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Final Report of the Louisiana Purchase Exposition Commission by Louisiana Purchase Exposition Commission

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ST. Louis, U.S.A., _October 15, 1902._

DEAR SIR: In reply to your letter of October 3 with respect to a
summary of the financial condition of the Louisiana Purchase
Exposition Company, I desire to say that the attention of the
proper officers of the company has been called to this request
of your part, and I may assure you that the desired information
will be prepared and furnished at an early date.

Yours, truly,
D.R. FRANCIS,
_President._

Hon. THOMAS H. CARTER,
_President National Commission, St. Louis, Mo._

ST. Louis, U.S.A., _November 1, 1902._

DEAR SIR: I am directed by President Francis to transmit to you
the following information of the total receipts and
disbursements of the Louisiana Purchase Exposition Company to
November 1, 1902:

As shown by the report of the treasurer, the collections on
account of subscriptions to the capital stock to November 1,
1902, amount to $2,478,030.83.

The treasurer has received from the city of St. Louis the
proceeds of the sale of $5,000,000 in bonds, said sale having
been made in June, 1902, at a price slightly above par.

The total disbursements to November 1, 1902, as shown by the
books of the treasurer, amount to $21,284,141.01.

The outstanding obligations and contracts, including
disbursements to November 1, 1902, amount to $6,931,853.41.

There is in the hands of the treasurer, November 1, 1902, the
sum of $5,193,889.82.

Respectfully,
W.B. STEVENS,
_Secretary._

Mr. JOSEPH FLORY,
_Secretary Louisiana Purchase Exposition Commission._

ST. Louis, U.S.A., _November 26, 1902._

DEAR SIR: By direction of the Commission I respectfully call
your attention to the following entry in the minutes of the
proceedings at a meeting of the Commission held on October 2,
1902, as follows:

"President Francis was requested by the Commission to furnish a
detailed statement of all outstanding contract obligations and
other liabilities of the exposition for transmission to the
President of the United States with the monthly report for the
current month. He said the statement would be furnished the
Commission as requested."

The statement referred to was not furnished to the Commission
for transmission to the President of the United States with the
monthly statement for the month of October. Presumably this
default occurred because of your inability to have the statement
prepared in season for transmission with that report. It is
deemed by the Commission absolutely essential that the statement
should be transmitted with the report for the month of November,
to the end that it may be on file and available for examination
by the President or by Congress.

You are, therefore, respectfully requested to furnish such
detailed statement to the Commission at the earliest practicable
date, to the end that it may be examined during the present
meeting of the Commission.

The Commission desires that the statement should show the
contract obligations for the several buildings, the names of the
contractors, the dates fixed for payment, the amounts heretofore
paid, and the date for final completion of each structure. Also
all contracts existing requiring the payment of money for the
acquisition of grounds and improvements to be made thereon, and
for services rendered, or to be rendered, together with the
amounts heretofore paid on the respective contracts, and the
names of the contractors to whom payments have been or are to be
made. In short, it is the desire of the Commission that the
statement should give the substance of each and every contract
for the payment of money made by the Exposition Company prior to
November 1.

The Commission also desires that the statement should embrace an
approximate estimate of the cost of all contemplated
construction, improvements, and necessary expenditures connected
with the exposition as contemplated by the plan and scope
thereof heretofore approved.

The Commission deems the statement referred to necessary under
the requirements of section 11 of the act of Congress approved
March 3, 1901, which requires the Commission to give a general
summary of the financial condition of the exposition.

The Commission will appreciate the courtesy of the statement in
duplicate.

Very respectfully,
THOS. H. CARTER,
_President_.

Hon. D.R. FRANCIS,
President Louisiana Purchase Exposition Company,
_St. Louis, Mo_.

ST. LOUIS, _November 26, 1902_.

DEAR SIR: I beg to acknowledge receipt of a communication dated
November 26, signed by President Carter, requesting a detailed
statement of the financial obligations and expenditures of the
Louisiana Purchase Exposition Company up to and including
October 31, 1902.

Respectfully,
W.B. STEVENS,
_Secretary_.

Hon. JOSEPH FLORY,
_Secretary National Commission, City_.

ST. LOUIS, U.S.A., _November 26, 1902_.

DEAR SIR: I send herewith a statement of the disbursements and
liabilities of the Louisiana Purchase Exposition Company, which,
I think, meets the request made by the National Commission.

Respectfully,
D.R. FRANCIS,
_President_.

Hon. THOMAS H. CARTER,
_President National Commission, St. Louis_.

ST. LOUIS, _November 29, 1902_.

DEAR SIR: I send herewith the financial statement and duplicate
duly certified in accordance with the request of the National
Commission.

Respectfully,
W.B. STEVENS,
_Secretary_.

FEBRUARY 5, 1903.

DEAR SIR: Referring to conversation had with you this morning,
relative to the detailed statement of disbursements and
liabilities transmitted this Commission each month, I wish to
say that the statement does not furnish all the information
requested.

By reference to letter addressed President Francis by President
Carter under date of November 26, 1902, on the second page of
which you will note this Commission desires a statement showing
the contract obligations for the several buildings, the name of
the contractors, the dates fixed for payment, the amounts
heretofore paid, and the date for final completion of each
structure. Also all contracts existing requiring the payment of
money for the acquisition of grounds and improvements to be made
thereon, and for services rendered or to be rendered, together
with the amounts heretofore paid on the respective contracts,
and the names of the contractors to whom payments have been or
are to be made, giving the substance of each and every contract
for the payment of money made by the Exposition Company prior to
November 1. If you could have the statement include the months
of November, December, and January it would be appreciated.

You will also note that it is desired that the statement should
embrace an approximate estimate of the cost of all contemplated
construction, improvements, and necessary expenditures connected
with the exposition, as contemplated by the plan and scope
thereof heretofore approved.

This Commission will meet on March 10, and I will appreciate it
if you will have the statement furnished at your earliest
convenience.

Thanking you in advance for your kindness, I beg to remain,

Yours, very truly,
JOSEPH FLORY,
_Secretary._

W.B. STEVENS, Esq.,
_Secretary Exposition Company, Building._

ST. LOUIS, U.S.A., _February 19, 1903._

DEAR SIR: The information asked for in your letter of the 5th
instant, namely, "A statement showing contract obligations for
the several buildings, names of contractors, dates fixed for
payment, amount heretofore paid, and dates for final completion
of each structure," is being prepared and will be forwarded to
you.

Respectfully,
W.B. STEVENS,
_Secretary._

Mr. JOSEPH FLORY,
_Secretary._

The statements furnished by the Exposition Company following this
correspondence did not seem to the Commission to be sufficiently
explanatory of the financial condition of the exposition, and with a
view of obviating this difficulty, and of insuring better results in the
future, the Commission on March 13, 1903, appointed a special auditing
committee, consisting of Messrs. Scott, Thurston, and Miller, to audit
the books and accounts of the Exposition Company up to April 1, 1903.
Mr. Scott, as chairman, was authorized by the following resolution to
make the audit:

Copy of Resolution.

_Resolved_, That the special auditing committee heretofore
appointed be, and said committee is hereby, directed to inquire
into and report to the Commission at its earliest convenience
the true situation concerning the financial condition of the
Exposition Company in the matter of cash receipts from different
sources, including receipts for admissions and concessions and
other sources; also all disbursements of any nature made by the
Exposition Company. They will also examine all advertisements
for bids; also all competitive bids submitted by contractors
under each advertisement, and compare the accepted bids with the
rejected bids, and determine if the accepted bids are reasonable
in comparison with the material and service rendered. They will
also prepare a comparative statement showing all bids submitted,
and a copy of all contracts as finally awarded.

It is the wish of the Commission that you, as chairman of the
special auditing committee, proceed with as much expedition as
possible to make the examination and secure the information as
set forth in above resolution.

Owing to the magnitude of the work of auditing the books of such an
immense enterprise, Mr. Scott engaged the services of Jones, Caesar &
Co., expert accountants, of St. Louis, to make the investigation under
supervision of the committee.

On June 23, 1903, the special auditing committee made a report to the
Commission, and at various times thereafter submitted other reports of
the financial standing of the Exposition Company, based upon the
findings of the above-named firm of expert accountants, all of which are
in the files of the Commission.

The last report of the expert accountants employed by the Commission,
containing a statement of receipts and disbursements of the Exposition
Company from date of its incorporation to date of April 30, 1905,
together with a condensed statement compiled by said expert accountants,
showing their estimate of the financial result of the exposition, which
they state has been prepared from the accounts of the company to May 3,
1905, and from an estimate of future receipts and expenditures,
furnished by the president of the Exposition Company, is herewith
submitted as a part of this report as "Appendix No. 1."

