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It's Worth $10,000,000

It's Worth $10,000,000 image
Parent Issue
Day
16
Month
December
Year
1898
Copyright
Public Domain
OCR Text

IT’S WORTH $10,000,000.

Baltimore Parties See That Value in the Ann Arbor Road.

A big railroad suit has been commenced in the U. S. courts, which involves the ownership of the Ann Arbor Railroad Co., seeking to set aside the title of the present owners of the road. A Toledo dispatch tells the tale of the suit as follows:

The Merchants' National Bank, of Baltimore, has commenced suit in the United States court against the Ann Arbor Railroad Co., Wellington R. Burt and the Metropolitan Trust Co., asking to have vacated and set aside the foreclosure order and decree of sale of the Ann Arbor Railway, and that a receiver be appointed to take possession of the property.

The petitioner says that while Burt was receiver he held out to stockholders that the road was of no value, and through his misrepresentations and deceit the stockholders, who were prospective purchasers, did not appear at the sale. The plaintiff charges that Burt entered into arrangements with the bondholders to form a syndicate and purchase the property and that by reason of Burt's fraudulent acts, the road was sold for $2,627,000, while its value was $10,000,000, and that immediately afterward the purchasers issued bonds in the sum of $7,000,000 and preferred and common stock in the sum of $7,250,000 was sold.

The Merchants' Bank charges Burt with having depreciated the value of the property, and says by reason of the alleged fraudulent acts the sale is null and void.

Regarding this suit to set aside the sale of the Ann Arbor road to its present owners' President W. R. Burt says in the Saginaw Eevening News:

"All I care to say about the suit, charging me with fraud in the foreclosure and sale of the Ann Arbor road, which has been given such prominent notice through the press, is that it will not serve the purpose for which it is intended. The young Ashleys are really the parties beginning the suit, and we predict it will be some time before they will have the management of the Ann Arbor road."