The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-20
Oakman's Fig SUIT.

Although il had been announced for save
rel weeks that Mr.. Oakman, the receiver Of
the Richmond Terminal Company, intended
TO bring suit against the syndicate, COM
posed of such well known men as John n.
Inman. James Swami, Robert W. InmaD,
Bernard s. Clark. Harry B. Hollins, Fer
nando A. Yznega, Bernard ]. Burke, Wal
Their LuttEen, Isaac L. Rice, Emanuel Leh-
man, Meyer H. Lehman, Sigmund NJ. Leh-
man, Philip Lehman, William Kessler, Ed
ward Kessler, Gustav z. Kissel, John c.
Calhoun, Simon ard Isidor Wormser, Jacob
Scholle, james and Jesse Seligman, Charles
Blum, Frederick ST. Gour, Alfred S.
Heidelbach, Isaac Ickelheimer. Edward W.
Clark, Harold NJ. Sill, Patrick Calhoun,
and the Central Trust Company
of New York, that sold the stock
and bonds of the Georgia Company to the
Richmond Terminal for nearly $500, 900,
yet the actual fling of the suit last Satur-
day created something like a sensation in
financial circles in New YORK.
1t is quite evident that the defendant. do
not purpose to compromise. An oppor-
tunity to do so was offered them and they
declined to take advantage of it. Whether
or not Mr.. Oakmen has a good case against
them is a question concerning which there
is difference of opinion. The
charges which he makes against them are
serious, and the grounds upon which
he hopes to recover the vast sum for which
he sues appear to be quite strong. Only
one side of the case has been presented.
however. and the presentation Of the other
civ
Mr.. Oakman claims that the Richmond
Terminal. under its charter. could not
legally purchase the stocks and bonds
OF the Georgia Company. He also
alleges that certain directors of
the Richmond Terminal who made
the purchase were largely interested
in the Georgia Company. and, therefore, in
purchasing the securities Of that company,
consulted their own interest rather thnn
those OF the Richmond Terminal. In other
words, he declares they were not faithful to
the trust which had been reposed in them.
The main defense Of the defendants must
be, Of course, that the securities of the
Georgia Company were worth all that was
paid for them. Can it be shown
they werei That is a very interesting
question. The securities Of the Georgia
Company are based wholly upon $4,000
shares of the capital stock OF the Central
Railroad and Banking Company of Georgia.
Those shares were purchased in open market
for about "a 900 900. When the syndicate
began buying them they we're paying
dividend of 6 per cent. per annum, and
were selling in the open market for be-
tween SOS and $40 per share. Before ANA
jority of the shares OF the company had
been secured the price Of them reached
about $3.50 per share.
After the syndicate got CONTROL OF the
company a dividend OF per cent was paid.
Did the Central railroad earn per
cent. on its capital stocks That
question is going to play very important
part In the suit which Receiver Oakman
has begun. The defendants say the Central
earned per cent. and more on its stock. IL
it did, Receiver Oakman will find 1t a rather
difhcult matter to recover the money for
dend! Receiver Oakman says 1t didn't
legltimately, and there are some reasons for
thinking he is right. II it did, IL seems re,
markably strange that Its floating debt
should have increased SO enormously and
that it does not now earn its fixed charges
There has not been a very great falling Off
in its gross earnings. II the suit comes to
trial. there will be some interesting develop
ments. That, however, will not be much
satisfaction to those who hold the deprecated
securities Of the Central