The Commission was compelled from time to time to call the attention of
the Exposition Company to the apparently excessive number of free
admissions in comparison with the total attendance at the exposition.

On May 10, 1904, the Commission wrote to the Exposition Company,
pointing out that for the first seven days of the exposition, with the
exception of the opening day, the number of free admissions compared
with paid admissions was in the ratio of 7 to 6. On several subsequent
occasions the Commission insisted that prompt action should be taken to
check the indiscriminate use of passes.

On May 24, 1904, the Commission adopted the following resolution:

_Resolved_, That Mr. Thurston, as a member of the judiciary
committee present, call upon Judge Ferris, general counsel for
the Exposition Company, and indicate to him the condition of
correspondence with reference to free admissions to the fair
grounds, and to suggest to him that in the absence of any
disposition on the part of the Exposition Company to take notice
of the protests of the Commission, he has been authorized to
prepare the case for submission to the Attorney-General of the
United States, with request that action be taken in the courts
to prevent further violation of the law and rules as agreed upon
by the joint action of the company and the Commission.

On the same day Mr. Thurston, in a conference with Judge Ferris, general
counsel of the Exposition Company, brought the said action of the
Commission to his attention and insisted that the Exposition Company
should at once take immediate steps to put an end to the excessive and
improper issuance of free passes. Mr. Thurston was assured by Judge
Ferris that he would immediately consult with the exposition officials
and endeavor to secure such action on their part as would meet the views
and wishes of the Commission.

As there was no apparent cessation in the distribution of passes, the
president of the Commission, on May 31, addressed the following
communication to the president of the Exposition Company:

MAY 31, 1904.

SIR: Under date of May 26 Secretary Stevens transmitted to the
National Commission what he denominated "The rules and
regulations governing and restricting the issuance and use of
passes," as adopted by the company and now in operation. This
communication, with the rules referred to attached, was
obviously intended as an answer to the communication of the
Commission to the company on that subject under dates of May 10
and May 19.

I am directed by the Commission to call your attention to the
following sentence contained in my letter of 19th, above
referred to, to wit:

"Persons not entitled to admission to the grounds under article
5 of the rules and regulations can only be legally and properly
admitted by the Exposition Company with the approval of the
National Commission."

With that proposition the answer of the executive committee of
your company takes issue by submitting what you evidently deemed
a sufficient answer through rules and regulations adopted by the
company and now in operation, without the approval of the
Commission.

The Commission understands that the following issues arise from
this letter and the correspondence to which it refers, to wit:

First. That the Louisiana Purchase Exposition Company asserts
and is exercising the asserted right to formulate and put into
operation rules and regulations governing and restricting the
issuance and use of free passes to the exposition grounds,
without submitting such rules and regulations to the Commission
and obtaining its approval thereof.

Second. That the Louisiana Purchase Exposition Company asserts
and is acting upon the assertion of its alleged right, through
its officers and agents, to issue free passes to the exposition
grounds without the concurrence or approval of the National
Commission, expressed through general rules or regulations or
otherwise.

In reply to these asserted rights, and the exercise thereof by
the Louisiana Purchase Exposition Company, the Louisiana
Purchase Exposition Commission denies the right of the company
to promulgate and put into operation rules and regulations
governing and prescribing the issuance and use of free passes to
the exposition grounds without submitting such rules and
regulations to the Commission, and without obtaining its
approval thereof, and denies the right of the Louisiana Purchase
Exposition Company to issue free passes to the exposition
grounds without the concurrence or approval of the National
Commission, expressed through general rules and regulations, or
otherwise.

Upon the two issues here presented the Commission invokes the
judgment of the board of arbitration, provided for in section 4
of the act of Congress, entitled:

"An act to provide for celebrating the one hundredth anniversary
of the purchase of the Louisiana territory by the United States
by holding an international exhibition of arts, industries,
manufactures, and the products of the soil, mine, forest, and
sea, in the city of St. Louis, in the State of Missouri,
approved March 3, 1901."

For convenience a copy of the correspondence referred to is
hereunto attached.

Hon. John M. Allen and Hon. John M. Thurston, the members of the
Commission appointed to act for this body on the board of
arbitration, will hold themselves in readiness to meet the
members of that board appointed by the company at their
pleasure.

Yours, very respectfully,
THOS. H. CARTER.

Hon. D.R. FRANCIS,
_President Louisiana Purchase Exposition Company._

On June 14 the Exposition Company submitted certain rules and
regulations governing the issuance of passes. The Commission gave due
consideration to the proposed rules, and on June 25 returned them to the
Exposition Company with certain modifications, which the executive
committee of the Exposition Company refused to adopt. Whereupon, on July
7, the Commission, by resolution, demanded immediate arbitration on the
matter and protested against the issuance of free admissions pending a
decision by the board of arbitration.

Mr. Joseph Flory, secretary of the Commission since its organization,
resigned from that office on July 1, 1904. Mr. Lawrence H. Grahame, of
New York, assistant secretary, was elected as secretary to succeed Mr.
Flory.

On July 13, 1904, the board of arbitration of the Commission and the
Exposition Company finally met, and the question of free passes was
discussed. Another meeting of the arbitrators was held on July 18, and
rules and regulations governing the use of passes were drafted.

These rules were subsequently adopted by the company and approved by the
Commission on July 20, 1904. The rules read as, follows:

_Resolved,_ That the rules and regulations governing free
admission to the exposition grounds, prepared by the Louisiana
Purchase Exposition Company, governing the corporation are fixed
and established by said company to read as follows:

The official badges of the officers and directors of the
company, directors of divisions, and chiefs of departments of
the exposition, duly approved by the board of directors of the
company; the official badges of the officers and members of the
National Commission, duly approved by said Commission; and the
official badge of the board of lady managers, duly approved by
said board, shall entitle the officers and members wearing the
same to free admission to the exposition grounds.

Card passes for the entire period of the exposition will be
issued to the following officials and their wives, to wit:

The President of the United States.

The Vice-President of the United States.

Members of the Cabinet.

Judges of the Supreme Court of the United States.

The Secretary to the President of the United States.

Members and officers of the National Commission.

The directors and officers of the Exposition Company.

The mayor of the city of St. Louis.

Card passes for the entire period of the exposition will be
issued to the following persons, to wit:

Members of both Houses of Congress, and the chief officers
thereof.

The Diplomatic Corps.

The diplomatic representatives of the United States abroad.

The governors of States, Territories, Districts, and
dependencies of the United States, and the Commissioners of the
District of Columbia.

Commissioners of foreign countries accredited to the exposition.

Commissioners of States, Territories, Districts, and
dependencies of the United States accredited to the exposition.

Directors of divisions and chiefs of the departments and bureaus
of the exposition.

The widows of deceased directors of the Exposition Company.

The members of the board of lady managers.

Members of the United States Government board.

The commander of the Jefferson Guards and his official aides.

The members and chief officers of the municipal assembly of the
city of St. Louis.

The heads of departments of the municipal government of the city
of St. Louis.

The chief of police and the chief of the detective force of St.
Louis.

Limited admission passes will be granted, under such rules and
regulations as the Exposition Company may prescribe, to the
following classes of persons whose duties require their presence
upon the exposition grounds, to wit:

The judges and jurors of awards.

Employees of the Exposition Company.

Employees of the National Commission.

Employees of the board of lady managers.

Officers and employees of the United States actually in charge
of or connected with the Government exhibits, or otherwise
officially engaged within the exposition grounds.

Agents and employees of foreign governments actually in charge
of or connected with their exhibits or buildings.

Duly accredited press representatives.

Private exhibitors and their employees.

Concessionaires and their employees.

The term "employee" as herein used shall be construed as meaning
only such persons as are actually and necessarily employed
within the exposition grounds, and when in any case such
employment ceases the pass shall be taken up and canceled.

A vehicle may be admitted to the grounds upon payment of 50
cents, but the driver and occupants thereof shall be subject to
the general rules governing admissions.

_Provided,_ That all official vehicles and the vehicles of
officers and directors of the Exposition Company, of officers
and members of the National Commission, and the members of the
board of lady managers shall, with the driver thereof, be
admitted free upon presentation of official permit.

Any person entering the grounds upon a badge or card pass shall
be required to deposit with the gate keeper a personal card with
pass number thereon.

In exceptional cases the president of the Exposition Company may
issue passes to persons not included in the foregoing
classification, when such action is deemed for the best interest
of the exposition.

Passes will not be replaced during the period for which same may
have been issued. When a pass is lost, prompt notice should be
given to the department of admissions in order that notice of
same may be posted and the pass taken up if presented.

When an employee is discharged or resigns, a pass will not be
issued to his successor until the original pass is returned to
the department of admissions.

The Louisiana Purchase Exposition reserves the right to call in
and revoke or cancel any pass at any time.

