White Star Line received message saying Charles M. Hayes, president Grand Trunk Railway, is among survivors.
I remember that distinctly, because I handled it myself. We were, of course, trying to find out, as to all these prominent men, whether they were saved or not, and I asked one of the men to call up the Grand Trunk offices in New York, and the Grand Trunk offices said that they had received word from the White Star Line saying that it had advices saying that Mr. Hayes was among the survivors, which subsequently proved false. He was not.
SENATOR SMITH: Did you seek to verify that item from any White Star official?
MR. FARRELL: We did later, but not at that time.
SENATOR SMITH: Before its publication?
MR. FARRELL: No. The Grand Trunk office told us they had received word from the White Star Line that the White Star had received advices that Mr. Hayes was saved. Our experience has been that in matters of that sort the railroad officials are usually to be relied upon.
About 11:48 a.m., I should say, on April 16, we published this:
White Star officials say that 318 out of 350 first­class passengers on Titanic have been accounted for.
That came from the White Star office.
About 12:25 p.m., April 16, we published this:
According to officials of Cunard Line there is no ground for fear that Carpathia is overloaded because of having picked up 800 Titanic passengers, as vessel can accommodate nearly 2,500 persons, or several hundred more than are now on board.
We got that by inquiry at the Cunard Line, because a rumor had got afloat that the Carpathia might founder on account of her heavy load.
About 12:30 p.m., April 16, we published this:
Vice President Franklin, of International Mercantile Marine, says that White Star Line is holding no information back. Olympic is now standing off Cape Race and is relaying names of passengers on Carpathia to Cape Race.
With regard to that statement, in newspaper circles early that morning, there was a general feeling that all the news had not been allowed to get out, and some of the reporters down there went so far as to make it pretty plain to Mr. Franklin that they suspected he was holding something back, and that was the statement he made. Of course, there was a large gathering of reporters there, and this charge was made. I do not know just the details, and I am giving the report of one of my reporters who sent it to me, but he was asked rather pointedly, and he declared positively that he was holding no information back, and he said that he would show them original dispatch from Capt. Haddock. Then the reporters went out, and he called them back, and did show them the original dispatch from Capt. Haddock, which conformed with the statement which he had given out regarding it.
SENATOR SMITH: Did you have any personal conversation with him about the matter that day?
MR. FARRELL: No; I did not. About 1:20 p.m., April 16, we published a general story on the International Mercantile Marine Co. Do you want that read into the record?
SENATOR SMITH: What does that refer to?
MR. FARRELL: It reads as follows:
MERCANTILE MARINE CO.
International Marine Steamship Co. was one of Morgan's promotions of 10 years ago, following in wake of United States Steel Corporation. Steel came out in April, 1901, and the steamship company in October, 1902.
The big billion dollar corporation floated successfully in Wall Street, but International Mercantile Marine, which performs relatively greater public service for relatively less cost, has never really floated. Insurance companies and other underwriters had to hold their bonds, which represented real value, and they have always sold on this side of the water for far less than replacement value of the property, to say nothing of good will.
On the other side of the water the capture of White Star Line by American bankers aroused storm of indignation in England, and caused heavy subsidies for Cunard Steamship Co. and rivalry of building of big ships. In a few years all steamship companies suffered an era of low rates and reduced or suspended dividends.
Recently tonnage rates over the world have been much higher, and prosperity and dividends and increased surpluses were in sight.
The record of International Mercantile Marine seems to be thus far the poverty of low ocean rates or on high ocean rates steamship disaster.
It was figured that company could charge off for 1911 $3,500,000 and raise its surplus account by about a million. The Titanic disaster, with net loss above all insurance of $2,000,000, will set back the surplus to a deficit, but not as far back as deficit of $1,297,354 at the close of 1909.
SENATOR SMITH: From whom did you receive this information?
MR. FARRELL: That was written by a man who regularly looks after the International Mercantile Marine Co I suppose most of it was matter of record.
SENATOR SMITH: In your office?
MR. FARRELL: Yes; in the statistical books ­ the Financial Chronicle and others in our office, and it was simply a bringing together of matters of record.
