St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-13
THE MISSING MILLIONS.
COZ. M'HAUGH7 SAYS THEY car BE
ACCOUNTED FO6
BY LOOKING AT THE RECORDS.
The Much. ralked.of Bonds Were
Received by the Chicago &
Pacific Railroad Through the
United States Trust Company
MIR. Edes Produces q List Of
bond Subscribers.

NEW YORK, May l2.-The investiga-
ton into the affairs of the Northern
Pacific railway was today continued.
Yesterdays hearing closed with half
promise from James Mcknight, of
sounsel for the receivers, to explain
away the damaging impressions pro-
duced during the day by the unfortu-
nate lapses in the memory of Edward
Edes. assistant secretary aud treasurer
of the defunct Oregon & Transc0nti-
mental and by the extraordinary manner
in which the books of that corporation
had been kept. From the dataspToduced
1t was impossible to say whether any
individual subscriber to the bonds had
or had not paid for his bonds. Mr.. Nc
Naught suggested that 1t would be
found that the missing millions had
been received by the Chicago & North
ern Pacific railroad through the United
States Trust company, and requested
the production before the master today
of the records referriDg.to the transac-
tons between these two corporations.
Mr.. Edes again took the stand and pro-
duced a memorandum made up by him
from notes made at the time. stating
the name of the subscribers to the niue
MILLIONS OF BONDS,
the amount OF money paid by each and
the quality vi hpnds received by each.
The p,atsMena appears to show that all
| the SuuscIlaers who were supplied with
bonds though the Oregon & Transcon-
tinental paid for their holdings at the
market price of 80 cents on tile dollar.
Mr.. Mcknight. in pursuance OF his
promise OF yesterday, called attention
to an agreement which was among the
papers filed late yesterday, but which
the master said he had not noticed.
which stated that during the consulida-
GnQDther properties into the Chicago u
Northern Pacific. and the issuance OF
the S20, O00, 0UO of bonds used to pay for
the separate properties so CONSOLIDATED.
| it wasagiSod that the portion paid for
tue Chicago 4 Great Western should be-
handled through the United States
Trust company. as agent. These bonds
amounted to over $ll. 900. and if this
/ agreement was carried out all the S20,
000, 600 Issue would be accounted for,
! and the sensational testimony of yester
day. which seemed to show that some
| body had received millions of bonds for
a nominal cOnSlQeratlOn, WOulu De nult-
flied. Then. taking up the subscription
list to the bonds, Mr.. Edes read of the
! names of the subscribers,
THE NUMBER OF BONDS
received ana the price paid amounting
in each case 10 80 per cent of the face
value Of the bonds. plus the accrued i'll
terest.
c. L. Colby. for himself and associ-
ates. subscribing Tor nearly s8.0OO.U0O
of bonds, was the only subscriber whose
name did not appear on MIR. Ede's
memorandum as having paid for his
bonds. The sum. the witness thought,
was paid through the United States
Trust company. Mr.. Edes was asked
why he did not say yesterday that the
bonds were sold through the United
States Trust company. and replied that
''he did not think of It,"
Counsel for the complainants sub
mitted TO Master Carey the papers they
proposed to offer in the United States
circuit court for Southern New York,
for the purpose of compelling II. A.
Spofford to appear and give evidence.
Ex-senator Spooner, of counsel for the
receivers, stated to the master that he
and his associates would assist in this
proceeding i'll any way possible. y.