Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1892-11-28
Richmond rerminal Sensation.

!
mond Terminal affairs came out in New
York on Saturday in the form of q no.
tice sent by Receiver W. G. Oallman to
the members of the financial comb.ua-
ton who four years ago sold large
block Of the securities of the Georgia
company to the Richmond Terminal
Company, rendering them the said Sc
curities and demanding the return of
tie purchase money with interest.
About SS,000.000 is involved. The re-
ceiyer's demand is based upon the belief
that certain acts in the transaction were
fraudulent.
Receiver Oakman in this matter acts
under the authority of the L. 5. Court,
which has empowered him TO institute
proceedings TO secure the cancellation
of the contract of sale of aforesaid secu-
rites, and also bring suits to recover
money lost by the Terminal Company
in the transaction.
The persons to whom notices were
sent were: H. B. Hollins & Co., Leh-
man Brothers, Belmont & Co., +. w.
Clark & Co., I;aac L. Rice, Inman,
Swami & Co., Kessler & Co., John C..
Calhoun, Patrick Calhoun, l. and 5.
Wormser ]. and w. Seligman, Scholle
Brothers, and Heidelbach, 1ckelheimer
& Co.
These gentlemen composed the COM
biuatior which, in October or Novem-
Der of 1855, turned the control of the
Gcoi ia Central Railroad over to the
Richmond Terminal by selling to that
company nearly all of the securities Of
the Georgia Company.
The last named corporation had
bought 100000 of the high-priced
stock of the Georgia Central road. and
had issued S12,000,000 stock and 81
100000 bonds of its own against it. The
Richmond Terminal Company paid SO
share for the 81, 100000 Of stock, and
took s., 500,G0 Of the bonds at par.
Receiver Oakman's notice distinctly
alleges that there was fraud in the
transaction by which the Terminal
Company was made the purchaser of
the said stock and bonds. The syndi-
cate received about 81 ,000,0 900, and it is
alleged that at the time of sale the Sc
curities were not worth more than half
that sum.
1t is charged that the syndicate or
combination Of men who made the sale
included at least three of the directors
of the Richmond Terminal Company.
The said syndicate, tits further alleged,
i.ed but short time previously pur-
chased the GoYseia company's secuii-
ties at about half tue price received
from the Terminal company, md in the
transaction the Terminal company -,-os
represented by directors and officers,
who were themselves selling to the
company as members Of the syndicate.
On ground, therefore, of collision and
fraud the receiver claims that the con-
tract ofsale is vitiated.
At the time this sale was effected
John II. Inman was president of the
Richmond Terminal Company, and
among the directors were John c. Cal
houn, Simon Wormser, Emanuel Leh-
man and James Swan. Many persons
to whom Receiver Oakman sent notices
denied having received them. Others
admitted that they had received the
notices but declined to talk about the
matter There was disposition on
the part of some to make light of the
whole affair, and pooh-pooh the idea OF
abrogating contract of sale simply be-
cause certain individuals were suspect
ed of having made false representations
or Of having profited unduly thereby.
II is Receiver Oakman's avowed pur-
pose to probe the Georgia Central deal
thoroughly in the interest of the stock
holders ofthe Richmond Terminal Com
pany.
The reply of the so-called members of
the syndicate to the allegations Of the
Terminal company is that there was
really no syndicate at all nor any joint
sale. The securities, they declare, were
sold by the individual holders, indie
pendently of each other, and were at
the time worth the price paid. They
say that the Georgia Central was then
naying l3 or II per cent. to the stock
holders, and that if the property is now
less valuable it is because of the mis-
management of the Richmond Terminal
officials
The New York Mutual Life Insur-
auce Company has demanded the i'm,
mediate payment of 100000 advanced
to the Georgia Central Railroad Com
pany and secured by first mortgage
bonds.