New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-23
BRAYTON IVES SPEAKS
EDWIN II. ABBOTT PLAINLY ANSWERED
A BITTER ARRAIGNMENT OF THE PREsIDEsr Al
THE WISCONSIN CENTRAL


A letter was issued last night by Brayton NJ,
president OF the Western National Bank and u.r
her of the Northern Pacific Railroad Company's s.s
holders Committee OF Investigation. It Is m -
My TO the severe criticism OF the committee, -
mort made by President Abbott, OF the wIscas.
Central Railroad Company. Mr.. Ives's ansve,
as follows:
Ncw.York. February % 1ss
Edwin IT, Abbott esq. President Wisconsin Ceut,u
Company.
Dear Sir: You will not be surprised 70 hear tia. =
have read with great interest your open letter" M
Cakes the president Of the Northern Pacific RaIlroI
Company While you do not mention my name Won,
reference to me Is unmisakable. You charge me VIA
being the author OF the report OF the stoekhode CON-
mlttee with "omIssion OF important ACTS With Dis
,or,ion OF truth" with responsibility for "a yielou, m
tom ~ accounting' and with various other SINS In
other words, II your charges are true am almost v
had a man as the report has SHOWN you to be- his
no shity is so appalling 10 me that propose analy1ns
YOUR letter without delay.
In auribung to me the sole authorship Of the npwt
and abiding so frequently to ''he." you Do 10,
.,ice both TO myself and TO my fellow.members Of n
committee as Is shown BY the following statement By u.
chairman which was published yesterday. MI. Cevs
saws 1.-THE report OF the Investigating Committee NJ
the work OF any single member bat represents the
mous opnlon Of the committee In which Mr.. Rogers An
advisory counsel, fully concurs. Every statement 10
I;s and profts OF the Wisconsin Central, well as IA
main line and all the branches was received from hs
treasurer and auditor OF the Northern Pacific Compsny
and the committee has the documents 10 sustain ia
cusons Attention is called to the let that Mr. Abbott
makes no reply 10 the parts OF the report which reject
the personal relations OF the Wisconsin Central trustees
with the Northern Pacific road"
confess TINT as our Investigation went on and ns
evidence OF the wrongdong Of yourself and associates
multiplied with almost incredible rapdiy was led
press myself at times with yigor which would not have
,fottk Eas - n
as did the Others b suppress undue feeling and to sd
cate as temperate language the circumstances would
allow As q result, the report Is the harmonious ppdac
ton of the whole committee and approved BY our advisory
counsel Every page revised several times hy all
us and no effort spared 20 make our work appear
moderate and impartial It was conscientious; but
is difficult to say "s,op Thief in an unimgassasd
manner and no matter how IL is done the thief anc6
sure be- dissatisfied
A. TO the .'yicous system OF accounting" the fault
fault there be- rests with the treasurer and auditor
the Northern Pacific Company OF which are director
We did not get q II figures and then arrange them
N suit ourselves but took the statements furnished
bv these officials verified them to our satisfaction ana
printed them. Doubtless you can, ana VIII, Wy I"
arrange these items as to suit your NeNs pls !N
cannot deny the fact that the losses resulting IRON w
Wisconsin Central appear, as reported by our eonm'e,
II, the general balance sheet Of June &c. 1877, copy OK
which received from the auditor ard stili hoa fu'n''
more am confident honest investigation viii eonhm
the figures given for Messrs. Baxter ana BafEer arc
official, in whose integrity and ability nave 'he nshs's
Confidence ~ the Northern Pacific Company had teen
served with equal zeal and honesty by all those whose
duty IL was protect It's Interests matters woud ha'e
been now very different condition In any case you
had seven monhs In which correct ther errors ana a.
YOU ore no; only director, but PRESIDENT OIL "A'o1
system It your duty 10 SIC that the accounts '
propcrly kept; Your statement therefore, that me re-
uorted deficit is "smpy untrue' apples no' " WV
committee. but to your own officers 49,
As To thu which you lay on the earaihe' VI W.
