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HUDSON DENIES MRS. PEPPERS CLAIMS. Lexington, Ky., October 10. Scott Hudson says he irf surprised at the "action ?of Mrs. E. O. Pepper In filing a suit for damages. against him. He denies the allegations in her petition. He says he entered iii to a contract with James E. Pepper, and that he did not know Mrs. Pepper In the transaction, and that a- full settlement had been made with Colonel Pepper He says he stands ready to pay every dollar he justly owes.