Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-11-19
RYAN MAKES A STATEMENT
Concerning That Seaboard Air
Line Deal.
THERE MAY BE LEGAL WAR
Says He Didn't Want the System for the
Southern Railway.
"WILL WE HAVE ANOTHER RATE WARn
Between the Seaboard and Competing
LinesP Is Question Interesting Bus
mess and Railroad Circles =
The State of Affairs.
"WILL WE HAVE ANOTHER RATE WAR


ment that the negotiations for the trans
fer of the Seaboard Air Line to Thomas
F. Ryan of this city had fallen through
because of the refusal of the Hoffman
pool to turn over it's stock, has been con-
frmed by an official statement from
President Hoffman, issued in Baltimore
last night. 4
Mr.. Thomas Ryan's recital Of his side
of the deal, given out late today from
the office of his attorney, is as follows:
The story of this transaction from be-
ginning to end is perfectly plain and
there is no reason why 1t should not be
made public. have desired for some
time to purchase the stock of the Sea-
board and Roanoke road. With that OBJ
ject in view l obtained through Gen. Gill,
president of the Mercantile Trust and
Deposit company, of Baltimore, options
upon about $500 shares of the stock.
then went to Portsmouth on the night
preceding the annual stockholders meet
ing for the purpose of negotiating with
other stockholders who might desire TO
sell their holdings. a-a
"On the forenoon of the annual meeting
/ met in the Office of the counsel of the
company Messrs. McLane, Robinson and
Watts. They informed me that they
could sell and deliver to me at least
agreed upon. did not even ask to see
their authorization, but assumed that
they were honorable, trustworthy and
acting in good faith.
.sThe sole question In the negotiations
related to, first, the price to be paid for
the stock which they agreed to sell, ana,
second, as to the time which should be
allowed me for examining the books to
verify certain representations they then
made regarding the condition of the COM
pany and property. The only conditions
imposed by Messrs. McLane, Robinson
and Watts were that should purchase
the stock of the Bay Line Steamboat
company at a price agreed upon, and
should give to every holder of stock in
the Soaboard and Roanoke railroad the
privilege of selling his stock to me at the
same price as that fixed for the stock
which they personally sold to me. l as
scented to these conditions; we agreed up
on the price to be paid for the stock, upon
the time to be allowed me for examina-
ton of the books and we expected on that
day contract of purchase and sale; ana
I paid 100000 on account of such pur-
chase.
"Relying upon their representations,
availed myself of the options secured by
Gen. Gill and purchased and paid for the
stock which had been put In his hands
ION Oct. 10 they refused to allow me
to examine the books, but even this did
out my part of the contract to the letter,
and / went to Baltimore Saturday last
prepared to take from Messrs. McLane,
Robinson and Watts the stock which I
had purchased.
"They were then ready to deliver 1t,
and now say they are unable to perform
their part of the contract, and only one
of two conclusions Is possible. Either
they deliberately misrepresented the
facts at the time they said they could
sell me the stock and made contract to
that effect, or they deliberately broke
contract, which theyawere in fact able to
perform.
aside from their verbal representation
to me that they were able to sell me
majority of the stock, the recital of the
contract which they signed states plain
ly that they are stockholders in the Sea-
board and Roanoke Railroad company,
and also represent a large amount OF
stock in said corporation held by others,
and that they in behalf of themselves
and associate stockholders are desirous
of making a. sale of all their stock in said
corporation, and also the shares of all
such other stockholders as join with
them prior to Oct. IS, 1896. This recital
was followed by plain contract of pur-
chase and sale, which also contained the
following provisions: es
1.-The party of the second part (Thom-
as F. Ryan, makes this contract to pur-
the railroad companies comprising the
Seaboard Airline system are free of all
floating debt due to any creditor other
than some company In that system. SAID
party of the second part is to have forty
days from this date in which to have an
examination made into the conditions
and accounts of said corporation and
systems, to determine whether said rep
resentation is correct
"On October IL l. went to the COM
pany's office to make the examination
thus provided for, and was refused per-
mission to look at the books, and all op-
portunity to look at them has been re-
fused ever since, notwithstanding the
fact that the signers of the contract
which contained the foregoing provision.
constituted one-ha1f of the board of d.
rectors. What new light these gentle
men obtained as to the condition of the
company between October 6, when
they made their representations to me,
and agreed that should have the oppor-
tunity to examine, and October IL.
when they refused me that opportunity,
do not know; but they seem to have pre-
ferred to break their contract rather than
to permit me to verify their representa-
tions.
II understand that the principal argu-
ment used to prevent stockholders, 9TH
er than those who made the agreement
with me, for selling was the assertion
that was purchasing in the interest Of
the Southern Railway company, and
would not operate the road independents
ly. This assertion has never had the
least foundation in fact, and / so stated
to the gentlemen who signed the contract
at the time of It's execution. have never
in this transaction either directly or
indirectly represented the Southern Rail-
road company, or anybody interested In
that company, OF interested in any south
ern railroad company whatever. or any
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