The times. [volume] (Richmond, Va.) 1890-1903, 1892-12-18
FRAUDAND CONSPIRACY
CHARGED BY RECEIVER OARMfN,
OF THE RICHMOND TERMINAL.
Ex-President Inman, of the Company, and
a Number of Prominent Men Defend
ants in Suit Involving Millions.

NEW YORK, Dec. 17.-Receiver Walter
G. Oakman, of the Richmond Terminal
Company. this morning filed copies Of
bill of complaint upon the members Of the
Georgia Company Syndicate, which in
1883 sold a controlling interest in the
Georgia Central railroad to the Terminal
Company.
The suits are brought against John II.
Inman. James Swami. 3. S. Clark. r. w.
Inman, II. Z. Hoolins. f. a. Yzanaga,
f. Edey, e. j. Burke. August Belmont,
Walter Luttgen, Isaac L. Rice, L. Leh-
man, Mayor Lehman, Sigmund ~ Leh-
man, Philip Lehman, William X s5ler,
Edward Kessler. G.. e. Kessler, j. c.
Calhoun, S. Wormser, Isadore Wormser.
Jacob Scholle, William SchoIe. James
Sedgman, Jesse Seligman, 6. Blum. i.
St. Gear, A. $. Heidelbach, Isaac Ickei-
hcimer, a. Lichtenstein, i. W. Clark,
w. Cotton, +. W. Clark. Jr., II. NJ. sill,
c. II. Clark. Jr., Z. Calhoun and the
Central Trust Company of New York.
Receiver Oakman. through his counsel,
Root q Clark, claims that in October,
1883, when the Terminal Company made
the purchase the securities of the Georgia
Company had no established or available
value.
On October p, 1858, Receiver Oakman,
says NJ. Lenmas, acting for himself and
associates, made proposal to the Termi-
nal Company TO purchase the entire CAPT
tai stock Of the Georgia Company, con-
sisting Of 10000 shares. at SIS per share
The receiver charges that the syndicate
conspired TO sell the Terminal Company
their unstable ard dscredited securities
at such prices as TO yield an enormous pro
fit, and imposed upon the Terminal Com
pany a heavy loss. The receiver charges
that the deal was cOntriyed 10 put money
into the pockets of faithless directors
and their confederates.
The complaint covers rs printed pages,
and startling accusations Of fraud and
conspiracy and breach of trust are
brought against cX-President John H.
Inman, Directors Calhoun, Swami ana
Wormser and the members Of the Georgia
Syndicate Company. Receiver Oaknans
suit involves the restitution OF an amount
estimated at $500 900. The bill sets forth
that on November II, 1876, the deIendAhts
associated together and formed a syndl-
cate TO purchase and hold as common
venture a controlling interest In the
shares of the capital stock Of the Georgia
Central Railroad and Banking Company,
TO be held together and rated as unit
and TO be managed and disposed or by the
syndicate for their benefit ana proht. III
Nav. 1857. the syndicate, for the purpose
of realizing on their investment, through
their agents organized a corporation un-
der the general laws Of New York Tor the
purpose of receiving a transfer OF the
4.O00 shares Of stock purchased 10 there-
after hold and vote such majority STOCK.
Then. it is charged that three or the
defendants, acting for the others uieu
articles of agreement stating that tney
desired 10 form a company called the
GEORGIA Company, with a capital STOCK
of SIG 600 600. to continue for sixty yedIs'
and. further, that twelve OF them act
ing for and under the direction OF Ihe
others. signed their names TO prelehueu
subscription for one share OF tne s'V0N
of said company being "a nominal totai OF
sf 9OO ont of the share capital Of Sl6,OlO,OOO
II IS further claimed that no part Oh
srch subscription was ever pald. Iheh'
after detailing at great length lhe oIsdn-
izing and establishing OF the company
and the attempts 70 realize upon lhelI
speculation by selling the entire SiVV''VVl
Of the Georgia Company collateral trust
bonds. the bill gets down 10 Where II
affects the plaintiff, and says
CON October p, 1888. the defendant,
I,nonual Lehman. acting for himself and
associates in said syndicate adGits ssed 10
| tbe plaintiff a proposal for the sale 10 IL
! of The entire 10000 shares ci capltal
! stock of the Georgia Company, a. 80 per
share, making a total price or $hz'o'oo0'
| ThereupOn these members OF tAe pam
tins board Of directors, who were pre-
sent at meeting Of the board spe-lfIly
convened on said day without rele:e nee 10
| a committee or any Investigation, adopted
q resolution accepting IlCpc'al ana
| tbon and there appointed d committee or
| four DESIGNATED directors with full power
| to arrange the details Of ard to con-
sl1mmate such purchase of stock, to exc
cute or procure 10 be executed an IN
struments that might be necessary tHeIe-
for. and TO also submit a plan Tor proNld-
| ing the money necessary 10 coHilete lne
puchase Of such stock at cost OF |i,-W'-
| 60o although the plaintiff then had IN
bank only little over S4WJ ana no lhl-
mediately available cash assets.
The defendants then delivered a pre-
tended written contract binding the pam
tiff IN purchase the entire stock OF the
| Georgia Company for &.2OOOO), Of Wnich
! 81 100000 was to be paid in edsh, $l'J'o'VV
| and interest thereon within thirty Gays
and the remaining $1,95,OW and interest
| within sixty days.
The special committee further pouiiu
! plaintiff 10 purchase H,OOW0 or the sdlu
collateral trust bonds at 50 per cent. OF
mar value. and further, within ninety
! days to purchase the remaining
s3 G0O 600 of such Georgia bonds
/ at the same price, and pay cash
! therefor. the total payment mus
made obligatory being over Ss'WVWV' ana
the plaintiff was absolutely at the uhle
without cesh or convertible assets 10 pay
| any considerable portion of such llabln-
/ Tics and so notified defendants. Ihe ue-
! fendaut. Iuman who was then ana lhere
nresident and chief executive or pialH1lh'
was authorized 10 borrow money 10 com
ulete the payments, and pledged the pialh-
| tirrs assets as he saw III, ana cohtiiueu
! "a oct i'm concert with the other dtiTh-
| douts while pretending to act as plalh-
| to9,s nresident. The summons reQuests
! tbot the defendants deliver to ROOT q
| CLARKE. the plaintiffs attorneys "lnlh
twenty DAYS their answers 10 the SUIT
,vbicb viii be brought IN the supreme
| court i'm the January term.
John II. Inman was seen by reP"i ger
to-dov but he declined 10 discuss ire
natter He said simply: Let them
corne along with their suit. l an ready
! for them .o,,,t,tfor
,,ith. Neesrs. Root x Clark al the lore
noon To a reporter he said.
1--WE have d strong case. /. - TOO iale
FOR q COMPROMISE now. We VIII go ubn'
on with the case. and WILL J think surrey
win II. some astonishing revelations VIII
be made"
Judge Gobcr Ex0Rerated.
ATLANTA. Dec. IA sensational I'M
neochmeut trial. which has been going
on before tho legislative committee, came