The evening world., 1894-05-11
V|LLARD'S PAYMENTS MARKED
Edes Produces Oregon and Trans
continental Books in Court.
Wheeler II. Peckham Makes Objec-
tion-Quecr Cash Transactions.

The investigation into the alleged ir-
regu' arities OF the Willard management
OF the Northern Pacific Railroad Com
pany was resumed this morning before
Master in Chancery Cary. in the little
office in the Mills Building.
The first witness to-day was w. D.
Searles, President OF the Farmers
Loan and Trust Company. who was re-
called, and asked by Mr.. Petit II the
Trust Company had any record OF
resolution passed by the directors OF the
Rocky Fork and Cook City Railroad.
increasing its capital stock from $4,000
to $2,Oo0,0O0.
None whatever" replied the wit
col. McNaught took occasion to deny
that the stock Of the railroad had been
raised from Sa4OOlO to S2UOlO0O without
authority He produced a minute book
containing resolutions ordering the In
Mr. Searles wa. excused and Mr. Edes
resumed the Witness stand: lie had been
continental COMPANY. OF which he was
once Assistant Secretary.
lie had brought the hooks-a journal
minute book and ledger covering the
year ISIS?
Mr.. Edes. who is also secrctary and
Treasurer cf the North American Com
showing the rece!Dt Of the con4llcration
for the general mortgage bonds Of the
Northern Pacific Company, d"l vcrci to
the oregon AMI continental by the
| MAY ana JWne, ISso. 'rhs would seem
to suh'tnn,iate Mr.. Pettits statement
that the millions alleEed to have been
their way into oregon Transcontinentai
and the North American companies,
which were Wizards two pet enter
prises.
ON the other hand. it is claimed that
the O. T. was merely acting as the
fiscal agent of the Northern Pacific In
these transactions, and that all the lat
commission for such services.
Extracts from the minutes OF the Exec
continental were then read by Mr.. Pet
III, by which 1t appeared that that Com
pany was selected by the Wisconsin Cen
tral and Northern Pacific companies to
terminal facilities in Chicago. represented
by the then consolidated roads.
The minutes of this ,sol meeting. which which
authorized Mr.. Willard to make an
agreement with the Wisconsin Central
to carry out this consolidation OF the the
Chicago Terminal lines. and gave him
large discretionary powers.
Mr.. Petit read extracts from the
minute book, which included long list
of subscribers to the, 1000 consoli-
dated mortgage bonds of the Chicago
and Northern Pacific. one of the indi-
vidual Subscribers was Brayton Ives,
who subscribed for 100000, and another
was Henry Willard, who took about
81, 900 900 In various lots, but always in
the name of some other person. This
syndicate, it is said was organized by
Mr.. Willard
on the ledger was an account with p
S. Wegg which showed a debit of sSl2o,-
900 while he was credited with n similar
amount in cash and bills receivable.
| Mr.. F1es said that these represented
payments, made under the syndicate sub
scrinuon TO the amount or 30 per cent
What became Of the balance of the
tions o. asked Mr.: Petit.
II don't know"
Did the oregon & Transcontinenta
ever get it?"
Not that I know"
"As a matter Of fact. wasn't It under
stood that this bala ce should be re
tained by one of the syndicate sub
~ don't know. I only accounted fol
the moneys that passed through my
hands"
Quite sensation was created after
recess by the appearance of Wheeler II
Peckham for Wizards former privat,
secretary. Charles A. Spofford, who haC
been subpoenaed as witness. Mr.
Pcckham stated that he had advised hi
client to decline to be sworn as wit
ness.
He declared. however, that the objection
was to the authority OF the Master II
Chancery to compel the witness to testi
fy. He argued that the. Circuit Cour o
: Wisconsin had no jurisdiction to institute
the proceedings here or to issue a sub
! pOena in this State.
He also said Mr.. ,sporrord would ,declin
to produce the books called for in the sub
poena on the same ground.
Mr.. Peckham and his Glen, Withdrew
r and Mr., Petit then proceeded with tn
examination of Mr.. Edes in the attemp
money received for the - 900, 900 worth o
bonds OF the Chicago and Northern Pa
cific Railroad. subs scribed for by the syn
dicate
Mr.. Edes said he was certain tina
, s4OOO. 900 subscription for the Deutsche
Bank of Berlin, Henry Willard an'
r Jacob S. II. Stern & Co, the Frankfor
,, the books and it appeared that mem
received from Henry, v!!iard. The.
It appeared that about half the sub
scriptions were not paid up. Mr.. Ede
.. mentioned several that he thought ha'
paid but he was not sure that the pay
ments were in full.
Some OF the big checks paid to D. G
$ Wegg, the intermediary between the o
e & T. and the Northern Pacific as show
e on June 2, 1890; for sl,5o7 ,C5S.G on tn
o drawn for $l5l ,9S2l7. N02 1888 5000,
and sS4,67s32. Another check was give
!, to Wegg on June 26 for S2s,o437.
. These checks We're deposited to tn
I credit OF various persons, incu1in
e Messrs. Colby White Abbott and Col
; gate Hoyt in different banks In this city
Mr.. Edes also produced the optic
y. contracts for the purchase OF two of tn
7 Chicago Chicago terminal propertie:
y which were read and offered In evi
y dence. The contract for the purchas
OF the Chicago and Great Western wa
missing and the witness did not kno'
where II was. The details OF these cor
v. tracts were gone over at great length
Mr.. Edes could not, however, give tn
), names of the subscribers by whom tn
money was paid in to the Oregon an
Transcontinental Company.