The Providence news. (Providence [R.I.]) 1891-1906, 1902-03-28
HOW KENNEDY
SOLD HIS STOCK
The Banker Says Il Was Dis
posed Of Without Reservation.
SHARES IN SECURITIES co.
Were His Absolute Property -Ihsy Were
Bought Without Any Condition OF Agree
msnt-0thM witnesses examlnsd.
SHARES IN SECURITIES co.


sumed at 1;SO o'clock yesterday afternoon
before Special Examiner Richard A. Ma
hey I'm room i3 of the Federal building.
John s. Kennedy, the banker, who was
examined last week, was recalled TO an
swer certai questions put 10 him by At
torney Kellogg, one OF the counsel for
James ]. Hill and the Great Northern
Railroad company.
Mr.. Kellogg turned in various docu-
ments as exhibits. including the bylaws
of the Northern Securities company, and
a list of the directors since It's organiza-
| tion.
Referring 10 Mr. Kennedy's previous
| testimoney that he, with Mr.. Hill ID.
| Willis James, Lord StrathcOna and Lord
Mount Stephens. had purchased large
! block of the stock OF the Northern "a
| cific company Mr.. Kennedy explained
\ that these gentlemen were only few
| of the purchasers, and that each pur-
\ chased his stock individually and held
| IL independently without any agreement
| 10 hold or sell or vote together. The
] examination continued:
HE SOLD OUT
o.-You said you sold little of your
| purchase, but that the great majority OF
! it Won retained and still hold Did you
| not sell it finally 10 the Northern Se-
| curities company? A.-Certainly. L SOLD
IL when the Northern Securities company
was formed, receiving in payment the
stock of that company.
Q.-You sold II absolutely TO the North
ern Securities company? Al did.
Q.-And do you own absolutely the stock
| of the Northern Securities company you
| received? A.--Absolutely.
| Q-Is your holding of the Northern
4 Securities company stock subject to any
1 agreement TO vote with others, or 10
| hold or sell with others? Alt Is not;
O-was there any conditions to the
| forming of the Northern Securities COM
| many. as, for instance, that II should
| only be formed if a majority OF the
| stock OF the two railroads involved was
secured? A.-There was no such condi'
ton. Ny understanding was that the
| Northern Securities company would bs
formed whether we had majority o.
the stock of the railroad or not
| O.-When YOU testified that there haC
heen harmony among the stockholderi
of the Great Northern Railroad, VIVA
| did YOU mean? A.-That there was never
any difference at the meetings. All were
satisfied perfectly with the management
OF Mr.. Hill.
| Mr. Routelle OF Mr. Powers counse
then asked a number OF questions III
asked whether when the Northern Secu
rites company was about 10 be FORMED
the location of the stock was not pretty
well known and the number OF shares
that would go into the holding company
wos nrettv generally understood. Mr.
Kennedy replied that there was no agree
ment. So far as he was concerned he hop
cd the other stockholders would generally
| 90 in and he acted under that feeling.
CLOSE EXAMINATION.
Mr.. Boutelle who seems determined u
find out why the preferred STOCK OF TN
| Northern Pacific was not exchanged 10
common instead of being paid for in cash
nut Mr. Kennedy through rather sever
| cross-examination on this line till IL wa
obiected 10 by Mr. Kellogg as irrelevan
whereupon Mr.. Kennedy was excused
Col. w. p. Clough, fourth vice presiden
OF the Northern Securities company, the'
resumed the stand. Asked by George a
Lamb of Powers counsel when the las
dividend was paid on Great Northern
stock. he replied that II was at tha be
ginning OF February.
;. "was that dividend paid TO the North
ern Securities company?
II object to that question: interrupte
Witness will please answer" said MI
: Lamb.
} II decline to answer" replied Co
. | Clough.
"Was the dividend on stock not va
l | transferred but turned over TO the NORTH
T ern Securities company paid to the Norti
. | ern Securities company" continued M
[ | Lamb.
IT decline to answer" replied the wit
ness
Witness testified that $3.50, 100000 al
: nroximatelv Of the stock OF the Norther
a Securities company had already been Il
sued. Mr.. Lamb asked him 90 produce
1 flaa nFf II
: curities company, as had been promise
: by Mr.. Morgan. When Col Clough an
MIR. Kellogg said they could not 81
d, whether they would do so or not M
i Lamb retorted:
n "You want to ask Mr.. Morgan about H.
: 10 which Mr.. Kellogg objected as irrel'
want
Mr.. Kellogg then demanded that Pet
Power. the plaintiff. be produced AT "
Saturday hearing. Mr.. Boutehe eharac
erlzed this as a grand stand play by q
| defence. and promised TO produce NJ
Power when the case was closed ana M
e before.
"It Is not a grand stand play" retort'
y Mr.. Kellogg, "and that charge CONF
q with ill-gracc from your side In this cas-
4 We are entitled 20 examine Mr.. Pow
i. before Mr. Mabey, and We demand tn
= no he produccd. or else that your refus
= 10 produce him be noted on the records
After the examination was conclud'
< Mr.. Lamb stated that the next witne
would probably be Il. II. Hartman, al
= that IL might be two or three weeks b
n fore they would be able 10 subpoena hi
- Before the hearing began Mr.. Ian
- gave out the following statement, eN
- IDENTIFY designed 90 offset the effect OF
"a piorpont Morrans testimony:
m The testimony taken In the merg
case so far. especially that OF Mr. IA
"A and Mr. Morgan. merely develops Z
,n fact that the entire controversy is bas
~ ! upon difference OF opinion. The fac
10 | relating to the matters have not be
In withheld. but have been fairly n
frankly stated by all concerned.
Of MoRGAN's TESTIMONY.
is The testimony OF Mr.. Morgan show
i. / ..i.-rI.. hi. nrrn hDIlaf Ihai a onnmunI