The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-11-19
RYAN TALKS OF THE REFUSAL.
SEEMS TO HAVE PUT TOO MUCH
FAITH IN THE SELLERS.

Retain COntrOl-A Long and Bitter
Legal Fight Probable.
Baltimore, Md, Nov. 1S.-The announce
ment that the deal for the sale of the Sea-
board Air Line to Thomas F. Ryan, repre-
senting a New York syndicate, is off, does
not end the matter. according to reports
current to-day in well-informed circles. 1t
is said that Mr.. Ryan will institute legal
proceedings to compel the pool committee
to deliver the $500 shares held by it pre-
vious to and at the time the agreement
was signed at Portsmouth, Va. between
Mr.. McLane, representing the pool, and
Mr.. Ryan, representing the New York peo-
pie.
1t is said that the committee has full
control of this stock and can dispose of it
without consulting the owners, who en-
powered it to act for them.
The $4,000, which Mr.. Ryan deposited,
and which was to have been forfeited in
the event he failed to carry out his part
of the contract, will, it is understood, be
returned at once.
The question now interesting railroad
and business circles in Baltimore and the
south is "Will the rate war be resumed?"
The companies are now free to renew
hostilities, and 1t is believed in some
quarters that the Seaboard will renew
it's demand for the withdrawal of the
York river service to Norfolk, and fail
ing will slash rates again. There are still
| many who believe that the Louisville and
Nashville will finally secure control of
| the Seaboard Air Line system. 1t is
known that the Louisville and Nashville
| is anxious to own an eastern connection,
and it is said that the knowledge of this
may have induced some of the stockhold-
ers to withhold their consent for the sale
to the Ryan syndicate.
| New York, Nov. 1S.-The announcement
| that the negotiations for the transfer of
| the control 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 its stock, has
been confirmed by an official statement
| from President Hoffman, issued in Bal
| timore last night.
| Mr.. Thomas +. Ryan's 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 the beginning to the end is perfectly
plain, and there is no reason why it should
| not be made public 1 have desired for
some time to purchase the stock of the
! Seaboard and Roanoke railroad. With
that object in view l obtained, through
| Gen. John 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
meeting for the purpose of negotiating with
other stockholders who might desire to sell
| their holdings.
+" One the forenoon of the annual meet
ing meet in the Office of the counsel of
the company, Messrs. Louis McLane,
Moncure Robinson and l.. r. Watts. They
| informed me that they could sell and de-
| liver to me at least a majority of the stock
| If price could be agreed upon. did not
| even ask to see their authorization, but as
sumed that they were honorable, trust
worthy, and acting in good faith.
The sole question 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 me for examining the books to
| verify certain representations they then
made regarding the condition Of the
company and the property The only
| conditions imposed by Messrs. McLane,
Robinson and Watts were that L 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 rail-
| road the privilege of selling his stock to
| me at the same price as that fixed for
the stock which they personally sold to
me. 1 assented to these conditions; we
agreed upon the price to be paid for
| stock upon the time to be allowed me
for examination of the books, and we
| practically executed on that day con-
tract of purchase and sale, and l paid
100000 on account of such purchase.
"Relying upon their representations, !
availed myself of the options secured by
Gen. GIL and purchased and paid for the
stock which had been put in his hands.
"On Oct 12 they refused to allow me to
examine the books, but even this did not
deter me from endeavoring to carry out
my part of the contract to the letter, and
/ went to Baltimore on Saturday last pre-
| pared to take from Messrs. McLane, Rob-
inson and Watts the stock which l had
| purchased.
They were not ready to deliver 1t 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 msrepresented the
facts at the time they said they sold me
the stock and made d contract to that
effect, or they deliberately broke a con-
tract which they were, in fact, able to
| perform.
aside from their verbal representa- tion
| to me that they we're able to sell me a
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 derous oi
making a sale of all their stock in said
corporation and alo the shares of all such
other stockholders as join with them
prior to Oct 8, 1896 This recital was fol-
lowed by plain contract of purchase and
SALE which also contained the following
| provision.
''The party of the second part CThomas
f. Ryan makes this contract to purchase
relying on the representation that the rail
road companies comprising the Seaboart
Air Line 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 to have an exam.
" |