The herald., 1894-05-10
NORTHERN PACIFIC INQUIRY.
The Investigation of tho Chicago Ter
minal Scandal Continued.

The Investigation of the Chicago Ter
minal Scandal Continued.
New York, May 9.-The investigation
into the affairs of the Northern Pacific,
which was begun in Chicago on April
80, was continued today before Special
Master Carey in the Milla- building.
Henry S. Boutelle was the frat witness
called. lie was general solicitor of the
Chicago and Great Western Railway
company from June. 1889, until the time
OF the organization of the Chicago and
Northern Pacific, and acted as counsel
for tho chicago, Harlem and Batavia
and the Bridgeport and South Chicago
allied roads.
The principal matter discussed by Mr.
Boutelle today was the consolidation OF
these companies. Hs said there had
been talk OF consolidating them and OF
purchasing certain other property on
which the Grand Central station
was finally built as far back
as 1887. The scheme finally adopt
cd WAS for the formation Of q
new company, the Chicago and Northern
Pacific. First the three companies were
leased TO the new corporation, and then
all their properties were sold to it under
an act OF the state of Illinois, passed in
1885. Then the station property was
bought by the new company. AT this
TINA, so far as the witness knew, there
was no intention to sell to the Northern
Pacific company.
AT the afternoon session, in answer to
questions from Mr.. Mcknight, Mr..
Boutelle re-explained the peculiar value
OF the various properties sold to the
Chicago and Northern Pacific.
In 1890 Boutelle went over the roada
and property afterwards sold to the
Chicago and Northern Pacific, with a
view to vsluing them. This was done
not for any particular purpose, but az g
part of the official routine. According
to his recon- mendation he valued the
real estate at about $l5,000,0 900, and the
tracks, right OF way. franchises and
other property at about $4,000, 600.
When the Chicago and North
ern Pacific bonds were ia
aued, $650,0G0 OF them were
received to pay interest ON section OF
property leased from the school board
which had refused to sell it outright (;
1899, 600 was reaerved to meet 399 out
standing bonds of the Chicago and
Northern Pacific which would not bs
reached. The raat OF the bonds, $18.
500,0 par vslue, wera distributed to
the ownera OF the four properties &C.
quired, viz: The Chicago sud Great
Western, the Chicago. Harlem and
Batavia, the Bridgeport and South Chi
cago and the real estate on which the
Grand Central station was built.
On the direct examination Mr.. Petit
directed his questions to an attempt to
show the Chicago, Harlem and Batavia
and the Bridgeport and South Chicsgo
roads were worthless, never having paid
their fixed charges. Mr.. Boutslle, how
ever, knew nothing of the receipts, ex-
penditures or prohta of the roads, except
by hearsay. The right of the Chicago
Harlem and Batavia to operate grade
tracks in the town of Cicero would, he
thought, be very valuable in the future.
Cicero was now part of Chicago, and it
wculd be very difficult for any road to
get from the city council rights similar
to those it obtained from the municipal
authorities OF Cicero; property owners
consents would have to be obtained now,
although they were not necessary then.
As to the Bridgeport and South Chi
cago, its possession has enabled tie
Chicago and Northern Pacific to con-
clude an advantageous agreement with
the Chicago. Burlington and Quincy, by