St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-02-04
OAkES' SHARP REPLY,
Vigorous Answers to Every
Charge Made Ag gainSt Him
BY THE iKES-AARRIS FICTION.
Branch Line Policy Started
During the Ives Rule.
hR. 0AKES WAS NOT Il PARTNER,
dor Did He Profit by the
Building Of Roads.
HISTORY OF ~. p FiRARciERiNG.
BY THE IHES-AARRIS FICTION.
HR. 0AKES WAS NOT Il PARTNER,
HISTORY OF H. P. FIRANciERIEG.

MILWAUKEE, w lS., feO. =. - 1Oere
were filed today by the Farmers Loan
and Trust company, Sheldon Il Co., Z.
s. Winston and Receivers Oakes, Payne
and Rouse, in the circuit court of the
United States in Milwaukee. six sepa-
rate answers to the Ives petition for the
removal OF the Northern Pactic receiv-
srS. The answers present exhaustive
replies 10 every charge made, and COM
prise over five hundred printed pages,
and are accompanied by documents and
proofs, in all making 100000 words.
The answers not only meet all specific
charges, but even explain and refute
mere Insinuations. Not a point is left
unanswered. All technical objections
to the petition, on account of ambiguity
and vagueneSS, have been waived; the
receivers have with franknesS laid all
the facts ana circumstances of the en-
tire subject fully before the court, with
numerous affidavits and other evidence
in support OF their denials. 1t is shown
that the branch-line policy originated
during the lVeS-HarriS administration,
and the receivers bring proofs to show
that by rejecting branch-line leases
they have saved more than s1,000,0O0
per year. The receivers nave already
paid S5,O0O.O00 preferential debts and
about 100000 interest, with important
economies in operation. MIR. Cakes
answers every charge specifically,
filing exhaustive documents and proofs.
Mr.. RalStOn vigorously scores his ac-
cuSerS and
REFUTE EVERY ALLEGATION.
In his answer Mr.. Oakes specifically
denied that he was a partner in or
prOfited by the construction of any of
the lines or the guarantee of any of the
bonds OF the same, and courts the full
est investigation, and he also denies
that the directors profited thereby. He
shows that under his management the
gross earnings were increased from
Sl2,000,000 TO 24,O0O,O 900 until the recent
extraordinary depression. which solely
caused the bankruptcy of the company.
He reviews the history of the purchase
OTleaSe Of the following railroads: The
United Railroads Of Washington, the
Spokane IL Paiouse, the Rocky Fork 81
Cooke City, the Seattle. Lake Shore d
Eastern, the Northern Pacific & Mani
clfic. The answer shows that they
were necessary for meeting competition
and controlling the business and pro-
tecting the territory. The Northern
Pacific directors and stockholders
unanimously adopted this policy Ill 1881.
readopted it in 1856 and IN 1899; that
pursuant to this policy, from time to
time branch roads were constructed or
acquired to meet particular exigencies:
that in each instance the subject was
carefully examined, referred to special
committees, reported upon by various
departments to the board, and that all
twenty three branch lines now in opera
lion with the exception OF five) were
commenced or authorized by the
IVEs-HARRIs BOARD
that now complain Of the same, and
that the responsibility for the pr0secu-
ton of this policy of branch line build
ing is laid upon the 'IveS-Harris board:
that tie acquisition Of the branch lines
was necessity III railroad management
and upon the whole beneficial to the
system. Each brauch line complained
Of in the petition is eXhauStiYely treats
ed, and all the facts and figures relating
TO the construction. acquisition, cost and
operation thereof are fully shown. The
branch lines constructed or acquired
during the period Mr. Oakes was di-
rector furnished business to the North
erD Pacific Railroad company of over
S4,C00,000, or more than one-half of the
entire revenue derived by the Northern
Pacific Railroad company from inter-
changed business with all its branch
lines. The Central Washington. Green
River Il Northern, Spokane & Palouse
and Northern Pacific & Montana roads
all were constructed. or their construc-
tiOn provided for, under the HarriS-Iyes
management.
On the Spokane & Palouse the busi-
ness last year exceeded 1850, 900, the net
revenue from which paid all the inter.
est on the bonds issued on account of
the extension. The Green River &
Northern was authorized by the Ives
Harris board of directors. The contract
for its construction is dated April, 1888,
and signed
BY ROBERT HARRIS.
The answer shows that no director
''No SANSbNA III lllC COllSlL uCblOll VI
the united railroads of Washington:
that they cost the total amount of bonds
issued thereon, and that no profits were
made iii its construction
The answer shows that not cent of
money was paid the Oregon & Trans
continental company for its services in
purchasing the Seattle, Lake Shore &
Eastern.
Four directors of the company were
interested in a syndicate which owned
and controlled the Rocky Fork mines
and railroad; that the company pur-
chased the stock of this company and
made contract with The Rocky Fork
company TOR 500 tons of coal day for
ninety-nine years at $3.50 per ton, with
certain rebates. The answer shows that
for the three fiscal years ending June
so last, the company saved by virtue of
sad contracts over 81, 600, 600, or a sum
equal to about 1000 day.
AS to the Northern Pacific & Manitoba
railroad, or the acquisition of the stock
and bonds of that company, the answer
shows that syndicate was organized
by Mr.. Willard to construct this road. but
that he had no personal interest In If
The entire road, including terminal prom.