New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-12-18
MR. OAKMAN CHARGES FRAUD
RICHMOND TERMINAL DIRECTORS SUED.
THE RECEIVER DECLARES THAT THEY UNJCslAf
TOOK 81 600 600 PROM THE COMPANY.

TOOK 81 900 900 FROM THE COMPANY.
The long threatened suit of the Richmond Terminal
and Warehouse Company to recover the securties oe
lvcrcd in exchange for the control OF inc "e''sH'
Company begun yesterday In the newborn '"'
preme Court by Walter G. Oakman, recover ana P'es'
dent Of the Richmond Terminal Company Inc oo'
iect OF the suit aside and have dechico nun
and void the sale OF S16OOOOOO Of securities OF the
Georgia Company 10 the Richmond Terminal Ihe
summons and complaint were served on the dclehutts
yesterday by Root Clarke attorneys Tor the pihi"'
at No 30 Nassau-st The suit was begun III '"e
courts of this State instead OF in the United st''e'
courts. 1t is explained, hccause result would De
reached more quickly in the state courts ana ior
numerous technical reasons The defendants IN TIE
suit are John IL. Inman, James Swami Eernad >
Clark, Robert W. Imam. III. b. Holins' ferhahuo a.
Yznaga, Frederick Edey, Bernard J. Burke Angus.
belmont, Walther Lutgen, lsaac l.. Ricc' hha'u'i
Lehman. Mayer Lehman. Meyer H. Lehman, slsihu'd
NJ Lehman Philip Lehman, william Kesscr, EDWARD
Kessler, Gustav L. Kissel, John G. Calhoun, e,lno"
Wormser Is!dor Wormscr Jacob scholle. Nllilani
schollc Jesse sehgmaI, Charles Blum, fTede'oh ~.
(;osr Alfred ; Heidelbach Isaac IckeEeimer AIrca
Lichtcnstein Edward W. Clark, sabin W. CoIVoh, hu'
ward W. Clark IT,. Edward T. Dennst0n' D. Al'oh
Cotton Harold NJ. sill, Clarence H. Clark, lr 1'tiloA
Calhoun James seligman. and the Ceh'r trust ~'"i'
pany Of New York ,..
The complaint recites the history OF 'he orsnli@A'
ton OF the Georgia Company, whch was hi'ehu'u "
control the assets Of the Central Railroad ana baA"s
Comnanv of Georgia. The dcal' with the Richmond
Terminal Company made In the autumn OF 1000
and resulted it is declared. In the transfer oil sec'V'
nv the Georgia Central and the banking syndicate IN
terested I'm the deal consisting oil S1oooOOo' par N
In Georgia Company bonds, sold at 3d. ana @l-OoV'o
stock sold at IS. for a price that was not con''h
surate with the value given By the Richmond l'lhm
nal The profit cleared the transaction Dy ue
defendants is said have amounted to S4'VJo'ooV'
In the complaint II Is alleged;
"I1e plaintiff charges that the said comohatlo'
and plan, so formed as aforesaid by ana between S
president and OF Its directors coniederauhg VII"
the other syndicate defendants for the purpose Vi
selling their unstable and dscredited securities 10 ue
nlantff at such prices that yielded them an e'orhouS
IF, and necessarily imposed on the plaintiff heavy
yearly loss was contrary to equity and gooo con-
science and that the pretended contract da'eu Ooo
Der &C. 1855, and the supplementary paper o'teo W.
vembcr 60. 1885, and all the acts done In pre'enu'o
purchase OF the stocks and bonds OF sad Oeorsa Co
many from the syndicate defendants and the taxing
from the assets and money OF the plalnuu OF over
g. 600 600 cash to put into the pockets OF the said
ifhess directors the syndicate defendants ana thcr
confederates were all acts planned done ana perlomeu
bv said Inman under his direction in the execution
of such original fraudulent syndicate scheme com a
ton n,rpose and confederacy and all the pretended
contracts purchases and deliveries Of stocks and bonds
Hereunder were. and are. without due authority OF 1e
nlsn,i wholly beyond rs corporate capacity and pro-
bibed and fraudulent both IN law and fact ana tha'
under such circumstances the receipt ana appr0pfa'
ton OF over 100000 of the money and assets OF
the plaintiff by the defendant directors and their as
sociates in such combination and syndicate w2s
wrongful diversion OF trust funds which justihes
court of equity in declaring the whole transaction
fraudulent and void. and decreeng full repayment oS
the syndicate defendants Of all the trust lunos ~
misappropriated and interest thereon, and warrl'lis
the court to hold the syndicate defendants haoie
to fully account for such breach OF trust ana 10 aAo
full equitable compensation therefor
II f. further charged that to accomplish the trans
action Misrepresentation made as TO the con
don and prospects Of the Central haiiroao vi
Georgia. The complaint SAYS: The piaihlh 10 III
formed and verify believes and therefore so charges,
That In truth and the said pretended purchase OF
stocks and bonds was substantially imposed upon "
nv the undue unlawful and fraudulent influence ana
acts of the particular defendants who were then It's
directors, and Is in its terms and results so un-
considerable and that court OF equity ought
rot TO permit transaction to stand. or allow such
mafeasant directors and associates TO hold the large
and legtmate profits which they d ass G1s
an Inevitable crushing loss upon paintih and It's
To- further induce the other directors OF plaintiff
TO accept the aforesaid syndicate proposal and fasen
upon IL the purchase OF their stocks ana bOnds inc
syndicate defendants Including the said interested
directors submitted certain official letters and financial
statements of and concerning the said Central Kali
That. instead of such statements and representa-
tions being substantially truthful exhibit Of the then
financial condition Of said Central Railroad Company
the members Of said syndicate. including those who
were plaintiffs directors and trustees. knowingly ana
with the intent TO misrepresent ana deceive the pan
into contract for their own grea, profit and being
cOgnlLant OF the true facts. wholly concealed and
suppressed the material fact that In september 1855,
the said Central Railroad Company was in such urgent
need OF ready money meet It's obligations that II
had actually entered into binding contract 10 Issue
and sell to Ncw-York banking firm $1,000 900 Of rs
coupon bonds bearing per cent Interest. and which
would thus add S250yOO0 OF absolute fixed annual
charges the property and income OF the said rail
road in front OF the 10000 shares Of stock which
held By the Georgia company"