The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-05-12

New York May 11.-several new
faces were visible in the group of law
yers, directors and witnesses in the
Northern Pacific investigation case to-
day.
Among them were c. W. Wright, one
of the Northern Pacific railroad direc-
tors and A. c.. spofford, president of
the Rocky Fork & Cook City railroad,
and private secretary to Henry Vii
lard.
Mr.. spofford was to have testified
yesterday, but was excused on account
of the absence of his counsel I. D.
Searles, vice-president of the Farmers
Loan & Trust company, was recalled,
and asked whether he had been able to
find any record of the increased CAPT
tai stock of the Rocky Fork & Cook
City railroad company from $40, 900 to
81. 100000. Mr.. Searles said that the
company had no such record, and that
the increase must have been made be-
fore the stock came into the company's
possession.
James Mcknight, senior counsel for
the receivers, stated. however, that he
had the minutes of the meeting of the
stockholders and directors, at which
the increase was authorized and was
ready to submit them at any time.
The dates of these meetings were April
5, 1889, and May 4, 1889.
Edes on the Stand.
Edward Edes, secretary and treas
urer of the Rocky Fork & Cook City
company, was replaced on the stand
c. w Wetmore, president of the
| North American company, asked per
mission to appear as counsel for the
! witness. He stated that xnB books of
the old Oregon Transcontinental in
ouired for yesterday were among the
company. He was perfectly willing to
permit any of them to be produced by
Mr.. Edes, which had any bearing on
the case under considera ton, but
wished to be present to see that no
others were presented.
] After some discussion as to whether
Mr. Wetmore should not rather ap-
pear as witness himself, Master
Carey decided to allow him to act as
counsel, and the examination of Mr..
J Edes proceeded. Mr.. Edes procured
various books of the Oregon Trans
continental, which were put in evil
dence. He was requested to refer to
those portions of the books of the
company which showed in what way it
was concerned in the placing of the
bonds of the Chicago & North Pacific.
J Why Bonds Were Issued.
! After much discussion, it was finally
developed that when the Chicago &
North Pacific issued it's bonds to OBJ
tain funds for the purchase of the va
rious properties comprising it, they
were deposited with the Farmers
Loan and Trust company. The Ore
gon .Transcontinental, acting as finan-
cial agent of the Chicago & Northern
$7000,000 or $SO00.O00 and opened sub
/ scription lists for the bonds. AS the
latter were paid for, most of them at
80 cents on the dollar, the Oregon
Transcontinental gave orders of the
Farmers Loan and Trust company to
purchasers for the delivery of the
bonds. For these services as finan-
cial agent, the Oregon Transcontinen-
tai received commission of per
cent. AT that time, January IS, 1890,
an agreement had been made between
the Northern Pacific, the Wisconsin
Central and Chicago & Northern Pa
cif1c by which the latter should be
formed and leased to the Wisconsin
Central and sub-leased to the North
ern Pacific. The reason for the intro
duction of temporary financial agent
was that the options for the purchase
of the roads and properties after
wards consolidated into the Chicago &
Northern Pacific company were about
to expire, and it was necessary to
obtain an advance of money from
such an agent in order to insure
them. Minutes of the meeting of Ore
gon Transcontinental directors for Jan
uary Is, 1880, showing these facts. were
read in full. They created something
of sensation, as they showed that the
plan OF leasing the Chicago & Northern
Pacific to the Northern Pacific was full
ly understood before the formation of
the former company, and that it was
formed for the purpose of so leasing it.
This has already been denied by the
Chicago & Northern Pacific people.
These books of the Old Oregon Trans
continental have never been before seen
by the counsel on either side until the
present investigation. The minutes of
the meeting of Oregon Transcontinenta II
committee in New York, January %,
1885, and May 26, 1890, were also read.
They reclted the various steps in the
formation Of the Chicago & Northern
Pacific, and gave lists of the property
held by that company after its forma-
ton.
1t Was Cute Move.
4 Throughout, the minutes showed that
cago & Northern Pacific was taken with
the advice and instruction of the North
ern Pacific, and with the intention of
leasing the Chicago e Northern Pacific
to the Northern Pacific through the
Wisconsin Central company. The $40
100000 of bonds of the Chicago & North
ern Pacific were sold at so per cent.
and should have brought in SIS, coo, 600.
but only about $4,000 900 appeared on
the books of the Oregon Transcontinen-
tai, as having been received, and there
was nothing to show from which pur-
chasers this had come.
cord of what the purchasers paid.
! Mr.. Edes testified that during his
work as financial agent for the Chi
cago & Northern Pacific, the Oregon
railroad and Transcontinental railroad
had borrowed some four and a half
millions from the Wisconsin Central.
The money was paid back a few
months later and the transaction is
only of interest in showing the init
mate relations existing between the
Northern Pacific, Wisconsin Central
Oregon Railway and Transcontinental
railroad, and Chicago & Northern Pa
cific, all pretty much controlled by the
same parties, and the way in which
they loaned money to each other