New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-19
DO DIRECTORS DIRECT9
HOW THE NORTHERN PACIFIC WAS
MANAGED.

TIMoNY-THE ROCKY FORK ROAD
AND THE CHICAGO TERM
NAILS UNDER SCRUTINY
~ Ar, IN the Northern Pacific Railroad
,,yas+o,tion was resumed before Alfred l.. Oa'F'
the master in chancery, yesterday ana so'he i"
portant witnesses were on the stand Inc 49, 49,
Of the examination was TO demonstrate ina ~
BOARD of Directors OF the Northern Pacliie s'NP.'
Sorowed the suggestions Of Henry Willard IN most
~ the transactions which are now under review
ard that the profits arising out Of the various deas
We absorbed by the original Wisconsin Ce"tI"i
svndcatc The prosecution sought 10 s"oM &c
the traffic department of the Northern fac'"c was
influential In persuadng directors 10 appio'e So
Of the schemes which carried out whle .ne
eranc,al operations were completed by Henry VIZ
lord Charles l.. Colby, Edwin H. ABBOT anu wi
gate Hoyt- ,,.,,,,.,, Nolson
Cromwell attorney for the receivers Inc I"0' wa"
developed that Mr.. Cromwell was director at o".
time IN the Rocky Fork and Cooke City Rairoau
Con,nanv but did not own any stock. He was act
ing in the main for the owners Of the roau' MesS'
Hauser and Piatt. He was Interested ne sau, %
an attorney in the formation Of the ROCKY rN
Coal Trust OF which Henry Willard was "us'.e'
Mr.. Cromwell said that the contract between 'ne
Rocky Fork and Mr. Hauser was that ne shou'u
hr,d tho road and receive the entire capital stock
of 100000 Then Mr.. Cromwell was asked ABOUT
the negotiations for the purchase OF 'he iNoON'
Fork road by the Northern PACING A letter Hoi'
Samuel T. Hauser to c. a. Spohord' Tor years 'i'e
private secretary of Mr. Willard IN "ncn MT iiau
ser ordered that all the capital stock OF 'he c0"
many no Turned over 10 Mr. Willard was SHOWN ~
him MIR Cromwell said that he had never seen
the letter before, and he did not know now IONS
the Rocky Fork road had been competed pei0'e
II was sold to the Northern Paclhc Inc witness
said that he represented the selling parry IN 'ne
deal, between the Rocky Fork and the Northern
Pacific and he was not IN any way connected WIN
the Northern Pacific It,, +,
.'Tben. in making the sale. you followed the in
strlctions Of Mr. Villard?' was asked. / ioAo"eu
the instructions of the Rocky Fork Trust
Mr. Cromwell made a long statement IN expIaha-
ton Of the payments of money to DaV4d . "ess
and Charles w Boutel when these men resigneu
from the Chicago and Northern Pac4hc ana me I'm
cago and Calumet roads He said that Il was az
soutely necessary for the receivers 10 get coH'iO'
feress of the Northern Pacific Chicago ana that
the Resignation OF Messrs Boutell and Wesg We're We're
well sad that the payments were far less than
mght legally and ProRery n2ve Dse Sweet = Co.
former president of the Stock Excs S , ana
former director in the Northern f&cG in 1Ha1e
for the acquisition Of the Chicago terminq.s c1 P
c,Sc He Rad talked with Thomas +. Oakes ne
president Of the Northern Pacific and win MI
The witness d.d not know that Messrs CODY AD-
bot and Hoyt were largely interested IN tne ne
Saqo ,eTnina deal was carried OUT: but ne sup
posed NJ By s1ia ieni a1 re d on h he
question as 10 whom The terminal properties ~. "a
Trs1scontinental was the real Of tie terminal
properties. and he presumed ma; ll.l |,is
a aSsf the matter Of purchasing ;emnas was
referred to the Finance Comniiee CT 1e NJ VII.
ness said that the reason why a lease was suDsl.-
tuted for the trans wo1d enable he Northern
Peci6c TO handle the business 10 better advantage.
PEssd9pt 1 2aS Ss RocR R'S Fork Mr. Bull
reply to questions said that he was nsrsSted IN me
IS6civ Fork Coal Trust the extent OF $500 Whlcn
was the value Of $50 certificates He went into the
tus; at the request Of MI VaS Pace The
acquisition OF the Northern Pacific ana Manitoba so
road waS amen and Mr. Bull testified that he
derstood that the road was valuable teeder 70 tne
conferences With Messrs oakes Colby and Willard
possibly with other directors ,, - c,.,o,o,
McNaught. counsel FOR the receivers: In voting for
the lease II the Chicago terminals. he SAID that ne
written reports of experts ana the report Of Mr.
be mar fuilT eSsmnsl the properties and found
them worth the price demanded for them. He said.
lst That fact dd not affect his s-
rnent In voting for the lease Of the terminals lie
d t5 not No4hern Pa taat ec That the
Bank OF Berlin the one principally interested
ne..her dd he recall thai Mr. Willard had Representa-
to the directors that ne same Pank o%nGa me ne
lMr Willard had formed the syndicate. he had no
personal interest in Il lie dd not remenper, MAJ S
property and found it to be fully worth the price
George s. Baxter. the treasurer Of the Northern
Pacific Company. recalled. He was examined
relative to the amounts paid for the Chicago Ter
said that the Oregon and Transcontnenta Com
pany did not own the properties In the sense that
man owned his house They taken up and car
rled by the company in order 10 turn them over to
new corporation TO aid the Oergon and Transconii-
mental In this Undertaking. me witness saln N SUP
fcient amount OF money TO the Wisconsin central
Oregon and Transcon,inental. He was asked II he
did not think 10000 was rather large ssiSn
work-the mere signing Of notes. lie said in reply
that he thought was not eGfSse The T9fE
TO more than signing notes. 1t had to carry on the
NEGOTIATIONS, buy stock, bonds. etc.
1T acted merely as an intermediary thenT
what was the use Of an Intermediary? Why ex-
pend half-milijon for work that you could have
The witness said that he did not think the work
could have been done by the Northern Pacific; tina
"But you were not consulted as to whether the
sressurer's office would be able to do the work?'
for the contracts between the Northern Pacific an(
the Rocky Fork coal trust relative 10 the supply OF
Mr. Mcknight said he would produce them ant
that he would show By them also that the Northern
The hearing will DE resumed to-day ut 10 a. m.
but will probably be brief owing to the half-holi
day.
RECEIVERS FILE AN AMENDED BILL
Hartford, Conn. May lS.-In the United States
Circuit Court this afternoon Thomas c. Plat an(
Marsden ]. Perry, receivers OF the New-York and
New-England:. filed an amended bill Of complain
against the New ork New-Haven and Hartford
for unjust discrimination against their road. The
bill is returnable July Q.