St. Paul daily globe., 1894-09-09

Oakes from every charge preferred
against him; but Henry Willard is
found guilty of having made unlawful
gains as director of the Northern
Pacific Railroad company.
About last Christmas suit was begun
by President Burton Ives, of the North
ern Pacific company, for the removal
of the receivers appointed by the courts.
The motion was denied in the case of all
except eX-President and Receiver
Oakes, and Mr.. Carey was appointed
master-in-ch -chancery to take testimony
in relation to him and render report.
The testimony was taken in various
places throughout the country, much of
1t in New York. The written testimony
embraced over million words.
The synopsis of the masters report,
showing the various findings, follows:
Carey's Report.
l. The master finds that Thomas F.
Oakes had no pecuniary interest in, and
derived no personal advantage or gain
from, any of the matters referred for
investigation.
2. The master finds that Henry Viii
lard, a director Of the Northern Pacific
railroad company, made unlawful gains
by the acquisition of the railroad of the
Northern Pacific & Manitoba Railway
company by the Northern Pacific Rail.
road company to the extent of $685..
69l.79.
3. 1t is found that Mr. Oakes did not,
and was not bound to, know that Mr..
Willard was interested in the Northern
Pacific & Manitoba railroad, or that he
was making any unlawful gains by the
acquisition of said railroad by the
Northern Pacific Railroad company. As
a sequence. the master finds that Mr..
Oakes was not bound to take any meas
ures to prevent Mr.. Willard from max
ing such unlawful gains. or for the
protection of the interest Of the North
ern Pacific Railroad company in respect
thereto.
4. During the four fiscal years end
ing June 80, 1898, the Northern Pacific
made savings under its contract with
the Rocky Fork Coal company to the
amount of SI,S93, ,5Sl. SO, an average of
over S475,000 per year for each of the
four years.
5. The master finds that William L..
Bull, Charles L. Barney. James B. Heg.
gen and Charles B. Wright, directors of
the Northern Pacific Railroad company,
were interested in the Rocky Fork 81
Cooke City Railroad company and in
the Rocky Fork Coal company, and In
the acquisition by the Northern Pacific
Railroad company of the Rocky Fork
d Cooke City railroad and IN the con-
tract made by the Northern Pacific
company with the Rocky Fork Coal
company.
e. The master finds that
None of the Directors
of the Northern Pacific company ac-
quired any unlawful gains by the ac.
QUESTION by that company of the Rocky
Fork & Cooke City railway or by the
arrangement made with the Rocky Fork
Coal company.
Z. The master says he connot find
that, as to these two subjects of inyesti-
CATION. MIR. Oakes was in any respect
dlsloyal to his company or to its inter-
ests, or negligent in his duties as pres
ident or director
s. The master finds that the Chicago
terminals cost the original parties that
were interested III them at the time thew
were turned over to the Chicago &
NortheIn Pacific Railroad company S1O,-
296, 1882.
8. The master finds that the Oregon
& Transcontinental company received
SlS.0OO.000 of the bonds of the Chicago
d Northern Pacific, and that it is pos
sible to trace the disposition of ali of
them except three bonds. Three bonds
are unaccOunted for.
10. On pages l34 and 195 the master
states the account with the Oregon &,
IranscOntinental company and shows
that it received from those bonds SIS
661, ,S79.38; that 1t paid ont for these
properties and for expenses, etc., sl5.-
4Sl. .OS5.42, leaving balance OF SlS6. 9g3. 96
unaccounted for, the debit side of their
account. That is sWelled by those con.
siderdtlonsi The master credited the
company with having paid 81, $50, 900 for
ika Station. which was In honda on III