St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-20
CAKES MAKES REPLY.
He Says Three Members of the
Northern Pacific Committee
Are Mistaken.
A Warming to the Roads Stock
holders Not to Accept Their
Statement.


the stockholders of The Northern Pacific
Railroad company, signed by President
L. F. Cakes, was issued tonight, calling
attention to the circular that accom-
panied the report of henry Clews,
Brayton Ives and Joy Cooke Jr.. the
three members of the committee ap-
pointed Oct. 20 to investigate the
affairs of the railroad company. The
circular in part says:
"The accompanying report has been
ready for distribution for several days,
but the committee have not been able to
issue it owing to the delay of the
Northern Pacific company in furnishing
list of stockholders. This list was
asked for previous to Jan. l, and its
speedy preparation was promised by the
secretary. Later, however, the COM
pany attempted to make, as a condition
for furnishing the list, the right of Its
officers to revise the report and to issue
reply simultaneously with its publica-
ton. This demand the committee
naturally refused, and then the COM
pany agreedtO furnish the names. The
delay is due to this action.
During the time which has elapsed
since the completion of the report the
directors have made public plan, sub
ject to the approval of tine stockholders,
for liulfidating great part of the float
ing debt through the sale of the stock of
the st. Paul q Northern railroad. BY
this sale the present management can
continue its previous course and incur
fresh liabilities, that at the expiration
of its term of Off ce it can turn over
to its successor a road with an embar-
raised treasury and weighed down with
additional improbable leases. We be-
lieve that careful reading of the en-
closed report will convince stockholders
that the record of the present managers
is not such as to JUSTIFY extension, much
less an increase of confidence"
President Cakes" address is as fol-
lows:
ITO the stockholders of the Northern
Pacific Railroad company: My atten-
ton has been called-to circular, eX-
tracts of which have appeared in the
newspapers, signed by three members
of the committee of five. 1t appears
that this circular has been sent out, with
copies of the report. to the stockholders,
signed by the same parties. The con-
tents of this circular will, feel sure,
defeat its object without any spe-
cific refutation or reply from the COM
pany. AS the circular is made the
occasion, however, for the request for
proxies in favor of the three signers, |
deem 1t my duty, as president of the
company, to recommend to all the stock
holders not to act until they have re-
ceived a statement of the reasons for
offering at this time to The stockholders
the company's holding of the ST. Paul Il
Northern Pacific Railway company's
stock, and until the board of directors
shall have an opportunity to expose the
astonishing mistakes i'll facts and fig
ures which the committee has made.
These mistakes might have been avert
ed If the com mittee had accepted the
boards in vitatlOn to verify these facts
and figures before publications.
The report of the special co mmittee
on the condition of the North
ern Pacific railroads affairs was
carefully considered and discussed
by the officials of that rail
road company today. Henry Will
ard said to a reporter today that the
officials OF the company would probably
prepare repl y to some of the criticisms
which the committee has made. Before
then he did not care to enter into a pub
lie discussion Of the affairs of the
Northern Pacific company.
Henry CleWs, the chairman of the
committee which investigated the af-
fairs of the road, said today that he be-
lieved the Northern Pacific was begin
ming to recover from the mismanage-
ment which had been criticised in the
report.
at was not our intention to reflect on
the honesty or integrity of any of the
men who have been connected with the
company" Mr.. Clews said. 1--WE found
certain facts existing and we could not
do otherwise than TO record them. l be-
lieve the Northern Pacific has felt
the full effects of the miSmanage-
ment of which the report speaks. One
important thing should be set forth
| clearly: The Wisconsin Central. which
! is in effect branch line of the North
ern Pacific, was one of the points on
which the report dwelt. That road has
been having the usual difficulties
which new roads have in develop
ng comparatively new country.
1t was heavy drain on the trunk line
| The drain was constant, and it made a
| heavy load for the Northern Pacific to
| carry. This is now past and the Wis
| consin Central has begun to be a pay
ing property. This a hopeful and a
helpful thing for the Northern Pacific.
The report of the committee is not pre-
pared in any spirit of hostility to Mr..
Willard, Mr.. Cakes or to any other Off
cial of The Northern Pacific company"