The Portland daily press., 1886-08-17
FROM WASHINGTON.
President Cleveland Leaves Wash
ington for the AdIrondacks.
Bayard Trying to Get Out of His Dr.
lemma in the Cutting Case.
Garland Files His Answer in the Pan
Electric Telephone Case.
A Postmaster for FaIrfleId.

EleCtrIC Ielepnone case
A Postmaster for Fairfield.
WASHINGTON, Aug. 16-The President
arose at daylight this morning, and appoint
ed w. J. Bradbury, postmaster at Falrheld,
Me-, vice w. H. Emery, who resigned ito ac-
cept State office.
Off for the Adirondacks.
The President left this morning for his
summer vacation in the Adirondack noun
tains. He was accompanied by Mrs: Cleye-
land, Mrs. Folsom and Col. and Mrs. La
mont The party occupied special car Ten
Hudson River Company. It was attached
to the rear of the New York limited express
Appointments.
The President made the following appoint
ments before he left the Capitol this Morn
secretary of the civil service commission ;
Henry A. Ehenneger of New York, to be
United States Consul at Cienfuegos, vice
William R. Pierce, suspended.
How Bayard Will Get Out OF His Di-
iemma.
1t is predicted now that the next develop
ment in the Cutting case. after the report OF
Mr.. Sedgwick is received, will be the remov-
al or the resignation of Consul Bingham, on
the ground that he did not fairly state the
situation to Secretary Bayard.. Bingham
ministration's mistakes. Although the cor
respondence forwarded to Congress told the
full story, no one in the State Department
seems to have read it.
carIanv and the Telephone Suit.
Messrs. Morris, Earle and Pugh, as soli-
citors for Attorney General Garland, to-day
filed his answer to bill recently filed by j;
Harris Rogers against Attorney General
Garland, Senator Harris and others for the
Telephone Company, Garland IN ms
answer denying in detail every material
statement In the bill and calls attention to
the ''scandalous and impertinent matter In
the BILL He says he must decline to answer
such portions nnless the court directs him to
do SO. In concluding his answer the At
torney General says: 'That being invited
by one or more of his co-defendants to be-
come interested in aiding to develop. certain
inventions of the complainant, he dld ON OF
about February 10, 1883, attend ameetlng .,sd oi
the parties interested at the residence OF the
complainant in this city, and that except
this he attended only two other meetings.
and that it is exceedingly probable there are
many details of this business Whereo1 ne is
wholly uninformed, and as to all such mat
ters he would rely with more confidence up
on the books and records OF the company
than on his own knowledge That as farlas
he is aware all agreements OF parties as pc
tween themselves relative to this business
were reduced to writing and are fully ana
completely set out in contract dated March
13. 1888. which on his behalf was executed
by his attorney in fact Isham q. harris.
The Attorney General further AYERS: Ihat
he has paid sum of money therein agreed
in addition thereto some further sums OF
assessments made and al that MeIe
made by parties to the contract
named and in pursuance thereof and for
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 he was impressed
by the apparent usefulness of the Invention
and had great confidence in the legal validity
of the patents and believed their validity
would be judicially sustained In any htlga-
tion instituted for the purpose, and tnat IN u
that event they would be very valuable II
honestly managed on business principles.
That until their legal validity was thus ]u-
dicfally established it was by himself and
his co-defendants deemed unWise ana I'M
proper to issue stock Of the company, whicn
had been duly and legally chartered ana 70
which company the said patents had been
legally assigned in pursuance OF an agree
ment. That the written contract hereln7
before referred to, the original whereof VIII
be duly exhibited on the trial, of this case,
was intended and does carefully g9arQ
against such premature and improyldent
issue of scrip for stock by providing that all
of the stock should be held jointly.
He submits that said contract does not
constitute partnership, but it is an agree
ment between the parties thereto as 10 the
obtaining of charter for specific purposes,
and for the management of certain interests
thereof who chartered and organized tneTe-
under, and he submits to the court here the
proper legal construction OF sald contract
that under and in pursuance OF sald con
tract the Pan Electric Telephone 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 $100 each as soon as the
mined in any litigation instituted for that
purpose. But this certificate is not trans
ferable, except with the consent OF the presl-
dent and secretary of the company endorsed
hereon He further says that the complain
ant, instead of devoting himself to the per.
he was bound to do, sold interests In his
stock as admitted in his bill OF complaint
and in sundry other instances. besides those
| therein admitted, in patent violation OF SAID
| contract.
Iesuade defendants to accede to his wishes IN
| the matter of premature issue of stock, pro
| cured many false and malicious statements
| to be published in the public press OF the
| country both as to the defendants and as tt
| AYERS that the utter disregard OF the com
| plainant for his obligations. as manifested
| by his violation of his contract, as well al
| his general conduct herein set out, renders
| him wholly unreliable person with whom
and this defendant having. become fully
| satisfied by the gross misconduct OF the com
| plainant that the business of the compan,
| could net be properly and deslrably man
aged, had decided in February last to gly'
L Il IL Dor
| phone Company, and be freed OF al am
every association with said complainant
| and had prepared to consummate this pur
pose when the investigation of the compan.
was instituted by the House,
Representatives and ne deemed nti
| that was concluded, and such lnves
tigation having been concluded the defend
ant now united in the desire OF the complain
ant to close out and wind up the business
said company, and whether the court atte
consideration of this contract shall regar
and treat the association as a partnership
or corporation, there should, under said con
tract be full accounting between each mem
ber and the company, including the proceed
of any and all stock or interest sold in vic
lation of said contract, and ample provlSlo
made for payment of any liabilities OF sal
company, and if necessary to secure a dlsst
| lution and winding up OF such 0rganlZatlol
He asks that his answer may be deemed an
| considered cross bill asking 10r Sucn rellel
| and this defendant waving and renouncln
| benefits and advantages to which he may b
entitled, if such accounting and all right an
benefits of such company brings into coul
their certificate for his interest in said con
pany, and while he is ready and willing I
Stand by and form such decree as the coul
shall deem meet and equitable in the premise
he asks that after the settlement OF all Il;
bilities of said company by. ,appllcatlo
thereto of the scrip issued by said compan.
IF necessary any portion that may r.
main of the scrip of this defendant,
brought into court, in any interest OF tnls q
fendant therein. may be cancelled or returl
ed and surrendered to the Pan Electric lie
ephone Company or otherwise disposed
as the court shall direct, to the end that tn
defendant may be absolutely rid
the complainants' said stock and all lntere
therein or in said company and for the pu
pose of procuring by a judgment of court
Tins procuring final and complete adJus
| ment and settlement of all matters betwee
defendant and complainant and said con
many. and the termination of all relation
between this defendant and either the COZ
plainant or said company. This defendal
is willing and hereby offers to account L
, all pecuniary benefits and money he mas
| eeiVed from said company or by reason
| his interest therein, and to bring Sa
i | moneys into court when thereunto require
{ and this defendant further answering sa
that as to all other matters set forth IN COZ
plainant's S said bill of complaint this de1en
and has no knowledge whatever, and mas
information as to the bill of complaint, al
leaves the complainant to prove the same'
he may be advised.
L | Is;rr,odN TT GApJAND