Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-09-15
THE SEABcARD AIRLINE r. r.
Contest for Supremacy in the Management
of the Company.
Proceedings I'm the Circuit. Court n,
Portsmouth, hVa.-Enect Upon
the Ann nal Election.

1t has been generally understood for
some time past that there would in a GER
tain contingency be a change of ownership
! of the Seaboardi Ar Line railroad at the
annual election for directors. which Is to be
held in Baltimore next month, but develop
ments (which have been madeuduring5 the
past day or two would seem to indicate
that President r. Cnrzon Hoffman will
continue to direct the affairs of the Sea-
board for at least a year longer
Monday last Judge l.. r. Watts, general
counsel for the company, obtained from
Judge r. r. Prentiss of the circuit court
at portsmouth, Va, an injunction re-
straining Thomas F. Ryan and his as
sociates, who claim to have secured a con-
trolling Interest in the stock of the COM
nual meeting. s-srav --.-- a.
The plaintiffs named in the bill are R.
CGrZon Hoffman, Charles Chauncey
Charles q. Savage, Severn Eyre Everett
st. John, William w. Chamberlain, G. Hat
ton and N. Champe Robinson, the defend
ants being the Seaboard and Roanoke Rail-
road Company, Thomas F. Ryan Ralph l..
Anderson. L. Cieland Benedict and seventy
five others.
Bill Of Complaint.
The bill Of complaint set forth the in
corporation of the Seaboard and Roanoke
Railroad Company and sections of the char
ter in reference to voting stock, No. Z, al
leging that when a vote is offered to be
given at any meeting upon stock trans
ferred within sixty days before such meet
Ing, II any one present objects to the vote
II snail not be counted unless the stock
holder has made or shall make cath that
the STOCK on which such vote is to be given
is held by him, bona fide, and not by virtue
OF transfer with intent to give more votes
than are allowed by the preceding session.
Itat, Immediately before the annual
meeting held last October, and afterward
the defendant, Thomas F. Ryan, made an
effort to purchase, through John GILL presi-
dent of The Mercantile Trust and Deposit
company of Baltimore, a contracting in
terest in the capital stock of said COM
pany, his avowed intention being to secure
control of the management of said corpora
tlon, and he succeeded in purchasing about
$500 shares
That, in pursuance of the said scheme
mentioned, the said RYAN in the month of
June caused to be transferred out of the
names of his vendees 40 shares in blocks
OF two to other parties named and in July
last other shares to various parties named.
and in the first week of August last the
SAID Thomas f. Ryan caused to be trans
ferred to the books of said Roanoke and
Seaboard Company, from the names of the
former owners from whom the same had
been purchased, shares of the said capital
STOCK to other persons, naming them, the
total number transferred being 935
shares.
1t is claimed that most of the persons to
whom the said transfers were made are
persons OF no pscuniary responsibility and
clerks and employees under Ryan, and the
instruments OF himself, and the persons by
whom he has been employed in furtheran nee
OF the scheme for the procurement of the
control OF said Seaboard and Roanoke
Railroad Company
The Persons Designated
Mention is male of the names of n. num-
ber9o of persons who employed as clerks
iii the office of the New York Guaranty
Trust Company and National Union Bank
with both OF which institutions the said
Ryan is connected and associated and one
of the Observation-Disclosures Gillooley-is the
coachman of the said Ryan, and lives in
rooms over the stables of the said Ryan,
NO sd Amsterdam avenue, In the city of
New York Transfers We're made in lots of
twenty shares, with few EXCEPTIONS for
the reason, if he should be allowed to take
the benefit of such fraudulent transfers in
this manner, he would secure to himself
and associates the maximum voting power
of one vote for each share OF said stock
the sale vote only applying to the holders
and owners of more tnan twenty shares of
said capital stock
An exhibit shows the names of several
stockholders from whom Ryan purchased
the said stock. together with the number
of shares held by them, respectively, and
shares would have been entitled If he had
caused the stock to be transferred to him
SELF as he was in equity ana good con-
science bound to do. This gives Ryan
1,6l3 votes, while the persons from whom
he purchased were entitled TO only l,oo5
votes. 1t was alleged that the said Ryan
caused most of the transfers to he made
Immediately before the 9Th day of August
last, and was urgent that the same should
be completed AT once, for the reason that
unlessotiie said transfers were made sixty
days prior to the next annual meeuin, Of
the shareholders of said company to be
held the 18th day of October next, tle votes
of the transfers would be liable to chal-
leEge.
The plaintiffs charged that Ryan couIi
rot truthfully MAKE oath that the stock
held by him was bona fide, AMI This was
known to Ryan and his associates. 1t vas
also claimed that the said fraudulent
scheme for the unlawful increase CT tie
votes will be successful unless q preventive
remedy is given by court of equity.