The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-09-01
HE DIDN'T CONE TO TINE.
Hartman Failed TO Deliver the SiO,-
900 Electric Bonds as Agreed.

He Couldn't Get the Bonds at as and
Wouldn't Pay 65 for Them-He De-
olares the 30, 500 Check Deposited
by Him When the Deal Was Made
Was Not a Forfeit and Enjoins Cash
Ter Sullivan of the Southern Bank
From Paying It over on the Brokers'
order-A Lively Financial Sensation
One Of the liveliest sensations which
has been enjoyed in financial circles in
Savannah in sometime was caused yes
terday by the failure ofeSfr J. y. Harri-
man to deliver $1,000 of Electric railway
bonds according to a contract made three
months ago, and his refusal to agree to
the delivery of the forfeit which had
been deposited by both parties at the
time the contract was made.
May 26 MIR. Hartman made a sale Of
$4,000 of Electric railway bonds through
Broker Austin r. Myres to Mr. Jacob
Paulsen at 45. Mr.. w. f. NcCauley was
a sharer with Mr.. Paulsen in the deal,
but only Mr.. Paulsen's name appears in
the contract. MIR. Hartman, as is well
known, has been directing the fight of
the City and Suburban railway against
the Electric Railway Company, and his
offer of bonds at As was regarded as an
effort TO break the market on the bonds
OF his opponents, which were then quoted
at 65.
THE ORIGINAL PURCHASE.
Mr. Hartman had expressed his desire
to sell Electric railway bonds at
Is, and when Mr. Myres agreed
to find him purchaser for $4,000 Of the
bonds at that figure he readily agreed
Messrs. McCauley and Paulsen made the
purchase. There was some little diff
Guilty at the time in concentrating the
sale, and the affair created a considera-
bic sensation in local financial circles, es-
pecially as Mr. Hartman expressed
his willingness to Mr.. Myres to sell s15,-
900 more of the bonds at the same
figure. Mr.. Myres promptly made the
sale of the additional S15, 600 of bonds to
Messrs. McCauley and Paulsen at As, but
MIR. Hartman refused TO confirm it,
although the purchasers had the brokers
sale ticket for the amount. The deal for
the first $4,000 of bonds was completed,
however, each party depositing a certi-
fed cheek for 81, 800 in the brokers' hands
as a guarantee of the faithful perform
ance of the contract.
MIR. Harriman's deposit was made
through President J. H. Johnston, of the
City and Suburban railway, the former
having arranged to leave for New York
on the noon train The bonds were sold
for August delivery, and this is where the
point comes in. The fight between the
Electric Railway and the City and Su-
burban has been very active since the
sale of the bonds, and it has been charged
that the object was to reduce the price of
the bonds to figure where Mr. Harri-
man could purchase and fulfill his con-
tract without loss.
HELD BY THE DIRECTORS.
After Mr.. Hartman made his deal it
was discovered that practically all of the
bonds of the Electric railway were held
by the directors of the road and others
closely interested who would not be will
ing TO part with them for less than IS.
This being the case there was consider
able interest as TO whether Mr.. Hartman
would be able to secure the bonds with
which 70 fill his contract. Yesterday being
the last day of August il was necessary
for him TO come 10 time with either the
bonds or the cash.
A few days ago MIR Hartman was APP
preached by Mr. McCauley with the re-
quest that he would deliver the bonds at
once if convenient for him to do so, on
account of the petition which had been
filed IN court for receiver for the Elec-
trio railway.
WOULDN'T HAND THEM OVER.
Mr.. Hartman replied that he had the
bonds but did not propose to deliver
them until the last day allowed by the
contract. He called upon Messrs. Paulsen
and McCauley at the ONCE of the
Propeller Towboat Company yester-
day morning, MIR. McCauley says,
and stated his inability to de-
liver the bonds and sought a
release from his contract. When
this was refused he endeavored to secure
an extension Of the contract for three
months longer, and there evidently being
no disposition to grant this request, he Of
Tered bonus OF 1900 for the extension.
This offer was also declined Mr.. Nc
Cauley says that Mr. Hartman offered to
pay 5000 tor release from his contract,
which was also refused, but there is a diff
ference in the statements of Mr.. Nc
Cauley and Mr. Hartman on this point.
Finding that he could make no compro-
mise with Messrs Paulsen and McCauley,
MIR. Hartman informed them that he
forfeit to them, and that he would enjoin
the holder of the deposit from paying il
over on the brokers' order
THE CONTRACT.
The deposit had been made with Cashier
James Sullivan Of the Southern Bank.
and in Mr.. Myres absence from the city
he had authorized MIR. Sullivan to act for
him. The terms of the agreement between
the'contracting parties are as follows
Savannah, Ca, May 26 1s94-lt is agreed
between j. n. Hartman and Jacob Paulsen
as follows. The said Hartman duly sells
and agrees to deliver to the said Paulsen at
II clock noon or any day OF month OF Au.
gust, 1894, except Sunday in Savannah Ca
ten thousand dollars $40 0J0l par value of the
consolidated first mortgage gold bonds of the
Electric Railway Company OF savannah with
all unpaid coupons attached. said bond belnp
Of any -Ssle OF two hundred and nifty thou
sand dollars due Jan. !, 1928. and the said
PaulSen hereby buys and agrees TO take from
the said Hartman the said bonds at the
time indicated, aud TO pay for the
same the sum Of forty-Hve hundred
dollars (Sib0Jl in cash; for the purpose Of
guaranteeing the faithful performance OF the
agreement by both parties. each Of SAID par.
ties hereby agrees to put up and de
post in some solvent bank the
sum of twenty-five hundred dollars
ls2 800, II being understood that upon the
failure Of either party TO carry out his con
by him shall be forfeited to the other party
and the bank with whom the same is depos
tied shall forthwith ray the entire amount Sc
CeUDglfed 10 the injured marty A poT,v oF tbt