The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-05-12

DOCKS OF the Oregon Transcensinental. in
quired for yesterday. we're among the old
numbers OF the North American Com
pany. He vas perfectly willing to permit
any Of them to be procured by Mr.. Edes
which had any bearing on the case under
consideration. bat wished to be present to
80 that no Others were present. After
some discussion a. to whether Mr.. Wet
more should not rather appear a. . witness
himself. Master Carey decided to allow
him toact ~ counsel. and the examination
OF Mr.. Edes proceeded. Mr.. Eies pro-
duced various books Of tho Oregon Trans
continental, which were put in evidence.
He was requested to refer to those portions
OF the books Of the company which
showed in what way it was concerned in
the placing Of the bonds Of the Chicago &
Northern Pacific After much discussion
1t was finally developed that when the
Chicago 4 Northern Pacific issued bonds
to obtain funds for the purchase of the
various properties comprising it they
were deposited with tho Farmers' Loan
and Trust Company. The Oregon Trans
continental. acting a. the fnancia. agent
Of the Chicago & Northern Pacific. ad-
vanced the latter some 81. .0oo. 600 or s., ,0oo.-
90 and opened subscription lists for the
bonda As the latter were paid for, most
of them At 80 cents on the dollar, the Ore
ron Transcontinsntai gave orders to the
Farmers Loan and Trust Company for
the purchasers for the delivery of the
bonds. For these services ~ financial
agents the Oregon Transcontinental re-
ceived commission of per cent At the
time. January lS. 1880. an agreement had
been made between the Northern Pacific the
Wisconsin Central and Chicago 4 North
srn Pacific. by which the latter should be
formed and leased to the Wisconsin Gen.
tral and sub-leassd to the Northern Pa
cific. The reasons for the introduction of
temporary financial agent was that the
options for the purchase of the roads and
properties a!terward consolidated into the
Chicago d Northern Pacific company were
about to expire. and IL was necessary to OBJ
tain an advance of money from such an
agent in or der to insure them.
The minutes of the meeting of the Ore
gon Transcontinental directors for Janu-
ary Is. 1890, showing these facts. we're read
in full. They created something Of SEN
sation, as they showed that the plan of
leasing tina Chicago q Northern Pacific to
the Northern Pacific was fully understood
before the formation of the former CON-
pauy, and that 1t was formed for the pur.
pose of so leasing it This has already
been denied by the Chicago & Northern
Pacific people. These books OF the old
Oregon Transcontinentai had never been
before seen by the counsel on either side
until the present investigation. The
minutes of the meetings Of the
Oregon Transcontinsntai Company in
New York January %, 1890, and
May rs. 1890. were also read. They re-
cited various steps in the formation Of tho
Chicago & Northern Pacific. and gave
lists of the property held by that company
after its formation. Throughout the min.
utss showed that every step in the forma-
tion Of the Chicago & Northern Pacific
was taken with the advice and instruction
Of the Northern Pacific. and with the in
tention of leasing the Chicago 4 Northern
Pacific to the Northern Pacific through
the Wisconsin Central Company. The
$20.000.0 900 Of bonds Of the Chicago a
Northern Pacific were sold at 80 ber cent.
and should have brought in SIS, O00, 900.
but only $9Oo0.0 600 appeared on the books
of tho Oregon Transcontinentai ~ having
been received, and there was nothing 60
show from what purchasers this had
come
Mr.. Edes took the stand and pro-
duced the check and deposit hooks
of the Oregon Transcontinental, which
it was hoped would show Who
paid the money for the bonds Of the
Chicago 4 Northern Pacific. The books
showed deposit Of g, a36 on June 2,
1880, to the credit Of the subscription for
the Chicago d Northern Pacific bonds.
This sum had been deposited In FIVE diff
ferent sums in the same bank on the same
day. None OF the other items were
marked.
"Now," said Mr.. Petit, you have only
you should have received. Whore is the
other haif?"
81 do not know"
"Well, who did not pay upf"
II do not know"
"What is your recollection 2"
"My recoilection 10, do not recollsct." !"
"Do you not remember any one who did
no. pay upf"
"Our of the half that did pay. do you
recoliect any onef"
"Yes, Mr.. Smith,"
.sWhat is the total Of Mr.. villard's pay
mentsf"
$50 far A. can see here. it was $s26. 5s7,
paid on June q"
"were any subsequent payments made
on account of these bonds7"
YES" said Mr.. Edes, ~ 334, $50 was
paid ON June IS
"Who paid its"
"weii. il was paid on account of the
purchasers OF the bonds. but / do not
know the individual payers. The money
so received and deposited by the Oregon
Transeontinental was paid over to ID. s.
Wegg on the same, Mr.. Wegg being one of
various properties then being consolidated
into the Chicago & Northern Pacific.
"Mr. Edes," said Mr.. Petit. ION the
list of subscribers to those bonds find .
subscription Of over 100000 by tho
Deutscher bank. ]. II. s. Stearn, Henry
Willard and associates. Was this subscrip-
tion ever paid ~
II don't know" replied Edes. 81 sup
pose it formed part of lump credited to
the company"
"Have you nothing to show II Was re-
ceived 2"
"Not here" said Edes. THE check book
may show"
"yery well. replied Petit Now here
is = subscription Of c. l. Colby for him.
self. Mr.. Rockefeller. Mr.. Hoyt, Mr..
Treyer, Mr.. Abbott and Mr.. Colgate for
100000 Have you anything to show
that this sam wss ever paid r.
Nothing" replied the witness, "unless
the check book does go. !"
But, my dear SIR" said Petit, "you did