Transcription of February 9, 1861 Mountain Democrat

San Francisco, Feb, 7, 1861.

Editors Democrat: Since my arrival in this State, after an absence of something over two years, I have noticed articles published in your paper under the head of editorial and over the name of M. R. Elstner containing so many misstatements and evidencing such a degree of ignorance upon the subject that I cannot forbear a word of explanation, not of defence.

Stockholders in this city who have read M. R. Elstner's so called report published in your issue Saturday last, pronounce it a weak effort, displaying an ignorance upon the subject that is truly refreshing, and only wonder is that he had not been sooner removed from the responsible office of Secretary. He has filled the place, almost continuously since the company was organized, and his own acknowledgement manifests such a degree of incompetency for the position that it is no wonder that the affairs of the company have gone at loose ends.

The President, who seems to have given him the "night mare", has evidently been "more sinned against then sinned."

Unsolicited by myself the Placerville and St. Joseph Overland Telegraph Company, about two years since, appointed me their agent in the East. Accompanying the resolution passed by the Board of Directors, was a letter of instructions, and the following is an exact copy of both documents now in my possession:

"Moved by Mr. Raymond, that A. W. Bee, be appointed a special agent of the company at the East to attend to the business of the company, and that the Secretary is hereby authorized to notify Mr. Bee of his appointment. Carried. P. H. Lovell, Sec'ry. December 17, 1858"

The letter of instructions was as follows:

"Office of P and H Telegraph Co. ,

Placerville, Dec 17th, 1858

A.W. Bee, New York City, Dear Sir: At a regular meeting of the Board of Directors of the P. and H. Telegraph Co., a resolution was passed appointing you the general Agent of the said Company, and to also authorize you to bring the interests of the Company before the Government, with a view to obtain assistance and to make such arrangements with any line having in view the construction of a line connecting with the Company you represent at Salt Lake City. You are also authorized to negotiate for material to construct the line, ship the same, effect insurances, & c; and all such business matters that will best promote the object desired, and report to the President and Secretary from time to time. Signed, F. A. Bee, Pres't.

P. H. Lovell, Sec,'ry."

I entered immediately upon my duties in good faith. I repaired to Washington and introduced a bill at the session of 1859, which was reported favorably upon the Senate Committee, but the amendments were of such a nature, that I advised Dr. Gwin to refer it over until the next session.

During the adjournment of Congress I put myself in communication with Mr. C. W. Field, Prof. Morse, Amos Kendall, Hiram Sibley, and many other leading Telegraph Men. I visited companies, in different States, made elaborate estimates of the cost of the line overland to the Pacific, probable revenue, examined routes, and when Congress again met, had so far convinced them of the advantages of such a line that they agreed to unite with us in the enterprise. A bill was introduced in January, 1860, and after great labor passed in June following.

A convention of delegates from all the six Nations of Telegraph Companies was held in Washington about this time, and another was called in New York immediately after the passage of the bill. The whole subject was referred to the Western Telegraph Co. to act in concert with myself in devising a plan to secure the contract. I went to Rochester with Mr. H. Sibley, President of the Co., and it was determined by the Board of Directors to bid at the maximum limit of the bill.

In August, 1860, I received a letter from the Company I represented, signed by F. A. Bee, President, M. R. Elstner, Secretary, and A. D. Park, Director authorizing me to bid for the contract in the name of the Company, but as no Bond accompanied it I concluded to accept a proposition made by Mr. Sibley to support the proposal to be made by his Company and share the benefits. We repaired to Washington with a proposal backed by $1,000,000 security, and remained there until the 21st of September, when the award was made by Mr. Cobb to Mr. Sibley. We immediately called a meeting at Rochester of interested parties, and there entered into a written agreement in regard to prosecuting the enterprise.

I was desirous of centralizing all the business of the Cal. Tel. Companies on this line; and it was agreed that Mr. J. H. Wade, a Director, should come out here and aid in bringing about an arrangement, and complete arrangements for building to Salt Lake. Negotiations are now going on to consolidate all the Telegraph Companies in this State which, if affected, will secure over $20,000 annually for ten years to the stockholders.

The publication of the statements of M. R. Elstner has imperiled the interests of every stockholder, and may snatch from their grasp the fruits of my two years' labors.

I cannot believe the Company will endorse his statements. I have never received a dollar from the Company; and here this immaculate M. R. Elstner advises the Company to repudiate me and any just compensation that may be due me! That is principle for you, with a vengeance!

If I had been as sharp as Mr. Elstner, in securing pay for my services, I might at this time be the owner of a number of shares of stock. I never had the power given me to sell stock of Company. I have made large purchases of wire at the East, and have always supposed that my acts as agent of the Company were fully endorsed by the Board of Directors.

Elstner states that Mr. A. D. Waldron was last year appointed agents at the East. He has never been heard of there to my knowledge.

If the representations of the "late Secretary" concerning the transactions of my brother, F. A. Bee, with the Company, are as wide of the mark as his reflections upon me, then his whole document is not worth the paper upon which it is printed.

I have reported progress to the President of the Company from time to time, and know how to make a final report when my mission is ended.

Yours, A. W. Bee


Editors Democrat: The letter of Mr. Chas M. Stebbins, President of the Missouri and Western Telegraph Company, published in the Sacramento Union of the 30th ult., gives some ideas of the movements and designs of our President while on his late visit to Washington City. It says, "Last winter F. A. Bee appeared in Washington City as the President of the Placerville and St. Joseph Telegraph Company, and assumed to have full authority to arrange all matters for his Company, and I for one understood him to say that his Board of Directors would sanction anything he might advise. So far as I known, telegraph managers on this side understood that he had full power to act for his Company, and bind it by contract in the same manner as myself and other managers were authorized by our respective companies to act."

Mr. Bee appeared in Washington City without the authority of the company of which he was President. He left the State on his own responsibility entirely. The Board of Directors never even made a suggestion encouraging his visit East. But on the contrary, when it was understood that he intended to go on to Washington on telegraph matter, members of the Board, on the outside, discussed the propriety of his going, and in their own minds disapproved of it, but as the company was in no way bound by his acts, and having no faith that he could accomplish anything either for the company or himself, took no notice of his intended visit further than to appoint Mr. Waldron their agent at Washington, who was then on his way there. I am under the impression that Mr. W. never received the notice of his appointment from the fact that the company never heard anything from him. Mr. Bee says, "that his Board of Directors would sanction anything he might advise." The Board would, in all probability, have sanctioned anything reasonable and just coming from Mr. Bee or from anyone else. The latter further says, "Mr. Bee wished the responsible companies here to transfer to him the building of the line from San Francisco to Salt Lake, and also all the subsidies and benefits that might accrue. When he had obtained these valuable privileges he intended, by his own avowal, to return to California and compel all the other telegraph companies there (and as it seems he was not authorized to act for his own company he may have intended to treat them in the same way,) to accept whatever terms of connection he choose to dictate to them."

Now here is a question that has been privately discussed among the members, of the company, whether Mr. Bee would return here and allow the benefits, if any there were, to go to the company, or whether he was to retain them for himself. Had he accomplished anything, would he have returned here and stated to the company that he had gone on his own responsibility and secured it for himself, and refused to take any allowances for services rendered and money spent while gone? Or would he have returned and done what he has already done, presented a bill of about $2,500 for his services and funds expended while in Washington? I understand that the present Board have allowed him about $2,000 of the bill. Will the Board examine the record and give their authority for so doing? More anon, Stockholder.