St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-10-16
CAKES IS INDICATED
Special Master Carey's Re-
port Sustained by Judge
Jenkins.
CHARGES PROVE BASELESS.
Statement That Willard Made
Unlawful Gains In
dorSed.
CHARGES PROVE BASELESS.
CAKES FREE FROM BLAME
And Not Guilty Of Negligence
in the Discharge OF
His Duties.

MILWAUKEE, Wis. Oct. 15,-Judge
Jenkins decision in the Uuited States
circuit court today confirms that portion
of Special Master Carey's special report
which eXonerates Receiver Cakes. The
judge cummendS, at some length, the
conduct of Mr.. Cakes. both as an official
OF the Northern Pacific road ami re-
ceiyer of the company.
The decision reviews the masters re-
port in detail. After referring TO the
history of the petition for the removal
o! the receivers, stating that it was dis
missed by the court as 10 Messrs. Payne
and Rouse, and was referred 10 Master
in-Ctancerv Cary for an examination
as TO Mr.. Cakes, the decision states that
there were four questions to be deter
mined by the master. First. whether
any of the Northern Pacific directors had
made unlawful gains out of the Rocky
Fork Il Cooke City deal second, whether
any of the directors had made unlawful
gains out of the Manitoba deal; third,
whether there had been unlawful! gains
In the Chicago Il Northern Pacific deal;
and fourth, whether an eXorbltant rent
al had been paid tor the property,
whether anybody in the Northern Pa
citic made anything out OF the leasing OF
the terminal lines. and lastly, whether
III respect OF any OF the transactions di-
rected to be Investigated Thomas +
Cakes knew, or ought to have known. of
them, and what measure, If any, he took
in prevention thereof for the protection
OF The interests of the Northern Pacific
Railroad company.
The master, the judge says. was two
months taking testimony in the matter,
and had rendered necessarily lengthy
report. one that lis most elaborate, i'll
dicating painstakiDg and thorough
scrutiny Of the evidence and careful
and able consideration OF the questions
involved"
He then states that
Willard II id Made Cnlavful Gains
to the amount of 1861. SOL. in the MAN.
itcba deal, but Mr.. Cakes did not know,
and was not bound to know that MIR.
Willard was making unlawful gains in
tine acquisition of the Manitoba by the
Northern Pacific, and that in the Rocky
Fork deal no unlawful gains had been
made by the Northern Pacific directors.
and Mr.. Cakes was not only free from
blame, but had he done otherwise than
he did, ''he would have been open TO
the just criticism of either lacking the
business sagacilv 10 be expected OF one
IN his high official position. or having
seriously neglected the great interests
committed 10 his charge"
Concerning the Chicago 81 Northern
Pacific deal, the decision says the ter
initial properties were purchased, not
for the Northern Pacific, but with a
view to give the Wisconsin Central
lines terminal facilities, and the court
agreed with the master that the rental
was not eXorbtanf, and that with re-
spect to the transaction, Mr.. Cakes was
not guilty of negligence in the dis
charge of his duties. In conclusion.
the decision says the charges against
Mr.. Cakes are unfounded i'll fact, and
without support of evidence.
The question of ordering the receivers
to bring suit against certain directors
to recover unlawful gains is left for
future deciSiOi.