Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-08-17
PAN ELECTRICITY.
ACKNOWLEDGEMENT GARLAND FILES
Els ANSWER.
Re Ayers False Dealings and Fraudulent
Acss on the Part Of thecoz-
pany's of.ieisls.


fled by J. Harris Rogers against At
per-6ensrsl Garland, Senator Hsr-
ms. ard others. for settlement OF the
Affairs Of The Psn-Electrice Telephone
Conrany. Mr.. Garland, IN his answer,
denies IN detail every material state
uent in the bill, and, calling attention
10 The sctndklons and inperh-
pcnt matter" in the bill, says
be must decline 10 answer sach
QUESTIONS unless the Court directs
him TO do 30. In concluding his an
sxer the AttorDey-Genersl says
that. being invited by one or more Of
his oo-defsndants 10 become interested
in aiding TO develop certain Inventions
Of the complainant, be did, on or about
February Is, 1883, attend meeting Of
the parties interested Of the residence
Of complainant. on Four-snd-s-Halt
street, northwest, this city, and that
except this be attended only two other
meetings. and that IL is exceedingly
probable that there are msny details OF
this business whereof he is wholly I'M
informed, and as 10 all such matters be
would rely with more confidence upon
the books and records Of the company
than upon his own knowledge; that 50
{ar rs be Is aware all agreements Of the
partjes rs between themselves relative
70 this BUSINESS we're reduced 20 writing,
and are fully and completely set out in
.oontrsct dated March Is, 1888. which
On his behalf Was executed by his
.ttorpey-ip-f fact. Ishxm G.. Harris"
The Acknowledgement further states
4stba. be has paid the sum Of money
therein agreed upon by him TO be paid,
and, in addition thereto, some further
sums or assessments made, and ell that
were made by the parties to the contract
!, named, and in pursuance thereof and for
&.fbe purposes therein set out" he en-
red in no other agreements Of any
Ia in the premises with complainant
- any one else, and he further says
be was impressed by the apparent
ns,fulpsss Of the inventions, and
has great confidence in the
legal validity Of the patents,
and believed that their validity would
be iudicially sustained IN any litigation
instituted for that purpose, and that IN
that event they would become very
valuable if honestly managed on busi-
ness principles that until their legal
validity was thus judicially established
il was by himself aud his co-defendAnts
deemed unwiss and improper TO issue
the stock OF the company, which had
been duly and legally chartered, and to
which said company patents had been
legally assigned In pursuance Of
the agreement that the writ
ten contract hsreinbsfore referred
to, the original whereof will be duly
exhibited on tbs trial Of this cause. was
intended 10 and does carefully guard
against such premature and improyident
issue Of scrip for stock by providing
thst al OF the stock should be held
Jointly. he submits that said contract
does not constitute 8 partnership. but
that il is an agreement between the
parties thereto as to the obtaining Of
charter for specific purposes AID for the
management Of certain interests thereof,
wbsn chartered and organized thereun-
der. and be submits to the court here
the proper legal construction Of said
contract that under and in pursuance
Of said contract. The PAn-Electric Tele-
phone Company issued certificates
showing that different parties in inter-
est were entitled TO 3 certain number
OF shares OF the capital stock Of the
Psn-Flectric Company of the par value
Of sl00 each rs soon rs the
validity Of the patents is judi
sally 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 endorsed
berton. BE further says that the COM
plainant, instead Of dsvotiRg himself to
the perfection Of the invention, rs BY
his contract be was bound 70, sold In
terests in his stock, as admitted 10 his
bill Of complaint, and IN sundry
other instances beside those therein Ad-
nitied in violsiion 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 that be could not persuade
the defendant, TO scoede TO his wishes he
procured many false and malicious
statements TO be published in
the public press OF the coun-
try, both rs 10 the defendant
and q 70 the business Of this company.
BE also AYERS that the utter disre-
gard Of complainant for bis obligations,
as manifested by bis violation Of his con-
tract, rs we'll as bis general conduct
herein set out, renders him an wholly
unreliable person with whom TO have
sny business relations whatever. And
this defendant having become fully salts
fed, BY the gross misconduct OF the
COMP ainknt, that the business Of the
company could 10; be properly and do
sirsbly managed. had decided in febru-
sry last to give away his stock in said
Pan Electric Telephone Company and
be freed OF all and every association
with said complainant, and had pre-
pared 10 copsrmmAte this purpose when
an Investigation Of this company was in
sti,uted by the Houseof Representatives
Of The Congress OF the United States,
and be deemed il proper to continue IN
STATE QUO until that was concluded /; aud
such investigations, having been con-
Guided, this defendant now uniteS IN the
desire Of the complainant 70 close out
and wind up the business OF the said
company, and whether The Court,
after consideration Of the contract,
shall regard and treat this association
as . partnership or corporation, there
should under said contract be . fnl!
accounting between each member AMI
The company, including the proceeds OF
any and al stock or interest sold IN
violation Of said contract, and ample
provision made for the payment Of any
liabilities Of said company, and, il ne
oeSssry, 70 secure TIE dissolution and