The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-11-19
THE sEABoARD AIR LINE.
Thomas II. Rynn's Account or the Failure
90 Deliver the stock 70 Him.

Thouas II. Rynn's Account or the Failure
60 Deliver the stock TO Hin.
Thomas f. Ryan made the following state
ment yesterday regarding the Seaboard Air
Line situation: The story OF this transaction
from tho beginning to end is perfectly plain,
and there 10 no reason why 1t should not DO
made public. l have desired for SOM time to
purchase the stock Of the Seaboard and Roanoke
Railroad. With that object In view I obtained
through Gen. John Gill. President of the Mercan-
tile Trust and Deposit Company Of Baltimore,
options upon about $500 shares OF the stock. 1
then went to Portsmouth on the night preceding
the annual stockholders' meeting for the pur-
pose OF negotiating with other stockholders who
might desire to cell their holdings.
"On the forenoon of the annual meeting I met,
IN the office OF the counsel of the company.
Messrs. Louis McLane, Moncure Robinson, and
l.. r. Watts. They informed mo that they could
sell and deliver to me at least q majority of the
stock II = price could be agreed upon. l did not
question their assertion or their responsibility.
/ did not even ask to sec thor authorization. but
assumed that they were honorable. trustworthy.
and acting in good faith.
Tho sole questions In tho negotiations re-
lated to, first, the price to be paid for the stock
which they agreed to sell. aid. second. as to the
time that should be allowed me for examining
the BOOKS to verify certain representations they
kAVh AAAaS saS ohuANAo Va ~ SoLh-
pany and property. The only conditions i'm
posed 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 Seaboard and Roanoke Railroad the
privilege of selling his stock to me at the same
price as that fixed for the stock which they per-
sonally sold to me-. l assented to these condi-
lions, we agreed upon the price to be paid for
49,
examination Of the books. and We completed
and executed on that day a contract Of pur-
chase and sale. and l paid $4,000 ON account of
such purchase.
Relying upon their representations l 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. IL they refused to allow me to ex-
anime the books, but even this did not deter me
contract to the letter. and went to Baltimore
on Saturday last prepared to take from Messrs.
l had purchased.
They were not ready to deliver it. and now
OF the CONTRACT and only one OF two conclusions
is possible. Either they deliberately misrepre.
sell me 't the ,s stosk q I and IND 1pms ' a cos sa Z .he 70 ea 9Sat
effect. or they deliberately broke q contract
which they were in fact able to perform
that they were able TO sell me a majority of the
stock. the recital of the contract which they
ers in the Seaboard and Roanoke Railroad Com
pany. and also represent a large amount of stock
they in behalf OF themselves and associate
stockholders are DESTROYS of making q sale of all
shares st OF ali IN sa seia o sSfPos ssoeH hoi sha a as t the
with them prior to Oct. IS. 1885, TLis recital
was followed by a plain contract of purchase
and sale, which also contained the following
THE party of the second part CThomas F.
RCnn Hnnka fhta = . IN rNtr nhna lBt
on The representation that the railroad COM
panies comprising the Seaboard Air Line Sys-
creditor other than some company in that svs-
tenn. Said party of the second part Is to have
an examination made into the condition and &C
counts OF said corporation and system and to
determine whether said representation is cor
"on Oct. 12 I sent to the company's office to
make the examination thus provided for and
was refused permission to look at the books. and
all opportunity to look at them has been refused
ever since. notwithstanding the fact that tho
eigners of the contract, which contained the
Board of Directors. What new light these
gentlemen obtained as to the condition of the
company between Oct. 9. when they made their
representations to Inc and agreed that / should
have the opportunity TO examine. and Oct. l2.
when they refused me that opportunity. / do
not know, but they seem TO have preferred TO
break their contract rather than to permit me
to verify their representations.
Il understand that the principal argument
used to prevent stockholders other than those
who made the agreement with me from selling
was the assertion that ! was purchasing In the
interests Of the southern Railway Company
and would not operate the road INDEPENDENTLY
This assertion has never had the least founda-
tion in fact, and | 30 stated to the gentlemen
who signed the contract at the time Of its exc
cution. / have never in this transaction, either
directly or indirectly, represented the Southern
Hallway Company or anybody interested In
that company, or intereEted In any Southern
railway company whatever. or anybody but
myself
81 own now more OF the stock Of the seaboard
Company than all the directors and officers of
tho company nut together, and / expect to have
something to say regarding its future"
The Richmond Locomotive Works.