New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-08-17
GARLAND SEEKING RELIEF.
HIS ANSWER TO THE BILL OF J. H. ROGERS
ASKING THE COURT TO Tighten HIS PAN ELECTRIC

| dav filed his answer ia the bill recently filed by j.
| Harris Rogers against Acknowledgement Hsrland,
Senator Harris and others for a settlement OF the
affairs of the Pan Electric Telephone Company. Mr.
Garland In his answer denies in detail every material
statement In the bill and calling attention to the scam
dalous and impairment matter in the Dill, says he
must decline to such portions unless the court
| directs to do SO. In concluding his answer the
| Attorney General says,
"That being invited by one or more OF MS CO.
defendants to become interested in aiding to develop
certain inventions Of the complainant, he dld on or
about February Is, 1883, attend meeting of the
parties interested at the residence OF the complainant
on Four-and-a-halfst n W., in this city, and that
except this be attended only two other meetings. and
that exceedingly probable that there are many
details of this business whereof he is wholly unin-
formed and as TO all such matters he would rely with
more confidence upon the books and records OF the
company than UPON his own knowledge. That so far
as il the agreements ofthe parties MS between
themselves relative to this business were reduced to
writing and fully and completely set out in the
contract dated March 49, 1888, which on his behalf
was executed by his attorney in act, lsham G..
Iarris.p
The Attorney General further AYERS that he has
paid the Of money therein agreed by him to be
paid, and i'll addition thereto some further sums or
assessments made, and all that were made by the
parties TO the contract named, and III pursuance
thereof and for the purposes therein set out And he
entered into no other agreements of any kind in the
premises with the complainant or any one else. And
he further says that he impressed by the apparent
usefulness of the inventions and had great confidence
in the legal validity of the patents. and believed that
their validity would be judically sustained in any
litigation instituted for the purpose, and that in that
event they would become very valuable if honestly
managed business principles; that until their legal
validity thus judicially established, 1t was by
himself and his co-defendants deemed unwise anc I'm.
proper to issue the stock OF the company which bad
been duly and legally chartered and TO which com
pany said patents bad been legally assigned In pursl
ance of the agreement; that the written contract
hcreinbcfore referred the original whereof Will be
duly exhibited the trial of this cause. was intended
to and boes carefully guard against such premature
and mprOvideut issue OF scrip for 'he stock by
providing that all of the stock should be held Jointly
lie submits that said contract does not constitute a
partnership. but that ii is an agreement beween tie
parties thereto as TO the obtaining OF chartcr TOT
specifc purposes and for the management OF certain
interests thereof when chartered and organized there
under and he submits to the court here the proper
LEGAL construction of said contract that under and IN
pursuance OF said contract, the Pan Elertric Iee-
phone Company issued certificates showing that the
different parties in interest were entitled to certain
number Of shares of the capital stock OF the Pan
Electric Company of the par value OF 500 each as SO
as the validity Of the patents is judically deter
mined in any litigation instituted for that purpose.
But this certificate transferable except with the
consent of the president anu secretary OF the company
indOTsed thereon. .
- lie further says that the complainant. instead of
dcvong himself TO the perfection of the invention, rs
by his contract he bound to do sold Interests in
his stock admitted in his bill OF complaint and IN
sundry other III stances besides those therein admitted
in patent violation of saiu contract will be shown
fully by the proof herein. and became anxious to have
the stock issued, in violation Of the contract and
against the interests of the company that finding he
could net persuade the defendants to acccde TO his
wishes he procured many false and malicious state
ments to be published in the public press OF he
country both As to the defendants and as to the
business of this company.'
lie also AYERS that the utter disregard of the com
pa;nant for his obi cations manifested by his viola
ton OF hIs contract rs well his general conduct
herein set out, renders him wholly unreliable
person with whom 10 have any business relations
whatever: and this defendant having become fully
satisfied BY the gross misconduct Of the complainant
that the business of the company could not be
properly aud dc,irably managed had decided IN tep-
ruafy last TO give aWaJ his stock IN SAID ran Bic trlc
Telephone Company and be freed OF all and every
association with SAID complainant and had prepared
TO cOnsummate this purpose when an investigation of
this company was instituted BY the House OF Repre-
OF the Congress OF the United States. and
lac deemed II proper to continue In "stltu quo until
that was concluded, and such lnyeste alton having
been concluded this defendant now united in The
desire OF the comp LIANT to close out and wind no the
business Of said company, and whether the court,
after consideration of the contract shall regard and
treat inis ASSOCIATION partnership corporation
there should under SAID contract. bc ll accounting
hetyeeu each member and the COMPANY including the
proceeds of any all stock ntere-; sold i'll viola
ton of said contract, and ample provision made for
the payment If any liabilities Of said company; and
necessary to secure a dissolution and wndlhg-up Of
such organization, he asks this answer may be deemed
and considered bill asking for such relief
And this ftndart, waving and renouucing the
benefits and advantages to which he may be entitled
of such accounting and all right aud beneht OF such
company brings into court here the certincate for his
interest in said company and while he Is ready
and willing stand By and form such decree as the
court shall deem meet and equitable III the premises
he asks that after the settlement OF all liabilities OF
said company by the application thereto OF me scrip
issued by SAID company II necessary any potion tha
NAV remain OF the scrip OF this defendant SO brought
into court in any interest OF this defendant thereln
may he cancelled returned and surrendered TO Inc
Pan Electric Telephone Company, or otherwise dis
posed Of ~ shall direct to the end that this
defendant nav he absolutely rid of the compliments
said stock and ali interest therein in said company
and for the purpose OF procuring by the Judgment Oh
the court in this proceeding a final and complete
adjustment and settlement of all matters between
th, defendant and the complainant and said company
and the termination OF all relations between THIS
defendant and either the complainant or SAID COM
pany. This defendant Is willing and hereby overs 10
account Tor all pecuniary benefits and money he has
received from SAID company by reasouOt his nters
therein. aud to bring said moneys into court when
thereuntO required.
And this defendant further w,Iing SAYS that as
10 all other matters set forth i'll the compainants said
bill OF complaint. this defendant has no know ledge
whatever. and has no Information as 10 the OIL OF
complaint and leaves tho complainant u prove the
same az he may be advised
Ex-sena or Mcdonald, is one OF the counsel for
the Bell recphoue Company in the pending Government
suit TODAY said hat he does not attach any Importance
10 the report OF action by the Commissioner OF
Patents einstate the Gray caveat or put hs appca-
ton IN interference with Bells In the latter case lie
said that II would 10 the OF the Patent Commits
sioner promptly inform Bell OF his action. In neither
Gaze could the action OF the Commissioner or Patebts
AFFECT the validity OF the patent. That question mas
passed INTO tho domain OF the courts. Toe claim or
priority OF Invention IN behalf OF Gray IS moo III me
bll fled Ivy tho Government counsel IN the pending
suit.
IL was suggested that the Government has rather
formidable argay OF counsel engaged DIT. Mcdonald
replied: ,,. =,
YES nearly strong In the star Route cases. II
may coat as much before comes To an cid, aud
n will be barren ~ legal results
Casey Young to-day denied he has any knowledge
of recent acton by Commissioner OF Patents which
can In any affect the Gray invention or the
lending suit. lie thinks that Mr. Van Benthuysen Is |
mistaken.
APPROVING COLLECTOR MAGONE's BOND.