Passes are void and will be forfeited if showing any evidence of
alteration or erasure. All passes are nontransferable, and will
be forfeited if presented by any other than person named
thereon.

Any person holding a pass may be required to prove his identity
by signature or otherwise.

All passes will be issued subject to the conditions printed
thereon.

All passes issued in conflict with the foregoing rules and
regulations shall be recalled and canceled.

The Exposition Company shall furnish the National Commission a
complete list of all card passes and a statement of all other
passes issued prior to July 1, classified as to departments,
divisions, and bureaus, as accurately as may be done from the
books of the company, and hereafter the company shall keep an
accurate record by departments, divisions, and bureaus, showing
all passes issued by each under the foregoing rules, and shall
furnish a copy of such record to the National Commission with
each monthly financial statement, and such statement shall
contain a list of all card passes issued during the month to
which the financial report refers.

Prior to the approval of the rules and regulations governing free
admissions to the exposition grounds, the president of the Exposition
Company exercised a free hand in the distribution of passes.

On April 30, and during the month of May, 1904, of the 1,841,275 total
admissions only 667,772 were paid admissions, thus making the free
admissions substantially two-thirds of the total.

In June, 1904, the total admissions were 2,448,519, and of this number
1,382,865 were paid.

In July an improvement occurred. Of the 2,498,265 admissions during that
month, 1,514,743 were paid. Thenceforward less than one-half of the
total admissions were free. But notwithstanding the effort to check this
abuse it was indulged to such an extent that the final totals make a
remarkable showing, as follows:

Total admissions during the entire period
of the exposition ....................... 20,066,537
Total paid admissions during the entire
period of the exposition ................ 12,804,616

The total attendance and the paid admissions at the exposition do not
compare favorably with those of the Columbian Exposition of 1893. The
Columbian Exposition was conducted during a period of great financial
depression, while the St. Louis Exposition was held during a period of
remarkable prosperity. The Government aid extended to the latter was far
greater in every respect than was given the former.

The method of advertising the exposition adopted by the company was a
subject of constant and almost universal criticism, and complaints were
made to the Commission and in the public press that exploitation of the
fair was inadequate. On every possible occasion members of the
Commission personally brought the matter to the attention of the
exposition officials and suggested that steps be taken to give the
enterprise wider publicity.

The Commission received communications and personal visits almost daily
from persons interested in the success of the exposition, urging that
some official action be taken to improve the existing advertising
arrangements. So insistent became the demand for greater publicity that
the president of the Commission addressed the following letter to the
Exposition Company, suggesting the importance of properly advertising
the exposition throughout the country.

JULY 20, 1904.

DEAR SIR: By direction of the National Commission, I
respectfully call your attention to the apparent need for an
extension and enlargement of the publicity feature of the
exposition.

The zeal and efficiency of the press of the city of St. Louis
has demonstrated what may be done in the creation of active
interest by enlightened exploitation through the public press.
Within the range of the general circulation of the papers
published in this city all features of the fair have been made
known; but, unhappily, the journals of this city, like those of
all other cities, enjoy general circulation only in a limited
area. Beyond the line of the special influence of the local
press the extensive proportions and interesting details of the
fair do not appear to the Commission to have been made known to
the general public, to the extent or in the manner calculated to
inspire the interest and secure the attendance warranted by the
extraordinary merits of the great educational force here
installed. In the opinion of the Commission this delinquency
does not arise from any lack of devotion to the public welfare
by the press of the country at large.

The munificent recognition of the fair by the General Government
attracted national attention. The invitation extended by the
President of the United States, under authority of law, to the
nations of the earth to participate in the exposition,
supplemented by the cordial cooperation of our diplomatic and
consular representatives abroad, secured the most extensive
foreign participation ever accorded to any like undertaking.
Moved thereto by the example of the National Government, the
States, Territories, and dependencies of the United States
joined in the exposition with unparalleled generosity and
enthusiasm. The groups of palatial buildings erected by the
foreign governments and by the States and minor subdivisions of
our country, together with the exhibits installed in the
exhibition palaces provided by the company, bear the amplest
testimony of their earnest desire to make the exposition a
pronounced success. The splendid exhibit installed here by the
government of the Philippine Islands rises to the proportions of
an exposition on its own account.

The buildings are completed, the exhibits are installed, and the
exposition has been in progress for substantially three-sevenths
of its allotted period. The faith of the management in the
merits of the exposition has been justified by the approving
judgment of all who have entered the gates; but the daily
attendance has been far short of what it should be from any
point of view.

Unhappily, the magnificent proportions and the numberless
attractions of the exposition do not seem to be fully understood
by the masses of the people throughout the United States, whence
attendance must be chiefly expected. The results obtained from
the territory commanded by the press of St. Louis warrants the
belief that the unsatisfactory conditions prevailing would be
overcome if the country at large could be adequately advised of
what is to be seen, learned, and enjoyed within these grounds.

All the National, State, Territorial, and District governments
participating in the exposition are quite as much interested as
the company in the diffusion of knowledge concerning the merits
of the exposition and securing the attendance of the largest
number of people who may find it possible to enjoy the benefits
and the pleasure of a visit to the grounds. It appears to the
Commission that the company may well call to its aid the forces
referred to. The details through which publicity may be widely
extended might wisely be made the result of a conference by a
committee made up of persons appointed by the Exposition
Company, the National Commission, and the representatives of
Governments, States, Territories, and Districts having duly
accredited commissioners appointed to represent them. It is
probable that such a conference would find the representatives
of each Government, State, and District anxious to cooperate by
furnishing detailed information along well-considered lines
concerning the participation of each in the fair. For example,
the people of New York will be interested in a well-prepared
description of the exhibits of that State, whereas the same
subject-matter would not be of like interest to the people of
California; but, on the contrary, the people of California would
be interested in a graphic description of California exhibits.

The newspapers of the respective States will, without doubt,
cheerfully give space to descriptive matter directly relating to
the exhibits and achievements of their readers.

One instance has been called to the attention of the Commission
where the names of visitors to the fair, registered at a State
building, are being forwarded to the leading daily papers of the
State, and published as a matter of news in their columns. The
papers in question not only publish the list of arrivals at the
exposition, but have called for any other matter of interest
occurring here relating to the people or affairs of the State.
This method of publicity pursued by the commissioners of one
State might, as the result of conference, become generally
adopted. The Exposition Company could well afford to aid and
assist in the preparation of descriptive articles, accompanied
by plate matter, relating to different localities, because it is
evident that the creation of interest in any locality will
contribute to the general purpose. But it is not the intention
to here attempt to detail the many ways of securing merited
publicity which would undoubtedly evolve from a general
conference by representatives of all the interested forces.

The commissioners representing the various States and
governments are persons of wide experience and broad
intelligence; and they are all, in their respective spheres,
undoubtedly as anxious to contribute to the success of the
exposition as the directors and officers of the Exposition
Company are known to be.

It is far from the intention of the Commission to interfere with
the operation of any of your own matured plans; but it is
respectfully submitted that the failure of expected and
necessary attendance at the exposition is a matter of such
supreme importance as to warrant the employment of every
available force connected with this enterprise in the work of
calling public attention to the exposition through the press of
the whole country, and such other agencies as may be suggested
and adopted.

Very respectfully,

Thos. H. CARTER,
_President_.

Hon. D.R. FRANCIS,
_President Exposition Company, Building_.

The exposition management did not elect to avail itself of the
cooperation of the National Commission in the matter of exploitation,
but very shortly after the foregoing letter was delivered the
advertising department became more active by advertising in the
newspapers and by the use of billboards in St. Louis and the adjacent
territory.

The National Bill Posters' Association, which met in St. Louis about
this time, observing the inadequacy of the provision made for
advertising, volunteered to cooperate with the Exposition Company by
posting bills on their boards free of charge throughout an extensive
area.

A cursory examination of reports of the daily attendance will show a
very perceptible increase of receipts at the gates in consequence of the
effort made about this time to call the attractions of the exposition to
the attention of the people. Unhappily the exploitation work thus
commenced was practically one year behind time. Undoubtedly the paid
attendance at the exposition could have been very largely increased by
an efficient system of exploitation initiated one year before the gates
were opened and vigorously prosecuted until the close of the exposition.

In order to increase the attendance at the exposition, as well as to
increase the revenues of the Exposition Company at certain periods, the
National Commission at different times cheerfully approved the
modifications of the rules proposed by the Exposition Company
authorizing the sale of season tickets, also of special tickets for
limited periods, at reduced rates. Such modifications proposed by the
Exposition Company were in all instances, except one, approved by the
National Commission substantially as proposed; but in one instance the
Commission was impelled from a sense of its duty to the Government to
decline to approve a rule proposed by the company providing for the sale
of special coupon tickets good for 50 admissions to stockholders of the
company only.

