Savannah morning news. [volume] (Savannah) 1868-1887, 1886-08-17
ROGERS UNRELIABILITY.
GARLAND FIIIES HIS ANSWER
IN THE TELEPHONE SUIT.


'Investiessien.
WAsHINGrDN, Aug. 16.--Messrs. Nor
ris, Earle and Pugh, as solicitors for At
torney 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 a
settlement of the affairs OF the Pan Elec-
trio Telephone Company. Mr.. Garland
in his answer denies in detail every ma
terial statement in the bill, and calling
attention to "the scandalous and
lmpertInent matter in the BILL"
says he must decllne to answer such
portions 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-defend-
ants to become interested in aiding to de-
velOp certain inventions of the complain
ant, he did, on or about Feb. Is, 1888, at
tend a meeting Of the parties interested at
the residence OF the complainant, -Four
and-a- Half street, northwest, in this city,
and that except this he attended only two
other meetings, and that ills 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 aud records of the company than
upon his own knowledge.
ALL IN WRITING.
That so far as he is aware, all agree
ments of the parties as between them
selves relative to this business were re-
duoed to writing and are fully and COM
pIetely set out ia a contract dated March
/ nh, h fc hah holt
ted by his attorney in fact, lsham &.
Harris.
The Attorney General further states
that he has paid the sum of money there
in agreed by him to be paid, aud in addi-
tion thereto some further sums or assess-
ments made, and oil that We're made by the
parties TO the contract named aud in per-
suance thereof and Tor the purposes there
in set out, and he entered into no other
agreements Of any Kind in the premises
with the complainant or any one else.
USEFULNESS OF THE INVENTIONS.
And he further says that he was i'm
pressed by the apparent usefulness OF the
Inventions and has great confidence in
the legal validity OF the patents, aud be-
lieved that their validity would be judi
cially sustained in any litigation insti-
tuted for the purpose, and that in that
event they would become very valuable II
honestly managed on business principles.
That until their legal validity was thus
judicialiy established, 1t was by himself
and his co-defendants deemed un wise and
improper TO issue stock of the company
which had been duly and legally charter
ed, and to which company said patents
bad been legally assigned in pursuance
OF the agreement; that the written con-
tract herein before referred to, the orizi-
nal whereof will be duly exhibited on the
trial OF this cause, was intended TO and
does carefully guard against such prema-
ture and improvident issue of scrip for
stock by providing that all OF tho stock
should be held jointly.
NOT PARTNERSHIP.
He submits that said contract does not
constitute partnership, but that ii Is an
agreement between the parties thereto as
to the obtaining of Il charter for specific
purposes and Tor the management Of cer-
tain interests thereof when chartered and
organized hereunder, and he submits to
the court here the proper legal constTuc-
ton Of said contract; that under and in
pursuance of said contract the Pan Elec-
tic Telephone Company issued certiti-
Gates showing that the different parties
in interest were entitled 10 certain num-
Der Of shares of the capital stock Of the
Pan Electric Company OF the par value of
500 each as soon as the validity OF the
patents is judicIally determined in any
litigation instituted for that purpose, but
this certificate is not transferable except
with the consent Of the President and
Secretary of the company indorsed there
on.'
ROGERS BAD FAITH.
lie further says that the complainant,
instead Of deyotipg himself 10 perfection
f,F th.{ {,,wr tfrxs, hxr H.
was bound 10 do, sold interests in his
stock, as admitted in his bill of complaint
aud in sundry other instances besides
those therein admitted, III violation OF said
contract, as will be shown fully by proof
herein, and became anxious TO have stock
lssued in violation of the contract ard
against the interests OF the company.
That, finding he could not persuade the
deiendunt 10 acce0e to bis wishes, he
procured many false and malicious state
ments TO be published in the public press
of the country, both as to The defendant
and as TO 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 contract
as well as his general conduct herein set
out, renders him an wholly unreliable
person with whom To have any business
relations whatever.
DECIDED TO DRAW OUT.
This defendant, having become fully
satisfied by the gross misconduct Of the
complainant that tho business OF the
company could not be properly and de-
srabiy managed, had decided In February
last to give away bis stock in said Pan
Electric Telephone Company. and be
freed of all aud every association with
said complainant, and had prepared TO
cOnsummate this purpose, when an in-
YestigatiOn OF this company was Iusti-
tuted by the House o; Representatives OF
the Congress OF the United States, and he
deemed IL proper 10 continue in etatu quo
until that WAS concluded, and such in
vestigation having been concluded, this
defendant now unites In the desire OF the
complainant to close out and windd up
the business OF said company.
A FULL ACCOUNTING ASKED.
Whether the court after consideration
of the contract shall regard and treat this
association as y partnership or corpora
ton, there should under SAID contract be
full accounting between each member
and the company, including the proceeds
OF any and all stock or interest sold In
violation Of said contract, aud ample pro-
vision made for the payment OF any lia-
bilities OF said company, and II necessary
10 secure the dissolution aud winding up
of such organization he asks that this
answer may be deemed and considered a
cross bill asking present relief.
And this defendant, waving and re-
nounciDg the benefits and advantages TO