The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-09
PRESIDENT WILLIAMS STATES THE
OBJECT OF CONSOLIDATION
JUDGE WATTS MAKES NO APOLOGIES
Mr.. Middendorf Denies the Jurisdiction of the
Court, While the Two Railroads Take up
the Complaint by Sections and
Make Answer to Each.

Make Answer to Each.
Answers to Thomas f. Ryan's complaint
IN his suit started here in December be-
fore Judge Purnell, ~ prevent consoli-
dation of the Seaboard system, were filed
yesterday with the clerk of the United
states Circuit court. Separate answers
are filed by each of the following de-
PENDANTS:
Seaboard and Roanoke Railroad Com.
pany,
Raleigh and CASTOR Railroad Company.
John Shelton Williams, president.
Leigh r. Watts and j. W. hidden orf
directors.
The answers of the two railroads arc
very much alike in all the material poin IS
OF the suit Messrs. Williams and Watt;
In their answers, refer to and adopt The
answers OF these roads, and then add
some additional material facts bearing
upon the case, Mr.. Middendorf contents
himself with a denial of the Jurisdiction
of the court over him, he being a citizen
of Maryland and Ryan a citizen of New
York
Judge Watts answer is short but not
at all sweet. Referring to the fact that
he was a member of the committee that
sold the Seaboard and Roanoke's treas
ury stock, he says: This defendant has
no regret to express for his action in so
voting, and no apology to make therefor:
but, on the contrary, this defendant takes
credit to himself so far as he was instru-
mental in carrying out what he consid-
cred and considers a wise business trans
action in the sale of said tS2S shares of
stock
In course of President Williams an,
swer these words are used: Those in
terested in bringing the three systems
of roads named into the closest possible
union, and thus forming from them a sys-
TEN of railroads that can be operated anG
financiered on something like a parity
with the systems. of the Southern Rail-
way Company and the Atlantic Coast
Line System, with which systems the
Seaboard System comes into direct COM
petition, have not only assisted in finan
eiering the new lines and connections
above mentioned, but have acquired large
amounts of the existing highinterest
bearing securities of the present lines,
with q view of exchanging the same for
securities to be issued under the plan
of amalgamation finally adopted in order
to reduce the fixed charges upon the new
system. The plan for the union of the
railroad properties above mentioned has
as it's general features the exchange of
the existing securities of the several sys-
TENS of roads for the securities of the
system formed by the union of the pres
emf systems. on a basis which will not
only provide for the annual fixed charg-
cs of the new system. but leave a large
excess of net earnings sufficient to in
sure dividends on the preferred stock and
furnish prospect of early dividends on
the common stock"
AS above stated, the answers of the
Seaboard and Roanoke and the Raleigh
and CASTOR railroads are very much alike
in their material points. They set forth
ANSWER OF THE RAILROADS.
I That the defendants are corporations duly
chartered and operating railroads follows:
l. Seaboard and Roanoke from Portsmouth,
Va, to Weldon. n c., distance of 81 miles
Capital stock. sl3ss, 400, divided into l3,sSi
Shares, of which Ryan owns 2,426; the Mercan-
tile Trust and Deposit Company of Baltimore,
1890 shares and the remaining shares divided
among large number of holders
.. Raleigh and CASTOR from Weldon to Raj
eigh. distance of 81 miles Capital stock ST.
500, Goo divided into 1900 shares, OF which
Ryan holds five shares.
IT, 1t is admitted that or about Dec 2s,
1905 the firm of Middcndorf Oliver and Company,
Of Baltimore, and the firm of John l.. Williams
and Sons. of Richmond did enter into contract
with Richard Curzon Hoffman for the purchase
of 73GO shares of capital stock of the Seaboard
and Roanoke Railroad and certain other securl-
ties. Under this contract Hoffman and his as9o-
ciatcs sold and delivered 1890 shares OF suc'!
stock. all of which delivered and transferred
TO the books OF the Mercantile Trust aud Deposit
Company of Baltimore, which company has ever
since been the record holder of the same. And
this company issued TO the several purchasers OF
the stock certificates of interest III proportion
to their several contributions of the purchase
money.
Tilt is declared that Ryan's allegation that he.
on Oct g. 1856, entered into an agreement with
Louis McIane, Leigh r. Watt and Moncuf'
Robinson. for purchase of their stock at Sl25
share which agreement they failed and refused
10 comply with. sis false and misleading within
Ryan's own knowledge. 1t Is acknowledged