New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-09-07
RAILROAD INTERESTS.
TO HAVE THE AGREEMENT CANCElh-fiD'
THE RICHMOND TERMINAL RECEIVER 0EIliN'

r.rr RICHMOND TERMINAL RECEIVER GETTING
RID OF THE GEORGIA CENTRAL COMPANY
psca,ver Walter G.; Oakman, OF the Richmoh"
Terminal has taken steps TO bring about reSo-
tution of the moneys alleged to have been oi'er""
uniawf,lly from the Terminal Company oy 'no a0
10 1t Of the Georgia Central company ''oo"0 ,o
weary apo CHARGES have been freely maze III wan
street since tho beginning OF the controversies o'o'
me T.rmIps, Company Of Illicit profits secured by
.n,. ., ths Terminal directors in carrying out this
transaction The action Of Receiver oaRmah is 'ahe'
I'm r.sponse 10 REQUESTS from shareholders OF the Ter
mInal and will doubtless add n new kink 70 'he
snsle Of tho companys affairs Judge Addison brown.
In tha United states District Court; yesterday era'o"
nm order authorizing the receiver to begin actoh III
the courts 10 cancel the agreement by which inc
Terminal acquired the Georgia Central ana 10
all sums that may have been misappled'
The petition OF Receiver Oakman on which the orier
WAC granted saws that among the securities appearing
IN he owned by the Richmond Terminal Company, the
receiver found scheduled $l2O0OO0o capital stock
OF the Georgia Company and also S3,o13ooo coiiaei'
trust bonds Issued by the Georgia company iic"'
bonds are In the possession OF the Central lfasl ooi-
pany rs part security for the Richmond Ierihhai co
lateral trust per cent bonds. The peti'oh say -
9Th. Terminal Company became the nominal purchaser
NJ the Georgia CompaDy's bonds and Stock TOT the
purpose OF thereby acquiring substantial control OF the
Central Railroad and Banking Company Of Georgia.
Through the Indirectly acquired control OF the 4ooOo
shares OF the stock Of this corporation which con-
stuted the sole assets OF the Georgia Company other
than some money In the treasury thereof the Ter
minal Company nomnslly acquired the stocks ana
bonds from syndicate. in which three members OF the
then Board OF Directors Of the Terminal Company were
largely Interested That the purchase by the Terminal
Company OF the securities Of the Georgia Company held
by such syndicate effected at q net cost - the
Terminal Company exceeding S7O00O0O, which was
price for the 10000 shares Of the Central Railroad
and Banking Company stock far exceeding the then
existing market value thereof
The petition then recites the fact OF the recent de-
cisons in the United states District Court In GArga,
declaring the Georgia Company to be disqualified from
holding the Central Railroad Of Georgia, and the dis
Of the stock held by the Richmond Ter
mniL. The petitioner also quotes the receiver OF the
Central Of Georgia informing him that that corpora
ton In the last three years has not realized IN net
earnings enough cover the present fixed charges.
The PAPERS then say
ionr petitioner has carefully examined the records
OF the minutes Of the stockholders Of the Terminal
Company and Is advised and believes that there has
been no ratification sufficient In law or equity 10 con-
cde and the stockholders VI the company or your
petitioner from asserting their rights 10 cancel
frausactlOu-.p