Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1894-09-13
But CAKES IS ENONERATED
FROM ALL CHARGES.
MASTER IN CHANCERY CARY
FILES A REPORT.
The Result Is a Complete Victory for
the Receivers-Some Inside History
of the Northern Pacitic's Deals
with the Wisconsin Cenual-Nil-
Iard's Unlawful Claims.

Milwaukee, Sept 10.-Master Chan
Gerry A. L. Cary has filed a report
on the matters referred to him for in
yestigation in connection with the
Northern Pacific receiyership contest
The report is complete vic
tory 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 a
director of the company.
Last winter a suit was begun by
President Ives, of the Northern Pa
cific. for the removal of the receivers
appointed by the court. The motion
was denied in the case of all except
Cakes, and Cary was appointed to
take testimony in relation to him. In
the report Cary finds that Cakes has
no pecuniary interests in and derived
no personal advantage or gain from
any matters referred to for inveStiga-
ton. He finds that Henry Willard, as
a director Of the company, made I'M
lawful gains by the acquisition of the
Northern Pacific and Manitoba rail
wy company by the Northern Pacific
railway company to the extent of
1858, 691.7O. Cakes did not know that
Willard was interested in the Mani
toba road or that he was making I'M
lawful gains by the acquisition of said
road. The master finds that none Of
the directors of the Northern Pacific
company acquired any unlawful gains
by the acquisition by that company of
the Rock Fork and Cook City railway
or by the arrangement made with the
Rock Fork coal company.
During the four years ending June
80. 1898, the Northern Pacific made
savings under the contract with the
Rocky Fork coal company averaging
$4,000 per annum. He finds that the
Chicago terminals cost at the time
they were turned over to the Chicago
and Northern Pacific $10,296,1S 1874. The
Oregon and TranS-COntinental COM
pany received S1S.0OO,0OO of bonds OF
the Chicago and Northern Pacific, all
of which with the exception Of three
have been accounted for. The Trans
company after d:SpOSlng
of the bonds and paying for the prop
critics and expenses therefrOm had
balance Of $1S6,794 which is I'M
accounted for. The master finds that
$4O9, 100000 in bonds, delivered to VII
lard upon Wegg's order, are entirely
for except by the receipt
IN Tho
master finds that the Oregon and
Trans-C Continental company in all the
transactions relating to the acquisI-
ton OF several Chicago terminal prop
ert:eS acted as the agent for the real
parties, Colby and Hoyt were the
only members Of the Northern Pacific
board of 1889 and 1890 apparently hav-
ing any interest in the Chicago ter
minals. They had acquired such inter
est long prior to becoming members of
the board of the Northern Pacific.
The agreement of the Northern Pacific
with the Wisconsin Central to pay as
a guarantee of rental a sum sufficient
to pay the interest on its bonds had
been made with the express provisO
that it could be cancelled an any time
by the mutual consent Of the two COM
panies and the holders of the bonds
would be remedies to prevent such
If his conclusions are correct, the
master continues, Cakes, as an officer
Of the Northern Pacific, had no duties
to perform in relation to bonds Or
proceeds and was not bound to investi
gate transactions in the sale of bonds.
The next finding is that $3,750,000
loaned by the Northern Pacific to the
Oregon and Trans Continental through
the Wisconsin Central Under an agree
ment on January 10th, 1890, has been
all paid back with interest at per
cent. The last finding is that the rent
al agreed to be paid by the Northern
Pacific in it's lease Of the Chicago ter
minals was not eXorbitant or improv
ident and that Thomas F. Oakes is not
guilty of any non-feasance or mis-
feasance as an officer or director of the
Northern Pacific company in respect
to such lease.