You understand we begin business at 8 o'clock in the morning. This was a brief summary of what appeared in the morning papers, principally taken from the Herald.
Senator SMITH.
Some of that information, however, you obtained direct from the White Star office - that to which I have previously called your attention?
Mr. FARRELL.
I believe that one of our men, about 7.30 in the morning, went to the White Star office and got some information there, but as I recall it, he did not get much additional to what had been published in the morning papers. The Herald, the Times, and some of the other papers had rather complete accounts of it up to that time.
At 8.25 or thereabouts, in what we call our summary, which consists of the important developments over night, taken from various sources -
Senator SMITH.
That was on April 15?
Mr. FARRELL.
Yes; we printed this line:
White Star Liner Titanic, on maiden westward voyage, hit by iceberg and reported to be sinking. Passengers being taken off.
That was taken from the general news which appeared in the morning papers.
At 8.35, or approximately that time, April 15, we published the following:
Officers of White Star Line stated at 8 o'clock this morning that passengers on the Titanic were being taken off in boats and that there was no danger of loss of life. The Baltic and the Virginian they stated were standing by to assist in the rescue work.
On Titanic there were 300 first class, 320 second class, 800 third class passengers, and a crew of 900 men.
It is not yet known whether the vessel will be saved. White Star people are in something of a quandary if she should be saved, as it is said there is no dry dock on this side of the Atlantic to take care of her.
That was obtained by Mr. Gingold, one of our reporters, from the White Star office.
Senator SMITH.
From Mr. Franklin?
Mr. FARRELL.
No; this was not from Mr. Franklin.
Senator SMITH.
From some other of the subordinates?
Mr. FARRELL.
From some of the junior officers or employees. Mr. Franklin had not yet arrived at his office.
At 8.58, or thereabouts, on April 15, we published the following:
A dispatch from Halifax reports that all passengers had left the Titanic in boats shortly after 3.30 this morning.
That was received from the Boston News Bureau, our Boston correspondent.
At 9.02 a.m., April 15, we published the following:
An official of White Star Line said: "There is no danger that Titanic will sink. The boat is unsinkable, and nothing but inconvenience will be suffered by the passengers.
Latest information which has come to White Star office is that the Virginian is due alongside the Titanic at 10 a.m., the Olympic at 3. p. m., and the Baltic at 4 p.m.
That was obtained from Mr. Franklin by two of our reporters, Mr. Smallwood and Mr. Byrne, who both saw him at the time.
At 9.22 a.m., or thereabouts, April 15, we published the following:
Vice President Franklin, of International Mercantile Marine, says, regarding reported accident to Titanic: "It is unbelievable that Titanic could have met with accident without our being notified. We had a wireless from her late Sunday giving her position, and are absolutely satisfied that if she had been in collision with an iceberg we should have heard from her at once. In any event, the ship is unsinkable, and there is absolutely no danger to passengers."
That was received from Mr. Franklin by Mr. Trebell, one of our reporters.
At 9.25 a.m., April 15, we published the following:
Wireless advices from steamship Virginian said last word from wireless telegrapher on Titanic was received at 3.05 o'clock this morning. He said women and children were being taken off in calm sea. It is thought that Titanic wireless has failed, due to some local cause.
That was received from the Laffan News Bureau, of New York.
At 9.27 we published the following:
LONDON.
Lloyd's were re-reinsuring Titanic's cargo today, but demanding premium of 50 per cent.
That was received from the Laffan News Bureau.
Senator SMITH.
At what hour?
Mr. FARRELL.
We published it at 9.47; so it was a few minutes before that that it came in.
Senator SMITH.
Did you make any attempt to verify the Laffan News Bureau item that an attempt was being made to reinsure the cargo with Lloyd's?
Mr. FARRELL.
No.
Senator SMITH.
Did you send one of your reporters to Lloyd's after receiving this information, where he had an interview with the representative of that firm?
