The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1893-09-14
MILLIONS ARE INV0L we'd
A Suit That Is Likely to Show Up Rs.
cent Northern Pacific History.
DEMANDING AN ACCOUNTING
Willard. Colby. Hoyt and Abbott
Charged With Fraud = How
They Worked II According
to the Complaint.

New YORK, Sept. 13.-John Swope OF
Pennsylvania, one OF the stockholders OF
the Northern Pacific Railroad company.
on behalf Of himself and other stockhoid-
ers, has begun an action In the supreme
court against Henry Willard. Charles l..
Colby, Colgate Hoyt. Edwin II. Abbott, OF
the Northern Pacific, Thomas Y. Oakes,
Henry &. Rouse and Henry {. Payne, its
receivers, and tho Chicago and Northern
Pacific Railroad company, to compel the
individual defendants to make restitution
of millions Of dollars which, II Is alleged,
the Northern Pacific company was de-
prived Of by means Of fraud. The com.
plaint alleges that Willard, Colby. Hnyt
and Abbott in September. 1889, owned
land at Harrison street and Fifth avenue,
Chicago. upon which was then being con.
structed the Grand Central passenger sta
tion, and also controlled tho Chicago 4
Great Western Railroad company. the
Bridgeport & South Chicago Railroad
company, and the Chicago, Harlem d
Batavia Railroad company, which ope-
rated lines Of railroad within the limits OF
the city Of Chicago. The value of the
land mentioned and the railroad proper
ties is said to have been Ss,0o),0oo in
March, 1880.
SWODo cndT2c3 tlut tutst IouF Ii1cU III
September, 1889. conspired to defraud the
Northern Pacific company by selling to 1t,
through themselves as directors. all OF
this Chicago railroad property and land
for price In excess of it's value SO that
they could make exorbitant profit to them
selves personally by fraud on the Northern
Pacific company. BY the scheme they re-
ceived about s1s,500,0oc. For the purpose
Of Disgusting the conspiracy, the Chicago
and Northern Pacific Railroad company
was organized by Willard. Colby, Hoyt and
Abbott, in November. 1889, with q capital
stock of $500 900. secured by mortgage on
tho Chicago and Great Western company.
1t is alleged that Sl9,o50,00o bonds were
delivered to tho four men in
question in payment for tho
different properties. mentioned and
shares of the capital stock i'm tho
three railroads In Chicago were assigned
to the Farmers Loan and Trust company
ms trustees. Willard and his associates
then made to themselves as owners, aud
| in control of tho Wisconsin Central COM
| pany, lease for 80 years of all the prop
| erty OF the Chicago and Northern Pacific
company, subject to q lien Of S3o,00oy00
| mortgage and other outstanding mort
cages. Then the Wisconsin Central COM
pany was leased TO the Northern Pacific
company on n mortgage for 10 years. Viii
lard 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, $50, 900
already realized by them in bonds they
would be entitled to about onc-third OF
the profits TO he derived from the opera
tion Of tho Chicago and Northern Pacific
as soon as Il became self-supporting.
The purpose of the suit is to have them
restore to the Northern Pacific or Chicago
& Northern Pacific sl0,s5o,oU of bonds
and 9t, ,250 shares of stock obtained for the
Chicago properties. An accounting IL
sought at a fair market value Of the prop
erty at Harrison street and Fifth avenue
| Chicago; also OF the three Chicago rail
roads aud, after deducting Sl.0i3,OU0 on
| cumbrances upon that railroad, that Vii
lard. Colby, Hoyt and Abbott bc adjudged
| to deliver to the Chicago q Northern Pa
citic company all the bonds Of tho com
pany received by them I'm excess of q fail
market value of the properly or face
value; also an accounting is demanded o
the sum of money contributed by ths
Northern Pacific to the Chicago a North
ern Pacific for the payment Of interest OF
the $50, 10000 mortgage and 10 pay ovcl
"a, $50 shares of the capital stock of th,
Chicago a. Northern Pacific received b,
| them for mar value.