The Weiser signal. [volume] (Weiser, Idaho) 1890-1904, 1894-09-13
CHARGEDWITHFRAUD
Master in Chancery Finds Willard
Made Unlawful Gains.
T.F. CAKES WAS Ex0NERATED


MILWAUKEE, Sept. s.-Master in
Chancery A. j.. Carey filed his report
this afternoon on matters referred to
him In connection with the Northern
Pacific receivership contest. The report
is complete victory for the receivers,
the master generating Thomas f.
Cakes from every charge preferred
against him, but Henry Willard is
found guilty OF having made unlawful
gains as director of the road.
synopsis of the masters report, show
ing the various findings. follows:
First-The master finds Thomas f.
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, a director of the Northern Pa
cific Railroad Company, made unlaw-
ful gains by the acquisition of the
Northern Pacific g. Manitoba Railway
Company by the Northern Pacific
Railway Company to the extent Of
$685., SOTO.
Third-It Is found that Cakes did
not and was not bound 10 know that
| Willard was interested in the Northern
Pacific & Manitoba railway, or that lie
was making any unlawful Coins by the
acquisition of the said railway by the
Northern Pacific Railway Company.
AS sequence, the master finds that
! Cakes was not bound to take any
| To IL
ing such unlawful gains or the protec-
ton of the Interest of the Northern
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 $685.
9Sl.60. or an average of over $475, 900
per year for over four years.
Fifth-The master finds that William
II. Bull, Charles T. Barney, James Heg-
gen and Charles B. Wright, director
of the Northern Pacific Railway Com
pany, were interested in the Rocky
Fork g. Coke City Railway Company,
and were directors of the Rocky Fork
Coal Company.
Sixth-The master finds that no di =
rectors of the Northern Pacific ac-
qulred unlawful gains by acquisition
by that company of the Rocky Fork &
Coke City railway or by arran cement
made with the Rocks Fork Coal Com
pany.
Seventh-The master says he can
not find, as to these subjects of investi-
cation, that Cakes was in any respect
disloyal TO his company.
Eighth-The master finds that the
Chicago terminus cost the origina
parties that were interested In it $40,
296. 783 go.
Ninth-The master finds that th,
Oregon Transcontinental Company re
ceived SIS, 200, 600 bonds for the Chicug,
& Northern Pacific company and tina
it is possible to trace the disposition o
all of them except three bonds. Thes'
bonds are unaccounted for.
Tenth-The master states the &C
count with the Oregon Transcontinent
al Company shows that it received
from these bonds SIS, 667, $40 80; that i
paid out for these properties and 70
, expenses, etc SIS. 6Sl ,0S5 AZ, leaving
, balance of $lS6, 1893 SO unaccounted TO
on the debit side of their account.
The master finds there are $409, 00t
of bonds that were delivered to Villar,
upon Wege's order, but unaccounte'
for, except that they were receipled TO
by Willard through Colgate Hoyt
y The Oregon Transcontinentai com
pany, in all its transactions relating T.
y the acquisition OF the several Chicag
terminal properties, acted as agent 70
the real parties interested, whoeve
they may have been. Messrs, Cobb
and Hoyt were only mem bers of th
e Northern Pacific Loard during the year
s 1889 and 1899, in which the transaction
: under review took place. that appa
[. entity had any direct interest IN tn
n Chicago terminal. They acquired sue
interest long prior to the time whe
s. they became members OF the Nor her
), Pacific board and at time when the
, owed no duties TO the Northern PAcif
= company. The Northern pacif
If company did not furnish these bono
It and were in no degree liable for then