The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-09-14
LOOTED THE ROAD.
Charges Against Henry
Willard.
HE GREW VERY WEALTHY,
But at the Expense, Ii Is Alleged,
of the Northern Pacific Rail-
road Company.
HE GREW VERY WEALTHY,

NEW YORK, Sept. 13-John Swope of
Pennsylvania. one of the stockholders of
the Northern Pacific Railroad Company,
on behalf Of himself and other stock
holders, has begun an action in the Supreme
Court against Henry Willard. Charles L.
Colby, Colgate Hoyt. Edwin NJ. Abbott.
the Northern Pacific Railroad. Thomas F.
Oakes Henry C.Rouse and Henry C.Payne,
its receivers, and against the Chicago and
Northern Pacific Railroad Company to
compel the individual defendants to make
restoration of 81, 100000 which it is alleged
the Northern Pacific and the Northern Pa
cific Company were deprived of by means
of fraud. The complaint alleges that Viii
lard. Colby. Hoyt and Abbott in Septem-
Der. 1885, owned land at Harrison street
and Fifth avenue, Chicago, upon which
there was then being constructed grand
central passenger station, and also con-
trOlled the Chicago and Great Western
Railroad Company, the Bridgeport and
South Chicago Railroad Company and the
Chicago. Parlen and Batavia Railroad
Company. which operated lines of railroad
within the limits of the city of Chicago.
The value of the land mentioned and of
the railroad properties is said to have been
SS. 00O. 600 in March, 1890
SwOre charges that these four men
in September, 1889, conspred TO defraud
the Northern Pacific Company by selling,
to wit. through themselves as directors,
all this Chicago railroad property and land
for a price in excess of its value, so they
could make an exorbtant profit TO them
selves personally in the fraud on the North
ern Pacific Company. By this scheme
they received about SIS. SOC, 900, and for the
purpose of discussing the conspiracy the
Chicago aud Northern Pacific Railroad
Company was organized by Willard. Colby.
HOyt and Abbott in November, 1889, with
a capital stock of S399,OOO, secured by a
mortgage on the property of the Chicago
and Great Western Company.
1t is alleged that S19, $50, 600 bonds were
delivered TO the four men in question in
payment for the different properties men,
toned, and the shares of the capital stock
in the three railroads in Chicago were as
signed to the Farmers Loan and Trust
Company as trustee. Willard and his
associates then made over to themselves as
owners and in control of the Wisconsin
Central Company a lease for ninety-nne
years of all the property of the Chicago
anu NOEtHWcStcIH hClu' OOuiphUJ, SUI
ject to he lien of a $50, ,0OO, 900 mortgage
and other outstanding mortgages. Then
the Wisconsin Central Company was
leased to the Northern Pacific Company on
mortgage for ninety niue years.
Willard was at this time chairman of the
Northern Pacific Company and two of his
associates were directors. This was ar
ranged so that in addition to the profit Of
S10,850, 900 al eady realized by them in
bonds they would be entitled to about
one-third of the profits to be derived from
the operation of the Chicago and Northern
Pacific as soon as il became self-support-
ing.
The purpose of this suit is TO have them
restore 70 the Northern Pacific or the Chi
cago and Northern Pacific SO, $50, 600
of bonds and 81, 80 shares of stock OBJ
tained for the Chicago properties. An ac-
counting Is sought at n fair market value
of the property at Harrison street and
Fifth avenue, Chicago. and also of the
three Chicago railroads, aud after deduct
ing 81, ,049, 900 membranes upon that rail-
road it is asked that Willard, Colby, Hoyt
and Abbott be adjudged to deliver TO the
Chicago and Northern Pacific Company all
the bonds of that company received by
them in excess of the fair market value of
the property or the face value, aud an ac-
counting is also asked of a sum of money
contributed by the Northern Pacific TO the
Chicago and Northern Pacific for the pay
ment of interest on the $50, 600, 900 mort
gage and TO pay over "a, go shares of the
capital stock of the Chicago and Northern
Pacific received by them at its par value.