St. Paul daily globe., 1893-08-29
ABBOTI'S AFFIDAVIT.
Charges OF Crookedness Agains
the Northern Pacific.

Charges OF CrOOkedDeSS Against
the Northern Pacific.
MILWAUKEE, Wis. Aug. 23.-In con-
nection with the intervening petition
for the payment of rentals filed by the
against the Northern Pacific. there is on
file an interesting affidavit by Frederick
Abbott, which charges the Nol thern
Pacific with crOokedness in its accounts
with the petitioners. Mr.. Abbott, who is
vice president of the companies. states
at the outset that lie understands that a
large claim for improvements will be
urged in opposition to the petition,
which is said to be based on article 10 of
the lease under which the Northern Pa
cific operates the Central. This article
provides that when the parties to the
lease decide to make improvements
which cannot be charged to the operat-
ing or maintenance account the
Central companies shall ''leDd
their credit" by the issuance of
bonds, ETC., to provide a fund for the
making of the improvements, and that
the Northern Pacific company shall
have the right TO make improvements
TO the amodnt of $3.50, 900 year without
ilrst obtaining the consent of the Cen
tral companies, provided the improve
ments tend to reduce expenses or in
crease the gross earnings. Between
April /, 1890. and the time the road went
into the receivers hands, many improve
mentS were made under the provisions
OF the articles, but no claim exists, Mr..
Abbott states, because he is advised
that the obligation of the Wis eonsin
Central. l.companieS is merely''a covenant
to lend their credit for raising money,
not to pay money" The first claim was
presented on April 80, 1892. 1t was for
S206.O00 and was not accompanied by
vouchers. Before allowing the account
tine Central companies proceeded to i'll
veStigate, and the investigation, which is
still on, revealed the fact that the ac-
counts were "eXceedingly inaccurate"
Pending the investigation the Northern
Pacific made urgent appeals" for a
payment on account in view of It's
financial necessities" and the Central
company finally paid it s150.000, with
the understanding that IL should be
subject to readjuStInent at the close of
the Investigations. The investigation of
the account, SO Mr.. Abbott claims,
showed that the Northern Pacific had
charged the Central with work which
could not properly be charged TO it I'M
der the article; that it had not given
the Central proper credit for materials
and supplies furnished, and that it had
charged prices iD excess of the cur
rent prices for similar materials. When
these discrepancies were pointed out to
the Northern Pacific people they sent
what purpOrted to be supplemental
bills" but which are really new bills,
Mr.Abbott says, covering the same work,
ana the Central companies believe that it
is the intention of the Northern Pacific
to furnish them for all or nearly all the
work done. The supplemental bills
were subjected to an investigation, and
| SO far as the investigation has proceed
| ed 1.-The petitioners have reason to be-
| lieve that in many respects the said
| supplemental bills will have to be as
vigorously inspected and revised as the
| Old bills"
1t is stated that the total balance due
| TO the Northern Pacific for improve.
| ments is only $iSl, BILL while $475. .00C
| is due to the Central for rental. MIR
| Abbott states that the Northern Pacific
! has admitted that there are no offsets
| for the rental of May and June because
it gave the Wisconsin Central compa
| MES collateral for the amount due fol
those months.