The Washington times., 1894-10-13
FIGHTING IT'S WAY OUT.
Washington and Chesapeake Beach Rail-
way Trying TO UntangIc Legal
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washington ana chesapeake Bcacn iSali-
way Trying TO Untanglc Legal
Skein-Answer to karn's Suit.
The Washington and Chesapeake Beach
Railway Company is fighting its way out OF
the legal tangle in which it has been enmeshed
by contractors and discontented stockholders.
Answers were filed yesterday by the company
and by its general manager, Theodore w.
Tyrer, to the recent suit by B. f. Karns, the
broker, Of No. Sl9 North Carolina avenue
northeast
The answer of the company states that the
directors know nothing officially of the con-
tracts between Harms and Tyrer prior to the
formation of the company. They know, how
ever. that only 81 0l0, 600 of stock of the COM
pany has been Issued instead OF the amount as
serted by karns, and that to Iyrer and Karns
approximately 5,270 shares have been issued.
They assert that while progress is being
made toward the building of the road as yet
no ties nor rails have been laid and no rolling
stock purchased. No business has been done
as yet and consequently there can be no pro-
fits to divide as Karns desires. They know
that contract to secure money for the con-
struction OF the road was made with Ander-
son, Doan & 0'Neall. that this was on March
again transferred TO H. C. Speer. The plac-
ing of stock in the hands of trustee, as OBJ
lected 10 by Karns, was for the purpose OF
completing tho road, and it is frankly added
not only must the 5265 600 of stock be kept
but further contributions must be made on
/ the part OF stockholders in order TO complete
the road
General Manager Tyrer in his answer ad-
mlts the contract made with karns on July
81, 1891. Under this Iyrer was to finance
the road projected by Karns, Walbridge,
| Clapp and others. 1t was made upon what
Iyrer alleges were Misrepresentation 10 him.
They told him they had surveys. maps, and
deeds OF way for the Washington and Chesa-
peake Beach Railway; that they owned the
property on the bay known as Chesapeake
Beach, with charter Tor town site, and
that the railway company was fully organ
lied with Il 600, 600 capital
When Iyrer came to investigate. he alleges,
he found they had nothing but some incom-
plete and unsatisfactory notes of u survey.
Their transit charter had been repealed and
they were only then applying for charter
for railroad. and that with q capital of
S3OO.OOO. The company had made mort
gage for Il, 100000 bonds to the Farmers
Loan and Trust Company of New York, and
had issued 900 bonds which had been
lost. The mortgage on that account could
not be released. Upon learning these facts
Iyrer refused to have ANYTHING more TO do
with the enterprise, and karns, upon having
the situation fully before him, cancelled his
engagements with WalbridGe. Clapp, and
Others and this nullifed the contract between
himself and Tyrer.
Tyrer then undertook the organization of q
company TO carry out the plans. The Wash
ington and Chesapeake Beach Railway Com
pany was incorporated with Edward Warficld,
T. II. Smith W. c.. Codd, c. C. Msgruder
j. G.. Slater II. d. Walbridge and B. F.
karns rs directors. II was distinctly under
stood that Tyrer as general manager was to
have full control OF the enterprise. and 10
prove this tine afIldavits OF Walbridge and
Slater are introduced as exhibits.
Tyrer. at his own expense, secured deeds
to the Chesapeake Beach and other property
got a charter from the Maryland Legislature
made surveys. secured permission to bridge
Patuxent River. and on March 5. 1892. sold
the property to the company tor s1.000,0 900 in
stock The contracts for the construction of
the line followed.
There have, however, been no profits from
the enterprise, and therefore, if Karns has "a
valid contract in that MADE between him and
Tyrer on July 26, 1898. there is nothing to
divide Nevertheless, Tyrer says be has in
CONSIDERABLY and prematurely given Karns
Sl59. TAO worth OF stock, and that should more
than satisfy him.
Upon this showing it is asked that Karns
suit be dismissed and his interference with
the enterprise stopped.