About 1:54, April 16, we published this:
No word has been received as to the fate of Edgar J. Meyer, vice president Braden Copper Co., who was on the Titanic. He is a brother of Eugene Meyer, Jr. of firm of Eugene Meyer, Jr. & Co. Nor has anything been heard as yet from Bradley Cumings of Stock Exchange firm, Cumings & Mackwald, or from Benjamin Guggenheim, president International Steam Pump Co.
That information was received by our reporters from Eugene Meyer, Jr., brother of Edgar J. Meyer, and from some of the Guggenheim family, and from some of the Cumings family.
About 2:07, April 16, we published this:
Officials of Cunard Line have sent abut a dozen messages to Capt. Rostron of the Carpathia, but have been unable to secure any answers, and do not know whether or not the wireless operators have been able to reach the vessel. It is understood that when Carpathia arrives here Thursday night customs regulations will waived and ship will not be boarded until a landing is made at the New York pier.
That came from the Cunard offices. Everybody was wondering why they could not get more information about it.
SENATOR SMITH: I am glad to have that item appear in the record.
MR. FARRELL: About 2:20 p.m., April 16, we published this:
Although White Star Line has received wireless advices that 318 out of the 350 first cabin passengers have been saved, the names of only 181 of these have so far been received. The identity of the others is still unknown. The names of 111 second­class passengers have been reported.
That was based on information we got from the White Star offices.
There is an apparent conflict there. We received advices through the White Star Line that 318 of the first­cabin passengers had been saved, but only 181 were reported. I made inquiries to find out why the rest of them were not reported, and finally they answered that their names had not been received. It occurred to me that possibly only 181 had been saved, inasmuch as we had only that many names.
At 2:26 p. m. we published the following from Washington:
WASHINGTON.
Expressing his horror at reports of Titanic disaster, Chairman Alexander, of House Committee on Merchant Marine said that if it was shown there were not more than enough lifeboats aboard the ship than to save one­third of passengers immediate steps would be taken to close American ports to all vessels which did not carry sufficient life­saving apparatus to save all on board.
Regarding report that wireless communication with the wrecked vessel and ships which went to her rescue was interrupted by amateurs, Mr. Alexander said a bill would shortly be reported from his committee to regulate radio communication and prevent such interference in future.
That we got from the Washington correspondent.
About 2:55, April 16, we published the following:
The Lapland of Red Star Line, sailing Saturday, will take first and second cabin passengers booked for the Titanic. She will call at Plymouth and Cherbourg and go on to Antwerp.
That does not amount to much.
SENATOR SMITH: Where did that come from?
MR. FARRELL: It probably came from the Red Star Line in a notice they had sent out. It is inconsequential, anyway.
That is all of Tuesday's record.
SENATOR SMITH: Mr. Farrell, will you check on Wednesday's tape and bulletin and come in again at 4 o'clock this afternoon?
MR. FARRELL: Yes, sir. I can not do very much checking up, other than what I have already done on Tuesday's and Wednesday's tapes and bulletins, because I would have to have my whole staff around to identify the different items.
SENATOR SMITH: You will go as far as you can?
MR. FARRELL: Certainly.
SENATOR SMITH: I want it all, so far as possible, and I want to go as far as I can with you at this time.
MR. FARRELL: Yes, sir.
SENATOR SMITH: We will take a recess until 4 o'clock this afternoon.
At 1:05 p.m. a recess was taken until 4 o'clock p.m.
AFTER RECESS.
TESTIMONY OF MR. MAURICE L. FARRELL ­ Continued.
SENATOR SMITH: When we took the recess you had just finished with Tuesday's ticker tape?
MR. FARRELL: Yes, sir.
SENATOR SMITH: Have you Wednesday's tape there?
MR. FARRELL: Yes; I have.
SENATOR SMITH: Will you kindly state anything on Wednesday's tape that relates to the Titanic disaster?
MR. FARRELL: If I may, I would like to make statement before we proceed.
There seems to be in some of the accounts in the newspapers a misapprehension of some of my testimony this morning on one point regarding the arrangements made by Mr. Franklin for a special train on the New Haven road accommodating practically 700 passengers. I notice that apparently by one correspondent that was interpreted as my saying that would indicate that he had information­­
SENATOR SMITH: [interposing]. I think you qualified it.
