. B. Baker, Superintendent. Settlement at Harrisburg, November 16th, 1852. Motive Power account. C. C. IHLING, Clerh, For J. B. BAKER, Superintendent. 34 I have not seen the distinct items composing the cost, but distinctly deny that the machinery of this Company was sold for either of these offices, or that I had any agency in the arrangements for opening them. To the FiJTH Charge, that I sold the machinery of this Company to the Pennsylvania Kail Road Company, I reply : The only machinery belonging to your Company used for such purpose was a register, porous cups, &c., for the rail road office at Mifflin, which was opened in March, 1851, by Mr. Brooks, and for the amount of which due credit will be found in my Superintendent's report for that month. The charge made by me against the Pennsylvania Eail Road Company was seventy-five dollars, which was intended to cover all expenses attending the opening of the office, ex- penses of Mr. Brooks, and cost of machinery. The usual charge for such service is one hundred dollars. The only other instruments provided by me, and which Mr. Brooks supposes, I presume, was your property, was a set derived by me, as an agent of the New Orleans and Ohio Telegraph Company, from the Hon. Amos Kendall, when the office of that company was closed by agreement at Now York. The machinery was almost entirely new, of excellent workman- ship, and equal to any now in use. This machinery was intended, after being put in the best order, for Altoona, but, without my knowledge, was exchanged in transitu at Harris- burg, and inferior machinery sent in its place. The other offices opened for the Pennsylvania Rail Road Company at that period were opened and provided under the directions of Mr. Jackson Duncan. I exhibit to you a full statement respecting all the work done by that gentleman, which, with full explanation as to the charges, I shall duly report to the Board of the Pennsylvania Rail Road Company, if desired. This charge, connected with au accusation of extortion by 85 me, from tho Pennsylvania Eail Koad Company, by Mr. Brooks, has been used to my disparagement -with the rail road company, which I regret, chiefly; from the possible injury to the good will which is necessary to the comfortable intercourse of parties so related as you and that company are. The charge will appear strange when it is known that I paid Mr. Brooks $233.00 from my own income to attend to duties similar to the opening of the MiiBin oflSce, three times as much as any imaginable profit can be shown from Mr. Duncan's arrange- ments, even assuming that the profits therefor accrued to me. ME. BROOKS' ACCOITNT FOR PRIVATE SERVICES. J. D. Reid, To David Brooks, Dt. Twenty-five dollars per month, as per letter dated Louisville, Jan. 6, 1852, from his salary, Jan. 1, 1852, to May, 18.52, four months, - - $100.00 As per letter dated New York, May 1, 1852, to Jan. 1, 1858, on which I was to draw two hun- dred from his private salary, eight months, at 6, - - .... 133.33 $238.33 Received payment,, D. BEOOKS. PMlaMphia, Feb. 1, 1853. It comes also with a bad grace from Mr. Brooks, who caused the rejection of an account of mine, for office wire, from the re- ports of the line during my absence, but which he has used himself in opening the offices of the rail road company, with- out liberty from its owner or the offer of payment. One charge of $100.00 for machinery purchased for the Mountain House, I disapproved of as improperly large, and only acquiesced in it, and to two other charges of $75.00 36 each for a like purpose, as intended, by the ■ profit thereon, to cover in part the destructioaof a large reel of wire, by the care- lessness of a rail road agent, which caused a loss of nearly two hundred dollars, as is well known, and of which the Superin- tendent of the railroad company, Mr. Houpt, was duly informed- This loss Mr. Brooks has stated was restored to me at Phila- delphia; but in this he utters an additional falsehood, no part of it having ever been paid to me, or to any one on my account. You will And a credit in the accounts of the company for the material used in opening the rail road office at Altoona. The only profits I can find in connection with the opening of five offices, and the section of several miles of line with four wires, at a season of the year so inclement as to seriously in- jure two of the men engaged in it, after a careful investigation of the statement kindly furnished me by Mr. Davis, chief clerk of the Pennsylvania Eail E.oad Company, and applying thereto the ordinary cost of articles, is $89.00. This was no work done by your company, or properly appearing in your accounts, no more than Mr. Brooks' accounts at Vera Cruz, or the salary of $233.00 I paid him from my own means, thus re- compensed by baseness almost too vile for belief, but done (Aiefly by one, not connected with you, under the engagement and pay of the Superintendent of the Pennsylvania Kail Road, and partly by Mr. Brooks, under my own ill-requited means. Even that inconsiderable profit would not have been charged, had it not been that Mr. Duncan supposed the rail road com- pany willing to permit such a remuneration, and because of the loss of the wire referred to. The accusation in itself is a base falsehood. To the Sixth Charge, that I permitted items connected with a contract made with me, payable in stock of the Com-, pany, for building the line from Lewistown to Hollidaysburg, to be paid by the Company, I answer : The nature of this arrangement is wholly misunderstood. It 37 must be evident to all familiar with the operation of companies conducted on principles of official responsibility and integrity, that no arrangement could be made between two officers for the prosecution of a work involving profit such as forms the usual consideration tif a contract. Officers so acting, would at once throw themselves liable to the suspicion of