It is proper to say that prior to the submission to the Commission of
the proposed rule, or modification of the rules, announcement had been
made in the newspapers of St. Louis that such tickets would be sold by
the company, and, in fact, the sale of the proposed tickets had already
begun.

The following letter contains the proposal of the company to authorize
the sale of such special tickets to stockholders only:

MAY 18, 1904.

DEAR SIR: I am directed by the executive committee of the
Louisiana Purchase Exposition Company to inform the National
Commission that the committee has approved the following
resolution:

_Resolved_, That a ticket, photographic, nontransferable, having
50 coupons good for admission at any time during the World's
Fair shall be sold to stockholders at the rate of $12.50; this
privilege to continue to and including June 15, to be open to
all who shall be stockholders up to and including that day.

I am directed by the executive committee to ask favorable action
upon the resolution by the National Commission.

Respectfully,

WALTER B. STEVENS,
_Secretary._

Mr. JOSEPH FLORY,
_Secretary National Commission._

It was the opinion of the National Commission that the sale of the
proposed tickets to stockholders alone at the reduced price proposed was
in the nature of a dividend or pecuniary benefit in which the United
States Government could not participate, and therefore contrary to law;
and in view of the fact that the people of the United States had
contributed through the Government appropriation for the exposition an
amount of money equal to that which had been furnished by the
stockholders of the company it seemed to the Commission that no special
privilege respecting the purchase of tickets should be given such
stockholders that was not given equally to all citizens of the United
States.

This view was especially enforced by the consideration that stockholders
of the company had subscribed for such stock in the belief that the
citizens of the city of St. Louis would reap large local benefits from
the holding of the fair in that city, while it was obvious that the
other citizens of the United States could not in any degree participate
in such benefits.

The Commission, believing that the sale of special coupon tickets at
that time would increase the revenues of the company at a time when such
increase seemed to be especially desirable, submitted to the company a
modification of the proposed rule, as set forth in the following letter:

MAY 19, 1904.

DEAR SIR: I am directed by the National Commission to inform you
that they have had under consideration the resolution contained
in your esteemed favor of 18th instant, reading as follows:

"_Resolved_, That a ticket, photographic, nontransferable,
having 50 coupons, good for admission at any time during the
World's Fair, shall be sold to stockholders at the rate of
$12.50; this privilege to continue to and including June 15, and
to be open to all who shall be stockholders up to and including
that day."

The Commission respectfully declines to approve the resolution
as presented, but, being in hearty accord with the laudable
purpose of the company to offer inducements tending to insure an
extensive sale of admission tickets before the 15th of June,
approves that feature of the resolution by modifying the same so
as to read as follows:

"There shall be sold to the public up to and including June 15
at $12.50 a photographic, nontransferable ticket with 50 coupons
thereunto attached, each good for one admission to the fair at
any time prior to August 31."

In the judgment of the Commission the use of the tickets
proposed should be restricted by a time limit, inasmuch as a
failure to provide such a restriction would be equivalent to a
reduction of admissions to 25 cents each. Moreover, limiting the
time for use of the tickets, as proposed, would tend to
stimulate attendance at the fair during the summer months.

The Commission is not insensible to the natural desire of the
Exposition Company to give some privilege to the stockholders
who subscribed to the capital stock of the corporation, but,
while appreciating the generous motive of the executive
committee, the Commission feels constrained to withhold its
approval for the reason that approval thereof would, in the
judgment of the Commission, violate the letter and spirit of
section 20 of the act of Congress approved March 3, 1901, which,
in so far as applicable, reads as follows:

"That there shall be repaid into the Treasury of the United
States the same proportionate amount of the aid given by the
United States as shall be repaid to either the Louisiana
Purchase Exposition Company or the city of St. Louis."

The proposal to give to stockholders of the Exposition Company
tickets of admission good until December 1 at half price confers
upon the stock a special privilege not contemplated by the act
of Congress, and is apparently in the nature of a dividend or
pecuniary benefit in which the United States can not
participate.

I am also directed by the Commission to say that if, in the
opinion of the company, the best interests of the fair would be
advanced by making the proposed tickets good for the entire time
of the fair the Commission would view such action with favor,
providing the price of the ticket should be fixed at $15.

Yours, very respectfully,
JOSEPH FLORY,
_Secretary_.

Mr. WALTER B. STEVENS,
_Secretary Louisiana Purchase Exposition Company, Building_.

On May 23, 1904, a conference was held between the National Commission
and a committee on conference appointed by the Exposition Company. At
such conference the National Commission insisted that the proposed
special coupon tickets be sold to the public, while the conferees on the
part of the company urged the acceptance of the original rule proposed
by said company, limiting the sale of stockholders only. Finally, upon
the proposal of the conferees of the company, and in order to reach an
agreement, the National Commission assented to a rule whereby the
company should be authorized to sell such tickets to its stockholders,
also to any person presenting an order from the National Commission
therefor, as is set forth in the following copy of the conference
agreement:

At a conference between the officers and members of the
executive committee of the Exposition Company and members of the
National Commission, held at the office of President Francis on
Monday, May 23, it was agreed, after a full and free conference,
that the disagreement existing between the Exposition Company
and the Commission with reference to the sale of 50-coupon,
photographic, nontransferable tickets to stockholders of the
Exposition Company, at $12.50 each, on or before June 15, such
tickets to be good during the period of the fair, was settled by
the adoption of the following addition to article 5, to wit:

"That any stockholder of the Exposition Company, or any person
presenting an order from the National Commission to the
treasurer of the company, may, at any time prior to June 15,
purchase for $12.50 one photographic nontransferable ticket with
50 coupons attached, each coupon good for one admission to the
fair at any time on or before December 1, 1904."

To which addition to the aforesaid article 5 full assent was
given by the company and the Commission.

D.R. FRANCIS, President,
W.H. THOMPSON, Treasurer,
FESTUS J. WADE,
_Chairman Ways and Means Committee,
Committee Representing Louisiana Purchase Exposition Co_.

Thos. H. CARTER,
JOHN M. THURSTON,
GEO. W. MCBRIDE,
PHILIP D. SCOTT,
JOHN F. MILLER,
FREDERICK A. BETTS,
_For the National Commission Louisiana Purchase Exposition_.

The Commission, desiring that the public should have the amplest
opportunity to participate in the purchase of these special tickets at
reduced rates, and in order that the knowledge of such privilege should
have the widest publicity, addressed and sent to the Associated Press
the following notice:

_To the Associated Press_:

Some days ago the Exposition Company proposed to issue a
nontransferable photographic coupon ticket good for 50
admissions for the sum of $12.50, that amount being half rate.
This proposal was disapproved by the National Commission,
because deemed in the nature of a dividend on the stock. The
Commission insisted that if the price of tickets was reduced in
the manner proposed, they should be presented to the public for
sale without preference as to purchasers. As the result of a
conference it was agreed that the Exposition Company might sell
to its stockholders nontransferable tickets at the rate of
$12.50 each for 50 admissions, and that at the same time any
person not a stockholder presenting an order from the National
Commission to the treasurer of the company would be entitled to
the same privilege. The Commission desires to announce that any
person not a stockholder of the Exposition Company may, upon
application to the Commission, procure an order on the treasurer
of the Exposition Company for the delivery of one of the tickets
referred to upon the payment of $12.50. The privilege of
purchase can not be exercised after June 15. Applications for
orders may be made in person or by letter addressed to the
National Commission, Administration Building, St. Louis. Payment
for tickets to be made to William H. Thompson, treasurer,
Laclede Building, St. Louis.

JOSEPH FLORY,
_Secretary_.

The sale of these tickets was larger than had been expected either by
the company or the Commission, and that it was satisfactory to the
company was indicated by its proposal, under date of June 7, 1904, to
extend the sale of such tickets from June 15 to and including July 1,
the price being increased to $15. This proposal was promptly approved by
the National Commission, and the sale resulted in materially increasing
the revenues of the Exposition Company.

JURORS AND AWARDS.

It will be perceived that rules and regulations governing the
appointment of jurors and the awarding of premiums were presented by the
company and adopted by the company and adopted by the Commission on May
2, 1903. These rules required that the nominations of all proposed
jurors be submitted to the Commission on or before August 1, 1904.

Believing that the approval of the jurors by the Commission should not
be merely perfunctory, but that the nominations should be scrutinized
with care before approval, the Commission, on the 18th day of May, 1904,
addressed the Exposition Company the following self-explanatory
communication:

ST. LOUIS, _May 19, 1904_.

Hon. D.R. FRANCIS,
_President Exposition Company_.

