The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-09-14
IN QUEST OF MILLIONS.
Suit Against Willard and Other
Northern Pacific Magnates
for Big Money.
Declared to Have Been Fraud
ulently Secured for Their
Personal Advantage.
Accused OF Unloading Property and Stocks
on the Company vt Prices That Wore
Largely Fiotitious.

NEW YORK. Sept. 49, John Swope. of
Psnnsylvauis, ono of tho Stockholders OF
the Northern Pacific Railroad company. on
behalf of himself and other stockholders.
has begun An action In the supreme ooutt
against Henry Willard, Charles l.. Colby,
Colgate Hoyt and Edwin H. Abbott. of the
Nor thsrn Pacific railroad; Thomas +.
Oakes, Henry @. Rouse and Henry 9.
Payne. its receivers. and tho Chicago q
Northern Pacifo Railroad company. TO
compel the individual defendants to make
restitution of millions Of dollars which II
10 alleged ths Northern Pacific company
has been deprived Of bv means Of fraud.
The complaint alleges that Willard. Colby.
Hoyt and Abbott. In September. 1885,
owned land at Harrison street and Fifth
avenue, Chicago. upon which was then
being constructed the Grand Central pas
senger station, and also controlled the
Chicago & Great Western Railroad COM
pany, the Bridgeport g. South Chicago
Reilroad company. and the Chicago. Hat
lem d. Batavia railroad company, which
operated lines of railroad within the limits
of Chicago. The value of the lands men,
toned and the railroad properties is said
to have been $8, 600 In March. 1890.
Swope charges that these four men in
Septe nber. 1889. eonspired to defrhud the
No thern Pacific company by selling to it.
through themselves AZ directors. all this
Chicago railroad property and land for q
price in excess of Its value. SO they could
make sxorbitant profit TO themselves per-
sonally in fraud on the Northern Pacific
company. By the scheme they received
about $18 500. 900. For the purpose of dis
RuisinR the conspiracy the Chicago &
Northern Pacific railroad company was or
Qanized by Willard, Colby. Hoyt and Abb
bott In November. 1889, with capital
stock of $399, 600. secnred by n mortgage on
fpn p hooa is ssesd e t5a 4oaf
question In payment for the different prop
critics mentioned, and shares of capital
stock In the three railroads in Chicago
were assigned to the Farmers Loan & Trust
com nany as srussee.
T..io1d and associates then made to
themselves, as ownors and In oontro OF the
Wisconsin Central company, lease for
ninety nine years of all the property of the
Chicago j. Northern Pacific company, sub
ject to the $30,000,000 mortgage and other
outstanding mortgages. Then the Wiscon-
SIN Central company was leased TO tho
Northern Pacific company on mortgage
for ninety nine years. Willard was then
chairman of the Northern Pacific company
and two of his associates were directors.
This was arranged go that, in addition to
the profit of $40. $50. 900 already 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 q North
ern Pacific as soon as II became se.f.sup-
porting.
Tho purpose Of the suit is to have them
restore to the Northern Pacific or the Chi
csRo & Northsrn Pacific $10.8b000O of
bonds and 81. $50 shares Of stock obtained
for the Chicago p opersies. An accounting
10 sought at fair market value Of the prop
srty at Harrison street and Fifth avenue,
Chicago; also of the three Chicago rail
roads, and after dcduotina $1.049, 600 en-
oumbranoes upon that railroad, that VII
lard. Colby, Hoyt ana Abbott be adjudged
to deliver to the Chicago d Northern Pa.
cifio company. all bonds of the company
received by them In excess Of fair market
value of the property, or face value; also
an accounting of tho sum of money con-
tributed bv the Northern Pacific to the
Chicago s. Northern Pacific for the pay
ment of interest ON the $50, 100000 mort
gage and to paw over "a 200 shares of oapi-
tai stock of the Chicago a. Northern Pacific
received by them for par value.