The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1894-09-12
CHARGEDWITHFRAUD
Master in Chancery Finds Willard
Made Unlawful Gains.
T, F. CAKES WAS Ex0NERATED
Twenty-FOur Receivers Of the Northern
Pacific Branch Lines Will Lose
Their Positions.

IuelE IOSAVAOn1s
MILWAUKEE, Sept. 8.-Master In
Chancery A. L. Carey filed his report
this afternoon on matters referred 10
him in connection with the Northern
Pacific receivership contest. The report
is complete victory for the receivers.
the master generating Thomas +.
Cakes from every charge preferred
against him, but Henry Willard is
found guilty OF having made unlawful
gains as a director of the road. A
synopsis Of the masters report, show
ing the various findings. follows:
First-The master finds Thomas +.
Cakes had no pecuniary interest In aud
derived no personal advantage or gain
of any kind from the matters referred
for investigation.
Second-The master finds that Henry
Willard, director Of the Northern Pa
cific Railroad Company, made unlaw-
full gains by the acquisition of the
Northern Pacific & Manitoba Railway
Company by the Northern Pacific
Railway Company to the extent of
$369, 57o.70
Third-It il found that Cakes did
not and was not bound TO know that
Willard was interested in the Northern
Pacific & Manitoba railway, or that lie
was making any unlawful gains by the
acquisition of the said railway by the
Northern Pacific Railway Company.
AS q sequence, the master finds that
Cakes was not bound to take any
measures to prevent Willard from max.
ing such unlawful gains or the protec-
ton of the interest of the Northern
Pacific Railway Company In respect
thereto.
Fourth-During the four fiscal years
ending June 80, 1893, The Northern
Pacific Company made savings, under
a contract with the Rocky Fork Coal
Company, to the amount of 81. $685.
981.6O. or an average of over $475, 600
per year for over four years.
Fifth-The master finds that William
T. Bull. Charles T. Barney, James Heg-
gen and Charles B. Wright, directors
Of the Northern Pacific Railway Com
pany, were interested In the Rocky
Fork & Coke City Railway Company.
and were directors of the Rocky Fork
Coal Company.
Sixth-The master finds that no d.
rectors of the Northern Pacific &C.
quired unlawful gains by acquisition
by that company of the Rocky Fork &
Coke City railway or by arran cement
made with the Rocks Fork Goal Com
pany.
Seventh-The master says he can
not find. as to these subjects of investi-
CATION, that Cakes was in any respect
disloyal to his company.
Eighth-The master finds that the
Chicago terminus cost the original
parties that were interested In it $10,.
296. 1882.
Ninth-The master finds that the
Oregon Transcontinental Company re-
ceived SIS, O0O, 600 bonds for the Chicago
& Northern Pacific company and that
1t Is possible to trace the disposition of
all of them except three bonds. These
bonds are unaccOunted for.
Tenth-The master states the &C
count with the Oregon Transcontinent.
al Company shows that it received
from these bonds SIS, 667, $40 38; that it
paid out for these properties and for
expenses, etc SIS. 6Sl ,O85. AZ, leaving
balance of $lS6, 798. So unaccounted for
on the debit side of their account
The master finds there are $409. 900
of bonds that were delivered to Willard
upon Wegg's order, but unaccounted
for, except that they were receipted for
by Willard through Colgate Hoyt.
The Oregon Transcontinentai COM
pany, in all Its transactions relating to
the acquisition of the several Chicago
terminal properties, acted as agent for
the real parties interested, whoever
they may have been. Messrs. Colby
and Hoyt were only mem bers of the
Northern Pacific Loard during the years
1889 and 1890, In which the transactions
under review took place. that appar-
emily had any direct interest In the
Chicago terminal. They acquired such
interest long prior to the time when
they became members OF the Mort hern
Pacific board and at time when they
owed no duties to the Northern Pacific
company. The Northern Pacific
company did not furnish these bonds
and were in no degree liable for them.