Mr. FARRELL.
I am not sure but that a reporter may have gone to Lloyd's. Personally I did not send any, but of course the reporter may have gone on his own initiative.
Senator SMITH.
Do you know what he ascertained the fact to be?
Mr. FARRELL.
No; I do not.
Senator SMITH.
Did he ever report to you?
Mr. FARRELL.
Not to my recollection.
Senator SMITH.
I wish you would think rather carefully about this because I do not want any mistake about it.
Mr. FARRELL.
I do not recollect any reports having been made to me about the result of any investigation.
Senator SMITH.
Or to anyone else in your company or to any other officer of your company?
Mr. FARRELL.
There might have been; but I could not say definitely as to that.
Senator SMITH.
It was the subject of some speculation and conversation in your office, was it not?
Mr. FARRELL.
Yes; it was.
Senator SMITH.
And was regarded as rather an unusual circumstance in connection -
Mr. FARRELL.
At that time it was not regarded as so unusual, because of our information that the boat was unsinkable; and we believed that she was not going to go down.
Senator SMITH.
Subsequently it became rather important?
Mr. FARRELL.
Subsequently it became very important.
Senator SMITH.
Have you taken any pains to ascertain the truthfulness of that publication?
Mr. FARRELL.
I do not recollect any specific inquiry which we made regarding that.
Senator SMITH.
Did you make any general inquiry of any representative of Lloyd's or the White Star Line regarding it?
Mr. FARRELL.
We made inquiries, as I recall, from the White Star Line.
Senator SMITH.
When?
Mr. FARRELL.
I do not recall whether we published anything about it or not, but the other newspapers had had, as I recall, emphatic statements from the White Star Line that they had made no attempt to reinsure or anything of that sort and of course it was our custom, where all the other papers had something, to let it go at that.
Senator SMITH.
In Wall Street, where your journal is supposed to reflect the opinion of financiers, that item was calculated to create considerable controversy, was it not?
Mr. FARRELL.
Much controversy subsequently did arise on that item.
Senator SMITH.
Were you criticized or threatened for publishing that reinsurance story?
Mr. FARRELL.
Not to my knowledge. Any criticism of a serious nature certainly would come to my knowledge. I would be the one to whom it should be made.
Senator SMITH.
Have you since been criticized for it?
Mr. FARRELL.
Not directly. We have received no direct criticism. There may have been talk, but no direct criticism has come to my knowledge.
Senator SMITH.
Where is the office of Lloyd's in New York?
Mr. FARRELL.
I really do not know where their agent is in New York.
Senator SMITH.
It is in Wall Street, is it not?
Mr. FARRELL.
Some place in that neighborhood. I do not know where their New York office is.
Senator SMITH.
Where is your own office in New York?
Mr. FARRELL.
44 Broad Street.
Senator SMITH.
In the center of the financial district?
Mr. FARRELL.
Yes; approximately.
Senator SMITH.
It would have been rather easy to have sent someone to the office of Lloyd's that morning, would it not, to have ascertained that important fact?
Mr. FARRELL.
It would; but that morning we were working under tremendous pressure, and every man we had was bent on getting the news as to what was likely to happen to the Titanic and at the time we considered the matter of reinsurance a relatively unimportant matter.
Senator SMITH.
That is, you thought at the time that it was a rather desirable hazard?
Mr. FARRELL.
Yes; we thought Lloyd's were willing to gamble on it. They wanted a high premium, but were willing to gamble, nevertheless.
Senator SMITH.
But from your own knowledge, or from any information you have received from your associates in the publication of the Wall Street Journal, you do not know whether this was proposed or consummated or not?
Mr. FARRELL.
I do not; no.
Senator SMITH.
Is there any officer or stockholder of your company who is also a stockholder or officer of the White Star line?
Mr. FARRELL.
No, sir.
Senator SMITH.
Or Lloyd's?
Mr. FARRELL.
No.
