New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-11
WILLARD METHODSIN REVIEW
EXAMINATION OF VICE-PRESlDEN1
sEARLEs. OF THE FARMERS LOAN
AND TRUST.
ROCKY FORK AND MANITOBA TRANSACTIONS
coNs1DERED-AN INCREASE IN CAPITAL
STOCK LEFT NEUTRALITY-SUSPICIOUS.
WITNESS WHO COULDN'T
REIfEMBER.

REMEMBER.
The Investigation into the methods OF the former
Willard management OF the Northern Pacific Rail-
road was resumed yesterday In the NILS builoiis
before Alfred L. Cary. master in chancery' appoi'@u
by Judge Jenkins. of the United states Nouit VI
Wisconsin, The first witness was L. u oeaIes
vice-presdent of the Farmers Loan and Trust COM
many trustee Of the consolidated mortgage of the
Northern Pacific Railroad. He submitted numerous
books accounts, orders, vouchers and other Official
documents bearing upon the issue OF coHS'"ua'e"
mortgage bonds of the Northern Pacific IN cohhec-
ton with It's acquisition OF the Chicago and NORM
ern Pacific the Rocky Fork and Cooke City, ana
the Northern Pacific and Manitoba roads Inc 90
ject of Silas w Petit. counsel for the present d.
rectors of the Northern Pacific. was to accumulate
documentary evidence showing the close relation Oh
Henry Willard Colgate Hoyt, Edwin H. Aooot ana
Charles l.. Colby with all the transactions tha' II !"
alleged Increased the bonded Indebtedness or the
Northern Pacific with profit to the old directors
Mr. Searles Identified eight certificates Of stock OF
the Rocky Fork road now held by the Farmers
Loan and Trust Company as security under the
Northern Pacific consolidated mortgage. one GER
tl6cate-numbered 6S-to the trust company was
for 1899 shares out Of a total captal STOCK oi
700 shares Seven other certificates for one share
each were made out respectively to James b. VIII
Jams George H. Earle George s. Baxter Henry c..
Payne Henry G. Rouse Thomas F. Cakes and
George w Dickinson. Each certificate mentioned
the Rocky Fork and Cooke city road az having
capital stock Of $4,000 yet the grand total OF the
certificates represented capital OF 2OV),CD Wnen
asked II he had any data to show that the capital
stock had been increased. Mr.. Searles said that he
would have to consult the records of the trust COM
pany's Office. Certificate No. 60 was dated August
&C. 1893. whereas the bonds OF the Northern fAcihc
Issued on the Rocky Fork stock were delivered by
the trust company on July 9. 1880.
In the afternoon. after recess. Mr.. Searles pro-
tRpafa prhiC
dated June co. 1880. The certihcate f0r 49, ssS
shares was made out to the Northern Pecihc, ana
the names Of Henry Willard. Charles l.. Colby,
Colgate Hoyt James Il. Wniams; Ihomas r.
cakes. c. W. Dickinson and c. ": Nichols
Mr.. Petit did not ask about the possession OF
data with respect 70 the Increase or me capit5il
unteered testimony on this point II was on
these original certificates that the Farmers Loan
\ certificate Of stock Of the Northern Pacic ana ana
Manitoba Railroad No rs for s0 shares TO tne
INV baG deIivered e 90 Northern Pacific bonds
ssucd in payment Tor the stock and bonds Of the
Manitoba road. Mr.. Searles. after recess however;
he Northern Pacific and Manitoba stock, dat ted
July 2 1850 He testified that 1t was upon this Ger,
the ronsolIdated bonds OF the Northern Pacific.
\ large part OF the afternoon session was devoted
and contracts referred TO in the minutes Of the
Northern Pacific. which Mr.. Petit desired Edwa ward
Edos secretary and treasurer OF the Rocky FORK
ami Cooke city Coal Company. was the witness OF
the afternoon. but he was so deficient IN memory
that his testimony OF little value TO the plain
TINS attorney. He did not remember what disposi-
ton was made Of the records Of the company, ex-
cent that they were turned over TO the Northern
Pacific when that company acquired the coal COM
pany along with the Rocky Fork Railroad.
MIR Edes was treasurer and assistant secretary;
Of the oregon and Transcontnental Company OF
which Henry Willard president during most OF
is existence. lie did not know. he said what be,
came Of that company's books and records when
:, had been absorbed by the North American Com
pany its successor. Mr.. Edes disclaimei responsi,
hiiiv for the records after the extinction or the
oregon and Transcontnental Corporation. but ne
finally testified that the books were taken out OF
The safe OF the North American Company. piled
| on the floor" and removed when the North Amer
ican Company changed Its Offices from one moor &c
| another In the Mills Building some time In lsyl
C. A Spofford. president OF the Rocky FORK AND
| Cooke civ Railroad. who has for years held con
! ddentlal relations with Henry Willard was SUN,
monei as a witness. owing 10 the inability or MI
Snnyori 70 secure the attendance OF his counsel
Wheeler H. Peckham. he was excnssd j. =. hag
1s.la, asked 70 testify but he WAS requested e
v.,r and hold himself in readiness when summoned
ri. Investigation Will be resumed at 10 a. m. TO-
day