New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-03-27
MR.. MORGAN'S TESTIMONY
FRANK AND OUTSPOKEN REPLIES ro
THE QUESTIONS OF PETER
POWERS" COUNSEL

! q
| had become seated about the table. George Al
fred Lamb proceeded with the examination OF
Mr.. Morgan.
! Q--You are J. ?. Morgan. senior member OF
the firm of J. P. Morgan x CO. A-Yes.
| Q-No transaction of any magnitude in that
! company could take place without your ap-
proval? Al can't say that
/ Q.-You have been familiar, of course With
| the Northwestern railroad situation for a great
many years? Al have
! Q-With all the railroads, their financial
( status. physical condition and an matters per-
! tanning 10 them? A-Yes up To a certain point
/ do not pretend To keep track of all details
/ Q.-fou have for many years been thoroughly
familiar with all matters pertaining 20 the
Great Northern Railroad: A-No. sir
| Q.-With the Northern Pacihc. A-Yes sir
| Q-And in a general way. man of finan-
cial affairs. YOU have known the condition of the
| Union Pacific? A.-Not particularly
! Q-fou lave had occasion To study their
| physical condition? Al have done that in g
general way; not in any detail
Q-As a banker would keep Aims=If inform.ds
| A-Yes
Q.-And of the Chicago 3urrueton and
| Quincy Al have known all that could
Q-WoUId you mind telling US the nature OF
the transaction OF J. P. Morgan & Co.? Ave
deal in railroad securities and other securities
|
that is creditabIe and misht suggest itself 10 thu
firm as profitable
NOT \ SPECULATIVE FIRM
Q.-Does the firm ever engage in any specuIa-
ton on It's own account? A.-Not to any ex-
tent.
Q,-They would not. for instance. purchase
$IS,0OoOo0 Of stock of a railroad for their own
account? A-Probably not. We might if We
thought il desirable
Q.-Their business is TO deal in stocks and
other securities for the benefit of their CUSTOM
ers? A--Yes.
Q.-And then by financing any good enterprises
that might present themselves? Aft they
wished to do that
Q.-And they would for instance loan money
for that purpose? A.-Yes.
Q.-For their own account or the account OF
others? Al don't feel that I ought 10 be
called on to answer that question.
Q.-YOu were a member of the voting trust OF
the Northern Pacific? A--Yes.
Q.-And had to do very largely with the re-
organization Of the Northern Pacifc2 A-Yes,
We had control.
Q.-Absolute control? Ayes
Q.-When was that? An 1896 I believe
Q.-Prevtous to that time had you had any>
thing 70 do w;th the finances Of the Northern
Pacific? A-Yes.
Q.-You had been a director? Al was di-
I rector at one time.
Q.-When was that? Al can't remember
the exact date. Probably about 1891 or 1892.
Q-You had absolute charge of the reorganiza-
tion of the Northern Pacific? A-Absolute.
Q.-And may 1 ask you 10 give US a very brief
outline of that reorganization. what the bonds
Of the company were issued against and the
preferred and common stock2 An order TO
do that I should have the plan of reOrganiza-
tion with me. I will put in the plan. which gives
all details. The plan is a matter of record, you
know.
Q.-You know NJ. Hin? Al do.
STOCK SOLD To MR. HILL.
Q.-And is it within your recollection that ae
the time Of the reorganization there were sold
TO Mr., Hill and his friends $26OOOOOO par
value of the new stock of the Northern Pacifc2
Al don't know the exact amount
Q-ApproximateIy? A.-Quite a lot of it.
Q-I mentioned that amount because IL Is
what Mr.. Hill testified to. Who conducted the
negotiations for that large amount OF money!
Al did. with Mr.. Hill directly
Odd you meet any Of the associates OF Mr..
Hin? A.-Yes. 1 don't remember who they
were. except Lord Mount stephen.
Odd Mr.. Hin say who his associates We're?
A.-Au of them No.
Q.-Some of them? Al don't remember who
they
Q.-Can you tell of any one he named as
his associate? 4 i don't remember the men or
the details at that time
Q.-It was very great transaction-S26,OOO.-
600 A.-But not S26OoooOO in money.
Q.-This stock was sold at S16 share? Al
don't remember the exact price. II was OF very
little value.
$50 that AIr Hill the president OF the Great
Northern, conducted these negotiations with YOU
for the purchase Of this Northern Pacific stock
and security Ale did
Q.-What was the consideration Of this pur-
chase? A.-Money.
Q.-How much? Al don't know.
Q.-Did your firm own a large block Of the
stock at that tjmec Al think IL very likely.
I don't know
Q.-The relations of your firm as bankers to
the Northern Pacific have continued since 1896?
A.-Yes we have been their fiscal agents.
Q.-To time, tell what that means
what you did for them. A.-Whatever they re-
qured in a financial way.
Q.-You mean to say that all their financial
business conducted through your house7
A.-No. were their New York representa-
tives and we are to-day.
$50 that if the Northern Pacific issued any
stock since that time il would be financed
through your house? Alt would. At least, I
should expect it.
Q.-And If it was necessary to raise money
for the building of extensions and improvements
for the purchase of large lines. these transac-
tons would probably be financed through your
house? Al would expect them 10 be.
Q-Of course. the detail financial matters OF
the road would be handled by others? A.-of