Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1886-03-04
BETRAYEO BIZ BARNES.
A scheme which JeOpardized the Is.
a. O.ss nermfRaI FacilffIss

New YoRK, Feb. 25.-An alleged scheme
to sell ont the Baltimore Il Ohio railroad
and the Staten Island Rapid Transit Com.
pany in their enterprise to establish ter
minal facilities for the b. 4 o. in Staten
Island was developed in the Supreme
Court in Brooklyn to-day. The facts in
the case, as related by Mr. Albert Board
man, the counsel in this matter for the
b. a. o. and the Staten Island Rapid
Transit Company, are briefly these
When it became apparent that the b. Il
| y. would come to an agreement with the
Rapid Transit Company, but before the
contract was signed, it became necessary
to take immediate steps to secure ali
available dock and other property ON
Staten Island which would be needed by
the b. d o. for its terminal facilities,
This was done quietly, az, if it became
known that the contract would soon be
signed, the property would be held at
exorbitant figures. 1t was arranged that
Erastus Wiman, j. Frank Emmons, Albert
Boardman and Reon Barnes should buy
up the property as individuals and then
should turn it over to company to be
known as the New York Transit a.
Terminal Company, which, however,
was intended as merely temporary or
ganization, as the property in the end
would be transferred to the railroad com
panies which were the actual purchasers.
Reon Barnes was taken into the confidence
of the Garrett Wiman party, and was en-
gagged to make the necessary purchases
1t was agreed that he should receive one
ninth interest in the company to be formed,
provided he paid his pro rata share of the |
cost of the property. When MIR. Barnes |
bought property he received from the |
Baltimore d Ohio the money to pay for |
it. In all the b. q o. paid 1888, 600 and |
Messrs. Wiman, Emmons and Boardlnan
1000 for terminal property. MIR. |
Barnes personal expenditures did not |
exceed $4,000 or $4,000. He was paid, |
however, large sum of money for his
services as broker. He is said to have
made $4,000 out of the transactions.
About month ago Barnes proposed to
the " dummy" directors of the terminal
company to offer the terminal property
purchased to the Pennsylvania and New
York Central railroads. They would be
willing to pay big price for it in order
to prevent the Baltimore Il Ohio from Sc
curing its needed terminal facilities. He
said the land could be sold for $500, 900.
Il was big scheme and he asked MIR.
bohAuiH ~ JUN nlus MI. bOAIumnn |
refused to do SO and Barnes
left. Mr.. Boardman then notified the
Baltimore a. Ohio officials, and tempo
rary injunction was Immediately secured
from Judge Donohue restraining Barnes
md his colleagues in the terminal COM
1any from selling the property, and
suit was brought to compel Barnes to sur
'ender the stock of the terminal company
n his possession.
The injunction was made returnable in
he judicial district of which Staten
-sland is part, and therefore came up
or argument in Brooklyn to-day before
Judge Barnard. Judge Barnard reserved
lis decision.
Mr.. Boardman says his party made
mistake in having placed SO much con-
idence in Barnes. He adds that the
'ourt will surely decide for the plaintiffs
Who have shown that they paid for the
property and are, therefore, entitled to
t. Mr.. Barnes claims that this is simply
N effort to freeze him and other New
forkers out of the terminal company.