The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1894-05-19

No Record Was Kept of Gigantic
Northern Pacific Deals.
WILLARD MIXED UP IN 1T
Rockefeller and other Magnates Also
Took a Hand-Counsel Has Asked
For Time to Explain.

New YORK, May I'm the Northern
Pacific investigation yesterday permits
sion was given c. w. Wetmore, presi-
dent of the North American company,
10 appear as counsel for Edward Edes,
secretary of the Rocky Fork and Cooke
City company. Edes produced the books
of the Oregon Transcontinental, which
were put in evidence. The books showed
that when the Chicago s. Northern
Pacific issued bonds for the purchase of
various properties, the Oregon Trans
continental advanced $1,000 900 or
SIS, 900 900, sold most of the bonds at 90
cents on the dollar and received COM
mission of per cent. The minutes of
the meeting of the oregon Transconti-
mental directors January IS, 1890,
created a sensation, as they showed
the plan of leasing the Chicago &
Northern Pacific to the Northern Pacific
was fully understood before the forma-
ton of the former and it was formed
with the intention of so leasing through
lease to the Wisconsin Central. This
has always been denied. Twenty mil
lion dollars in bonds of the Chicago s.
Northern Pacific, sold at 90 per cent,
should have brought 5000, 900, but
only about $4,000, 900 appeared on the
books as received and there is no record
which purchasers paid.
'Mr. Edes,'' said Mr.. Petit, "on the
list of subscribers to these bonds l find
subscription of over 81 600, 900 by the
Deutscher bank, j. H. S. Storms, Henry
Willard and associates. Was this sub
scription ever paid?" ~ don't know"
replied Edes. ~ suppose it formed
part of the lump credited to the case"
Have you nothing to show that it
was received" mot here" said Edes,
"the check book may show"
every WE'LL" replied Petit" "now
here is subscription of G. L. Colby for
himself, Mr.. Rockefeller, Mr.. Hoyt, Mr..
Trever, Mr.. Abbott and Mr.. Colgate for
s7,Ooo,OoO. Have you ANYTHING to show
that this sum was ever paidl" ''Noth-
ing" replied the witness, "unless the
check book does So"
But, my dear SIR said Petit, ''you
did not receive millions without making
a record of where they came from"
''Well, they came from the subscribers
to the bonds said Edes, "but there is
no record of separate payment by
them"
All receipts from subscribers were
Jumped, and no itemized list of pay
ments was kept so far as can belearned.
1t was difficult to show whether the
Willard syndicate didsor did not pay for
their bonds.
While Mr.. Edes was on the stand the
search for the persons who did not pay
for their bonds grew warm and lawyers
and witnesses got very much tangled
up in intricate questions, mostly on
figures. Finally Mr.. Mcknight, coun-
sci for the receivers, suggested tina.
perhaps the record of the transactions
with the United States Trust company
and with the Chicago & Northern Pa
ci6c would throw some light on the
sub ect and asked for their production
this morning. The meeting then ad-
journed until this morning at 10
o'clock.
Mcknight afterward explained that
it would probably appear that the
missing 81 ,OOO,O 600 for the bonds had
been obtained through the United
States Trust company, and of course
would not appear on the books Of the
Oregon Transcontinentsl com pany.