The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1894-10-16
MIR. OAKES WAS WISE.
Judge Jenkins Commends the Wis
dom of the Northern Pacific
President.
MASTERS REPORT APPROVED
Cakes Would Have Been Either Lack
in Sagacity or Neglectful Had
He Done Otherwise,

MILWAUKEE, Oct. l6.-Judge Jenkins
decision i'm the United States circuit
court confirms that portion of Special
Master Carey's special report which
exonerates Receiver Oakes. The Judge
commends at some length the conduct
OF Mr.. Cakes, both as an official of the
Northern Pacific road, and receiver of
the company
The decision reviews the masters
report in detail. After referring to the
history OF the petition for the removal
OF the receivers, stating that it was dis
missed by the court as to Messrs. Payne
and Rouse, and was referred to Master
in-Chancery Gary for an examination
as to MIR. Oakes, the decision states
that
There Were Four Questions
to be determined by the master. First,
whether any of the Northern Pacific
directors had made unlawful gains out
OF the Rocky Fork and Cooke City
deal; second, whether any of the direct
ors had made unlawful gains out of
the Manitoba deal; third, whether there
there bad ben unlawful gains in the
Chicago and NorGhern Pacific deal, and
fourth, whether an exorbitant rental
had been paid for the property, whether
anybody in the Northern Pacific made
anything out of the leasing of the ter
minal lines, and lastly, whether in re-
sTeot OF any Of the transactions directed
to be investigated Thomas F. Oakes
knew, or ought to have known, of
them, and what measures, if any, he
took in the prevention thereof, for the
protection Of the interests of the North
ern Pacific railroad company.
The master. the Judge says, was two
months taking testimony in the matter,
and had rendered necessarily lengthy
report, one that ''is most elaborate. in
dicating painstaking and thorough
scrutiny of the evidence and careful
80 ahle consid ideratlon q ths questions
involved.
Willard. He Did It.
He then states that Henry Willard
had made unlawful gains to the amount
of $S63, 691 in the Manitoba deal, but
Mr.. Cakes did not know and was not
bound to know that Mr.. Willard was
making unlawful gains i'm the acquisi.
ton OF the Manitoba by the Northern
Pacific, and that in the Rocky Fork
deal no unlawful gains had been made
by the Northern Pacific directors, and
Mr.. Oakes was not only free from
blame, but had he done otherwise than
ne did, che would have been open to
the just criticism Of either lacking the
business sagacity to be expected of one
in his high official position or having
seriously neglected the great interests
committed to his charge"
Concerning the Chicago and Northern
Pacific deal, the decision says the ter.
minal properties were purchased not for
the Northern Pacific, but with a view
to give the Wisconsin Central lines
terminal facilities, and the court agreed
with the master that the rental was not
exorbitant, and that with respect to the
transaction, Mr.. Oakes was not guilty
of negligence in the, discharge of his |
duties. In conclusion, the decision saws
the charges against MIR. Cakes are un- |
founded in fact, and without support of |
evidence.
The question of ordering the receivers
70 bring suit against certain directors to
recover unlawful gains is left for future
decision.