The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-12-18
CHARGED WITH SWINDLING
Sensational Allegations by Receiver
0akman, of the Richmond Terminal.
The Georgia Company. John II. Inmsn and
Others Accused of Fraud. Conspiracy aud
Breach of Trust-General Railway News.

NEW YORK, Dec. 17.-Receive Walter G.
Oakman. of the Richmond Terminal Com
pany, this morning filed copies of q bill of
complaint upon the members of the Georgia
company, q syndicate which IN 1888 sold
q controlling interest in the Georgia Cen-
trail railroad to the Terminal company. Re-
ceiver Oskmsn claims that in October.
1856. when the Terminal company made the
purchase, the securities of the Georgia
company had no established or available
value. On Oct g, 1888. Receiver
Oakman says, Mr.. Lehman, acting for him.
self and associates, mad a proposal to
the Terminal company to purchase the
entire capital stock of the Georgia COM
pany, consisting of 120, 900 shares, &C s35 per
share. The receiver charges that the syn
dictate conspired to sell the Terminal COM
pany their unstable and discredited Sc
c~urities at such prices as yielded an enor-
nous profit. and imposed upon the Termi-
nal company q high loss. The receiver
charges thai the deal was contriyed to put
money into the pockets of faithless dire CT
ors and their comrades.
The complaint coverstwenty-eight print
ed pages, and startling accusations OF fraud,
conspiracy and breach of trust are brought
against ex-President job III. lnmsn
and Directors Calhoun, swan and Worm
ser. and the members OF the Georgia Syn
dicsse Company. Receiver suit
involves the restitution or an amount est1-
mated &C s, 900, 900.
The bill sets forth that on Nov. IL. 1886.
the defendants associated together and
formed Q syndicate to pnrchase and hold
terest in the shares of the capital
stock of she Georgia Central Railroad
and Banking Company. to be held
together and rated as Q unit, and to be
managed and disposed of by the syndicate
for their benefit and profit In May. 1877.
the syndicate, with the purpose of realiZ-
ing on their investments through their
agents. organized . corporation under the
general laws of North Carolina for the
purpose of receiving q transfer OF
she four thousand shares of stock pur-
chased TO thereafter hold and vote such
majority stock. Then it is charged that
three of the defendants, acting for the
others. filed articles Of agreement stating
that they desired to form a company called
the Georgia company. with o capital stock
of SIG 600, TO continue for sixty years, and
further that twelve of them, acting for and
under the direction OF others, signed their
names TO O pretended subscription for one
share of stock of said company. being a
nominal total of 8; 200 out of the share CAPT
tai of $40. 900. 600. It is further claimed that
no part of such subscription was ever paid.
Then. after detailing ut great length the
organizing and establishing of the company
and the attempts to realize upon their
speculation By selling the entire 100000
of the Georges company collateral trust
bonds. the bill gets down to where 1t at
fects the plaintiff and says:
On Oct %, 1883, the defendant, Emanuel
Lehman, acting for himself and associates In
said syndicate. addressed to the plaintiff a pro-
posal for the sale 70 it of the entire 100000
shares of capital stock OF the Georgia company
81, zoo. 600. Thereupon these members of.
the plaintiffs board of directors, who WERE
P PsSssap On a: said "a % ss5. x ID 5ns G seisae sns't to com com
mittee or any Investigation, adopted o resolution
ncsiepsain = s o%m Propo 81 fos and $4,000 then and d there ap-
with full power to arrange for the de-
tails Of and TO such pur-
TO be executed, all Instruments that might be
necessary therefor. and To also submit a plan for
proviains tne money necessary to complete the
5000 .ooc. although the plaintiff then
had in bank only a little over $4,000
The defendants then delivered a pretended
written contract binding the plaintiff to pur-
for "a. 2oo.Ooo, of which s2,5Oo.Ooo was to
be paid in cash. Sl,975,O0O and interest there
on On W within a1H oo thirty nry days. and ;i,, the remain
The special committee further bound plaintiff to
purchase 100000 of said collateral trust
bonds at 90 per cent of par value. and further.
remaining $s. 600 of such Georgia bonds
H. fLe t total same pasmPe Tlee ts ana ma Pay oS sasa a1er SsTs
over IS. O00, 600. The pIaintif was absolutely at
the time without cash or convertible assets to
The defendant Inman, who was then
s s9S s1sr wa. sns Rssasie se borrow and money e9is so
hrs assets as he saw At, and Continued to act in
concert with the other defendants while pre-
tending to act as PLAINTIFF president.
The summons requests that the defend
ants deliver to Root & Clarke, the plain
fitfs attorneys. within twenty days their
answer TO the suit. which will be brought
in the Supreme Court in the january term.
John II. lnman was seen by q reporter to-
day. but he declined to talk or discuss the
matter. He said simply: Let them come
along with their suit; l am ready for 'em.n
Receiver Oakman was in consultation with
Messrs. Root K Clarke all the forenoon.
10 q reporter he said: I'VE have a strong
case. 10 Is too late for compromise now.
We will go right on with the case, and will,
i think, surely win 1t. Some astonishing
revelations will be made
west-Bound Rates siashed.
BOSTON. Dec. 17.-General Traffic Manager
the following communication TO ]. F. Goddard,
chairman Of the Trunk-line committee In New
York, and j. W. Midgeley, chairman OF the West
ern Traffic Association, in Chicago, in which he
says: Notwithstanding the supposed iron-clad
agreement of the Trunk-line presidents, 1 am
now in possession of information showing that
enc Of the fast-freight lines operated over the
Vanderbilt system in connection with
tie Chicago & Great Western railroad
has quoted rates to two different concerns that
know OF, from Boston and New York points, to
st. Paul and Minneapolis, and doubtless To many
others. at 80 per cent less than the $l.30 basis;
that this arrangement was made aud closed by q
manager or the fast-freight line and representa-
tive of one OF the Vanderbilt roads. and that it
has been agreed that the rates shall be made
good until the opening OF navigation. I cannot