Chapter XV: Section 11: of the act of Congress, approved March 3, 1901, (1)

requires the Commission to furnish the President of the United
States a summary of the financial condition of the Exposition
Company, and this can not be done in a satisfactory manner
without a statement of outstanding liabilities under contract,
expressed or implied.

It is the desire of the Commission to furnish the President with
detailed information of the character indicated, in connection
with the report for the current month, to the end that he may
have complete data available for consideration in connection
with his message to Congress.

It will greatly oblige the Commission to have the statement
referred to furnished in duplicate.

Yours, very truly,
THOMAS H. CARTER,
_President._

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

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.