St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-11
LOOKS LIKE A ROCKY DEAL.
ROCKY FORK AVID COOKE CITY STOCK
WAS SWELLED.
HANDSOME PROFITS m!ADi

Mr.. Searles Had Not Noticed That
the Stock of the Road GWas
Increased From $74O,O6U to
$4,000. 900 secretary tEdes
Could Not Find the Books 8f
the North American Co mpany.
NEW YORK, May 10.-The investiga.
ton into the affairs of the Northern
Pacific road was continued today before
Special Master Carey. 'os
w. ID. Searles. vice president Of the
Farmers Loan and Trust company took
the stand and placed in EVIDENCE .
quantity of stock and bonds OF the va
rious roads controlled by the Northern
Pacific. which had been deposited witt,
the company as trustee for the bond
holders of the Northern Pacific.
the only point of interest brought
out in the remarks by the witness III re-
gard to the certificates was that S2.OOO.-
600 of stock had been issued by the
Rocky Fork Il Cooke City railroad,
when The capital stock of the road was
only $4,000. Mr.. Searles had not
noticed this, and did not know
how it came about. After recess
the witness produced certificates
for 10000 shares for $1,000
each of the capital stock of the Rocky
Fork s. Cooke City Railway company,
for which the trust company had paid
over S1,420.000 of Northern Pacific
bonds, placed in their hands for that
purpose. The object Of this testimony
is to help show that Mr.. Willard and
his associates, owners of the Rocky
Fork & Cook City stock, first
increased it from $4,000 to
$4,000. 900. and then sold it to the North
ern Plcific for 81. 4o2. 900 in bonds, which
they at once sold in New York and else
where at 80. thus getting abuut a million
and a quarter in cash for $4,000 stock
of a small road. He said he had
been the secretary of the company for
four years ami the treasurer for one,
but could not remember at all definitely
the dates of his election, or how or from
whom he obtained the books of the
company. He kept the minute book as
secretary and opened books of account
when he became treasurer, but regu-
larly left all OF them III the custody of
c. A. Spotford, the president.
Mr.. Edes was instructed to go to the
Office of Mr.. Spotford in Mr.. Wizards
Office OH the floor above, and get the
books, but returned in a few minutes
saying that Mr.. Spofford had himself
been s:Ibp9naed to bring these books,
and refused to give them up sooner.
Mr.. Edes said he was also secretary
of the North American company, which
hoe .it.d IN Inns nc thn
Oregon & Transcontinental III $780, He
had been assistant secretary of the Old
company since 1850 and treasurer since
1854. The meetings OF the board of
directors were held once Il month";
Portland. Or, and those Of the
executive committee at irregular dates
i'll New York, once month or Oftener.
He mad no idea, however. what had
become of the books of the old CON-
pany. He thought they were useless
lumber and after the Office had Nbeen
moved once or twice. they disappeared
without his even noticing their absence
"rheu," said Mr.. Petit, .'these books
Of which you were supposed 10 beacns-
todian simply vanished like phantom.
and YOU have not tile femOteSt IdeatWlIal
became OF them" r.. u. g..
Il did not say that" said MIR. Edes
II said l did not know where they
were: ........-.,-..: - 1880 3
'S'.J'hen what did become Of ti1emav
persisted Mr.. Petit. - flGs
WELL" said the Witness 'they were
piled on the floor before we moved. and
l don't remember having seen them
afterwards. l supposed they were
moved, too"
''See if you can't find them by to-
morrow" said Mr.. Petit, finally and
tie hearing wasadj0urned till 10 O'clock
tomorrow morning. .