St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-08-17
Attorney General Garland Files His An
swer as Defendant in the Tele-
phone Case.
More Than Anything Else he Wants
to Get Rid of His Stock
Certificates.
Conflicting Reports Regarding Secre-
tary Bayard ana the Cut
ting Case.
The President foes on His Vacation
Points From the Postal De-
partment.
Garland,s Defense.

WASHINGTON, Aug. 16.-Messrs Morris,
Earle and Pugh, as solicitors for Attorney
General Garland to-day filed his answer to
the bill recently filed by j. Harris Rogers
against Attorney General Garland, Senator
Harris and Others for settlement of the
affairs of the Pan Electric Telephone Com
pany. Mr.. Garland in his answer denies
in detail every material statement in the
bill and calls attention to 1.-THE scantlalous
and impertinent matter in the BILL" He
says he must decline to answer such por-
lions unless the court directs him to do so.
In concluding his answer
THE ATTORNEY GENERAL SAYS:
''That being invited by one or more of his
co-defendapts to become interested in aiding
to develop certain inventions of the COM
plainant, he did on or about Feb. 15 of 1883,
attend meeting of the parties interested at
the residence of the complainant on Four and
a Half street northwest in this city and that
except this he attended only two other meet
ings and that it is exceedingly probable that
there are many details of this business
whereof he is wholly uniformed and as to
all such matters he would rely with more
confidence on the books and records of the
company than upon his own knowledge; that,
so far as he is aware all the agreements of the
parties as between themselves relative to this
business were
REDUCED TO WRITING,
and are fully and completely set out in the
contract dated March Is, 1858, which on his
behalf was executed by his attorney in fact
Isham G.. Harris. The attorney general
further AYERS THAT he has paid the sum of
money thereino agreed by him to be paid and
in addition thereto some further sums as
sessments made, and all that were made by
the parties to the contract named and in pur-
suance thereof and for the purposes therein
ha into
ments of any kind in the premises with COM
plainant or anyone else. And 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 believed that their validity would be
judicially sustained in any litigation instituted
for the purpose and that in that event they
would become very valuable if honestly man
aged on business principles; that until their
legal validity was thus judicially established
it was by himself and his co-defendants
deemed
UNWISE AND IMPROPER
to issue the stock of the company which had
been duly and legally chartered, and to which
company said patents had been legally as
signed in pursuance of the agreement; that
the written contract hereinbefOre referred to-,
the original whereof will be duly exhibited
on the trial of this case, was intended and
does carefully guard against such premature
and improvident issue of scrip for the stock. by
providing that all of the stock should be held
Jointly. He submits that said contract does
not constitute partnership, but that it is ali
agreement between the parties thereto as to
the obtaining of charter for specific pur-
poses and for the management of certain inter-
ests thereof when charged and organized there
under, and he submits to the court here the
proper legal construction of said contracts:
that under and in pursuance Of said contract
the Pan Electric Telephone company issued
oh T1,of ftal
parties in interest were entitled to a certain
number of ''ShareS of the capital stock of the
Pan Electric company of the par valne OF
500 each, as soon as the
VALIDITY OF THE PATENTS
is judicially determined in any litigation in
stituted for that purpose. But this certificate
is not transferable except with the consent
of the president and Secretary of the CON-
pany Endorsed hereon." He further 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
and sundry other instances besides those
therein admitted, in patent violation Of said
contract as 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 not persuade the defendants to accede
to his wishes he procured many false and
malicious statements to be published in the
public press of the country. He also AYERS
''That the utter disregard of the complainant
for his obligation as manifested by his
VIOLATION OF HIS CONTRACT
as well as his general conduct herein set out,
render him wholly unreliable person with
whom to have any business relations what
ever and this defendant having become fully
satisfied by the gross misconduct of the COM
plainant that the business of the company
could not be properly and desirably managed,
had decided in February last to give away his
stock in said Pan Electric Telephone COM
pany, and be freed of all and every associa-
| ton with said complainant, and had prepared
to communicate this purpose when an in
vestigation Of this company was instituted
by the house of representatives of the con-
gress of the United States, and he deemed it
proper to continue in statu quo until that
was concluded, and such investigation having
been concluded, this defendant now united in
wind up the business of said company, and
whether the court, after consideration of the
contract, shall regard and treat this associa-
ton as partnership Or corporation, should,
under said contract, be
A FULL ACCOUNTING
between each member and the company, in
Guiding the proceeds Of any and all stock or
interest sold in violation OF said contract, and
ample provision made for the payment of any
liabilities of said company, and, if necessary,
TO secure q QlSSOluUlOu duu WluQlnR up OIL
such organization, he asks this answer may
be deemed and considered cross bill asking
for such relief, and this defendant waving
and renouncing the benefits and advantages
to which he may be entitled of such account
ing and all right and benefit of such COM
pany, brings into court here the certificate
for his interest in said company. And while
he is ready and willing to stand by such de-
cree as the court shall deem meet and equita-
BILE in the premises, he asks that the settle
ment of all liabilities Of said company by the
application thereto of the scrip of this de-
PENDANT so brought into court, or any interest
of this defendant therein, may be cancelled
or returned and surrendered to the Pan-Elec-
trio Telephone company, or otherwise dis
posed of as the court shall direct, to the end
that this defendant may be
ABSOLUTELY RID OF THE CoMPLAINANTS
and stock and all interest therein, or in said
company. And for the purpose of procuring
by the Judgment of the court in this proceed
ing a final and complete adjustment
and settlement of all matters be-
tween this defendant and the COM
plainapt and said company and
the termination of all relations between this
defendant and either the complainant or said
company. This defendant is willing, and
hereby offers to account for all pecuniary
benefits and money he has received from said
company or by reason of his interest therein,
and to bring said moneys into court when re-
ouired, and this defendant further answering
saws that as to all other matters set forth in
the complainant's said bill of complaint this
defendant has no knowledge whatever and
has no information as to the bill Of complaint,
and leaves the complainant to prove the same
as he may be advised. A. II. GARLAND.
The Postal Department..
Special to the GLOBE.
WASHINGTON. Aug. 16.-The postoffice
denartment soon after Postmaster General
Villas departure became perfect bedlam.
All the furniture in Col. Villas suite of
rooms was moved out. pictures were taken
down and gang of painters was turned
loose to fresco the apartments. The
acknowledgement and wife and Judge
Bryant, according to telegram received