The herald., 1893-08-18
Charges Against Northern
Pacific Directors.
Wrecked the Company and En-
riched Themselves.
A Stakeholder Sues Henry Willard
and His Colleagues.
Tho Northern Pacific and the Great
Northern to Be Consolidated Un-
der the Management Of
Jim Hill.

By the Associated Press.
PHILADELPHIA. Aug. IA stockhold-
or in the Northern Pacific railroad,
whose name is not learned, employed
attorneys Read & Petit to bring suit
against Henry Willard, Edwin Fl. Alb
bott, Charles T. Colby and Colgate Hoyt
on the general charge of malfeaaance in
Office and mismanagement of the affsirs
of the company in their capacity as di-
rectors thereof. 1t is alleged that they
profited largely as individuals, whereas
tho road lost heavily. Ten million dol
lars is the sum named as the amount OF
the profits of these four directors. 1t is
said here that Brsyton Ives. Henry
Clews and Jay Cooke, jr., the committee
who investigated the affairs of the road
last yesr. are back of the suit.
WILLARD DENIES THE CHARGES.
New YORK, Aug. 17.-At meeting OF
the Northern PACIFIC directors today the
matter Of the suit to be brought in the
interest of Philadelphia stockholder,
John Swope. was considered, and Q let
ter from Henry Willard was read. In it
he denied emphatically all the charges
made by Swope go far rs they in any
way relate to him.
REPLY TO BRAYTcN IVES.
It is understood that the counsel OF
the company WAS instructed to frame q
reply to the letter OF Brayton Ives which
accused certain directors of saddling the
company with Improbable roads to
their individual gain. Counsel was also
directed to oppose the proposed suit OF
the stockholder in Philadelphia against
these same directors to compel them to
disgorge.
President and Receiver Thomas F.
Oakes said the subscription syndicate
organized to undsrwrite the collateral
trust notes, would have to be paid in
full.
Henry willard, one Of the number
accused by Ives. said he was not dis.
svsf5 sft BODY Knew adee ie snfnus Of Ives A.
tacke.
A SCHEME TO CoNsoLIDArE.
NEW YoRK, Aug. IA st. Paul dis.
patch to morning paper affirms the re.
port that movement is on foot to start
. new company, with James J. Hill at
it's head, for the purpose of conaolidat-
ing the Northern Pacific and Great
Northern railroad systems, which in
clude practically the whole northwest.
1t is rumored that this consolidation
will be urged on the ground OF economy.
and President Hill and President Oakes
at the present moment are going over
the details prior to preparing some plan
of operation to be submitted to the
stockholders, It ia said here when the
plan Is perfected it will show that by
close management great economies can
be insugurated in the management of
the Northern Pacific-economies that
will help the property out Of at least
some of its endorsements.
THE NORTH AMERICAN NOT INVOLVED.
President Charles W. Wetmore of the
North American company said today :
"The rumors of reeeivership for this
company are absolutely without founda-
tion. The affairs of the company are in
euch good condition that such step is
unnecessary" e
Rumors, however, of impending
trouble we're current again today on
account of its heavy holdings of North
ern Pacific securities.
SALARIES REDUCED.
The receiver OF the Northern Pacific
today ordered a reduction in salaries
ranging from 10 to 25 per cent.
A NEW GENERAL MANAGER.
ST.. PAUL, Aug. 17.-Acting General
Manager ]. W. Kendrick has been ap-
pointed general manager of the North
ern Pacific by the receiver.