The evening world., 1894-05-09
CLERKS As |NC0RP0RAT0RS.
Mr.. Boutell Testifes in the North
ern Pacific Investigation.
Says They Were Dummies Used to
COnsummate u Deal.

Master in Chancery Alfred L. Cary.
of Milwaukee, before whom the North
ern Pacific investigation proceedings
are being held. visited the offices of the,
receivers of the Company in the Mills
Building at 10 o'clock his morning,
ready to go on with the hearings which
were begun in Chicago some time ago
These hearings are in the suit which
has been instituted by President Bray
ton Ives and the present management
of the Company for the removal of
Thomas +. Cakes as receiver, and in
cidentally to disclose an alleged con-
spiracy by the former Willard manage
ment. which was ousted from office last
year. II Is said the Company was de-
frauded out of something like Sl3. 900, 900.
The charge Is made by the present
management that this aL,ount was " i'm
properly diverted" by the Willard man
agement from the funds of the Compa-
ny, in connection with the securing Of
terminal facilities for the Northern Pa
cific in Chicago. 1t Is sought. as IA result
OF this action, to recov n this sum from
the old directors.
When the last hearing, In Chicago was
concluded. Lawyer Silns W, Pett't,
~ . v = "'f NV
ent directors. remarked:
We have shown how 10000 NJ or
more were stolen. When we begin our
hearing in New York we propose to
show who got the mohey."
President Ives. Nice-President Will
Jams, OF the Northern Pacific. and Re.
Ceiver Cakes were all present at the
hearing this morning.
Among the counsel present this morn
ing we've James Mcknight. ex-senator
S22oner., Of Wisconsin,, and George T.
Miller. for the receivers, ana La
Petit. Of Philadelphia, for President
Ives.
Receiver Oakes sat at a little distance
from the Master in Chlncery and near
his counsel, Gen. Spooner. He did not
appear Al all anxious or worried. II. :.
B1utell. who was Secretary of the chi
cage AMI Northern Pacific at Its organ-
ization ana an important Witness. was
also present.
1t was learned that Edwin II. Abbott,
one OF the chief Witnesses, had writ
ten n letter to the Master In chancery
saying, he did not purpose TO he ex-
amined In this city. and would consent
to en- examination in Milwaukee,
He has gone TO Boston. In his posses
composed the syndicate which manipu-
lated the Chicago and Northern Pacific
deal This move of -Abbott's is sudden
and unlocked for and may delay the in
v~estigation to a great extent.
The, proceedings were begun at II
o'clock by the calling of Henry :. Bou-
tell as a witness, lie testified that he
terestcd previous To 1890 in the Chicago
and Great Western; the bridgeport, and
South Chicago. and the Chicago. Har-
which We're all absorbed by the Chicago
and Northern Pacific. when the latter
was organized In 1897.
Mr.. Bouteil acknowledged that he had
received the letter OF March 3. 1899. from
Daniel S. Wegg, solicitor OF the North
ern Pacific in New York city, giving
him Instructions as to how the Chicago
and Northern deal was to be CARED out
This was all to be done by the aid OF
dummies to he selected by Mr.. Routel
for the incorporation Of the Chicago and
absorb the other companies mentioned.
The plan for the deal was set forth in
great detail in this letter: and Mr. Bou-
tn was to practically do all the pre-
ibid you carry out these Instructions -
asked Lawyer Petit.
Yes. substantially" replied the wit
ness.
This resulted In the lease by the new
Chicago and Northern Pacific. OF the
Chicago and Great Western, the Bridge
port and South Chicago, and the Chicago
Harlem and Batavia Companies, together
with n quantity OF real estate, which was
afterwards turned over to the Northern
Pacific.
Mr.. Routcll testified that the original
incorporators of the chicago II North
ern Pacific were clerks employed in
IN" construction WORKS At chicago. Inc
names were read to him. but he said he
only rccnllc"tcd one or two OF them.
They got ont when they were requested
20 10 so, and were only used as dummies
Mr.. Pettit tried very hard to get the
witness to admit that tn" Northern
Pacific directors, and particularly the
friends Of MIR. Willard, were directly
Interested in the preliminary deal, but
the Chicago lawyer ndroitly evaded the
questions or pleaded ack OF knowledge
on the subject.
Mr.. Petit brought up the subject Of
the checks for $500 and Sl2. O00. aid TO
have been paid To MIR. Wegg and Mr..
Boutcll. respectively, Just before Mr..
WegR sailed for Europe.
MIR, Boutell said his check had been re-
ceived for services rendered as counsel
for the Chicago and Northern Pacific.
lie was very glad to get the money, as
he had been without funds for about
eight months. He had not tried to evade
the service II any subpoena, and his
presence to-day showed he was anxious
TO tell all he knew.
At this point the hearing was ad-
journed till later In the day.