Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1893-09-14
TELEGRAPHIC.
SUED FOR MILLIONS.
Charges Of Fraud Against Northern
Pacific 0GlO dis.
How Willard and Others are Said TO
Have Made Money by Question
able flnancleriug.

NEW YoHIS, Sept. l8.-John swope
Of Pennsylvania, one Of the stock
holders Of the Northern Pacific Rail-
road company. began an action In the
supreme court against Henry Willard,
Charles l.. Colby, Colgate HoyL
Edwin IL. Abbott Of the Northern
Pacific railroAd; Thomas +. oakes,
Henry G. Rouse and Horny G.. Pyne,
its receivers, and the Chicago q
Northern Pacific railroad company, to
compel the individual defendants TO
mako restoration OF millions Of dollars
which, It Ia alleged, the Northern
Pacific company was deprived OF by
means OF fraud.
The complaint alleges that Willard,
Colby and Abbott, In September, 1850,
owned land at Harrison street and
Filth avenue, Chicago, upon which
was then being constructed the grand
central passenger station, and also
controlled the Chicago * GTos! West.
orn Railroad company, tue bridgeport
a South Chicago Railroad company,
aud the Chicago, Harlem a Batavia
Railroad company, which operated
lines OF railroad within the limits OF
tho city Of Chicago. The value Of the
land mentioned and the railroad prop.
critics Ia said 10 have been eight mil
lion dollars In March, 1890.
Swope charges that those four men,
10 September, 1859, conspired ~ DO.
fraud the Northern Pacific company
by seillng 10 II, through theme vos,as
directors, all this Chicago railroad
property and land, for price In excess
Oi lts value. No that thoy could make
nn cxorbitant profit 10 themselves per-
sonslly, In fraud OF tho Northern Pc
cihc company. by this scheme they
received about 100000.
For tho purpose OF disgusting the
conspiracy the Chlcpgo q Northern
Ptcifc Railroad Company was organ.
IEed by Msssrp. Willard, Colby, Hoyt
aud Abbott IN November, 1850, with a
capital stock OF sS99. 600, secured by a
mortgage on the properly Of the chi.
cagU 4 Great Wettorn Company. i;
10 alleged that si0, 950,O0O in bonds
Nofe delivered ~ tho tour men In
question, In payment for the diiiiereut
If0pcrties mentioned, aud the shares
1 capital stock In the three railroad.
IN Chicago were assigned 10 the Farm,
srs Loan a Trust Company ~ trustees
Willard aud his associates then made
TO themselves, AZ owners and In con-
irul OF the Wisconsin, Central Com.
9aay, lease for ninoty-ninp years oI
ull the properly OF the Chicago &
q Northern Pacific Company, sub
leet 10 lieu OF n S3D,OO0,OOO mort.
gage and other Outstanding
mortgages. Then the Wlscon.
Gin Genital company was leasel 10 the
Northern Pnciilo company on n mort
gage for nlueiy -nine years. Willard
was then chairman OF the Northern
Pacific company anu two OF his asso
ciates were directors. This was ar
ranged No that, In addition 10 tn,
prOut OF $40, 100000 already realized By
them In bonds, they would DO sutitlsl
10 about oue.third Of the profits to b.
derived from tbs operations OF th,
Chicago a Northern Pacific Rs soon a
10 became seli-suppOrtlng.
The purpose Of tho suit 10 TO hRy,
them restore TO the Northern Pacific
or the Chicago A Northern Pacific
the sl0,s5O,0O0 Of bends aud "a, 25
shares Of stock obtained for the Chloag
vFOpOTtlea