interested collusion, and supersede their proper responsibility to the com- pany, by what, to the public, must appear an interested part- nership and responsibility to each other. Although, therefore, the term "contract" has been applied to the Work now referred to, it was merely a limit imposed by the President irhich I agreed to respect, and to which I did my utmost to conform. The statement that I made a contract, the consideration of ■which was payable to me in the stock of the Company, is utterly without foundation. It was not even proposed that I should have to procure the means of construction, by the sale of stock. It was presumed that no difficulty would be found in having all the stock taken along the roa4, and that money would be always ready when heeded. The section between Lewistown and Huntingdon was given to Mr. John H. Eeed, of Chambersburg, and Mr. John Campbell, of Carlisle, who purchased all the poles, and per- formed, or employed, all the labor necesfsary to complete the work. Not a doUar connected with that section has been charged to the Company, properly embraced within the settle- ment made by them. Neither was any portion of the wire or insulators, or machinery there used, ever paid by you. Chambersburg, Nov. 1, 1854. To WHOM IT MAT CONCERN : The line of Telegraph between Lewistown and Huntingdon, was built by John Campbell and myself, under contract with James D. Keid, Superintendent of the A. 4 38 & 0. Telegraph Co. We received fall payment therefor, and paid all dehts incurred hy us, connected with that work, of which we had any knowledge. On account of the severity of the weather, the rocky character of the ground, scarcity of money, and difficulty in getting poles, we lost by our contract much of our time, but left no debts which we did not then, or have not since, personally paid. JOHN H. REED. Of the difficulty in forwarding that work, Mr. Brooks was well aware. It was done during a severe winter, over ground so rocky that holes could not have been dug without blasting, and without the provision of means expected. He knows, too, that I was forced to make arrangements for the sale of stock at a per centage, by which Gapt. Parmenter and others made the only money which that work inured to any one. And had he been anxious to have learned bow much my own profits were, I could have shown him that rather than materially disappojnt the wishes of the President, I bore not only this per centage myself, but bore the loss of a large reel of wire which cost me $195, in a personal settlement with the Messrs. Townsend, of New Jersey, destroyed by being thrown from a car down a high embankment into the canal. These were my reA'enues. Mr. Samuel A. Cook built the remaining twenty-eight miles, and for which I have his accounts in full. At the time of settlement he provided me with a list of the debts unpaid, to pay which I provided him with the .money. That settlement I supposed closed the work. In August, 1853, however, Mr. Brooks being then in full cry for the Superintendency, Mr. Cook, having been oflFended at an order supposed to emanate from me, by which he could no longer travel free on the rail road, became a willing instru- ment to aid my defamation. Accordingly he wrote, evidently 39 under the dictation of another, and referring to Mr. Brooks as his companion and prompter, a letter to Mr. Robinett, a gen- tleman unknown to him, who had made no inquiries of him justifying such a freedom, stating : 1 . That I had told him of a contract for building the line in question at $60 per mile, out of which I wanted to make money ! 2. That his salary was $1.50 per day. 3. That the line worked badly when finished. 4. That it was re-insulated at the Company's expense. The only it«m in this document worthy of attention is the last. T believe it true that the insulation of that section of the line was overhauled, and either in part or wholly renewed. This having been done some time after the construction accounts had all been closed and audited, was done at the Company's expense. Tiiere was nothing in the nature of the work, or its attendant circumstances or its absolute necessity, which seemed to impose on my own mind a duty to pay it from my own means. And there is nothing in its cost which should induce any anxiety to avoid such a responsibility, or the Company to be now irritated by it. If there are any bills cennected with the work limited by the President, improperly introduced into subsequent accounts, and which the Board deems properly payable by me, I shall be glad to know them. Considering that during the progress of all of this work I was absent in the extreme South, it would not be surprising if some irregularities had crept into the accounts which the keen eye of Mr. Brooks might detect, and use under circumstances like the present. I only ask that they be made known to me. I solemnly deny knowingly permitting their introduction into your accounts, if such in leality has been done. 40 To the Seventh Charge, that I have appropriated money derived from the Press of Pittsburgh, for the trans- missioa of despatches over your line, to my own use, I answer : This accusation refers to an arrangement in which I took no part, and which was the subject of examination by Messrs. Kobinett and Brooks, before I became aware of the circum- stances in the case. It has also been a subject of correspond- ence between Mr. Kobinett and the late President, with the result of which, so far as I am concerned, there exists, I am told, entire satisfaction. In securing an office for your Company in New York, we were placed by circumstances so peculiar, that a bonus of five hundred dollars had to be paid before possession could be obtained. That bonus I paid myself. The expenses at New York had been so large that I bore this unexpected addition to them, rather than expose the Company to a fresh burden. The following is the receipt therefor : "Keceived, New York, April 17, 1852, from James D, Keid, five hundred dollars, for my lease of office. No. 2, Wall street, for five years, exclusive of any rent on my part." A.. JOHNSON & CO." Mr. Duncan, the Superintendent of the P. C. & L. Tele- graph Company, knowing this, determined that the amount should be restored to me, and for this purpose directed the collections from the Press of Pittsburgh to be laid aside until the amount, less one hundred dollars, derived from the re-lease of the office, was restored to me. Thus the amount was gradually made up, was borne in part by both Companies, and the money used for my benefit. When, in May last, I returned from the South, all this had been done, and investigated, and without the slightest agency 41 of mine in the matter. The correctness of the motive in doing so, will not be doubted by any one acquainted with Mr. Duncan, while the mode, only, is irregular and incorrect. It was an act dictated by the heart of a generous minded man, unknown to me, and for a correct purpose, but for the resto- ration of an amount which I had discharged from my thoughts, and never intended to apply for. If the Board desire an in- vestigation of the number of such acts perpetrated by me in my anxiety for the lines' success, i shall try and refresh my mem- ory and present my account. At no time could such a settle- ment be more acceptable to me than now, when the rivers are dry, and the tinkle of gold so seldom heard. I have thus given all the explanation of which I am capable, and to which I invite your official scrutiny. My letter books, public and private, are at your service. . I will either swear or affirm. Every avenue of proof which I know of, or Mr. Brooks can surmise, or you may suggest, and which I may be able to open, you may order at your discretion. My confidential correspondence being in Mr. Brooks' care, placed there by the executors of the late Dr. Pettit, and having been circulated and read by him to various gentlemen in Harrisburg and Philadelphia, he will no doubt entrust to your care and perusal. I have only to say, in conclusion, that I shall not consent to retain my present position if there continue suspicion of my integrity : there being nothing in its emoluments or prospects of a pecuniary character to make it desirable. It will, there- fore, do me serious injury if you seek to palliate, from any motive, any act you deem wrong, much preferring, as I will, your direct censure to the concealment of any doubt or dissatisfaction, even from the kindest motives. JAMES D. REID. 42 JACKSON DUNCAN'S LETTER. Pittsburgh, Nov. 1. 1854. J. S. Beid, Esq. Dear Sir : I distinctly deny having ever given to Mr. Brooks, or any one else, any of your letters to me, except one in December, 1852. That letter was in reply to one of mine pleading with you to appoint Mr. Brooks to his old position in the Philadelphia office. This letter I received on the morning I left for Steubenville, where Mr. Brooks was. When I met him, I told him I had good news for him, reading him tho part of the letter referring to his appointment. We roomed together there, and at Shippensburg, when I went to get the subscripl»on and pay for the poles ; and at some other places. I know of no other way of his having access to these letters of yours to me in his possession, but by pilfering my pockets. I have only to say that they are not properly in any man's hands but my own. Yaurs, respectfully, JACKSON DUNCAN. 43 REPORT OF THE COMMITTEE. To the Board of Directors of the A. ^ 0. Telegraph Co. The Committee appointed to investigate the charges pre- ferred by David Brooks, the late Superintendent, against J. D. Keid, the present Superindendent, respectfully report: That after conference with Mr. Brooks, a meeting, with hia approbation was appointed, as appears by the despatches here- with submitted. Before the arrival of the time designated for meeting, the following letter was received from Mr. Brooks ; Harrisbwrg, Nov. 4, 1854. Messrs. Kobinett, Wilson, and Berryhill, Com. &c. Gentlemen : I decline appearing before you in support of the charges preferred against the former Superintendent, and in doing so will briefly state my reasons. A committee was appointed at the last annual Stockholders' meeting to investigate matters contained in my report as Superintendent of the A. & 0. Telegraph Co. Before this committee, certain information was given by others which led to some of the charges specified, for which I did not consider myself responsible. I called upon Mr. Heaton immediately prior to the report of the committee, and he agreed with me that the charges a]|pended to their report sho^»le dropped. I was surprised wlKn I found them presealprin my name, never having contemplated that I should b^Samed as one presenting charges for a formal investigsAibn. Under such circumstances I respectlilly decline appearing. Yours.'Sbc. DAVID BROOKS. u Mr. Brooks having thus declined appearing in support of the charges, and this fact being made knoWn to Mr . Reid, he appeared voluntarily before the Committee, and made a clear and satisfactory defence to each of the accusations, in the order specified. It is true that when Mr. Brooks abandoned the charges, so far as your Committee was concerned, Mr. Eeid was left without accusation ; but these having been extensively circulated, privately and publicly, he deemed his character involved, and asked, as he was justly entitled, an opportunity of vindication. Tour Committee are happy to report that they considered this vindication complete, and that they have unimpaired confi- dence in the integrity and ability of Mr. Eeid, and believe that he has invariably discharged his daties as Superintendent with fidelity to the Company. All of which is respectfully submitted. J. H. BERRYHILL, ALLIN ROBINETT, A. C. WILSON, Committee. *»■„ 'P ■k-4 &ii ^^mimm^mfl "•X»^i m i^s 't'M' Mh' -if^^ '>' J".