Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-11-19
MATTER NOT ENDED.
This SAID IN REGARD TO SEA-
BOARD AIRLINE DEAL.
ER. RYAN MAY GO TO LAM.
ne May Institute Proceedings 10
Compel Pool Committee TO Deliver
stock Held by Them Mt Time of
Portsmouth Agreement.

The announcement that the deal for the
sale OF the Scaboard AIRLINE TO Mr..
Thomas f. Ryan. representing New
York syndicate. Is of. does not end the
matter. according TO reports current to-
day In well-lnformed circles 1t is said
that Mr.. Ryan will institute legal pro-
ceedings to compel the Pool Committee
TO deliver the $500 shares held by them
previous to and at the time the agree
ment was signed at Portsmouth. Va,
between Mr.. McKeen, representing the
pool, and Mr.. Ryan. II is said that the
committee has full control OF the stock.
and can dispose of 1t without consulting
the owners. who empowered them TO act
for them. The $500 which Mr.. Ryan de-
posted and which was TO have been for
feited in the event that he had to carry
out his part of the contract. Will. 1t is
understood, be returned at once.
The question now interesting people is,
"Nill the rate-war be resumed?' The
companies are now free to renew hostili-
ties. and IL is believed In some quarters
that the Seaboard will renew its demand
for the withdrawal Of the York-River
service TO Norfolk, and falling. Will slash
rates again.
There are still many who believe that
the Louisville and Nashville will finally
secure control OF the Seaboard AIRLINE
system. II is known that the Louisville
and Nashville is anxious 10 own an east
ern connection. and it Is said that the
knowledge of this may have induced some
OF the stockholders TO withhold their con-
sent for the sale TO the Ryan syndicate.
MR.. RYAN'S STORY.
NEW YORK. November ls.-Mr.
Thomas +. Ryans recital Of his side of
the DEAL given out late to-day from the
Office of his attorney, Elihu Root, is as
follows:
''The story Of this transaction, from
beginning to end. is perfectly plain. and
there is no reason why it should not be
made public. / have desired for some
time to purchase the stock of the Sea-
board and Roanoke railroad. With that
object in view, obtained through Gene
raj John GIL. president Of the Mercan-
tile Trust and Deposit Company, options
upon about 200 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.
ION the forenoon of the annual meet
ing ! met In the office of the counsel or
the company. Messrs. Louis McLane,
Moncure Robinson. and l.. r Watts.
They informed me that they could sell
and deliver to me at least majority or
lne stock If a price could be agreed upon.
/ DID not even ask to see their 3u-
thorization, feeling assured that they
were honorable. trustworthy, and acting
In good faith.
1.-THE sole questions in the negotiations
related to, first, the price TO be paid for
the stock, which they agreed TO sell, and.
second as TO the time which should be
allowed rue for examining the books. 10
verify certain representations they then
made rcEs .s.ing The condition OF the COM
pany and property. The only conditions
imposed by Gessrs. McLane. Robinson,
and Watts ware that / should purchase
the stock of the Bay-Line Steamboat
Company. at a price agreed upon ana
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 personally sold TO me-
assented to these conditions; we agreed
upcn the price to be paid for the stock.
and upon the time TO be allowed for ex-
animation of the books; and we com
pleted and executed on that day con-
tract OF purchase and sale, and paid
10000 on account OF the purchase.
awaited myself of the options secured by
General CAL. and purchased and paid for
the stock which had been put in his hands.
ION October 18th they refused 10 allow
me TO examine the books but even this
did not deter me from endeavoring TO
carry out my part of the contract 10 the
letter. and I went to Baltimore on Satur-
day last, prepared TO take from Messrs
McIane, Robinson and Watts the stock
which ! had purchased
NOT READY TO DELIVER.
"They were not ready to deliver it, and
now say that 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 they WERE In fact, able TO perform
Aside from their verbal representations
20 me that they were able to sell me
majority Of the stock, the recital OF the
contract which they signed states plainly
that they are stockholders in the Sea-
board and Roanoke Railroad Company.
and also represent 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 or all
such other stockholders as join with them
prior to October Is, 1896 This recital
was followed by a plain contract OF pur-
chase and sale, which also containeu 'he
following provision:
The party of the second part CIhomas
f. Ryan, makes this contract TO purchase
relying on the representation that the
railroad companies composing the Sea
board 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 within which 10 have
an examination made into the condiuons
and accounts OF said corporation and sys-
TEN 10 determine whether said represen-
tation Is correct
ron October the 18th of october went
10 the company's Office TO make the eA-
animation thus provided for. and was re-
fused permission to look at the books,
and all opportunity TO look at them has
been refused ever since, Notwithstanding
the fact that the signers of the contract
which contained the foregoing provision
constituted one half Of the Board OF
Directors. What new light these gentle
men obtained as TO the condition OF the
company between the 9Th OF October,
when they made their representations 10
me- and agreed that l should nave the
opportunity 20 examine the books ana
the 18TH OF October, when they refused
me that opportunity. do not know but
they seem TO have preferred "a break
their contract rather than TO perhs't me
TO verify their representations.
II understand that the principal argu-
ment used to prejudice stockholders ssher
thar those who made the agreement
with me. was the statement that i was
purchasing in the interest Of the Southern