St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-16
BARNEf'S BLOCK OF STOCK
HIS Rocky FGRK coal SHARES FELL
OFF SUDDENLY
HE BOUGHT FROM SAM HAUSER

Charles II. Leland, Who Was
President of the Sixth National
Bank, Testified That He Sold
His Interest to Pell and Clau-
sen, the "Kiters''-1he Chicago
Terminal Deal.
New YORK. May 10 Charles T. Bar
hey continued his testimony in the
Northern Pacific investigation today
He was not quite consistent with his
testimony of yesterday. The block of
Rocky Fork coal stock he had bought
fell OF to 400 shares, and he was not
sure, after all. that 1t was from Samuel
I. Hauser that he had bought it. Mr..
Willard was trustee OF the Rocky Fork
company, which was capitalized for
100000. Many holders of Rocky Fork
Coal company stock thought the ar
rargement made with the Northern
Pacific an equitable one, and at the re-
quest Of Mr.. Willard and other officials
Of the Northern Pacific railways. Mr..
Barney says he bought the interests of
the Directing Rocky Fork stockholders,
uldl!9 VI W uoiN udu no interest Ill the
Northern Pacific. Mr.. Barney was as
sured that the acquisition of the Rocky
Fork Coal cOmpanywould save the North
ern Pacific from 100000 to $1,000 per
year. lie added that he has never since
had any reason to regret purchasing
the stock. After Secretary EdeS. of
the North American company, had
put some documents in evidence Law
yer Petit called Charles II. Leland,
another director of the Northern Pacific
under N!llaId's management. MIR.
Leland was president of the Sixth
National bank. and sold out his interest
TO Peil and Clausen. the 'kiters."
Speaking of the value of the
TERMINAL. PROPERTIES
acquired III Chicago, Mir. Barney said
that the bonds set aside for the de-
ticiency in interest for the first two or
three years would, in his Judgment,
have been ample, but for the fact that
the times since requirement of the
property had not been normal. An
other feature should not be ignored in
estimating the values of the terminal
properties, and that was that the North
ern Pacific acquired terminal tracks in
Chicago Which they could not be
required to elevate, and that eXemp-
ton lie considered at the time and still
considered 10 be of inestimable
value, i'll view of the fact that the
presidents of other railroads in Chicago
told him that il the law in question was
enforced ii would. bankrupt every rail-
road entering Chicago. not otherwise
exempt. He considered the exemption
from that law of the terminal properties
acquired BY the Northern Pacific very
important factor in estimating the value
OF these properties.
Mr.. Leland declared with much en-
phaSlS that he had never heard OF the
Rocky Fork G. Cooke City road or of the
zeal company Of that name until
the purchase had been made by the
Northern Pacific road. He had never
spoken with Mr.. Willard about the ter
minals OF the Northern Pacific road;
indeed he had never done more than
exchange ordinary circulars with him.
Then you just attended meetings
and voted as The others did?" asked
Lawyer Petit.
No, | think the others voted as 1
did"
n recess was taken at this point.
After recess John A. Stewart preSi-
dent or the United States Trust COM
pany, who had been subpenaed to
bring all the books, checks and mem-
oranda relating to the purchase of the
Chicago IL Northern Pacific, brought only
typewriter documents and printed
forms. He submitted a memorandum
showing various payments by the Ore
gon Transcontinental i'll 1890. amount
ing to about SS,500,000, and produced a
statement to whom these moneys were
paid. He believed he had nothing to
do with Mr.. Willard in this connection,
aud he had never seen Mr.. Cakes in his
life.
G. c. Beaman. of Evarts. Choate &
BeamaD, stated he had made a report
on the Chicago & Great Western at the
instance of Mr.. Willard, who CALLED in
structions from Europe. Mr.. Beaman
said he was the legal head of the road
and followed the advice of Messrs.
Willard and Cakes. While Mr.. Beaman
was on the stand the hearing was ad-
luurued for the day.