The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-03-27

a majority interest in the Northern Pa
| cific stock2"
Protection Of Stockholders.
wen. our firm was fiscal agent cf
/ the road. ! felt it as a moral obliga-
/ ton upon myself towards those who
/ had mtrusted me with their interest to
see that the road did not pass into the
| HANDS Of the Union Pacific interests. l
/ felt IN honor bound to prevent that as
matter Of protection TO the minority
/ stockholders. said FIR. Morgan.
You bought your stock in the open
market?"
Yes. sir"
You did rot buy anything by pri-
vate sale?'
Not a share"
What did you learn when you came
home about the dissensions and as to
who had control of the rOad?"
We had control,
Hnl@'
Not at all mean J. P. Morgan &
Co. and their associates"
Mr.. Morgan said Union Pacific men
were put on the Burlington board in
carrying out a community Of interest
plan. They could fight among them
selves, however If they wanted 10.
Harmony was what was desired. There
vas no special object in putting Mr
Gould on the board. In further expla-
nation Of the intention and purposes
leading up to the Northern Securities
I company, Mr.. Morgan said that as far
as the placing of the Northern Pacific
( STOCK in that organization was con-
cerned. it was done to have the ma
5ority of the stock placed in safe hands
so as 10 insure a continuation of the
policy of the road and insure the
moral control.
Only a No al Control.
No other control was CONTEMPLATED.
the fnancier declared. The project of
the holding company for the Northern
! Pacific common stock had been con-
templ2ted for a considerable time-as
far back as two years Mr. Morgan
said Mr.. Hill had approached him two
years ago about organizing a holding
company, which would throw the
Northern Pacific and Great Northern
interests together. 4 told Mr.. Hill
w could work together" said the Wit
n sss, but that We could not form any
closer alliance as that was against the
Jaw"
The idea of forming the Northern
Securities company was never thought
of previous to May 9. Mr.. Morgan
further explained that after the ex-
perienCe of May 9 he became more
strongly imbued with the idea of form
ing holding company fos the North
ern Pacific stock.
This was what occurred to me-" Mr..
Morgan continued Il might die or
the firm of J. P. Morgan & Co. might
be dissolved and in such an event I
" 9nted the Northern Pacific stock 70
be in safe hands. so that the stock
holders might not suffer. I did not
care who went into the company as
long as the Northern Pacific interests
we're safe, as they would be If L held a
majority Of the stock"
such majority YOU could not have
without Ar. Hill going in with yOu?"
asked Mr.. Lamb.
Il could. Mr.. Hill did not have con-
troll, nor did l."
Mr. Morgan returned to the zine
when he learned of tho contest for
Northern Pacific control.
Kennedy Became Curious.
Il was at AK les Bains ana so was
Mr.. Kennedy" he said
Mr.. Kennedy was large holder Of
Great Northern stocks and also of
Northern Pacific. He came TO me at
six les Bains in the beginning of Li2y
ard said: What means all this?'
Il said. j know He said, I win
put my stock into your office
Kennedy and / were mates we
have been friends for forty years.
| told him what ] had done and he said
anything I suggested he would do All
my friends said the same. That is the
way they treate1 me in the Northern
Pacific transaction" said Hr. Morgan.
Mr. NFmFrnra I.f ar h.
had made large sale Of Northern Pa
cific stock to J. J. Hill.
How much was ito asked Mr..
Lamb.
'I cannot remember
'Somebeiy has testified here that it
was S10030C00 WORTH"
Wen that may be-"
This seems rather a large trans
action. can YOU not tell Us some
thing about the negotiations" asked
Mr, Lamb.
Ten Millions a Mere BagatelIe.
"A S1ao09.0Q0 purchase Of stock does
not seen VeCy big transaction to
me. I haze forgotten the details said
Mr.. Morgan. Hill and 7 worked to-
Eether It'll work with him any time.
/ If il h-d been different I'll tell you an
! instance of what I could have done.
/ Say that J had bought the Union Pa
cidc interests in the Great Northern,
what would Hill have done them" GJr.
Morgan said as a suggestion Of
what might have happened. He said
[ he did not hep organize the Northern
/ Securities company. but he approved
the plan He thought $3.50 a share for
Great Northern rather high. and s115
I somewhat low FOR Northern Pacific.
/ The witness wanted TO put his North
ern Pacific stock In company that
Vas 50 large that nobody could buy it.
I IF il was deposited in small company
/ Is might De bought. He saw Mr.. HaTri-
man on his return from Europe. but
I t6ey did not talk about Union Pacific
nor about Northern Pacific.
/ The witness said J. p. Morgan & Co.
hoi5 about 10000 or 10000 shares Of
Northern Securities stock at the pres
eft time.
I There was q friendly crOSs-eEamina-
I ton of Mr. Morgan by Francis Bynde
i Stetson- To him the witness said the
/ retirement of the Northern Pacific pre-
I ferred stock was not part of the plan
which eliminated in the formation Of
! the Northern Securities company nor
I was IL part of a plan to allow the
+ Northern Securities company to obtain
I the majority Of Northern Pacific com
/ mon- MI Morgan denied that there
/ was any understanding in the Orsani-
zation OF the Northern Securities com
! pany looking 10 the control OF the rates
, or traffic or anr agreement that would
+ i'm any manner obstruct OF contemplate
I the obstruction OF commerce. He said
! that an parties TO the agreement hac
/ acted independently.
WAsHENTON STATES BILL.
/ Attorney general Stratton Files Suit
Against the Merger.