New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-10-16
A BLOW FOR PAN-ELECTRIC "REFoRM.n

MEN MUST ANSWER.

Washington Oct Is (spcciaD.-The Pan Electric
speculaors must face the music at last. and
for the money received by them from their dupcs
on the strength of Garlands legal opinion that the
Pan Electric Telephone patent was not an infringe
ment of any patent Of prior date. Tho Supreme
Court of the District of Columbia. in General Term
today reversed the decision of Justice James. Of the
same court who sustained the demurrer Of al the
defendants, except Garland, 10 the bill in equity
filed by J. Harris Rogers, the inventor
1t may be remembered that in consideration Of
certain promises and agreements made by them, and
further consideration OF $50, TO be paid by each
of them Rogers gave 100000 worth of stock
each in the PanElectric inventions, to 4. II. Gar
land and Isham G. Harris, Democratic Senators Of
tie United States, and to J. ID. c. Atkins, Casey
Young and Joseph +. Johnston, who were Demo
cratic members Of the House Of Representatives
The chief conslderation--the one which Rogers re-
cardcd as Of the greatest valuc-was the influence
which these eminent Democratic statesmen could
exert in floating the stock and OBJ
tanning money to develop the Pan Electric
inventions. AS DR.. Rogers put 1t in his testimony
before the Congressional committee he expected " to
bank on their Names
The defendants organized the notorious Pan
Electric Telephone Company, and began 10 sell licenses
for The OF the Rogers telephone in the different
States, under guarantee 10 defend any suits brought
against the licensees the ground of Infringement
some 100000 was thus obtained. and this "swag'
was divided among the ncorporators and stockholders
under the name OF dividends No provision was
made to defend the infringement suits, which were
begun as soon as the licensees attempted TO do bush
ness. Neither was any effort made to develop any
OF the other inventions of Rogers. according to the
agreement. Moreover efforts were made to freeze
Rogers out OF the telephone company.
The suit now pending was brought more than a
year ago. Garland put in an answer denying most
of tho allegations the bill in equity filed By Rogers
and the other defendants filed a demurrer The
brief of plaintiff rcccs the agreement by the parties
OF March -. 1858. for forming company, raising
the money, and putting into use the inventions OF
plaintiff The Chief Justice referred 10 the fact that
the first named defendant. Mr. Garland, having hied
his answer the charge that the executive commit
tee General Johnston and Casey Young with The
plaintif). had received 10000 and stocks for
the sale of some of tho inventions and that the plain
tia had been refused information as 10 the condition
OF affairs referring TO these points and to the prayer
OF plaintiff Tor an account and decree to recover
his property, the court was OF the opinion that the
complainant was entitled to accounting. and that
the defendants should answer
Mr. Garland in his answer under oath, denied the
allegations Of the bill and consented to accounting
hx the executive committee for all moneys received
over and above such sums had been realized by
Rogers from sales OF stock In violation OF the agree
ment The judgment of the court to-day which was
pronounced by Chief Justice bingham, requires the
defendants to answer, and the case VIII then go 10
trial Its mcrits
Mr. Garland is Mr. Cievcland's Attorney General;
,,.,cr,l Iohnston IS Mr. Cevcland's Commissioner Of
Railroads. Mr. Atkins. until very recently. was Mr.
Clevcands Commissioner OF Indian Affairs, and IS now
candidate for the United states Senate from Tcnnes
sec in opposition 10 his Pan Electric partner, Senator
Harris In conversation with Tribune corresponds
ent. Dr. Rogers, Of plaintiffs counsel. remarked
that he intended to call Grover Cleveland as a wit
ness. and added
"Mr Cleveland must be put upon the staad, for
all the Pan. Electric people docked around him 10 cx
plain their relations with the Government JOB
charged in Section Al OF the bill. and Mr. Garland II
remember Alright. said In his celebrated letter OF de-
fnce To the President that he had already explained
verbally 10 Mr. Cleveland all about the matter. This
was All before the bill had bceu fled and 1t Is
matter of prime Importance To get their statements.
nafe AT that time concerning their understanding
Will the plaintiff about the &l5. 100000 OF stocks
which he had promised 20 divide among them, by
giving them more than half his patents, on which
Tie Stocks we're to lie based and which they failed
10 issue but held on 10 the patents"
DO you suppose that Mr. Cleveland went INTO
why not ~ said the doctor. "He is great
WORKER and went into all the minutae Of pension
bills, to do what he could for widows and orphans