The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-08
GRAVE CHARGES MADE.
Large Sums of Money From
Land Sales Said to Have
Been MiSappIied.
TO DEFEAT vILLARD'S SCHEME.
The Move Taken to Prevent the
Proposed Consolidation With
HIPS Great Northern.

SEATTLE, WASH, Aug. Z. In the
United States Circuit Court this morning
application was made for the removal OF
the receivers of the Northern Pacific Rail
road. The hearing was set for Friday
morning. The case is entitled THE
Farmers Loan and Trust Company VS..
The Northern Pacific Railroad Company"
and the affidavit is made by Brayton Ives,
pres ident of the Northern Pacific.
The affidavit alleges, among other things,
that in the appointment of receivers the
Circuit Court for the Eastern District of
Wisconsin did not exercise its independent
judgment, and that no part of the railroad
grant or property of the Northern Pacific
was or ever has been in Eastern Wiscon-
sin; that the receivers have not complied
with the order of the court, which directed
them not to pay out certain moneys.
The affidavit also alleges that the re-
ceivers have misapplied large sums of
money from the sale of lands and other
property by appropriating the same to the
payment of alleged debts of the Northern
Pacific in preference to interest and prin-
cipal due on mortgages.
The affidavit also charges G.. L. Colby
and Colgate Hoyt, who were directors of
the Northern Pacific, with having violated
their duty as directors In deals with the
Wisconsin Central Company and the Chi
cago and Northern Pacific Railway. 1t is
also alleged that Henry Willard dictated
and influenced the appointment of re-
ceivers and that E. d. Adams of New York,
who represents the consolidated mortgage
bondholders, and who also assumes to act
for the holders of second and third mort
gage bonds, is the'coniidential adviser and
director of the receivers, who accept and
follow whatever line he dictates and COM
municate to him full information in re-
spect to their doings, but communicate
nothing to the committee representing the
second and third mortgage bondholders or
to the officers of the corporation.
Silas w. Petit of New York, counsel for
the Northern Pacific in the proceedings in
stituted to-day, arrived in the city late
last night The move on the part of
President Ives, Mr.. Petit said, meant that
the reorganization plans of the Northern
Pacific, now in progress in the East,
whereby James J. Hill, the Great Northern
magnate, hoped to come into control of
the Northern Pacific, were temporarily at
least, knocked in the head, and if the
courts decided in favor of Ives Hill would
never get possession of the road. In an
interview with The United Press repre-
sentative Mr.. Petit said:
1.-THE insolvency of the Northern Pacific
was caused, primarily, by the reoklessness
and the fraudulent management of Willard
and his people. He controlled the road
through the German interests which he
represented. When the insolvency be-
came evident, he worked up a scheme to
go into the courts of Milwaukee, in which
city he and his German people had extern
sive interests in passenger street railways.
In that way they succeeded in getting re-
ceivers of their own selection appointed.
At the same time they started their
scheme of reorganizing the road, had a
reorganizing committee appointed and
Edward D. Adams appointed chairman.
1.-THE German people had in the mean
while found out what sort of a man Willard
was and removed him as their American
representative. and named Adams as his
successor. Then they commenced on their
reorganization work, having as counsel for
the committee the same gentlemen who