About 8:16 a.m. Tuesday, April 16, we published the following:
It is estimated cost of building and equipping Titanic was between $7,500,000 and $8,000,000. How much insurance was carried on her has not been officially announced, but is understood to have been about $5,000,000. Her cargo was worth $750,000. Insurance men estimate loss to International Mercantile Marine Co. will be somewhere around $3,000,000.
That information I received myself from one of the officials of the White Star Line, whose name I do not now recall. That has not much direct bearing.
SENATOR SMITH: I would like very much if we could identify the source of this information which came from the White Star. If you can think of the name of the man, I wish you would give it.
MR. FARRELL: I can easily find out who the man was. Of course, ours being a financial publication, the financial end was what we were primarily interested in, after the humanitarian end, and some of the morning papers had vague inferences as to the loss, and desiring to get something more definite, I myself went down to the White Star Line, early that morning, somewhere around 8 o'clock, or shortly thereafter, to see Mr. Franklin, but he was engaged in a conference at that time. I wanted to inquire concerning two particulars, first, as to the value of the vessel, and, second, as to the insurance; and another point I wanted to inquire about was as to why the information subsequently proved to be false had been given out at the White Star offices all day Monday, and on what authority he based that information. We will come to that later. I was referred at that time to the head of the insurance department, I believe, for this estimate on the cost of the Titanic and the amount of the insurance.
SENATOR SMITH: Who was he, do you recall?
MR. FARRELL: I do not recall his name, but I can find out his name and let you know.
SENATOR SMITH: I wish you would do so.
MR. FARRELL: I will make a note of that.
SENATOR SMITH: And also please let me have the names of the other persons you talked with.
MR. FARRELL: Yes, sir. I did not know, until I got your telegram yesterday, that you would want to go over the news of Tuesday, Wednesday, and Thursday, so that I have not identified that in so close detail as I did that of Monday. Of course it is really less important anyhow.
About 8:28 o'clock a.m., on the 16th of April, we published in the course of our regular news summary of the morning events this item concerning the Titanic:
Net money loss to International Mercantile Marine from sinking of Titanic, estimated $3,000,000. About 1,350 lives lost; around 900 saved.
That was based on general information which at that time had become public.
SENATOR SMITH: That was on Tuesday, the 16th?
MR. FARRELL: That was on Tuesday, the 16th.
SENATOR SMITH: At what hour?
MR. FARRELL: About 8:30 a.m. About 8:45 we published the following:
White Star Line has received wireless advices so far telling that the following passengers on the Titanic have been saved.
Then follows a partial list of those who were saved.
At 8:57 a.m. we published this:
Among those passengers who have not yet been heard from are Col. John Jacob Astor, Isidor Straus, George D. Widener, Maj. Archibald Butt, Benjamin Guggenheim, Charles M. Hayes, Francis D. Millett, Henry B. Harris, William T. Stead, John B. Thayer, and W. A. Roebling, 2d. Although early reports were that J. Bruce Ismay, president of International Mercantile Marine, had been saved, definite news has not yet been received confirming it.
We took the list of those we knew were aboard or had been booked to sail, and those reported to have been saved, and these persons had not yet been reported.
SENATOR SMITH: This was the only source of your information?
MR. FARRELL: Yes. Of course Wall Street was very much interested in the fate of all those men, so that we singled those out.
About 9:20 a.m., April 16, we published the following:
Cunard Line people say the Carpathia is expected at New York late Thursday night or Friday morning.
That was received from the Cunard Line offices by one of our reporters; I think from Mr. Stead. I am not sure about that, but it was from one of the Cunard people down there.
About 9:25 a.m. we published this:
JOHN B. THAYER AMONGST SURVIVORS. Philadelphia.
Wireless dispatch just received by family of John B. Thayer, vice president Pennsylvania Railroad, states Mr. Thayer, Mrs. Thayer and their son were saved, and are on board the Carpathia.
I suppose that came from the Philadelphia News Bureau, our Philadelphia correspondent. I am not positive on that.
SENATOR SMITH: Do you know from whom it came?
