St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-12
ing it. This has always been denied by

ing it. This has always been denied by
the Chicago & Northern Pacific people.
These books of the old Oregon 81 .ans-
continental have never been Seen be-
fore by the counsel on either side of the
| present investigation.
The minutes of the meetings of the
Oregon & TTanscontinental company III
| New York, on Jan. 90. 1890. and May &c,
1890. were also read. They recited the
various steps in the formation of the
Chicago & Northern Pacific. and gave
lists of the property held by that cum
pany after its formation. Thraugf1ut
step In the formation of the Chicago &
! Northern PACING vas taken with the
advice aud instruction OF the Northern
Pacific, II with the intention of leas-
Ing the Chicago & Northern Pacific to
the Northern Pacific through the Wis
| consin Central company. The $40, 00O,-
600 bonds of the Chicago & Nort.-.A
Pacific were sold at 80 per cent. and
should have brought III S1S, OG0. 800.
But only about $1,000 600 appeared on
the books Of the Oregon & Transconti-
mental as having been received, and
there was
NOTHING TO SHOW
from which OF the purchasers this had
come.
"Mr. Edes," said Mr.. Petit, ION the
list of subscribers to these bonds l find
substitution of over four millions by
the Deutscher bank. j. II. s. Stearn,
Henry Willard and associates. Was
this subscription ever paid?"
Il don't KNOW" replied Mr.. Edes. 81
suppose 1t formed part of the lump sum
credited to cash."
"Have you nothing to show that it
was received?"
mot here" said Mr.. Edes. "The
check book may show"
"VeIy WELL" replied Mr.. fettit.
Snow here is the subscription of c. l..
Colby for himself. Mr.. Rockefeller, Mr.,
Hoyt, Mr.. Trever, Mr.. Abbott and Mr..
Colgate for 81. 600 900. Have you any.
thing to show that his sum was ever
| paid?9"
nothing" replied the witness. "un-
less the check book does So"
But, my dear sir" said Mr.. Petit,
'you did not receive millions without
making II record of where they came
] IrOm?"
"WelI. they came from the subscribers
to the bonds" said Mr.. Edes, ''bu there
is no record of the separate payments
by them"
Some discussion took place over a
pencil mark on the books, referring to
this matter, which, MIR. Edes said, had
probably been made by the bookkeeper,
from information given him by Edes.
The object of he questions asked the
witness is to ShOW mat the Willard SYN
dictate received some Sill, 0a0, 900 of bonds
for a nominal sum, while other pur-
chasers paid the nominal rate OF 80 per
cent. All receipts from subscribers be-
ing Jumped. and no itemized list of pay
ments being kept, SO far as can be
learned at present, it will be very diff
cult to show whether the Willard Syndi-
cate did or did not pay for theiI bonds.
, Mr.. Edes Is expected to produce the
check book, and throw some light on
the subject. G. Spotford was present at
the afternoon session, but refused to
testify.
Mr.. Spoffard's refusal to testify was
based upon the presumption that the
present hearings were really instituted
In order to obtain evidence to use
against
MIR. Willard AND OTHERS,
and that the circuit court in Wisconsin
had no jurisdiction to institute or prose-
cute the inquiry and that the clerk of
the circuit court of Southern New York
had no power to subpoena him.
At the request of MIR. Petit, the
subpoena under which Mr.. Spoffard was
called was read. Master Carey then
SAID that he was powerless in the mat
ter and it must be referred to the
United States court.
MIR. Edes then again took the stand
and produced the check and deposit
book Of the Oregon & rranscontinental.
| which it was hoped would show who
had paid the money received for the
bonds Of the Chicago d Northern Pa
clhc. The books showed the deposit of
S., 100. $50 on June 2, 1890. to the credit
OF the subscription for the Chicago Il
Northern Pacific bonds. This sum had
been deposited in hye different sums in
the same bank OF the sane day. AN
itemiZed account showed that these
were made up OF a score or more small
sums. Against eight of these, aggre-
eating $S26,537 were marked the letters
III. "" This, Mr.. Edes said, meant
that they were received from Mr. Wilt
ard. None of the other items were
marked.
"Now, you have only received about
half the SIS. 000, 0U0 that you should have
received. Where is the other haIf?"
II do not know"
"Well, who did not pay up?"
81 don't know"
"What is your recollection?"
my recollection isl don't recol.
lect."
"Do you remember any one who did
not Pay up"
"Out of half that did don't you recol-
fect any one?"
"Yes; Mr.. Smith,"
"What is the total of Mr.. Wizards
paymenls?"
$50 far as | can see here it was $780,
537, paid in June"
Were any subsequent payments
made on account of the bonds?"
Yes" said Mr.. Edes. "a SS34, $50 was
paid on July 26."
WHO paid itp"
"Well, it was paid on account of the
purchasers Of thesbOnds, but | do not
know the individual payers" The
money SO received and deposited by the
Oregon and Transcontinental was paid
over to u. 5. Wegg Oh the same day,
Mr.. Wegg being one of the trustees and
stockholders of the various properties
then being consolidated into the Chi |
cago d Northern Pacific. The search
for the persons who didn't pay for their
bonds grew warm, and the lawyers and |
witnesses got very much tangled up in
Intricate statements made of the figures.
Finally MIR. NcNaugnt. counsel for the |
receivers, suggested that perhaps the
records OF tile transactions with the
United States Trust company with Chi
cage u Northern Pacific would throw
some light ON the subject, and asked
for their production tomorrow morning. |
The meeting then adjourned till morn.
ing. Mr. McNaught afterward ex-
planned that it would probably appear
that the missing 81. 900, 600 bonds had |
been obtained through the United
States Trust company, and, of course,