The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-09-09
CAREY FILES HIS REPORT.
Cakes Exonerafed, But Willard
Found Guilty.

Milwaukee, Wis, Sept S.-MaSter IN
Chancery A L. Carey filed his report
on matters referred to him for investi-
cation in connection with the Northern
Pacific receivership contest this after
noon. The report is a bulky document,
covering 1873 closely typewriter pages
and contains about $4,000 words. 1t is
a complete victory for the receivers,
the master generating Thomas F.
Cakes from every charge preferred
against him. but Henry Willard is found
guilty of having made unlawful gains
rs a director of the Northern Pacific
Railroad company.
A synopsis Of the masters report
showing the various findings follow:
''First-The master finds that Thom-
as z. Cakes had no pecuniery interest
in and derived no personal advantage
or gain of any of the matters referred
for investigation.
''Second-The master finds that Henry
Willard, a director of the Northern Pa
cific Railroad company, made unlawful
gains by the acquisition Of the railway
of the Northern Pacific and Manitoba
Railway company 10y the Northern Pa
cific Railway company to the extent OF
1858 691.70.
'sPhird-It is found that Mr.. Cakes
did not and was not bound to know
that Mr.. Willard was interested in the
Northern Pacific and Manitoba railway
or that he was making any unlawful
gains by the acquisition OF said railway
by the Northern Pacific Railway COM
pany. AS a sequence, the master finds
that Mr.. Cakes was not bound to take
any measures to prevent Mr.. Willard
from making such unlawful gains, or
for the protection Of the interest of the
Northern Pacific Railway company In
respect thereto.
.'Fourth-During the four fiscal years
ending June 80, 1893, the Northern Pa
cific company made savings under its
contract with the Rocky Fork Coal
company to the amount OF Sl,SSS,5Sl96,
an average of over s475,eoe per year
for each of the four years.
.'Fifth-The master finds that VIM. T.
Bull. Charles T. Barney, James B. Heg-
gen and Charles B. Wright, directors
of the Northern Pacific Railway COM
pany, were interested in the Rocky
Forks g. Cook City Railway company
and directors of the Rocky Fork Coal
corsaany, and in the acquisition by the
NorStern Pacific Railway company of
the stock of the Rocky Forks & Cook
City railway and in the contract made
by the Northern Pacific with the Rocky
Fork Coal company.
"Sixth-The master finds no directors
of the Northern Pacific acquired I'M
lawful gains by the acquisition by that
company of the Rocky Forks & Cook
CITY railway. or by the arrangement
made with the Rocky Fork Coal COM
parry.
''Seventh-The M er cannot find
as to these subjects of investigation
that Mr.. Cakes was in any respect dis
1oyal to his company or its interests.
''Eighth-The master finds the Chi
cago terminals cost the original par
ties that were interested in them at the
time they were turned over to the Chi
e. EnNif1P .
296, 1882.
''Ninth-The master finds the Oregon
& Transcontinental company received
SIS, 600 of the bonds of the Chicago
& Northern Pacific company, and that
st is possible to trace the disposition of
all of them except three bonds. These
bonds are unacccunted for.
"Tenth-On pages 134-135 the master
states the account with the Oregon &
Transcontinental company and shows
that it received from these bonds s15,-
667S79 3s; that it paid out for these
properties and for expenses, etc, $15,-
6S1, 0S5.42. leaving a balance of $780,
S96 unaccounted for on the debit side
of their account That is swelled by
these considerations: The master
charges the company with having paid
81 $4,000 for the station. which was in
bonds, the same as ali Other items in
the account are, on a cash basis; re-
-ducing these bonds to a cash basis, the
same as the others, 30 per cent, that
would increase the debit side of the
account 900 more. Furthermore he
finds that SAL, 600 of bonds that were
delivered To Baxter, treasurer for the
purpose of finishing the station, should
be charged up and would increase the
debit side of the account to the cash
value of those bonds. at 80 cents
SG4 GOO. The testimony only shows that
they had only paid in cash $S500o in
the purchase of the citation. The mas
ter finds that there are $409 900 of the
bonds that were delivered to Willard
upon Mr. Wegg's order, but are en-
tirely unaccounted for except that they
were receipted for by Mr.. Willard
through delegate Hoyt. The Oregon &
.Transcontinental company. in all its
transactions relating to the acquisition
of the several Chicago terminal proper
ties, acted as the agent for the real
parties in interest whoever they may
have been This is indicated by the
agreement of January, 1890, with the
Wisconsin Central company. shown by
the records Of these transactions"
Considerable testimony was given
fencing 10 show the disposition made
by the Oregon Transcontinental com
pany Of the moneys it had received or
account of these properties, but the
master says he shall not attempt tc
further trace such moneys CT look into
the accounts of the Oregon Transcon
tinentsI company, as he has reached
the conclusion that, for the purpose
OF this investigation, it is immateria
whether such moneys were sent, o.