MY DEAR SIR: Inasmuch as objections may be urged to the
appointment of certain persons upon juries of awards, it is the
intention of the National Commission to give public notice,
allowing reasonable time for the filing of any objections that
may be offered to the appointment of any individual on the jury.
As this proceeding will necessarily consume time, it is
desirable that the names of persons proposed for the respective
juries be transmitted to the Commission from time to time as the
respective groups are completed by the company. It is believed
that final action can be reached in a more orderly and
satisfactory manner by taking up the names proposed for each
jury separately rather than to have the entire membership of all
the juries submitted for consideration simultaneously.

Yours, very respectfully,
THOS. H. CARTER, _President_.

A communication on the same subject was addressed to the president of
the Exposition Company on May 23, as follows:

MAY 23, 1904.

DEAR SIR: By direction of the Commission, I have the honor to
call your attention to section 6 of the act of Congress making
an appropriation for the exposition, and for other purposes,
approved March 3, 1901, which provides that the appointment of
all judges and examiners for the exposition shall be made by the
Louisiana Purchase Exposition Company, subject to the approval
of the Commission created by section 2 of the act.

Some days ago a gentleman reported to the Commission that
certain jurors had been appointed and were actually discharging
their duties as judges and examiners. This rumor seemed to the
Commission utterly incredible, but this morning the director of
exhibits confirmed the rumor informally by admitting that
certain jurors had been at work for a considerable length of
time in certain departments of the exposition.

The Commission does not desire to assume a position at all
hypercritical, but I am directed to say that an utter disregard
of provisions of the law can not be countenanced.

To the end that no question may arise concerning the legality or
regularity of the action of any jury or board of examiners, I
have the honor to request, in behalf of the Commission, that the
names of jurors be forwarded to the Commission for consideration
before there is any pretense to giving them authority to act.

Inasmuch as an infraction of the law has heretofore occurred
according to the director of exhibits, I can but request that
the names of the jurors who have heretofore been commissioned to
act be forwarded for consideration without delay. We are not
unmindful that free and full consideration of the names of
persons thus empowered to act without full authority will be
somewhat embarrassing in view of their having been employed for
a considerable length of time before the Commission will have
been advised of their designation by the company.

Yours, very respectfully,

Thos. H. CARTER,
_President_.

Hon. D.R. FRANCIS,
_President Exposition Company, Building_.

As indicated by correspondence hereinafter set forth, the company did
not present the names of jurors to the Commission on or before August 1,
and indeed did not advise the Commission of the names of many of the
jurors until long after the time had elapsed for the performance of
their duties.

After the group juries had performed their duties certain persons,
feeling aggrieved by the awards made, undertook to appeal to the
Commission for redress. The Commission disclaimed jurisdiction to
consider the matter until the awards were submitted to it for approval.
Upon inquiry growing out of these attempted appeals, it was ascertained
by the Commission that the Exposition Company questioned the right of
the Commission to inquire into or in any manner to pass upon the justice
or regularity of any award made. The company having submitted certain
proposed amendments to the rules and regulations, the Commission
undertook by further amendments to settle the question as to the right
of the company to refuse to submit awards made to the Commission for its
approval, as required by law. The right of the Commission to even
inquire into charges of fraud, bribery, or corruption in connection with
awards the company steadily denied and never conceded.

In the records of the Commission filed with this report will be found
charges under oath against a division chief, alleging that he was a
party to negotiations for a bribe of $2,000 to be paid on the awarding
of the grand prize to a certain manufactured article, and that when the
matter was brought to his attention his only explanation was that he had
declined to be the stakeholder or custodian of the money because of
possible criticism in case the transaction should become public. This
individual was a member of the group jury, a member of the department
jury of his department, and a member of the superior jury.

The Commission felt that investigation of such serious charges was
absolutely necessary to guarantee the integrity of the awards.

On October 18, 1904, Commissioner Allen, as acting president of the
Commission, set forth the existing status of the case in a letter to
Hon. D.R. Francis, president of the Exposition Company, reading as
follows:

OCTOBER 18, 1904.

SIR: On October 11 the National Commission sent to the local
company a communication suggesting certain amendments to an
amendment to the rules and regulations governing the system of
awards sent us by the Exposition Company. To date we have not
received reply to the communication referred to, nor have we
heard from your company, excepting a visit from Judge Wilbur F.
Boyle, a member of your executive committee, who called on the
Commission on Friday, October 14, in relation to this matter.

The amendments suggested by this Commission were to carry into
effect the law as we understand it, and what we have been
assured was so understood by your company, to wit: That the
awards, before becoming final, should be approved by the
National Commission. We infer from what was said by you to Mr.
Scott, a member of this Commission, and what was said by Judge
Boyle to the Commission, that the position of your company is
that the approval of the National Commission only refers to the
system of making the awards, and not to the awards of the
juries. While we do not agree to this contention, we desire to
call your attention to what we consider a number of violations
of the rules and regulations governing the system of awards, as
agreed upon by the local company and the National Commission. In
the first place, in paragraph 3 of the special rules and
regulations providing for the appointment of jurors and
governing the system of making awards, it is set forth "that the
nominations for group jurors shall be made not later than August
1, 1904, except that nominations made to fill vacancies may be
made at any subsequent time." It is also provided "that
nominations of group jurors and alternates, when approved by the
president of the Exposition Company, shall be transmitted to the
National Commission for the approval of that body." "These
nominations, having been considered and confirmed by the
authority provided by section 6 of the act of Congress, relating
to the approval of the awarding of premiums, the appointment to
the international jury shall be made in accordance with section
6 of article 22 of the official rules and regulations of the
Louisiana Purchase Exposition Company."

You will remember that the nominations of group jurors were not
made until long after the time specified in the rules and
regulations, which left but a brief time to notify the jurors
and allow them time to get here to begin the performance of
their duties by the 1st of September.

You will doubtless remember that the writer, Mr. Allen, had an
interview with you and Mr. Skiff, in which he protested on
behalf of the National Commission that no time was given the
Commission to investigate the character of qualifications of the
jurors thus nominated, and that it was placing in the hands of
the chiefs of the different departments the power to fix up
juries and make the awards conform to their own wishes, if they
desired to do so.

You will also doubtless remember that Mr. Skiff, in your
presence, said to Mr. Allen, as he has said to the Commission
frequently before and as he assured us he had said to hundreds
of exhibitors, that after the action of the group juries these
awards would have to pass the department juries, then the
superior jury, then the local company, and finally be approved
by the National Commission, and that if anything wrong was done
by the group juries thus selected ample opportunity would be had
to right such wrong. Acting on this assurance the National
Commission went ahead and approved such jurors as were sent them
for their approval.

Paragraph 4 of said rules and regulations provides that each
group jury shall choose its own officers, consisting of a
chairman, vice-chairman, and secretary. It came to the knowledge
of the Commission that when the group juries were being
organized this rule was being violated, and in most, if not all
instances, the officers of the group juries were being selected
by the chiefs of the departments. We went to see the secretary
of the exhibit department, who had charge of the matter of
juries in that department, and informed him of this violation of
the rules. We were informed by him that he did not know the
chiefs had gone to the extent of informing the juries who their
officers should be, but that they had been instructed to make
suggestions that they might keep the chairmanship of the juries
in the hands of the Americans.

We find that a large number of group jurors have been appointed,
have participated in making awards, have been paid off, and have
gone home without their names ever having been submitted to the
National Commission for approval.

We are informed that the course adopted by the chiefs in the
organization of the group juries was pursued when it came to the
organization of the department juries, and in this way the
chiefs, in violation of the rules, have selected the main body
of the superior jury. We were also informed that the department
juries were instructed to pass the matters that we think would
properly belong to that body up to the superior jury;
consequently the principal duty performed by the department jury
was to enable the chiefs to select two members for the superior
jury. We have been informed that the chiefs in some departments
have taken it upon themselves to forbid the jurors from
considering certain matters that were proper subjects for their
consideration.

In paragraph 15 of said rules and regulations it is provided
that if for any reason an award is not satisfactory to an
exhibitor he may file notice to that effect with the president
of the superior jury within three days after the official
notification of the award; this notice shall be followed within
seven days by a written statement setting forth at length his
views as to wherein the award is unjust. We see now that the
superior jury has been disbanded within three or four days after
most of the exhibitors received their official notification,
thus cutting off the opportunity of exhibitors who were
dissatisfied with the awards to present their cases as provided
for by the rules.

We are also informed that instead of the superior jury hearing
any protests or complaints of the awards, these were referred to
subboards or subjuries made up in the main of jurors who had
been brought up by the chiefs from the various group juries to
the superior jury by the methods heretofore described.