MR. FARRELL: I do not know. I am not positive. As I told you before, I have not had time to take up these sources of information for Tuesday and Wednesday.
About 9:30 a.m. on Tuesday we published this:
Titanic's lifeboat equipment, it is said, consisted of 16 lifeboats and 4 collapsible rafts, which could take care of but one out of every three aboard. Officials of bureau of inspection of steam vessels that it is customary for vessels to carry sufficient life­saving apparatus for but one­third of its complement and passenger list.
SENATOR SMITH: Where did you get this information?
MR. FARRELL: I do not know exactly where we got this, but it is a compilation which anyone in the office might have made, having no direct bearing on the disaster itself, and I rather think that it was prepared in the office.
Then about 9:40 a.m., we published this:
Police reserves have been called to handle the crowd which filled White Star Line offices.
Of course that was from some of our reporters down at the White Star offices. At 9:45 a.m. we published this:
All securities on the Titanic addressed to Wall Street and transfer offices of various American railroads and other corporations were necessarily insured. In order to effect this insurance in London a list must be made out, and this is certified by the notary public before the American consul. It is necessary, therefore, to secure a duplicate of this in order to obtain from companies concerned a reissue of securities. A bond must be filed for twice the amount involved, and there is the usual and legal delay for public notice by advertising in newspapers before new securities can be issued.
Proof of loss must be submitted and actual sinking of the Titanic is not necessarily conclusive. Registered mail from the steamer Oregon was picked up several days afterwards, and it is quite conceivable that responsible officers of the Titanic, knowing that vessel was sinking, endeavored to save the registered packages.
That was simply written up by one of our men who knew the usual procedure in such cases.
SENATOR SMITH: Without any definite information?
MR. FARRELL: Well, except his general knowledge of the procedure in such cases. About 9:56 a.m. we published this:
White Star officials this morning say first news they had directly yesterday was received after 6 p.m. They gave out to all inquirers the indirect information they had received in newspaper reports from various quarters and unofficial wireless dispatches said to have been received at Montreal, Halifax, and other places.
The news men took these reports from White Star office and believed them to be official, and White Star officials believed them to be authentic, although not directly received.
I got that message out from the White Star offices, as I mentioned a while ago. I went down there to find out why they had given out these dispatches and published them, which had subsequently proven to be false. I went to see Mr. Franklin, but he was held up in a conference, and I wanted to get at some one in authority as soon as I could, so that I was turned over to one of his assistants, and I asked him, "How is it that these dispatches were given? This information came from your office yesterday?" I said, "Did you receive that news?" He said, "No, the first definite news we received was after 6 o'clock last night, and directly after that we called up the newspapers and gave it out." I said, "Well our reporters were down here yesterday at the White Star Line offices all day." He said, "Well, that was not official. We had received that information from various sources, and we just gave it out."
SENATOR SMITH: You are now giving the conversation you had with him?
MR. FARRELL: Yes; that is approximately it.
SENATOR SMITH: And when you say "6 o'clock" you mean 6 o'clock; you do not mean­­
MR. FARRELL: To be exact, I think he said around 6:30.
SENATOR SMITH: Around 6:30?
MR. FARRELL: Yes. As I remember, he first said after 6 o'clock, and then I said, "What time is it?" He then said that it was around 6:30.
SENATOR SMITH: So that that declaration stands?
MR. FARRELL: Yes.
SENATOR SMITH: Of course, the importance of that declaration lies in the fact that at 7:51 that night a telegram was sent by the White Star office to Representative Hughes of West Virginia that everybody was saved. That is the reason why I was so anxious to have you fix the hour.
MR. FARRELL: Yes. I guess it has been pretty definitely established that they actually did receive the news between 6:20 and 6:30 Monday night.
SENATOR SMITH: This information that you give is direct and positive?
MR. FARRELL: Yes.
SENATOR SMITH: All right.
MR. FARRELL: About 10:20 a.m. on Tuesday we published this:
The Marconi office at 27 William Street received word from Cape Race station that communication has been had with the Virginian. They do not think that any of Titanic's passengers are aboard. Station at Sable Island has been in communication with Parisian and she has no passengers aboard.
