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