We have also been informed by a gentleman who attempted to make
a protest and get a hearing before these subcommittees so
organized with the superior jury that he was informed he could
only make his complaint to the chief of the department from
which the exhibit referred to came, and when one chief was
approached he said he would not permit the matter complained of
to be investigated by the superior jury. He then appealed to the
full superior jury to hear him, and he was informed that they
had agreed that no one should be heard. So that it occurs to us
that the thing we sought to warn you against has been
practically accomplished, and the assurance given us that the
method by which these things might be corrected has been denied,
so that if we understand your contention that we were only to
approve the system of making awards instead of the awards we
claim the system that we approved has been violated from start
to finish.

We also find that some jurors who were appointed and approved
for certain departments had been transferred to other groups and
departments without the knowledge or approval of the National
Commission.

We are not thoroughly familiar with the character of all your
chiefs for integrity or impartiality, but from some things that
we have heard we are unwilling for some of them to make up a
list of awards without the National Commission's performance of
the duty that devolves on us by the act of Congress and by
section 6 of article 22 of the rules and regulations of the
Louisiana Purchase Exposition, adopted in pursuance of an act of
Congress of the United States, and we again wish to protest as
we have had occasion to do several times before, against the
apparent disposition on the part of the local company to ignore
the National Commission, and disregard the powers vested in this
body by the act of Congress, under which this exposition is
held.

We see from the papers that your company, without any reference
to the National Commission, is proceeding to publish the list of
awards made as heretofore described in this communication. We
wish to enter a protest against this being done, and to inform
you that under section 4 of the act of Congress a board of
arbitration is provided for, "to whom all matters of difference
arising between the Commission and said company concerning the
administration, management, and general supervision of said
exposition, including all matters of difference arising out of
the power given by this act to the said company, or to the said
National Commission to modify or approve any act of the other of
the two bodies, shall be referred for determination," and to
notify you that we insist upon such arbitration if your company
insists upon its refusal to submit these awards to the National
Commission for approval.

The matters to be submitted to said arbitration board are as
follows:

First. The right of the National Commission to have submitted
for its approval the awards found under the jury system and
ready to be promulgated by the superior jury.

Second. If our contention as to our rights in this matter be
found by said board of arbitration against us, then as to
whether or not the rules and regulations adopted by the local
company and the National Commission governing the system of
awards have been so complied with as to bind the National
Commission to any approval of the system by which the awards
have been made.

Third. Whether or not, under the rules and regulations, it is
necessary for the president of the National Commission to sign
the diplomas or certificate of awards; and if so, can his name
be put on such diplomas or certificates without his consent.

We trust any further announcement of the awards of the superior
jury may be withheld until this matter shall have been
arbitrated.

Respectfully,

THE LOUISIANA PURCHASE EXPOSITION COMMISSION,
JOHN M. ALLEN, _Acting President_.

Hon. D.R. FRANCIS,
_President Exposition Company, Building_.

A formal acknowledgment of this letter was received from Secretary
Stevens, with the advice that the same had been placed before the
executive committee for consideration.

At about this time there appeared in several St. Louis newspapers
advertisements of prominent firms of St. Louis, setting forth the
alleged fact that they had been awarded grand prizes on their exhibits,
and in connection with such advertisements was displayed a cut of an
official award ribbon, bearing the facsimile signature of the president,
the director of exhibits, the secretary of the Exposition Company, and
the chief of the department in which the exhibit was made.

The fact that the awards were being advertised broadcast in this manner
before they had been approved by the Commission was called to the
attention of President Francis by Mr. Allen, acting president, by a
letter under date of November 4, as follows:

NOVEMBER 4, 1904.

SIR: If the inclosed advertisement is published by authority of
the Louisiana Purchase Exposition Company, it seems to be
directly in conflict with the understanding had with the
National Commission that before awards be announced officially
they were to be submitted to the National Commission for
approval. This advertisement purports to be by authority of the
Louisiana Purchase Exposition Company, signed by David R.
Francis, president, and F.J.V. Skiff, director of exhibits. No
final action on awards by the superior jury have been submitted
to the National Commission, but nearly all the exhibitors in the
exhibit buildings are advertising what purports to be the
official awards.

We most earnestly submit that this action on the part of the
exhibitors is in direct conflict with the law and with the
agreement had with you by the National Commission, and if it is
being done with the approval of your company, we desire again to
protest against it. We understood after our demand for
arbitration on the construction of the law as to the right of
the National Commission to approve or disapprove of awards, that
your company agreed to our contention, and that these awards
were to be submitted to us before being published. If your
understanding does not accord with ours, we again ask for
arbitration. If it does accord with ours, we insist that the
spirit of this agreement be adhered to.

Very respectfully,

JOHN M. ALLEN,
_Acting President_.

Hon. D.R. FRANCIS,
_President Louisiana Purchase Exposition
Company, Administration Building_.

The following communication was received from President Francis, in
reply to Mr. Allen's letter:

NOVEMBER 4, 1904.

DEAR SIR: I am in receipt of contents of your letter of this
date concerning the advertisement of the Brown Shoe Company of
their awards. It surprised me as much as it did you. I have
instituted inquiries, and as soon as I ascertain by whose
authority the announcement was put in the papers, I shall advise
you. Of course you know that the exposition authorities had no
knowledge of such an advertisement until it was given to the
public. These ribbons are sold by a concessionaire, who was
instructed weeks ago to sell none of them until the awards are
officially announced.

Very truly, yours,

D.R. FRANCIS,
_President_.

Hon. J.M. ALLEN,
_Acting President National Commission, St. Louis, Mo_.

Shortly after the receipt of the foregoing letter from President Francis
another letter bearing the same matter was delivered to the Commission,
as follows:

NOVEMBER 4, 1904.

DEAR SIR: Since writing you a hurried note this morning, I have
read your letter more carefully, and desire to state in addition
that, referring to that portion of your letter relating to what
you term an "agreement" between this company and the National
Commission that no award can be made without being approved by
the Commission, I beg to say I am not advised of such an
agreement or understanding having been made. It was our
understanding that, before official notification to exhibitors,
a list of the awards made by the superior jury would be
furnished by the secretary of said jury to the Commission and
also to this company for their information and for the purpose
of giving to the Commission and to this company an opportunity
to call the attention of the jury (or the committee of five now
acting as such) to any errors which the Commission or this
company might discover, so that the same might be considered and
corrected before giving official notification to the exhibitors.
My understanding is that the committee of five are sending these
lists as fast as its clerical force can make them out.

Yours, truly,

D.R. FRANCIS,
_President_.

Hon. JOHN M. ALLEN,
_Acting President National Commission_.

On November 5, Mr. Allen addressed another communication to President
Francis, as follows:

NOVEMBER 5, 1904.

SIR: The National Commission is in receipt of your two letters
of the 4th instant, in reply to one of same date sent to you.
The first of the two letters recognizes our contention. Your
second letter is one of the most surprising communications we
have ever had from the local company. You seem to have mended
your hold after your first letter of the 4th instant and for
some reason repudiated what Mr. Miller, Mr. Betts, and the
writer clearly understood to be an acquiescence in and an
agreement to the contentions as to the rights of the National
Commission contained in our letter to you of October 18. We
inclose herewith a copy of said letter of the 18th instant for
the purpose of refreshing your memory without the necessity of
looking it up.

You will see that in that letter we defined the contention of
the National Commission as to its right to approve or disapprove
of the awards of the juries, and it concludes with a demand for
arbitration unless this right is conceded by your company.

You will remember that instead of answering this letter you
invited Mr. Betts and the writer into your office, where we sent
for Mr. Miller, to discuss this question. You should remember
that when you broached this subject the writer said to you, "We
are not looking for work, nor are we looking for trouble, but we
think Congress has imposed this duty of approving and
disapproving these awards on us, and we will not shirk it."
There was considerable discussion in your office that day, but
no intimation from you or anyone else that there was still
opposition to our contention. You went on to say that the lists
that you were getting out were not official in any sense and
would not be until we said so.

You will recall that this interview between us was at your
suggestion and intended, we supposed, as an answer to our
communication of the 18th of October, in which we had demanded
arbitration on this very question. You say in your second letter
of the 4th instant that "It was our understanding that before
official notification to exhibitors a list of awards of the
superior jury would be furnished by the secretary of said jury
to the Commission and also to this company for their information
and for the purpose of giving the Commission and this company an
opportunity to call the attention of the jury, or the committee
of five now acting as such, to any errors which the Commission
or this company might discover, so that the same might be
considered and corrected before giving official notification to
the exhibitors." We can not understand where you could have
gotten that understanding. I know that there was nothing said
about the National Commission having a list submitted to it for
any other purpose than the purpose of approval or disapproval.
We never asked for a list for information, nor was anything ever
said about referring anything back to the committee of five.
What was ever said by the members of the National Commission
then present to indicate to you that we withdrew or abandoned
our demand for arbitration if the right of approval or
disapproval was not accorded the National Commission? And if
nothing was said by us evidencing such an abandonment of the
demand, what answer have you ever made to such a demand? If your
conversation with the members of the National Commission in your
office that day was not intended to make the impression on them
that you assented to sending the awards to the National
Commission for approval or disapproval, it was as misleading a
conversation as I ever listened to, and both the other gentlemen
of the National Commission who were present agree with me in
this view.

