St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-10


NEW YORK. May 9.-'rhe inyestiRa-
ton iutO thu fairs of the Nothern Pa.
cific company. which was begun In Chi
cagO on April 80, was continued before
Special Master Carey in the Mills build
ing today. Henry s. BoutelIe was the
first witness called. He was general
solicitor of the Chicago s. Great West
ern railway from June. 1889, until the
time of the organization of the Chicago
u Northern Pacific, and acted as coun-
sci for the Chicago, Harlem & Batavia.
and the Bridgeport and South Chicago
allied roads. The principal matter dis
cussed by Mr.. BOutelle today was the
consolidation Of these companies. He
said there had been talk of consolidate
ing them and Of purchasing certain
9th er property Oh which the Grand
Central station was finally built, as far
back as 1887. The scheme finally
adopted was for tbs formation of new
cific. First, the three companies were
leased to the new corporation. and then
all their properties were sold to thunder
an act of the state OF Illinois, passed in
1885. Then the station property was
bought by the new company. At this
time, so far as the witness knew, there
was no Intention to sell to the Northern
Pacific company. At the afternoon
session
MIR. M'NAUGHT CUES TONED
MIR. Boutelle as to his absence from
Chicago when the investigation was
opened there.
Mr.. Boutelle said he had no Office at
the time, but that he left the most care
full details of his route at his house. in
dicating where he could be reached by
telegraph at any moment. He did not
know at the time that the hearing had
been begun, and as soon as he learned
Of It he came at once to offer his teSti-
mOny.
In answer to questions from MIR. Nc
Naught, Mr.. BOuteile next explained
the peculiar values OF the various prop
critics sold to the Chicago & Northern
Pacific. In 1890 Mr.. Boutelle Went over
the road and property afterwards sold
to the Chicago q Northern Pacific with
a view to yaluing them. This was
done. not for any particular purpose,
but merely as part OF the office routine.
His valuation was used as basis in
future reports On the property. Ac.
cording to his recollection he valued the
real estate at about SIS, OOO, 900, and the
tracks. right Of way, franchises and
other property at about S5.000sO0O.
hen the Chicago Il Northern Pacific
bonds were issued. S65O,00O Of them
were reserved to pay the interest on a
section of property leased from the
school board, which had refused to sell
it outright; 1899, 1000 was reserved to
meet399 outstanding bonds OF the Chi
cago d Northern Pacific which could
not be reached. The rest Of the bonds,
S1S. $4,000 par value, were distributed
to the owners Of the four properties
acquired, VIZ: The Chicago & Great
tavia, the Bridgeport q South Chicago,
and the real estate ON which the Grand
Central station was built.
On the redirect examination,
MIR. PETIT DIRECTED
his questions to an attempt to show that
the Chicago. Harlem & Batavia and the
Bridgeport & South Chicago roads were
worthless, never having paid their fixed
charges. Mir. B0utelle, however, knew
nothing OF the receipts, expenditures or
profits OF tho roads except by hearsay.
The right of the Chicago. Harlem u
Batavia to operate grade tracks III the
town of Cicero would, he thought, be
very valuable in the future. Cicero was
now part OF Chicago. and 1t would be
very difficult for any road TO get from
the city council rights similar to those
it had obtained. Property owners con-
sents would have to be obtained now,
although they were not necessary then,
AS to the Bridgeport q South Chicago,
its possession had enabled the Chicago
q Northern Pacific to conclude All adj
vantageous agreement with the Chi.
cago, Burlington & Quincy. by which a
right Of way was secured through sew
eral important streets.
The fact, said Mr.. Boutelle, that these
two roads had lost money for three
years was no criterion of their value as
possession in perpetuity. The growth
OF chicago made them both very yalua-
bic.
The witness concluded by warmly re-
pelling an insinuati0n that Mr.. Wegg
had gone to Europe to avoid this inves-
tlgaiioD. He HAD gone only because of
the very bad condition of his health.
After the hearing had been adjourned,
but before anyone had left, slightly
dramatic scene took place. During the
morning session Mr.. Petit had stated
that he chad sent a subpoena to Mr..
5outells's residence. and that the bearer
had been unable to find out his where
abouts. At recess Mr.. Boutelle tele.
graphed to the marshal's office at Chi
cago to ask whether they had ever
served such paper. A telegram
signed }. c. Donnelly. deputy marshal,
received In reply, said that no papers
whatever had been made out for him.
When Mr.. Boutelle read this 10 the
master and counsel, MIR. Petit grinned
and remarked that his subpoena had
been served by deputy sheriff, and
that. of course, the marsbai's Office
would know nothing Of it. The hear
| ing will be continued tomorrow morning