Capital journal. (Salem, Or.) 1893-1895, 1894-09-12
yILLARD's PROFITS.

Having wrung three million dollars
out Of the Northern Pacific in few
years Willard left for Europe The
German government should be asked
TO surrender that man, who, more than
any other individual wrecked magnifi-
cent property In the Milwaukee, Wis,
federal court Monday Henry Wizards
profit Of 1868, ,691 In the Manitoba deal
was one Of the most interesting things
disclosed by the report of Master In
Chancery Carey In the Oakes investiga-
tion. The report shows just how the
money was made by the great fiDan-
cien 1t states that the amount paid
by the provincial government Of Mani
toba for the road, and expended to
complete 1t after 1t had passed into the
hands of the Northern Pacific & Mani
toba Company, was S4,852,571. The
master then inquiries into the amounts
of money received by Mr.. Willard on
account of the road, and finds that the
first item was 81, 1888, 800, which was the
proceeds of the first issue of S., ,260, 900
first mortgage bonds OF the Manitoba
road, sold at 81 per cent. The mex
item was $336, ,250, received by Mr.. Viii
lard upon the sale Of the terminal
bonds Of the company. Added to
these, were two items Of $532, $50, and
S8263, received by Mr.. Willard as subsi-
dies from the province of Manitoba for
the construction OF the road. These
made total OF s5,2lS, ,263. and the ex.
cess of receipts over the cost OF the road
amounted to $685. ,69l, which equalled
the value Of 1896, 900 of the first mort
gage bonds Of the Northern Pacific 4
Manitoba Company turned In by Mr.
Willard TO the Farmers Loan q Trust
Company TO be exchanged for North.
ern Pacific consols, valuing the bonds
at 02 per cent. of their face. Discussing
the transaction, Mr.. Carey says.
"That these gains were unlawful, does
not seem to require much discussion.
Mr.. Willard was director OF the North
ern Pacific, chairman Of It's board Of d. |
rectors, and under It's bylaws, was
charged with the selection and appoint
ment Of committee for the board and |
the conduct of the financial affairs Of
the company. These were positions
which required the utmost good faith
on his part in the discharge Of official
duties and In all OF bis transactions
with the company, II he entered upon
the construction and requirements Of
the Manitoba roads with the expecta.
tlcn that the Northern Pacific COM
pany would tahe them of his hands
NJ their cost. he was bound 10 zee 10 II
that such cost was reasonable and not
make any profit out Of the enterprise,
beyond a REASONABLE compensation for
bis services. On the other hand, II he
undertook their requirement aud con-
struction a. an independent enterprise
aud afterwards sold them 20 the
Northern Pacific, by reason Of his
official relations with and duties toward
that company, he could not make an
unreasonable pront."
The master was therefore obliged TO /
dad that Mr. Willard had made unlaw.
lnl gains 10 the extent OF ts0S, ,08i. The
sport also found that he owned one
llth Interest IN the Rocky Fork Rail- /
esy aud Coal Tusi, which has 100
haTes ofs par value Of 500, but the
ussloF ssys that 40 unlawful gains
yags made Qua a that deal, although
. aays with regard ~ Mr. Willard /
sClIounislances may polpt the npger
snspiolop fowspa hln, bpl they fali
aesi n fsiabliah'ne ne fsos that he 4
.aas nson 4 oof N tlleas lfensaollons.p