The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-12-13
A BIG SUIT ON HAND.
John q. Innan Asked to Settle to the
Tune Of S2,5Oo,OOc.

Tune CT SzyOOOsOOC.
From tie NeU York World.
The officers OF the Tennessee Coal and
Iron and Railroad Company have sued John
H. Innnan for 81. 10000. The suit was be-
gun Monday by the filing of a voIuminous
complaint in the United States circuit court
late in the afternoon by Tracy Mcfarland.
Boa rdnnan & Piatt, as attorneys for the
company. For several days it had been ru-
mored in Wall street that there was a seri-
Gus difference between Mr.. Inman and the
new management of the Tennessee Coal
and Iron Company. The suit prom
because of the prominence of the
parties at issue. the president of the
Coal and Iron Company being ex-senator
Thomas c. Platt, while associated with him
in the board of directors are c. C. Baldwin.
Daniel S. Lamont, F. Fl. Lehman and H.
Duncan Wood, of this city, together with
several other gentleman who are well
known in Tennessee. where the property of
this company is located. Mr. Inman him
self is one of the most conspicuous members
of the group OF southerners, nearly all of
whom have acquired large fortunes and
considerable fame since they located in this
city, He is the senior member of one of
the largest cotton houses in the country, is
a member of the cotton exchange and is
one of the largest individual holders of
the securities of a number of southern
roads.
From 1880 until last spring Mr. Inmau
was prominently identified with the Ten
nessee Coal and Iron Company. He was
one of its directors, was a member of the
executive committee of the board, and also
acted as the fiscal agent of the company.
Last April the control of the company
passed out of his hands, and the new man
xxrs4 !. ~ TInAE - H. r..
came into power, and now these men claim
that Mr. Inman benefited himself at the
expense of the company to the tune of
81, SOC, 900, which they say he is liable for
Stripped of its legal verbiage, the complaint
charges that in the summer of 1856 Mr.. In
man, with Nathaniel Baxter, Jr., and A.
NJ. Shook, both of Nashville, conceived the
idea of purchasing the property of the Pratt
Coal and Iron Company, a corporation in
Alabama. In this connection it is alleged
that these men negotiated the terms of the
purchase without consulting with any
other officers or stockholders of the Ten
nesSee Coal and Iron Company, agreeing
among themselves to increase the cap
ital stock of the latter company
from S3,000,000 to $4,000, 900, and
to pay over for the property of the
Pratt Company 81, 500, 600 of such capital
stock aud 81 900, 900 in bonds. Then, so the
complaint alleges, uhese three men, without
making their plans known. secretly pro-
cured options on a majority of the stock of
the Pratt Company at less than the par
value of the stock, the options to run until
Oct II following, and that after these
options had been thus secured Mr.. Inman
called a meeting of the stock
holders of the Tennessee Coal and Iron
Company for Sept. 20 without specifying
the object of the meeting; that he OBJ
tanned proxies sufficient to control the meet
ing, stating to the stockholders that it was
intended to purchase the property Of the
Pratt Company, but concealing the fact that
he and his associates had any personal in-
terest in the profits of the purchase. Mr..
Platt and his brother officers allege in the
complaint that the meeting was entirely I'M
der the control of Mr.. Inman, and that it
was represented that he, together with
Messrs Baxter and Shook, owned the ma
jOrity of the Pratt stock, while in fact they
owned none of it, but had the options ex-
pirisg Oct. II.
Then it is set forth that the agreement
which had been previously arranged was
approved, but 1t was not made known to
the stockholders that any personal profit
was to be made by Inman out of the trans
action. After the ratification and adoption
Of the contract, Inman and his friends
availed themselves of the options at cost
of about 81 ,0O0,000 Then, under the terms
of the contract, as stockholders of
the Pratt Company, they received
over S3,500.000 in stock, and
over $1,500,000 in bonds OF the
Tennessee company; Deducting the cost of
the Pratt company's stock which they had
bought, there remained balance in their
hands of over 81, 000, 900 in bonds and stock
of the Tennessee company, for which, or
the proceeds thereof, with interest and all
profits accruing therefrom, Inman is held
to be accountable to the Tennessee company.
The claim is made that Inmau, Shook and
baxter realized pront or more than
S2,Soo,Oo0 IN cash out oil this transaction,
LOT LOT which they are accountable to the
tennessee company" o"
There are two other charges set forth in
the papers filed with the court, one of them
being that Mr. Inman caused a contract to
be made between himself and the company
to build blast furnace at cost to the COM
pany of 100000 in bonds and S760,000 in
stock, while the total cost ought not to have
exceeded S150, 600, and that subsequently,
before any steps were taken under the con
tract. Mr. Inman induced the directors to
pay him 100000 for canceling the con-
tract, which amount Mr.. Platt claims
Mr.. Inman is also liable for The final
charge is that Mr.. Inman, fiscal agent of
the company, took advantage of the COM
pany's necessities to squeeze it for advances
of money required, and that in this way he
added $3.50, 900 to his wealth, which it is