The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-05-27
LIVELY WITH The BROKERS
An Exciting Deal in Electric Railway
First Mortgage Bonds.


Suburban Railway, Offers to Sell
Short and Is Taken Up-He Claims
to Have Sold Only $4,000 While
the Buyers Claim That He Sold $685.
ooo-The Latter VIII Enter Suit to
Compel the Fu1hllment of the Con-
tract as They Understood It.
! There was a furry in securities, on
Byran street yesterday, which, though
the amounts involved are not large, ex-
cited more interest than anything that
has occurred on the local Wall street in
long time.
| The furry was the result of an attempt
on the part of Director J. n. Hartman,
of the City and Suburan railway, to bear
the first mortgage bonds of the Electric
railway. These bonds have been quoted
at 60 for some time, but within the last
few days brokers, acting in the interest
of Mr. Hartman, have been making offers
of bonds at 40.
| Mr.. Hartman offered to sell Broker
Austin r. Myres the other day $4,000 of
| these bonds for August delivery at As,
each party to the contract to put up a
forfeit of 81, 500 for its fulillment. Mr..
Myres found a purchaser on the condi-
lions named in MIR. w. F. McCauley, a
director of the Electric railway
Meeting Mr.. Hartman on the street
yesterday Mr. Myres asked him if
he still held to his offer of
a day or two before. Mr. Hartman re-
newed his offer and Mr.. Myres. closed the
| deal on the spot. Mr. Myres, who was
| acting as broker for the Electric railway
| people, then asked Mr. Hartman if he
| had any more Electric railway bonds to
| sell on the same terms. Mr.. Hartman
replied that he had, and instructed him
to sell $4,000 more at the same figure.
BOUGHT IN BY THE COMPANY.
When Mr.. Myres informed MIR. Nc
| Cauley that he had closed the deal for the
| first lot of $4,000 and had Sl5, 900 more to
| sell on the same terms, the latter at once
| conferred with President Collins of the
Electric railway and several of the di-
rectors and it was Immediately decided
to take Mr.. Hartman up. Mr.. Harri-
man had an engagement to meet
Mr.. Myres at his office at II
| o'clock, and the whole party met there
at that time. Other brokers and bust
ness men interested in the two roads
scented the deal, and quite a crowd gath
cred at the office. When MIR. Myres in
| formed Mr.. Hartman that he had made
the sale of the second of SIS, 900 it almost
took the iatter's breath away. He de-
MED having authorized the sale
and declared that he would not
sign the contract. Things became some
| what exciting at this point and sharp
words were passed between MIR. Harri-
man andiMessrs. tMcCauley and Wilkinson.
Mr.. Hartman declined to put up his for
felt of e, 800 on the first deal Immediately,
| saying that he would confer with Capt.
Johnston, president of the City and
| Suburban railway, and have him bring
| down the check in the afternoon, as he,
| Mr., Hartman, had arranged to leave for
| New York on the noon train.
| Mr. Myres called upon Mr.. L. Adler,
who was present during the conversation
/ in the morning with Mr.. Hartman, to
prove his statement as to his authority
| for making the second sale of SIS, 600
| Mr.. Adler said that he interpreted MIR.
| Harr1man's words as an order to sell.
| A QUESTION AS TO THE FORFEIT.
! President Johnston appeared at o'clock
| according to agreement with check for
| $4,000. He said he understood that Mr..
| Hartman had made sale Of So 500 and
| that the check was to be placed as a
| forfeit on the sale of that amount of
| bonds. When he found that there were
but finally deposited the check as a
forfeit upon the first sale of $4,000
| The transaction was the talk of Bryan
street during the day, and attracted more
| comment than anything of the kind that
has occurred lately. President Collins,
| of the Electric railway, said last night
| that suit will be entered against Mr. Har-
riman Immediately for the forfeit of
| $3.50, which should have been put up to
close the second deal, and incidentally to
compel delivery of the $4,000 bonds when
the time arrives.
''As Mr.. Hartman has announced that
he is the representative of Mr. Parsons"
said President Collins, II shall institute
suit against both Mr.. Parsons and Mr..
Hartman, collectively and individually.
We have all the evidence that bona fide
| sale was made, and we propose to insist
upon the delivery of the bonds"
THE CONTROL OF THE BONDS.
Mr.. Collins said that 80 per cent of the
first mortgage bonds are held by the
directors of the Electric railway, none of
whom will sell for anyth like the figure
made by Mr. Hartman, and that the
latter will be fortunate if he OBJ
tains bonds with which to meet
his contracts at twice the ignre at which
he sold These bonds cover all the prop
erty of the original Electric railway, in
Guiding the Price street belt and the
Gwinnett street branch, the power house
and machinery, over half the rolling
stock and 1925, 900 stock in the Brush
Electric Light and Power Company. The
issue of bonds is $3.50. 900.
Subsequent TO, the deal at Mr. Myres'
office, Messrs. Collins and McCauley met
Mr.. Z. F.. Johnson, who was acting as a
broker for Mr.. Hartman. Mr. johnson
offered to sell $1,000 of bonds of the Elec-
trio railway at 49, 81 900 for immediate
delivery and 81 900 for delivery on Mon
day. He was promptly taken up. Both
sides have their blood up now and it is
predicted that there will be more buying
and selling this week.
The Rao+o,,, O. o;o4,. =. . wy