The times. [volume] (Richmond, Va.) 1890-1903, 1900-01-10

ARGUMENT HAS
Been ZEE: 10 SED),'
CONTINUED from First Page.)
had violated his promise Of secrecy to Mr.
Williams by revealing the plans OF the
proposed consolidation, Mr. Carter stated
that Mr. Ryan had held hem inylolate
until he had received the plans in detail
from an entirely independent source
This brought out quite spirited ar
s.umentt between MeSsrs Carter, bond and
Cross: ,E5S
Mr.s Garter. then went into discussion
OF the proposed bond issue to cover me
expenses Of the CONSOLIDATE on.
AS Mr. Carter continued he was FREE
ouently interrupted and asked to explain
the parts that the Seaboard and Roanoke
and the Seaboard System were to play
in the plan of consolidation. Said Mr.
Carter: Eight million dollars Of the
bonds of the amalsamated lines were
to go to the holders of stock in the 6.
and A., which was sold under foreclQs-s
ure. and could not pay interest on So
100000. Six millions and half of the
Seaboard System bonds were to go to the
owners of the majority holders of the +.
c. and P.
"Mr. Ryan asks" declared Mr.. Carter,
that this court grant an injunction re-
straining the syndicate from putting a
mortgage on the road and the issuing OF
bonds to that effect.
&, NOT THE REAL THING.
:.We contend" said Ma Carter. that
the sale of the stock Of the r. and G
held by the Seaboard was not for the
purpose of making improvements, but
part Of the plan of the Williams Syn
dcate to consolidate and form the
Seaboard Air Line System.
This plan, Mr.. Carter stated. was also
carried out in the purchase of the Raleigh
and Castor treasury stock, 1.S25 shares
of the Raleigh and CASTOR by the same
parties who had purchased the 1902 shares
Of r. and G. stock in the treasury OF the
Seaboard and Roanoke the purchasers
in both cases being the Williams syn
dictate Mr.. Carter contended that
these facts bore out the assertion that
the sales were part of the scheme OF
consolidation. and that they were entitled
to the restraining order asked.
A recess was taken at 3 O'clock and on
reassem bling Mr.. Carter. continued his
argument
After a recess, lasting until 1880 o'clock.
Mr. Carter resumed his argument. Mr..
Carter said that he agreed with the de-
Tense in that the bill contained no
charges of fraud. Neither did Mr.. Ryan
Scharge the members of the Williams
syndicate with fraudulent conduct but
the syndicate was charged with improper
conduct that was either designediy or
undesgnedly committed and that his
client awaited himself of the right to np-
ply for an injunction i'll order to protect
his interests.
Mr.. Carter contended that Williams and
Nliddendorf, owning as they did larger
majority of the SS000,0O0 stock of the
Georgia and Alabama, had no right to
assume the direction of the Seaboard If
they intended to put the bonds Of the
consolidated roads in their pockets. They
should, Mr.. Carter said. have relinGuished
the control Of the Seaboard, and have put
the management of the Seaboard in the
hands of competent railroad men.
He complained that no proper provision
had been made for the proper distribu-
ton of the profits among the minority
stockholders. and that sl4,oe0,000 of the
sGo 0OO, coo in bonds which it was proposed
to issue were to be divided among the
members of the F., c. and p. syndicate.
the G. and a. syndicate and Scaboard
syndicate. Mr.. Williams and Mr.. Mid
dendorf are identified with the various
roads which it is proposed to combine.
and it is in view of this fact Mr.. Ryan
takes this action and asks that this court
arrest the scheme Of consolidation, and
ask that the Seaboard and Roanoke be
restrained from ratifying. completing or
to take any action looking toward rat-
fcation or completion of the transfer of.
1.-The treasury stock of that road TO Messrs.
Middendorf and others; and that If such
has already been done then to order that
A1iddendorf and others to return the
stock so purchased by them
If said Mr. Carter, 'tMr. Williams
knew that he did not have the power
to perfect the consolidation Of the var-
Gus. roads that proper legislation was
lacking and yet induced the Heop!e Of
Baltimore and elsewhere, for what I
know, to subscribe for stock of the
Georgia and Alabama. which was to
become part of this consolidation sys-
tenn. and in view of this constellation,
that Mr.. Williams has been guilty of a
breach of trust, and is not deserving
Of the confidence of the people of the
community. Yet, Judge Lewis and the
others state that they do not want TO
have their plans arrested. Now, II
they do not intend to consolidate along.
the plans proposed, do not see how they;
could carry out consolidation along
other lines.
I'VE ask that a restraining order be.
issued arresting the plans of the Sea-
board syndicate to consolidate the Sea-
board and Roanoke with the other roads.
The party that says that he intends
to do a certain thing, and when threat
ened with the arm of the law, repents
and says So may he not re-repent and
rs soon as the threatened Intervention
has passed away? If the mere say so
is to be taken then an injunction would
never be granted