Right here let me suggest that in the future our written
communications be answered in writing. We will then at least
have a record in writing.

We reiterate that we are not looking for trouble or work, but as
the representatives of the Federal Government we do not propose,
if we can prevent it, to acquiesce in having the awards of this
exposition promulgated without our approval when we think the
law devolves this duty upon us. If your second letter of the 4th
instant, in which you state your understanding, is the course
your company proposes to take about this matter, we reiterate
our demand for arbitration as contained in our letter of October
18. We suppose it will not be contended that we have lost the
right of arbitration. We insist that there be no official
promulgation of the action of the superior jury until such
arbitration shall have been concluded.

Awaiting your early reply,
Very respectfully,

JOHN M. ALLEN,
_Acting President_.

Hon. D.R. FRANCIS,
_President Louisiana Purchase Exposition Company,
Administration Building_.

Under date of November 8, President Francis replied to the foregoing
letter as follows:

NOVEMBER 8, 1904.

DEAR SIR: Your communication of Saturday, November 5, was not
read by me until yesterday, Monday, November 7, and was
submitted to the executive committee to-day. I can not say
whether the tone and spirit of the letter, or the statement that
you misunderstood the position of the Exposition Company, was
the more surprising. I desire to state emphatically that at no
time have I ever told you or said anything that would justify
you in believing that the Exposition Company accepted the
contention that the National Commission has the right to approve
or disapprove the awards of the superior jury before they are
final. It is true I did invite you into my office after the
receipt of your letter of October 18, and also true that I
stated to you I regretted the view taken by the National
Commission of its prerogatives or its duty, but none the less
true that I also said that, inasmuch as the rules governing the
system of awards had been promulgated and acted upon after
approval by the Exhibition Company and the National Commission,
that neither the Exposition Company nor the National Commission
has the right to review the awards or overturn them. I did state
that no official announcement of awards would be made until the
Exposition Company and the National Commission should be advised
of what they were, to the end that, if there had been any
irregularity in the awarding, any errors or omissions, or any
fraud, the same might be corrected; but at no time have I ever
said anything that would justify you or anyone else in the
conclusion that either the Exposition Company or the National
Commission had the right to review the action of the superior
jury with the power to overturn the awards on the ground that
they were not justly made on the merits of the exhibits. It was
certainly my understanding when we parted after the conference
in my office that the situation was clear to you, and I have a
distinct recollection, as does Judge Ferriss, who was present at
the conference, that Mr. Betts accepted the situation. You
offered no definite objection, but did state in an interrogatory
tone that you were not yet ready to relinquish the right of the
National Commission to approve the awards. I have had no
conversation with you since that date on the subject, but Judge
Boyle tells me that in conversation with Mr. Betts on the
subject, after the interview in my office, he told Mr. Betts
that the superior jury was progressing with its work and had no
objection to any member or members of the National Commission
being present at its sessions; and further, that as fast as the
work progressed the results would be informally communicated to
the National Commission, so that if the Commission should find
any errors it could call the committee's attention to same, so
that corrections could be made before an official announcement
of awards. His impression, from the conversation with Mr. Betts,
was that this arrangement was entirely satisfactory to the
Commission, and would obviate any further controversy as to the
right of the Commission to approve or disapprove the awards
before they became final.

I therefore not only deny any intention to mislead you or the
National Commission concerning the position of the superior jury
and the Exposition Company, but state emphatically that I have
said nothing that justifies any belief or impression on the part
of anyone that either the superior jury or the Exposition
Company admitted the contention of the National Commission that
it had the right to approve or disapprove awards finally made by
the superior jury in pursuance of the rules and regulations
adopted by this company and approved by the Commission.

I made two replies to your letter of November 4, and my reason
for doing so was explained in the second letter. My first letter
was dictated immediately on receipt and on a cursory reading of
your communication inclosing the advertisement of an award in
the morning papers of November 4, and was hurriedly made through
earnest consideration for and extreme courtesy toward the
National Commission. It merely advised that I was investigating
the advertisement and would report as soon as I could learn upon
what authority of the Exposition Company or superior jury, if
any, it had been inserted in the daily papers. Upon a rereading
of your letter and a reference of same to members of the
superior jury, my attention was called to the fact that a
failure to reply to that portion of your letter claiming the
right of the National Commission to approve or disapprove awards
made on their merits might be construed as an acknowledgment of
such contention, whereupon I sent to you the second
communication. Until the receipt of your letter of the 5th, I
was under the impression that the situation as it exists was
accepted by the National Commission, as it has been by the
Exposition Company.

I note the request in your letter "that in future our (your)
written communications be answered in writing," and it will be
complied with. Furthermore, if this request is made by authority
of the National Commission, as such, I desire that all
communications of the National Commission to the Exposition
Company shall hereafter be in writing.

As to your request for an arbitration, if you still insist on
having it the Exposition Company will interpose no obstacle.

In this connection, I desire to inform you that the diplomas or
certificates of award provided for in the rules and regulations
are being engraved, and the facsimile signatures of the
president, secretary, and director of exhibits of the Exposition
Company, and of the president of the National Commission placed
thereon. If the National Commission is unwilling to have the
name of its president engraved on these diplomas until or unless
the awards are approved by the National Commission, the fact
should be made known at the earliest possible moment, so that
there may be no unnecessary expense incurred.

This letter has been submitted to the executive committee of the
Exposition Company and has been approved by it.

Yours truly

P.R. FRANCIS,
_President_.

Hon. JOHN M. ALLEN,
_Acting President National Commission,
Administration Building._

Informal conferences were held with the exposition officials from time
to time, but no agreement was reached, and on November 11 the Commission
submitted the following draft of suggestions to the Exposition Company
for the finding of the board of arbitration:

First. The awards as made by the superior jury are final and
binding upon the Exposition Company and the National Commission,
unless the same are impeached for fraud, or unless misconduct
amounting to fraud is proven.

Second. The lists of awards as made by the superior jury are to
be transmitted to the Exposition Company, and certificates of
awards shall be authorized by said company, and thereafter said
lists are to be transmitted to the National Commission and
certificates of award authorized by said Commission, all without
further question or investigation, unless the said awards are
impeached for fraud or misconduct, as hereinbefore stated.

Third. No complaint or protest as to any of said awards will be
received or considered, either by the Exposition Company or the
National Commission, unless the same is made in writing over the
signature of some competing exhibitor and substantiated by
affidavit or other sworn testimony establishing a prima facie
case of such fraud or misconduct in procuring or making of said
award.

The arbitration committee of the Exposition Company replied to the
foregoing propositions as follows:

NOVEMBER 11, 1904.

DEAR SIR: After consulting Judge Boyle I find that the
suggestions you have presented for a finding by the board of
arbitration will be acceptable to both of us if the following
amendments are made:

First. Change in the first clause, so as to read as follows:

"The awards as made by the superior jury are final and binding
upon the Exposition Company and the National Commission, except
as to any award or awards which are impeached by said company or
Commission for fraudulent conduct on the part of said jury in
making the awards."

Second. Omit entirely the third clause.

We are of the opinion that ample provision is made in the rules
and regulations for having any fraud or fraudulent conduct on
the part of any subordinate jury or juror fully considered and
determined by appeal to the superior jury, and that no further
precaution or provision is needed unless the conduct of the
superior jury is shown to have been fraudulent.

Our purpose in striking out the third clause is that a charge of
fraud against the superior jury should be made only when
supported with the character and dignity pertaining to the
Exposition Company or the National Commission, and that the
provision made in the third clause for affidavits is wholly
unnecessary because the charge would not be made by either of
those bodies except upon such evidence as they would be
satisfied warranted making the charge.

Yours, very truly,

CHAS. W. KNAPP,
_Member Board of Arbitration_.

Hon. JOHN M. THURSTON,
_Member Arbitration Board, National Commission._

On November 12, 1904, the Commission addressed the following
communication to the President of the Exposition Company, forbidding the
use of the signature of the president of the Commission to any
certificate of award until the matter at issue was determined.

NOVEMBER 12, 1904.

SIR: Your letter of November 8 received and contents noted. The
statements contained therein as to what occurred in your office
on the 19th of October in your interview with Mr. Betts, Mr.
Miller, and the writer do not accord with the distinct
recollection or understanding of any of the three parties
mentioned.

