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LAW SUIT FOR IiATONIA. A suit in equity was filed in the Circuit Court at Covington, Ky., Wednesday, of important bearing on the future of the Latonia race track. Much space is given to the case in the Enquirer of Wednesday, which says: "Stock which is now held by Gilbert Perkins, son" of Judge G. G. Perkins, it is claimed, has never been legally transferred from the ownership of Colonel W. E. Applegate, of Louisville, who in 1895 made, and partly fulfilled, a contract to buy from Judge Perkins, a controlling interest of tho stock of the Latonia Association. "The Cincinnati syndicate of intending purchasers was headed by Mayor Fleiscbmann, and among its members were Mr. George B, Cox, Mr. August Hermann and Mr. Henry Ziegler. They asked Judge Perkins to put a figure on his controlling interest in the race track. He agreed to sell 800 of the 1,5C0 shares of tbe stock of the racing association for 00,000. The Cincinnatiaus were anxious to get the track. They believed that a liberal and elevating management of the game would restore tho old time glories of the beautiful over-the-river course. The price fixed by Judge Perkins was not beyond what they deemed a reasonable limit. Merely as a matter of ordinary business precaution they caueed an investigation to be made concerning all of the holdings of Latonia stock. This developed facts which satisfied them that if thoj bought the race track from Judge Perkins thej would buy a lawsuit along with it. The regularity of the retransfer of Colonel Applegates stock to Judge Perkins was, in their opinion and the opinion of their attorneys, open to question. "Further investigation satisfied them that Colonel Applegates title to the controlling interest in the stock might be established perhaps more easily than that of Judge Perkins. Stating it broadly. Colonel Applegate had agreed to pay Judge Perkins 00,0C0 for the race track. He had paid him in,cash and interest 50,00. Deducting interest charges, only 5,000 of tho principal remained to be paid when Coloael Applegate found himself unable to continue liis payments. Judge Perkins held as security for the payment of the debt the entire 800 shares of stcck, for which Colonel Applegate had agreed to pay 00,0C0. Coloael Applegate had never received any of his money back, and the stock had been transferred to Judge Perkins. "Other Cincinnatians, after investigation, concluded that the safe and certain way to secure a clear title to the majority of the Latonia stock was to complete Colonel Applegates contract by paying to Judge Perkins tho remainder of the money due him in principal and interest, having previously effected an understanding with Colonel Applegate as to p. settlement of his claims against the stock. "Yesterday the proffer was made to Judge Perkins of a cash settlement of Colonel Applegates overdue indebtedness. The proffer was rejected by Judce Perkins, who claimed that Colonel Apple-gate had forfeited all his ri.hts. As a consequence of Judge Perkins refusal the suit in equity, mentioned above, will be filed this morning. It is well understood that the Cincinnati syndicate stands ready to purchase a controlling interest in the track from Colonel Applegate, if he shall win the suit, or from Judge Perkins if tbe suit shall ha definitely clear, his title to the stock once assigned to Colonel Applegate." Judge Perkins statement of his side of the case as published in the Enquirer was as .follows: " Early in the year 1895 I was asked by Colonel W. E. Applegate to put a price on a controlling interest in the Latonia Jockey Club. There are 1,500 shares of stock, with a face value of 00 each. 1 named 00,000 as the price for 800 shares. The proposition was accepted. Colonel Applegate paid me 0,000 in cash and pledged the stock as collateral for the remaining 50,000, making notes for the payment of that sum in stated amounts fend at stated periods, and carrying with it the right to sell the stock as satisfaction of the indebtedness in the event that the payments were not made as agreed. These notes were signed by W. E. Apple-gate as trustee for his associates in the enterprise. All of the contract price with tho exception of 5,-000 was paid. " This syndicate had made a failure of the project to conduct the track with a foreign book and then later with a syndicated ring. Colonel Applegate advised me that ho was unable to meet the notes, and the matter went on until the fall of 1900, when they gave a race meeting and failed by ,000 to pay the purses. I settled this indebtedness to the horsemen. After duly advertising tho pledged stock for sale as by virtue of the agreement carried on the notes I agreed with Colonel Applegate that the sale be deferred to give him a further opportunity to make the payments. He failed, and the stock was put ud and sold on the Stock Exchange, being bought in for 5,000 by the Firit National Bank of Covington, and later transferred on the books of the Latonia Jockey Club, with tho full knowledge of Colonel Applegato and his associates, to my son, Gilbert Perkins. Afterward a meeting of the stockholders was held and a board of directors was elected, with John Shorlock as the president. There was then du, as now, from Colonel Applegate and his associates an indebtedness of