That was received from the Marconi office by one of our reporters whom I sent over there. I do not remember just which one it was, now.
SENATOR SMITH: This was after 10 o'clock a.m.?
MR. FARRELL: It was approximately 10:20 a.m., I should say; some place around there.
We also at that time published the following:
CAPE RACE.
Early to­day a wireless was picked up from steamship Olympic, which confirmed the report that steamer Carpathia, with 866 survivors of Titanic, mostly women and children, is being rushed to New York. The message ends as follows:
"Grave fears are felt for safety of balance of passengers and crew."
I do not identify, for the moment, where that one came from. That is one that I did not have an opportunity to investigate thoroughly. It is innocuous, anyhow. About 10:30 a.m. on Tuesday we published the following:
Following are among names of second­class passengers reported saved.
Then follows another partial list from the list which the White Star office was receiving from the Cunard office.
Also we published the following:
Up to 10:30 members of the Astor family had received no word from Col. John Jacob Astor. The Guggenheim family was likewise without news from Benjamin Guggenheim.
At 10:40 a.m. we published this:
Cunard Line received following wireless from captain of Carpathia: "Am proceeding new York, unless otherwise ordered, after having consulted with Mr. Ismay and considering circumstances. With so much ice about, consider New York best. Large number of icebergs and 20 miles field ice."
Message is broken here.
Another message says: "Titanic struck iceberg Monday, 3 a.m., 41.46 north, 50.14 west. Carpathia picked up many passengers in boats. Will wire further particulars. Proceeding back to New York.
SENATOR SMITH: What is the hour of that first message?
MR. FARRELL: From the item's time, I should say it was about 10:37 or 10:38.
SENATOR SMITH: From whom was that received?
MR. FARRELL: The first one was from the Cunard Line. I had two or three reporters down there all day.
SENATOR SMITH: And the second one was received from whom?
MR. FARRELL: I think it likely that the second one came from the same place, but I am not positive of that. There may be something on it here to show.
At 10:35 a.m. under the heading "Market," we published the following:
Mercantile Marine 4 1/2s, 65 3/8; off 2 3/8; Mercantile Marine 5s, off 1 1/8; preferred, 20 3/4, off 2 3/8.
So that, you see, the following morning, when the news of the disaster did come out, the bonds broke a little over two points; the 4 1/2s and the stock was off a little over two points.
SENATOR SMITH: It does not say what the change was in the common stock.
MR. FARRELL: No; there was probably no trading in the common stock. However, I can give you the prices on that also for the day.
About 10:50, April 16, we published the following:
Officials of Anchor Line dispatched a marconigram to steamship Californian Monday night ordering her to stand by on scene of Titanic disaster until relieved to pick up any survivors who have not already been rescued. BOSTON.
It was announced here at White Star Line local office that a wireless had been received from St. Johns, New Brunswick, stating steamship Virginian is making for that port. It is thought she may have some survivors of Titanic on board.
At the same time a dispatch from Southampton was published as follows: SOUTHAMPTON.
It is officially announced Lord and Lady Duff­Gordon were traveling on steamship Titanic incognito as Mr. and Mrs. Morgan.
I have not ascertained definitely where those did come from. Then at 10:55 a.m. on Tuesday we published an additional list of passengers received from the offices.
At 11:07, approximately, April 16, we published this:
Montreal office of Allan Line received a wireless from Virginian that she and the Parisian reached scene of Titanic's collision too late to save any passengers and that former boat resumed her course to Liverpool.
I have not any note on that, as to where it came from. I have not identified the source of that message.
At 11:17 a.m. on Tuesday we published an additional list of passengers saved.
At about 11:32 we published this:
Representatives of the White Star Line discredit the rumor that there was large amount of securities on board Titanic running up to several millions. When boat sailed the White Star people received no word that any securities were aboard, as they usually do when any considerable quantity of stocks or bonds were shipped on one of their boats.
One of our reporters got that from the White Star office.
SENATOR SMITH: Do you know the name of his informant?
MR. FARRELL: No, I do not. About 11 o'clock Tuesday morning, or I should say about 11:40 a.m., we published this:
