The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-14
WILLARD SUED AGAIN.
For Alleged Fraud in Chicago
& North Pacific Deal.
THE SOUTHERN PACIFIC BONDS.
Great Northern Loeatfng fss snowsheas
- The Onion Pacific Engfnssrs
WIN Not strike.

NV Yoxx. Sept. f5.--John svope. OF
Pennsylvania. one OF the stockhotasfs u
the Northern Pacific Railroad Company.
on behalf Of himself and other stoekno'l-
ers, has begun action IN the supreme eou's
against Henry Willard. Charles IL eoloy'
f:oivat. Uoyt. Edwin III. Abbott, directors
OF the Northern Pacific railroad; Ibofnas
r. Cakes, Henry G. Rouse ana henry =.
Payne. its receivers, and the Chicago q
gorthegn Pacific Railroad Company. 10
compel the individual defendants TO make
restitution Of millions Of dollars OF which
IL Is alleged the Northern Pacific Railroad
Company was deprived By means oil Ifaaa-
The complaint alleges thai Willard, Coipy'
Hoyt and Abbott in September, 1851
owned land at Harrison street and fnsh
avenue. Chicago. upon which was then
being constructed the Grand Central pas
senger station, and also controlled the
Chicago 4 Crest Western Railroad Com
pany, the Bridgeport 4 South Chicago
RafIroad Company and the Chicago, mar
lem A Batavia Railroad Company, when
operated lines Of railroad within the limits
of Chicago. The value OF the land men
toned and the railroad properties was
said to have been s. 1000 900 in March, 1850.
9Sope charges that these four men
IN September, 1889. conspired TO
defraud the Northern Pacific Company by
selling 10 if, through themselves as direct
ors. ali this Chicago railroad property and
land for price in excess OF tts value. so
that they could make an exorbitant proft
70 themselves personally in fraud of the
Northern Pacific Company. By the scheme
they received about SIS. 5o0, 600.
For the purpose of discussing the con-
spiracy the Chicago Il Northern Pacific
Railroad Company was organized by VIII
lard, Colby. Hoyt and Abbott in November,
1859. with capital stock Of 500, 900, secured
by . mortgage on the property of the
Chicago A Great Western Company. Ii is
alleged that sig.9 1000 bonds were de-
livered % the tour men in question in pay
ment for the different properties men,
toned, and the shares OF capital stock in
the three railroads In Chicago were as
signed TO the Farmers' Loan a Trust
Company as trustees. Willard and as
eociates then made 30 themselves
rs owners and iii control of the
Wisconsin Central Company a lease for
ninety.nine years OF all the property of the
Chicago a Northern Pacific Company, sub
fect to lien of $50 900 600 mortgage and
other outstanding mortgages. Then the
Wisconsin Central Company was leased TO
the Northern Pacific Company on q mort
gage for ninety-nine years. Willard was
then chairman OF the Northern Pacific
Company and two of his associates were
directors. This was arranged so that in
addition to the profit of $40, SO, 000 already
realized by them in bonds, they would DO
entitled 10 about one-third of the profits TO
be derived from the operation of the Chi
eago & Northern Pacific as soon as il be-
came self-supporting.
The purpose of the suit is 10 have them
restore to the Northern Pacific or Chicago
a. Northern Pacific so, $50 900 Of bonds
and 81, $50 shares of stock obtained for the
Chicago properties. An accounting is
sought at the fair market value of the
property at Harrison street and Fifth
avenue. Chicago: also of the three Chi
cago railroads. and that alter deducting
81 ,049 900 of encumbranccs upon that rail-
road Willard. Colby. Hoyt and Abbott
shall be adjudged to deliver TO the Chicago
d, Northern Pacific Company ell bonds Of
the company received by them IN excess
OF The fair market value OF the property
or face value; also an accounting of the
sum of money contributed 10y the North
ern Pacific 10 the Chicago q Northern Pa
cihc for payment of interes. on the 800
o0p0oo mortgage and 10 pay over o., $50
shares of the capital stock of the Chicago
& Northern Pacific received by them for
mar vaiua