New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-18

TONS
Tho investigation into the past mana cement OF
the Northern Pacific Railroad was resuntu Se''7'
day The coinplainants sought to estaohsh inc Gun
nectlon OF Henry Willard with some OF 'he """
ections which are alleged to b. improper anu u
demonstrate that the Rocky Fork and Cooke CITY
80 rros soi0 ~ the Northern Pacific at a price lar
in excess OF its cost. The purpose OF the invesN-
cation Is the procurement Of facts wh'ch VIII en-
able the present managers of the Northern i"O"'
IN bring suits for restitution against former ue0
tors. Md,
rrha ers, witness Yesterday was George A Morrl-
con a former director OF the Northern Pacilc ana
n member of the former firm of F. H. harrlhl@"
Co lie testified that the question OF the purchase
of the Chicago terminal property first came up lo'
discussion in the Board of Directors OF the Nor'n-
err Pacific in the fall of 1889 lie knew nothing as
10 who were the owners OF the terminals 10 De
purchased, but Henry Willard had explained u HI"
the importance of the acquisition me WINES
said that he considered the price ihaHy P'i' ~,
The pruperty "a very fair one" Mr.. Morrison sald
that he understood that the oregon ana iIa"s
continental Company was introduced into the ar
rangement for acquiring the property at the sug'
geston OF Mr.. Willard.
"The Oregon and Transcontinental naturally Sc
cured large commissions for ransacting the ousi-
ness connected with the buying Of the terminals!
was asked
Il presume So" the reply 800
Mr. Morrison In reply TO questions by slias W.
Petit general counsel OF the Northern Pachic ms
claimed knowledge Of the details OF the acquistoh
of the Rocky Fork and Cooke city ana the Nor'h
srn Pacific and Manitoba properties; he remembered
that the control OF the latter road was urged as
necessary 70 the control Of rates in competition win
the Canadian Pacific. On cross-eXanlihauoh ny
James Mcknight. Of counsel for the receivers MI
Morrison expressed an enthusiastic opinion as 70
the value OF the Chicago terminals ana paid
tribute to Thomas F. Cakes. the former president
of the Northern Pacific, and said he had entire
confidence in him. The prosecution next SUM
,noned Edward L. Comings, railway contractor
10 endeavor TO establish the allegation that the
cost Of the Rocky Fork and Cooke city Railroad
was far below the price paid for 1t by the Northern
Pacinc-nearly 81 100000 Tho witness said that IN
the fall Of 1851 and the early part Of 1883 he graded
forty.sx miles Of the Rocky Fork road at cost
Of $4,000 He did not know who provided the iHnds
the road was nfty-six miles. including nine miles mile.
of sldngs lie understood that inc engi iSan tbe
money he received TO complete the gradihhs riis
used were second hand. and were obtained from
the Northern Pacific for $50 ton He understood
IL a9at b the ro ss Mas about oa In
questions By Colonel a the bS rst wor
Of the, sort that he eyer ddl. civ
Mr. comngs also admitted that in his estimate ate
of the cost OF construction he did not consider the
'sf Gid q YOU %f include the $1,000 paid for certain ess
"or the 5000 paid to certain lawyer for legal
Anything for ballasting?' mo"
DO you know 1; costs $500 TO ballast mleF
mo"
you said that the rails old ones and
were taken from the Northern Pacific Ion you
know that not old rail was laid? No
;Know the cost of new rails?' mo
-,You were never over the road since " was
'Then YOU don't know whether any rails were
me witness said that he did not. He said further
that he had not included in his estimates the cost
OF turntables water-tanks. station-houses scales
riprapping masonry work. He forgot too. about
the telegraph lines
us II not true that all of your information, or
nine tenths Of Il, secured On hearsay?
The witness admitted that such was the case.
George s. Baxter the treasurer OF the receivers
next He was asked many questions
regarding financial transactions between the North
ern Pacific on one hand the Northern racine
and the Rocky Forks the other. Not much in
formation secured. the responsibility for this
resting the poor memory OF the witness. lie
remembered receiving large amounts In bonds ana
these specific sums. The Northern Pacific agreed
TO pay for the Northern Pacific and Manitoba when
completed 5.2Go bonds of the value OF 5000 each,
but the road when turned over TO the Northern
arose between the parties to the deal" 1t was
finally settled by the Northern Pacific and Mani
toba contractors turning over TO the Northern
Pacific material OF q sufficient value TO guarantee
pleting the line Itself. a certain amount Of cash
was also turned o/sr Mr.. Baxter said that his
recollection OF the matter was that the difference
between the two companies amounted to not more
than $4,000 Mr.. Petit insisted that II was be
tween $4,000 and 100000. There way of
settling the dispute. hoYcver for Mr.. Baxter said
that the transaction not recorded his books.
The inquiry goes on at 10 O'Clock this morning.