Senator SMITH.
Or the Western Union Co., of the Postal Telegraph Co., of the Marconi companies, or the cable companies?
Mr. FARRELL.
I could not say as to that. I know none of them are officers or directors, I believe. Some of them may own 10 or 100 shares of stock in those companies but not enough to be of any consequence. In ordinary investments a man might own almost anything, probably, but they have no official connection.
Senator SMITH.
Can you give the name of any stockholder -
Mr. FARRELL.
No; I could not give any names. We have some 70 or 80 or 100 men - I guess, more than that - in our employ, and some of them may have taken some Western Union stock as an investment, or some Postal Telegraph stock or Marconi stock as an investment. That is none of our business. They are private investments.
Senator SMITH.
Proceed with your reading of the messages.
Mr. FARRELL.
At 9.28 a. m, or thereabouts, we published this item.
Senator SMITH.
I am going to assume, Mr. Farrell, that when you state the time as 9.28, or any other time, you are now speaking of the 15th of April?
Mr. FARRELL.
Oh, yes; April 15.
Senator SMITH.
And that when you get beyond the 15th you will indicate that fact?
Mr. FARRELL.
Yes. At 9.28 a.m., on April 15 we published the following:
Additional passengers on Titanic are Washington Dodge, Henry B. Harris, Col. Washington Roebling, T. Stead, Alfred O. Vanderbilt, J. Stuart White, John B. Thayer, vice president of the Pennsylvania Railroad, and Henry Harper.
That was obtained from the passenger list.
At 10.29, or thereabouts, on April 15, we published the following:
SIASCONSET, MASS
Wireless station here early today got message from S. S. Olympic stating damage to Titanic was great
That was received from the Boston News Bureau.
Directly afterwards we published the following:
White Star officials report Olympic was in communication with Titanic at 4.24 this morning, when Titanic was still afloat.
That also came from the Boston News Bureau.
At 10.45, or thereabouts, on April 15, we published the following:
Dispatch from Montreal received by White Star officials says Titanic was afloat at 8.30 and that women and children had not yet been taken off, though lifeboats were ready in case of emergency.
The steamship is heading in direction of Halifax, from which the Virginian is approaching. It is thought that bulkheads will prevent ship from sinking. Titanic is moving under her own engines.
That was received from Mr. Franklin by Mr. Byrne; one of our reporters.
At 10.49 or thereabouts, on April 15, we published the following:
MONTREAL.
Wireless message received 10 o'clock this morning said that two vessels were standing by Titanic, and the big vessel’s passengers had been taken off.
That was received from the Laffan News Bureau.
At 10.53, I should think, we published the following:
Possibility of losing Titanic is severe blow to International Mercantile Marine. Like its sister ship, the Olympic, the Titanic started in with a run of hard luck. However, this loss will not be shown in forthcoming annual report, to be issued in June, as company's year closed December 31. It is expected that Mercantile Marine will earn about $38,000,000 for year ended December 31 last, a net of about $38,000,000 and final surplus of about $4,500,000. However, it is expected company will write off at least $3,500,000 of this amount for depreciation, leaving about $1,000,000 surplus for year.
Both the Titanic and Olympic are fully covered by a combination of company and outside insurance.
Of course, that had no direct bearing on the Titanic.
Senator SMITH.
From whom did you get that information?
Mr. FARRELL.
That was written, I believe, by Mr. Trebell. I do not know where he got that information. Of course, it had nothing to do with the disaster.
Senator SMITH.
I would like, if you could get it, to know the source of that information, whether it was official or was from some other news agency.
Mr. FARRELL.
We did not receive it from any other news agency. This may have been his estimate, you know. Of course, our reporters are supposed to keep very close track of the earnings of these various companies, and frequently they are able of their own knowledge to make an estimate without official information.
Senator SMITH.
Then you think this information was probably put together in your office?
Mr. FARRELL.
Yes; I know it was put together in our office.