The sun. [volume] (New York [N.Y.]) 1833-1916, 1908-09-22
PAST OF RYAN'STREASURE
TROUBLE WITH COURT WHEN
A RAILROAD PROMOTER.
q Quit New York for Indian Territory
When Ordered to Make Good Guar
antec for SI83. lS4.S1 In Ohio
Southern D~eal-Settled for 822 600.

When Ordered to Make Good u
antee for SI83. lB4.S1 In Ohio
Southern Deal-Settled for 822 600.
Charles N. Haskell. formerly a resident
of this city, a railroad promoter and
stock operator in Columbus, Ohio, and at
present Governor Of Oklahoma and
treasurer 81 the Bryan national cam
paign committee. figured in a case that
was before the Federal courts In this
district some years ago. Action was
brought by Henry B., Morehead against
George W. Striker as executor OF Henry
B. Ives and Mills W. Barse. Morehead,
Ives and Barse constituted the Ives syn
dictate which held the controlling interest
in tho stock of the Ohio Southern Railroad
Company. Mbrehead brought the action
to wind up the affairs OF the syndicate
after the death of Henry B. Ives.
Mills w. Barse was appointed receiver
for the syndicate and he made a contract
with Charles Fl. Roser. an engineer in
the employ Of Haskell. for the sale OF
the entire block OF stock Of the Ohio
Southern held by the syndicate. There
were 1908 shares Of this stock and Has
kell acted as Roser's %guarantor, giving
a guarantee in writing:
The original contract left the stock
subject to a possible assessment. but
this was modified in December, 1895, to
a form OF contract which provided for
the sale OF the stock at $l2 a share. Judge
Lacombe Of the United States Circuit
Court confirmed this contract Immediately
after it's modification.
Haskell became active in railroad
affairs in Ohio and among other enter
prises planned a reorganization OF the
Ohio Southern. The plan came to
nothing and q committee Of bondholders
arranged for the sale OF the road in fore
closure, whereupon Barse turned over
to Haskell. as Roser's agent. adj the
free shares and Haskell took over the
shares held by brokers upon payment
provided for in the contract. When the
drafts drawn by Barse and accepted by
Roser came due they were not paid.
resigned the ~receivershlp. John j;
Townsend was appointed TO- succeed
petitioned the United States Circuit
Court to compel Roser and Haskell
to carry out their contract. Both Roser
and Haskell objected to the jurisdic.
ton, but the objections were overruled.
court TO relieve them from the contract.
saving that they did not receive the GER
tifcates of the Ohio Southern stock.
Haskell also stated that all that he had
done in the matter was done on behalf
Of Barse and that while the contract,
was ostensibly between Roser and him
self on the one hand and Barse on the
other Barse in reality had made a oon-
tract with himself. Judge Laoombe took
this phase OF the question under oon-
sideration and referred 1t to Arthur II.
Masten. as special master, to take tes-
timony. The finding OF the master was
in every particular adverse to Haskell;
II, 093 shares Of stock. except 2, 100 shares
which were deposited with Daniel Odeh
& Co., were delivered to Haskell between
June and December. 1895. On January
2S, 1885, the IL, 1893 shares were deposited
with the Manhattan Trust Company OF
this city under the plan of reorganization
of the road. AS an exchange for these
shares the trust company gave Haskell
its negotiable certificates representing in
the aggregate Is. 341 shares Of negotiable
stocks. The stock remained In Haskells
possession at least until 1899. when his
desk with its contents was removed from
New York to Columbus, Ohio, where
hOSeT ana pdShcll uoN udu tlciI tiCdd-
quarters. The report then says that the
negotiable certificates of the 2, 100 shares
deposited with Odell d Co. were delivered
to Haskell on August IA, 1897, for a con-
sideration OF $13. 5os.53 Haskell denies
that this stock was yer in his possession.
but the records in Odell Il Co. g Office show
that he not only held the stock but had re-
turned it to Odell q Co. with h request
that they deliver il to Receiver Townsend.
This was after Townsend had shown every
disposition to enforce. IL possible, Has
kell's guarantee of Roser's contract to
buy.
Barse denied that the contract was in
any sense one with himself and declared
that Haskell's assertion to that effect was
only a makeshift to get relief from his
guarantee. Judge Lacombe ordered the
execution OF the contract as it literally
stood, and issued an order holding
Haskell in contempt OF court unless he
made good his guarantee within thirty
days or appeared to show cause why the
guarantee should not be enforced. In
the event OF Haskell's failure to appear
within the time designated a writ OF at
tachment was to be issued and served on
him in Indian Territory where he resided
at that time.'
Haskell came forward with a COM
promise offer to settle for s22 600 IL the
Court would release him from the full
claim of $ie3. iS4;sl n the charge OF con
tempt. Upon the application OF all the
creditors and interested parties Judge
Lacombe issued an order on November a.
1904, authorizing the acceptance of the
proffered compromise. The money was
paid by Haskell's wife. and the full
amount OF $le3, l54.Sl was put to the credit
of Barse in his accounts az receiver.
All the papers Of the court referring
directly to Haskell are reported in i25
Federal Reporter. l0o8-7, and 1872 Federal
Reporter, 1884. Following is a quotation
taken from the former volume, page 1905:
1T clearly appears that Roser and Has
kell entered into the contracts proceeded
upon, and that the stock sold by order Of
the Court passed into the possession Of
Haskell" Haskell specifically denied that
any of the stock was eve delivered to
liz, or uae ayar in his poaaeasjon