MR. FARRELL: Yes; I did; but if I may add ­ of course you want the facts ­ what simply is a matter of opinion, I do not think that construction is necessarily justified.
SENATOR SMITH: We will let it stand for what it is worth. The statement of yours was specific, and I understood you to give nothing except the facts that you could testify to. As to is bearing upon any other phase of the inquiry, I did not understand you to express an opinion.
MR. FARRELL: No; I did not intend to, and I do not believe I did.
SENATOR SMITH: I might have said to you that on its face it would look as though they had information, and you replied, "Yes, that might be so"; but that would not necessarily indicate your opinion.
MR. FARRELL: I would not wish to stand on the record as being put in that position.
SENATOR SMITH: You do not want the record to show that you have construed it at all?
MR. FARRELL: Exactly.
SENATOR SMITH: I think I understand your attitude.
MR. FARRELL: If I was called upon for any construction, I would say that did not necessarily mean that; but the first thought was to rush a special train up there, probably such train having capacity for 700, and probably subsequently to make arrangements for other special trains if they were desired.
SENATOR SMITH: I did not understand you to construe that statement, and I think the record is just as you wish to have it.
MR. FARRELL: I think it is.
There is another point. There also seems to be an idea that it was brought out in testimony here this morning, that the publications of Dow, Jones & Co. were calculated to bolster up the market for International Mercantile Marine. Nothing of that sort was done.
SENATOR SMITH: Your statement does not show that at all.
MR. FARRELL: In fact, some of the evidence introduced from our bulletin ticker commented that it would be a heavy loss to the International Mercantile Marine.
SENATOR SMITH: You have stated your position frankly and very plainly, and we will let the record stand just as it is.
On Wednesday, if you have your ticker tape references to the Titanic disaster, I would like to have you give them.
MR. FARRELL: This is the ticker tape for Wednesday, April 17.
SENATOR SMITH: You understand, we are not prosecuting anybody. We are just searching for truth.
MR. FARRELL: Yes; I understand. You are after facts, of course.
SENATOR SMITH: Sometimes it seems a little hard to get at the truth, but I have not seen any attempt on your part to hold anything back.
MR. FARRELL: I have no desire to do so. I am quite as much interested in solving this mystery as anybody is.
I mentioned this morning a statement which I had prepared.
SENATOR SMITH: Do you want that to appear in the record?
MR. FARRELL: If you please. It is something in the nature of opinion, but I think probably does offer some explanation of the persistent circulation of erroneous reports.
SENATOR SMITH: We will let that follow the detailed report in chronological order.
MR. FARRELL: The first item published on Wednesday, April 17, was at 5 a.m., and reads as follows;
The overnight news concerning the Titanic reveals little which was not published by Dow, Jones & Co. yesterday. No word has yet been heard from Col. John Jacob Astor, Isador Straus, Maj. Archibald W. Butt, George D. Widener, Harry Widener, Benjamin Guggenheim, Edgar I. Meyer, Frank D. Millet, W. T. Stead, Washington A. Roebling, or John B. Cumings of stock exchange firm of Cumings & Marckwald, and Jacques Futrelle, the author, and Henry B. Harris, the theatrical man.
That was simply a brief summary for the information of our readers of the situation as it stood at 8 o'clock on Wednesday morning.
About 8:25 a.m. on April 17 we published the following:
White Star Line this morning reported following additional survivors from the Titanic.
We then gave the additional survivors.
At 8:30 we published a brief line saying:
Titanic's dead, total, 1,342; survivors number 868 aboard Carpathia, due New York late Thursday or Friday morning.
That was simply a summary of the general information up to that time.
SENATOR SMITH: From whom did you get that information?
MR. FARRELL: From the morning newspapers, mostly. We just began business at that time, at 8 o'clock in the morning.
About 8:35 a.m. we published the following:
Doubts have arisen as to the fate of Charles M. Hays, president Grand Trunk Railway, who yesterday was reported to have been saved. White Star Line this morning states that it has received no message concerning him.
We got that from the White Star Line. Mr. Smallwood, one of our reporters, got that.
SENATOR SMITH: As you look at those bulletins I wish you would lay them to one side.
