The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1894-09-15
Master in Chancery Finds Willard
Made Unlawful Gains.
TT. CAKES WAS ExONERATED
Twenty-Four Receivers of the Northern
Pacific Branch Lines Will Lose
Their Positions.

Chancery A. l.. Carey filed his report
this afternoon on matters referred TO
him in connection with the Northern
Pacific receivership contest. The report
is a complete victory for the receivers,
the master generating Thomas +.
Cakes from every charge preferred
against him, but Henry Willard is
found guilty OF having made unlawful
gains as director of the road. "A
synopsis of the masters report, show
ing the various findings, follows:
First-The master finds Thomas +.
Cakes had no pecuniary interest in and
derived no personal advantage or gain
of any kind from the matters referred
for investigation.
Second-The master finds that Henry
Willard, director of the Northern Pa
cific Railroad Company, made unlaw-
fuI gains by the acquisition of the
Northern Pacific & Manitoba Railway
Company by the Northern Pacific
Railway Company to the extent of
1888, SOTO.
Third-It is found that Cakes did
not and was not bound 10 know that
Willard was interested in the Northern
Pacific 81 Manitoba railway, or that lie
was making any unlawful gsins by the
acquisition of the said railway by the
Northern Pacific Railway Company.
As a sequence, the master finds that
Cakes was not bound to take any
measures to prevent Willard from max
ing such unlawful gains or the protec-
| g = l.
Pacific Railway Company in respect
thereto.
Fourth-During the four fiscal years
ending June 80, 1893, the Northern
Pacific Company made savings, under
a contract with the Rocky Fork Coal
Company, to the amount of 1888
981. go. or an average of over S475, 0OC
per year for over four years.
Fifth--The master finds that William
Il. Bull, Charles 4. Barney, James Heg-
gen ana Charles B. Wright, director,
Of the Northern Pacific Railway Com
pany, were interested in the Rocky
Fork 81 Coke City Railway Company
aud were directors of the Rocky Forl
Coal Company.
Sixth-The master finds that no di-
rectors of the Northern Pacific &C
quired unlawful gains by acquisition
: by that company of the Rocky Fork
7 Coke City railway or by arran gemen
e made with the Rocks Fork Coal Com
!, pany.
: Seventh-The master says he cal
not find. as to these subjects of investi
: gation, that Cakes was In any respec
: disloyal to his company.
Eighth-The master finds that tn
: Chicago terminus cost the origine
: parties that were interested in it $40
! 296. 7S3. go.
: Ninth-The master finds that til
Oregon Transcontinenta Company n
ceived SIS, 900, 900 bonds for the Chicag
& Northern Pacific company and tbs
= 1t is possible to trace the disposition {
- all of them except three bonds. Thes
> bonds are unaccounted for.
y Tenth-The master states the a,
- count with the Oregon Transcontinen
al Company shows that it receive
from these bonds SIS, 667, $40. 3S; that
paid out for these properties and fC
" expenses, etc, SIS. 68l, 0S5. AZ, leaving
balance OF $1S6, 798. SO unaccounted f
> on the debit side of their account
70 The master finds there are $409, 0C
:, of bonds that were delivered to Villal
= upon Wegg's order but unaccounte
lot, eACepG tudb NhSy WSAS iSSSAplSd ~
by Willard through Colgate Hoy
= The Oregon TranscontinentaI con
= pany, in all its transactions relating
the acquisition of the several Chical
!. terminal properties, acted as agent +
the real parties interested, whoev
i they may have been. Messrs, Coll
;" aud Hoyt were only members of Il
Northern Pacific Loard during the yea
y 1889 aud 1890, in which the transacio
- under review took place. that appa
- emily had any direct interest in t
20 Chicago terminal. They acquired su,
= interest long prior to the time wh'
they became members OF the Northe
a. Pacific board and at time when tn
4, owed no duties to the Northern Paci
~ company. The Northern Paci
~ company did not furnish these bon
~ and were in no degree liable for the