The herald., 1894-09-15
THE NORTHERN PACIFIC SCANDAL
Willard in the Orient for His
Health.
His Counsel Makes Statement in
His Behalf.
wheeler n. Peckham Makes Light of
the Master .Carey's Findings In
Regard to Wizards Un-
lawful Gains.
Nv the Associated Press.

New York, Sept. 14.-Ex-President
Henry Willard of the Northern Pacific.
who was charged in the report OF Master
in-Ohancery Carey. in the proceedings
against Receiver Oakes, OF having made
unlawful gains in his dealings with the
Northern Pacific company, 10 In the
Orient. His counsel, Wheeler H. Peok-
ham, today made the following state-
ment for publication in defense OF MIR.
Willard:
''The statement in the papers is cal
culated to do Mr.. Willard great injustice.
From careless reading it would be in
ferred that in some legal proceedings
conducted in the ordinary way, to which
Mr.. Willard was party, 1t had been ad-
judged by the master that Mr.. Willard
had made illegal gains. Nothing could
be further from the fact. In the consol'
idated suit in the United States circuit
court for the eastern districCof Wiscon-
sin, against the Northern Pacific Rail-
road company, Thomas f. Oakee. its
then president, and Messrs. Rouse and
Payne were. by consent OF the railroad
company, appointed receivers.
This inquiry at Milwaukee was not
made in order to recover anything from
Mr.. Willard. No judgment or decree OF
any kind can be rendered affecting him.
The only result that can be effected is
the removal or retention of Mr.. Oakes
rs receiver.
Had the inquiry been conducted by
counsel, with this view only, the re.
port would have besn that it was not
necessary to decide whether there had
been unlawful gains, etc., by Mr.. Vii
lard, or any other director, inasmuch as
it was clear Mr.. Oake5 neither knew or
ought to have known OF such unlawful
gains.
"The inquiry does not seem to have
been conducted with that point in view.
On the contrary, ita purpose seems to
have been to attack Mr.. Willard. 1t
wac conducted by the special antagonist
OF Mr.. Willard, Brayton Ives.
'Mr Petit, the petitioners counsel,
put before the master the testimony he
chose. 80 lar as Mr, Willard was con-
eerned there was no other side. Mr..
Willard had no standing in the proceed
ings, and could not be heard. Had he
volunteered as witness he would have
been subject to examination, such as
petitioners counsel chose to have, and
without the right to the aid of counsel
and without any control by any court
over the examination.
"Certainly no counsel would allow his
client to be put in such q position.
''Now as to the charges made in the
report, can only say Mr.. Willard most
emphatically denies any unlawful gains
and any wrong.doing whatever.
1.-THE way to try whether Willard is
culpable or otherwise is by suit against
him, not to bring an irrelevant matter
Oh petition to remove receivers.
Zone such suit was brought about o
year ago, nominally by one John Swope,
really, I understand, by the same inter
est which filed the petition to remove
the receivers. To that suit Mr.. Willard
fled full and complete answer. The
time to take testimony has long since
Expired and the suit has been practi.
cally abandoned.
''As to the charges reported by Mas
ter Carey, Mr.. Willard is quite as ready
10 meet them as he WAS to meet the
Swope case, and only after a judgment
In suit brought against him. and where
he has been heard. will an intelligent
public give the matter any considera-
tion.
"Now, with the testimony taken by
Master Carey am not familiar. 1t was
presented by MIR. Petit, Mr.. Ives coun.
eel, and am told does not warrant the
conclusion. The gist OF Mr.. Carey's
report seems to be that in regard to the
Northern Pacific and Manitoba railway,
1t is alleged Willard made profit by
reason OF unreasonable compensation for
his services, and that he made en- un-
reasonable profit. This is stated ct
1868 $3.50. The question thus in the
mind of the master seems to have been
one OF remuneration. The master con-
ceded right to compensation, but said
Mr.. Willard charged too much and has
apparently allowed him nothing,
"Clearly that is O matter OF opinion on
which people will differ and ON which
no one is competent to form an opinion,
unless he knows the facts. / am told
that items of cost amounting to 5000, 900
have been overlooked by the master. II
that ia go. it would raduce Mr.. Willard s
compensation or alleged illegal gains to
$l63,6l9 70. But, as l have said,
whether the master mas drawn correct
conclusions from the testimony submit
ted to him does not seem to me of the
least importance or worthy of the least
attention.
"Ex parte proceedings without the
presence of the party to the charges are
too notoriously worthless to attract at.
tantinu -