The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-11-29
GEORGIA CENTRALbAL.
CHARGES THAT IT WAS OUGHT
ABOUT BY FRAU

Receiver Oakmen OF thechmond
Terminal Calls on the Siicats to
Take Back the Securitield Refund
the OBSERVATION-DISCLOSURES Con-
cerned.
From the Ne,o York TfnFoU. &c.
The promised sensation irchmond Ter
minal affairs came out lerday in the
form Of a notice sent bEceiver W. g.
Oakman to the members the hnanc ial
combination who four IS ago sold
large block OF the securitif the Georgia
company to the Richmonerminal Com
pany. rendering them t'said securities
and demanding the retuYf the purchase
money with interest Alt So 100000 is
involved. The receive1demand is based
upon the belief that ain acts in that
transaction were fraudut.
Receiver Oakmau, ibis matter, acts
under the authority one United States
court, which has empdred him to insti-
tute proceedings to SEQ the cancellation
Of the contract Of stot the aforesaid
securities, and also to ng suits to recover
money lost by the Teraal company in the
transaction.
The persons to whonoJices were sent
were II. B. Hollins &c. Lehman Bros,
Belmont & Co., E. Wclark g. Co., Isaac
L. Rice, Inman, SHn g. Co., Kessler &
Co., John c. CaihouPatrick Calhoun. [.
& s. Wormser, j. 81. Seligman, Scholle
Bros. and Hei0ach, 1ckelheimer &
Co. These gentlemcomposed the comb
nation which, in O'ber or November Of
1888, turned the conDl OF the Georgia Gem
tral railroad over 1.-THE Richmond Ter
minal By selling toat company nearly all
of the securities ofhe Georgia company.
The last named Srporation had bought
1000, 900 of the HI priced stock of the
Georgia Central ri and had issued Sl2, 600
600 stock and "a 1000 bonds Of it's own
against It, The Dhmond Terminal Com
pany paid $35 a sre for the 100000
of stock and tocS3, 500,0 coo Of the bonds
at par.
Receiver Oakrn's notice distinctly al
leges that there - fraud in the TRANSACT
ton by which t Terminal company was
made the purchsr of the said stock and
bonds. The Indicate received about
$1,000, 900, and is alleged that at the time
OF the sale Cd securities were not worth
the syndicate, combination Of men who
made the sale, cluded at least three of the
directors of q Richmond Terminal Com
pany. The sal syndicate, it is further al
legged, had but short time previously pur-
chased the Gegia companys securities at
about half 81 price received from the
Terminal comany, and in the transaction
the Terminal ,mpauy was represented by
directors and hcers who were themselves
selling to the ,mpany as members of the
syndicate. o the ground, therefore, of
collision andfraud, the receiver claims
that the contret of sale is vitiated.
At the timehis sale was effected John Fl.
1nman was resident of the Richmond
Terminal Con1any and among the directors
were John Calhoun, Simon Wormser,
Emanuel Lehaap and James Swami.
Many perstrs To whom Receiver Oakmau
sent notices deued yesterday having re-
ceived them Cheers admitted that they
had received tie notices, but declined to
talk about the natter. There was q dispo-
Sition on the pFs Of some to make light Ok
the whole affsr, and pooh-pooh the idea of
abrogating asontract of sale simply be-
cause certain individuals were suspected of
having made false representations or of
having profih unduly thereby.
1t Is Receier Oakman's avowed purpose
10 probe tb Georgia Central deal thor
)ughly In te interest of the stockholders
II the Richlond Terminal Company.
The securities Of the Georgia company
ire now on eposit with the Central Trust
Company a part security for the issue of
I'll SOC. 900 tper cent. bonds issued by the
Richmond Terminal Company.