Wisconsin Central lines, must call your attention
few facts which may b. OF interest to the puone 80
You say that mo other railroad going OUT OF d. i
or coming into Chicago from the Nofth Ne'' VI S
west earns nearly rs large an amount" Then you H'
the earnings OF the Northwestern the ST. Paul ule '~s"
Iurncton and Quincy the Rock Islnd. the Omaha ana
the Chicago and Alton. And now the pertinent qus.s.
arises: What becomes OF these enormous earnings " w
Wisconsin Centrall The other roads named oy you Nv
dividends with one exccption) not only on Their p'e'e
tut ON their common stocka Their stocks lrhs rs
lively very HIGH prices and their bonds are sousn'
investors But Wisconsin Central securities are not ppu
lar It's mortgage bonds a1crag, about DO althouih wv
have tn, protection OF the Northern Paehc lease
fesrcd stock Is offered al 46 without old us ".o"
bonds range about 80, Will. its common s''A ~"
nominal value What IS explanation Of this anoIAu,
state Of anairsl You will not give IT, ana I'ee"'S'
must do -.
The reason Is that the earnings 20 70 pay h'e'e '
dividends en- the bonds and stocks OF ROADS oaI'' "
yourself and associates and leased 10 the Wisconsin
road az enormous advances upon their original cost
after another you have fastened new roads 10 the @
original one and always terms which were ls"
the former but disastrous 10 the latter u "
were trustee" and IL happens that while tne ea
grows and earnings increase, while competing roaa,
their stockholders with dividends. while the Vs.
Central trustees become rich and build beautius ,
the holders OF the stocks ami bonds OF the "Iscoi'
road get no profits. II this road had been mahsS -,
those with which you have compact H. IL "oa 80 IN,
earnings Of which you SPEAK, ana "O'' ~ ,.,
It's securities upon tho same level And on '" -
hand II your system OF management were 70 &c a.s.
duced into the Northwestern Alton ROADS u'' ~
would soon be on the non-divldend paying Est a
While you confined your tactics to STA" .,os
which comparatively few were interested !o - van
were not Of great interest to the public pu' ass
captured n great trlnscontinenta road. aid oesa 90.
its life out like an octopus, thea the , =, ,hs
chancra 1t became important not only on aceOu" ,.
magnitude OF the property, but because OF inc ,nos
OF law aud equity involved. "Astute' is iV ,,nr a
me 10 return your complimentary term)' anu ,.u.aU
you have used the law to protect yourseh aA XII
in all Wisconsin Central matters. believe 'h.' p,ns
failed YOU in perfectlng the details Of the Nor'a su
copburc Other able lawyers assisted in the opera "a
they had no interest except in their professon' ,.,s
Yourself and your fellow.trustees the MAKING you'd
was Of vital Importance. 1 believe that 'he 1 a, es
regard your interest and your course III 'no H'''
shutting fatal defect. IA nt,r
am not prepared. however, 70 say N'' '" -. .aa
no,ton OF the courts should be invoked. II ~, no
tho other rector. OF the Northern Pacific WIZ , .z
stockholders that you Disposed 70 wor" taraa
1caously for their interests, there n'eu u ast cs
disturbance But, IL you propose answer'hs ,n ala
cisnls by calling names. II you think !o' 18th in:
plunder stockholders aud then abuse them asson sps
punity IL may be necessary q teach you Win lopN
70 SHOW you that you are Lot IN 'oue" ,,s
sentiment. ,. d, ,ha lnyestsss,ss
committee the personal request o. M WORK CO..
chairman OF your board. Having done ID, aver hssy
and nte as was In ny sSal not ~
nt quietly to abuse either from rseenanit;se M
drcctor II is not the fault OF the eomissnse W
have been acting without honesty and iniv,s forced
,ober their misfortune that they ina tDe seh attacY
ma We nuhlic the and incur the ehan,e leading
A.. yoirs The recent bankruptcy OF th.a, ~ sma!
shows the danger OF giving too much po suspcton M
oiIcvc Of directors when there ~ Nv The peru
snit Interest But when that element Is pf''N' 49,
annot be ovrr-estmated . .o.,.,ss IN ccnnecuaoss
~ the acts OF yourself and associates sc uoperS
,,h I'M Wisconsin central and Northern PAN frasts
can bc defeNied IN law and equity tne You eanns
and "Dircctor must have new denn ~ the value ~
divert criticism by calling attention 10 Wv the value ~
property under your charge the grn %a and the mo"
noces sary proper safeguards. -, ,,,bIi.h this lev.