The state chronicle., 1892-12-18
\AoywH
AN IMMENSE SUIT
BROUGHT BY THE RUCHMOND
TERMINAL COMPANY.
through w. &. Oakman the Receiver
Against the Members of the Geor-
Sia Company Syndicate.

q. 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 controlling interest in the
Georgia Central to the Terminal com
pany. The suits are brought against
John Fl. Inman, James Swami, B s. D.
Clarke, r w. Inman, II. B. Hollins, F.
A. Yzsnaga, F, Edey, B. J. Burke,
August Belmont, Walter Luttgen, Isaac
l.. Rice, Z Lehman, Meyer Lehman,
Sigmund NJ Lehman, Philip Lehman,
VIM Kessler, Edward Kessler, c. f
Dessler, J. G. Calhoun, S Wormser, Isa-
dore Wormset, Jecob Scholle. James
Seligman, Josse Seligman, c. Blum, F.
st. Gear, A. S Heidebafch. Isaac Ickel
heimer, A. Lichtenstein, E. w. Clark,
w. Cotton, Z. w Clark, Jr, H. NJ. Sill,
G H. Clark, Jr., P. Calhoun and the
Central Trust company of New York
Receiver Oakman, through his counsel,
clalms that in October, 1888, when the
Terminal company made the purchase the
securities Of the Georgia company had no
estehlished or available value
GA Uctooer %, loss. receiver Oakman
Gays E. Lehman, acting for himself and
associates, made proposal to the Ter
minal company to purchase the entire
capital stock of the Georgia company,
consisting of 100, 600 shares at s 5 per
share.
The receiver charges that the syndi
cate conspircd to sell the terminal com
pany their unsaleable and discredited
securities at such prices as yield an
enormous profit and imposed upon the
Terminal company a heavy loss. The
receiver charges that the deal was con-
trlved to put money into the pockets of
faithless directors and their confe3erates
The complaint covers 27S printed pages
and startling accuSati ms of fraud, con
spiracy and breach Of trust are brought
against ex President John II. Inman and
Directors Calhoun. Swami and Wormser
and the members of the Georgia syndi-
cate company. Receiver Oakman's suit
/ involves the restitution of an amount es
timated at SS, 100000
Summons request that the defendants
deliver to Root and Clark, the plaintiff S
attorneys, within twenty days, their an
swers to the suit. which will be brought
IN the supreme court in .he January
term,
The bill sets forth that on November
II, 1885, the defendants associated to
gether and formed syndicate to pur
chase and hold asa common venture, q
controlling interest in the shares of the
capital stock of the Georgia Centra
railroad and banking company to be hello
together and rated as a unit, and to bt
managed and disposed of by the syndi
cate for their benefit aud profit. II
May, 1887, the syndicate. fer the pur
pose Of realizing on their investmen
through their agents, organized cor
poratiou under the general laws of New
, York for the purpose of receiving
transfer for 600 shares of stock puI
; chased to thereafter hold and vot
+ such majority stock Then 1t is charge
K tnst three Of the defendants acting 70
!, the Others filed articles of agreemen
f stating that they desired TO form a corn
: pany called the Georgia company, wit
If a capital stock of SIG, 600, 600 to con
tuue for 60 years, and further tbs
twelve of them, acting for and under tn
: direction of the others, signed the
. names to pretended subscription fC
a one share of the stock of said company
d being a nominal total If 81, 200 out
:, the share capital of $l6 900, 900. 1t
: further claimed that no part Of such sui
e scription was ever paid.
:, Then after detailing st length the o
h ganizing and establishing Of the compan
e and the attempts to realize upon the
e e speculation by selling the entire "a 900
n 600 Of the Georgia company collater
E, trust bonds. the bill gets down to whel
e it atfects the plaintiff and says:
On October %, 1888, the defendan
Emanuel Lehman, acting for himself al
e associates in said synd cate, addressed
= the plaintiff a proposal FOR the sale to
r of the entire 12o 600 shares Of capt
/ stock Of the Georgia company ~ $50 ?
d share, making total prlce 81 81, 200 90
;, Thereupon the members of he plaintiff
,e board, of directors, VINO were present
u a meeting of the boar9, specially co
1 venrd on said day, with At reference
- Il committee or any iuYcAtiE lion, adoptt
!. a resolution accept : >ucE Pop sails al
- then and there appnii ted )ulnittee
D four designated dire ctors with full pow
II to arrange tie details Of and to consul
L mate such purchase of stock, to execu'
or procure to be executed, all ltstrumcr
= that might be necessary therefor 9Hi
,E also submit a plan for proVldl
al the money necessary to complete t
ld purchase Of such stock at cost
re S4,200,000, although the plaintiff tn
4 had in bank only little over $l4 0
Is, and no immediate available cash asse
er The defendants then delivered a p
he tended written contract binding t
q plaintiff to purchase the entire stock
10, the Georgia company for 81, 200 600,
OF which 81 500, 600 waa to be paid in ca
4d 81 ,975, 900 ana interest. thereon with
So 60 thirty days and the remaining 81, 975, {
eli and interest within sixty days. l
ze special committee further bound plain,
to purchase $1,000, 900 of the said c
- lateral trust bonds at 95 per cent
20 par value, and further will
ninety days to purchase the rema
by ing $4,000, 900 of such Georgia boz
~ at the same price and pay c.
ia therefor. The total payments thus ms
an obligatory being over 50, 900, 900 and
ng plaintiff was absolutely at the time WI
| OuL CASH VI COu d5SClo w P1y
ch. considerable portion Of such liablllt
zas and so notified defendants The def
ing daut Inman, who was then and tn
.et, ,ba nracident and cni.f executive
eet " I;I =. la--l,r, 49,
ms to complete the paymen and pledi
Gu, the plaintiff as he saw ht and contin
OF to act in concert with the other def
dants while pretending to act as pl'
;. tiffs president.
John H. Inman was seen by repo
- to day, but he declined to discuss
matter. He said simply: 'Let tt
CO ne along with their snit. l am re
for them.
Recei yer Oakman was in consultat
%hA % with Messrs. Root and Clark all the I
ink noon. To reporter he said: .
Ike have strong case. 1t is too late Il