I am glad to know that our communications will hereafter be in
writing, that these misunderstandings may be avoided. The
National Commission is in entire accord with this position, and
we will try and observe our part of this understanding.

The informal conferences between the members of the National
Commission and representatives of your company seem to have
resulted in no definite understanding, and the Commission
therefore insists that arbitration be had to determine the true
effect and meaning of section 6 of the act of Congress approved
March 3, 1901, as affecting the rights and duties of the
National Commission to approve or not approve the awards.

In the meantime and until this question is determined the
Commission can not authorize the use of its president's
signature on any certificate of award.

In any arrangement preliminary to the settlement of this
controversy the writer will be pleased to confer with your
arbitration committee at any time.

Very respectfully,

JOHN M. ALLEN,
Acting President.

Hon. D.R. FRANCIS,
President Exposition Company, Building.

After many futile efforts to reach an agreement as to the subject-matter
to be submitted for arbitration, it became obvious to the Commission
that it was the intention of the Exposition Company to ignore the right
of the Commission to finally consider or approve the awards of the
superior jury. Under these circumstances the president of the Commission
was directed, on November 22, 1904, by resolution, to forward to the
president of the Exposition Company a communication summing up the
controversy and stating clearly the stand taken by the Commission.

The communication is as follows:

St. Louis, November 22, 1904.

Sir: To the end that an understanding may be reached as to
issues involved in correspondence between your company and the
National Commission, extending from the month of May, 1904,
almost to the present date, relative to the appointment of
jurors and the awarding of premiums, it appears desirable and
necessary that the law and the facts be briefly stated and the
relative position of your company and the Commission clearly
defined.

In so far as applicable to the subjects referred to, section 6
of the act of Congress making an appropriation for the
exposition, and for other purposes, approved March 3, 1901,
reads as follows:

"That the allotment of space for exhibitors, classification of
exhibits, plan and scope of the exposition, the appointment of
all judges and examiners for the exposition, and the awarding of
premiums, if any, shall all be done and performed by the said
Louisiana Purchase Exposition Company, subject, however, to the
approval of the Commission created by section two of this act."

Under and in conformity with the provisions of law above cited,
certain general and special rules and regulations providing for
an international jury and governing the system of making awards
were submitted by the company and approved by the Commission in
the year 1903.

The general rules applicable read as follows:

ARTICLE XXII.

AWARDS.

SECTION 1. The system of awards will be competitive. The merit
of exhibits as determined by the jury of awards will be
manifested by the issuance of diplomas, which will be divided
into four classes--a grand prize, a gold medal, a silver medal,
and a bronze medal.

SEC. 2. No exhibit can be excluded from competition for award
without the consent of the president of the Exposition Company
after a review of the reasons or motives by competent
authorities hereafter to be provided.

SEC. 3. In a fixed ratio to the number of exhibits, but
reserving to the citizens of the United States approximately 60
per cent of the jury membership, the construction of the
international jury will be based upon a predetermined number of
judges allotted to each group of the classification and upon the
number and importance of the exhibits in such group.

SEC. 4. A chairman of the group jury will be elected by his
colleagues in each group, this chairman to become, by right of
his position, a member of the department jury, which department
jury shall in turn elect its chairman, who shall thereupon
become a member of the superior jury.

SEC. 5. Special rules and regulations governing the system of
making awards and determining the extent to which foreign
countries may have representation on the juries, will be
hereafter promulgated.

SEC. 6. Allotment of space for exhibitors, the classification of
exhibits, the appointment of all judges and examiners for the
exposition, and the awarding of premiums, if any, shall be done
and performed by the Louisiana Purchase Exposition Company,
subject, however, to the approval of the Louisiana Purchase
Exposition Commission.

The special rules provide for the appointment of three graded
juries, designated as, first, the general organization of group
juries; second, department juries, and, third, the superior
jury.

At the conclusion of the recital of the manner of selecting the
jurors a paragraph in section 3 of the rules provides that "all
the above nominations shall be made not later than August 1,
1904, except that nominations made to fill vacancies may be made
at any subsequent time."

In conclusion, the section last referred to reads as follows:

"The nominations of group jurors and alternates, when approved
by the president of the exposition, shall be transmitted to the
president of the Louisiana Purchase Exposition Commission for
approval of that body.

"These nominations having been considered and confirmed by the
authorities as provided by section 6 of the act of Congress
relating to the approval of the awarding of premiums, the
appointment of the international jury shall be made in
accordance with section 6 of Article XXII of the official rules
and regulations of the Louisiana Purchase Exposition Company."

Section 6 of the aforesaid special rules provides that--

"The work of the group juries shall begin September 1, 1904, and
shall be completed not later than twenty days thereafter."

Section 15 of the special rules and regulations provides that--

"The superior jury shall determine finally and fully the awards
to be made to exhibitors and collaborators in all cases that are
formally presented for its consideration."

Section 16 of the special rules and regulations provides that--

"The work of the superior jury shall be completed on October 15,
1904, and, as soon as practicable thereafter, formal public
announcement of the awards shall be made. A final complete list
of awards shall be published by the Louisiana Purchase
Exposition Company, in accordance with the provisions of section
6 of the act of Congress, and section 6, Article XXII, of the
rules and regulations."

Sec. 27 of the special rules and regulations provides that--

"The diplomas or certificates of award for exhibitors shall be
signed by the president of the Louisiana Purchase Exposition
Company, the president of the Louisiana Purchase Exposition
Commission, the secretary of the Louisiana Purchase Exposition
Company, the director of exhibits, and the chief of the
department to which the exhibit pertains."

The foregoing rules clearly required the submission of the names
of all proposed jurors to the Commission for its approval or
disapproval prior to August 1, 1904, except as to nominations to
fill vacancies.

Realizing the necessity for the exercise of great care on the
part of the Commission in the discharge of its duties in the
premises, and the necessity for ample time for investigation as
to the fitness of persons and their willingness to serve as
jurors of awards, the Commission addressed you a letter under
date of May 18, 1904, reading as follows:

"SIR: Inasmuch as objections may be urged to the appointment of
certain persons upon juries of awards, it is the intention of
the National Commission to give public notice, allowing
reasonable time for the filing of any objections that may be
offered to the appointment of any individual on a jury. As this
proceeding will necessarily consume time, it is desirable that
the names of persons proposed for the respective juries be
transmitted to the Commission from time to time, as the
respective groups are completed by the company. It is believed
that final action can be reached in a more orderly and
satisfactory manner by taking up the names proposed for each
jury separately rather than to have the entire membership of all
the juries submitted for consideration simultaneously.

Yours, very respectfully,

THOS. H. CARTER,
_President."_

Our files do not show any recognition of this communication by
your company. A short time thereafter the Commission was
unofficially advised that certain jurors had been selected by
the company and were actually exercising the functions of judges
and examiners without notice to or approval by the Commission,
and on the 23d of May, 1905, this fact was duly called to your
attention by letter. Some time later the director of exhibits
appeared before the Commission and admitted that certain
examiners and jurors had been selected, without reference to the
Commission, to pass upon exhibits of a perishable character. In
three communications, each bearing the date of June 3, 1904, you
transmitted the names of the jurors referred to, and in the
light of the explanations made by the director of exhibits and
in your communications, the Commission, with many misgivings as
to the regularity of the proceedings and solely to avoid
embarrassment to the exhibitors and to the company, approved the
names submitted as of the date of their selection by the
company.

Aside from the few jurors thus irregularly selected for
emergency work, no jurors were nominated or submitted to the
Commission as required by the rules and regulations prior to
August 1.

The first list of group jurors was transmitted in your
communication bearing date of August 10, delivered to the
Commission about August 15, and the last list was transmitted to
this Commission on October 27.

The respective dates of your letter transmitting nominations of
group jurors and the respective dates of the receipt of the same
by the Commission are as follows:

------------------------------|------------|-------------
| |
| Date of | Date same
| letters of | letters
| Exposition | received
| Company. | by National
| | Commission.
------------------------------|------------|-------------
_Department._ | |
| |
Education and Social Economy | Aug. 10 | Aug. 15
| Sept. 6 | Oct. 3
Art Department | Aug. 10 | Aug. 15
| Aug. 23 | Aug. 26
| Aug. 26 | Aug. 28
| Aug. 27 | Aug. 29
Liberal Arts | Aug. 10 | Aug. 15
Manufactures | Aug. 25 | Aug. 29
Machinery | Aug. 10 | Aug. 15
| Aug. 16 | Aug. 20
| Corrected list
| Oct. 18.
| Sept. 7 | Sept. 10
Electricity | Aug. 10 | Aug. 15
| Sept. 9 |
Transportation | Aug. 9 | Aug. 15
| Sept. 8 | Oct. 3

Book of the day: