Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1886-08-17
MORE PAN ELECTRIC.
Attorney General Garland Formally
Explains His Connection With The
Telephone Company.
The New silver Certificates Authorized
by the Late ConEre.s Not TO be Issued
Untn Next November.
ANp rnE rAN

Rogers agsiusi Attorney General Gar
land, Senator Harris and others for set
ilment Of the affairs of the Pan-Electrlc
Telephone company In the answer he
denies every material statement In the
bill, and calls attention to the "scandal.
Gus and impertinent matter In bill" lie
says he must decline to answer such por.
lions unless the court directs him TO do
so. In concluding his answer, the attor-
ney-general saws; That being invited by
one or more OF his. defendants 10 become
interested In aiding todeyelop certain in
ventions OF the complainant, he did, on
February 10, 1888, attend meeting OF
parties Interested at the residence Of The
complainant, on four-and-a-half
street Northwest, In this city.
and that he attended only two
other meetings, that II Is 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, and that
so far as he Is aware, all agreements OF
the parties as between themselves relative
70 this business were reduced to writing
and are fully and completely set out in
the contract dated March 10, 4 1888, which.
on his behalf, was executed by his attor-
ney In fact, G.. Harris The attorney
general further AYERS: That be has
the sum OF money therein agreed by him
70 be paid and In addition thereto further
sums or assessments made aud all that
were made by the parties to the contract
and In pursuance thereof and for the pur.
poses therein set out, aud he en-
tered into no other agreements of
any kind In the premises with the
complainant or any one else, aud he
further says that he was impressed by the
apparent usefulness Of the inventions and
had great confidence in the legal validity
OF the patents, and the belief that the
validity would be judicially sustained In
any litigation, and that In that event they
would become very valuable II honestly
managed on business principles:
that until their legal validity was thus
established, IL was by himself and his CO.
defendants deemed unwise and improper
To issue stock OF the company which had
been duly and legally chartered, and TO
which the company said patents had been
legally assigned in pursuance Of the
agreements In the written CON
tract referred to, the origl-
nal whereof will be fully ex-
hibted. They carefully guard against
such premature issue OF scrip for stock
by providing tina. all OF the stock should
be held jointly. He admits that the con.
tract does not constitute a partnership,
but II Is an agreement between parties
as 20 obtaining Of the charter for specific
purposes aud for the manage
ment Of certain interests thereof when
Chartered and organized hereunder, and
he submits to the court here proper legal
construction OF said contract that under
aud in pursuance Of said contract the
Pan-Electric Telephone company issued
certificates showing that differ
ent parties In the interest were
entitled to a certain number OF shares OF
the capital stock OF the Pan-Electric com.
pany Of par value of 500, each as soon as
the validity OF the patents be udlcially de-
termined In any litigation Instituted for
that purpose, but this certificate is not
transferable, except with the consent
OF the president or secretary OF the
company Endorsed hereon. He
farther says that the complainant instead
OF devoting himself to the perfection OF
the invention, as by his contract he was
bound to do, sold interests In his stock
as admitted In his bill OF
complaint In sundry Instances
besides those therela admitted, In
patent violation OF said contract and
against the interests OF the company;
that nnding he could not persuade the
defendants 10 accede TO his wish, he pro-
cured many false and malicious
statements to be published IN
tue public press of the coun.
Try, both ns to the defendants
and as 70 the business OF this company.
He also AYERS that the utter disregard of
the complainant for his obligations, as
manifested by his violation Of his con.
tract, as well as his general conduct here.
In set out, renders him wholly unreliable
person with whom to have any business
relations whatever, and thus the defend
ant, having become fully satisfied, by the
gross misconduct OF the complainant,
tnat the business OF the company
could not be properly and de-
Hraoly managed had decided In
feoruary last to give away his stock In
SAID Fan'Electrlc Telephone company
ana De freed OF all and every association
with said complainant and had prepared
TO consummate the purpose when
an Investigation of this company
" AANNANNNNh Wy buC nOuHN
OF representatives cf the congress OF the
United States, and he deemed 1t proper TO
continue In statue quo until that was
concluded, and such investigation having
been concluded this defendant now
united In the desire OF the
complainant TO close out and
wind NJ tho business Of said company,
aud whether the court, after consldera
tlon OF the contract, shall regard and
treas this association as partnership or
corporation, there should, under said
contract, be a full accounting between
each member and the company, Including
the proceeds of any and ali stock interest
sold IN violation of said contract aud the
provision for the payment Of any llabill-
ties OF said company, and II necessary
TO secure dissolution and wind
ing mp of such organization
He asked that this answer may be deemed
and considered cross bill asking FOR
such relief This defendant waiying
aud renounclng the benefits and ali.
vantages to which he may be entitled OF
such accounting and all right aud ben
eht OF such company, brings Into court
here certificate for his interest In said
company, and while he Is ready
and willing 10 stand h., ana