something like 0,000, with interest. Several times Colonel Apple-gate has stated that he had lost heavily in the transaction, and that he would like to be released from obligation. He made a statement of that kind to Secretary Hopper, and I told Mr. Hopper that so far as I was personally concerned I would be glad if he would close the mattor up with Colonel Applegate and release him if the proposition would meet with the favor of tho balance of the stockholders. " Today H. M. Ziegler and Harvey Myers came to rooms in the Woodford flats and tendered- me 5,000, Myers claiming to represent W. E. Apple-gate and making the statement that the tender was for the balance due with interest on the purchase of stock in 1893, and demanding that J turn over to him the stock which had been pledged. It had been legally sold, legally transferred on the books of the Jockey Club and is now legally held by my son. I could not accept his tender and so told him. I would not be surprised if action is taken in the courts. As a matter of fact I expect it. However, I will meet in whatever form it comes. I am certain that Mayor Fleischmann is not attempting to secure control of the track in any such manner and I am equally satisfied that Col. W. E. Applegate has not given hissanction to any such process, since he has told me within the past few days that so far as he is concerned, he had no claim and would not urge one. It is my impression that certain people who held interests in the track in the days of the foreign and syndicate books are at the bottom of the proposition with a view to regaining what they have lost through the rejuvenation of the sport here, which was maintained by our efforts and at our expanse. " Differing in conclusions from Judge Perkins the following is Colonel Applegatos statement pub-ished as a part of the article referred to: " In February of 189 I organized a syndicate for the purchase of the Latonia plant, or, to be exact, a controlling interest in the track. Tho total number of shares of stock in force on the books of the club at that time was 1,500. This syndicate had the idea that with a foreign book on race meetings could be made to pay big. For tho control 800 shares of the stock would be necessary. " I asked for a price on that number and Judge Perkins named 00,000, 0,COO payable in cash, 0,0C0 payable in one year, 0,000 in two years and ten notes of ,000 each, payable semi-annually, the stock to be collateral for the debt and the notes to bear interest at the rate of six per cent. This syndicate and the amount of the individual holding was composed as follows: E. C. Hopper, 12 per cent ; Emil Boulier, Alex Labold, George Griffith, Mark Simonton, Charles Bollinger, Henry Wehm-hoff and myself 10 per cent each; Henry M, Ziegler, 71 per cent, and Charles Riley Grannan and W. F. Schnlte, 5 per cent each. " The proposition of Judge Perkins was accepted, and on March 1, 1895, tho first payment of 0,000 in cash was made, and the notes signed by myself as trustee for associates, and the stock pledged for the payment of the indebtedness. I made all the payments with the exception of the two-year note for 1902.sh.C0D and three of the ,000 notesr and in addition kept up the interest on these. In the fall of 1897 Messrs. Ziegler, Griffith, Wehmhoff, Boulier and Labold sold their interest to Harry. Harris, of New York, Riley Grannan and myself. We conducted the meetings then until the fall of 19G0. "In the meantime, in December of 1893, 1 believe, Judge Perkins had advertised the stock for sale in an obscure paper. For some reason the sale at that time was postponed. While I was in San Francisco, the following January, 1 was advised through a telegram which Mr. Hopper received that the stock had baen sold and had been purchased by a Covington bank. I had never been notified that the sale was to take place at the time it is alleged to. have been made, and was given no opportunity at that time to protectmy holdings. " I was left in a very unpleasant predicament, to say the least. At the time of the purchase of the 47 1-2 per cent, interest by Grannan, Harris and myself in tho fall of 1897 there was due about 0,000. I decreased the debt to 5,000 and paid fully 5,C00 in interest. So you see I was out of pocket over 0,000 personally and, at the same time, liable for $ 10,000 more if the sale were really a legal one. On the other hand, thoso interested with me held the impression that I was in a deal with Judge Perkins to freeze them out and hold with him an equal interest in the track. The question hinging now is merely .whether or not Judge Perkins had the right, without even proper notification, to put up for sale stock that he had himself valued at C0,0CC and buy it in or have it bought in for the l3nefit of himself or his son for 5,COO, aftor having been already paid 85,000 and interest and still hoding a claim for 0,000. " The parties interested with me in the transaction contend that tho sale was not a legal one and that the original contract is still in force, By virtue of this 3,030, being lhe amount of the debt and the interest thereon, was tendered yesterday to Judge Perkins with the demand that the 8C0 shares of stock bo delivered over as per the original agreement. Ho decliuod the tender and the matter will go into the courts. "
