New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-03-28
NO AGREEMENT on VOTING
J. 8. KENNEDY SAYS y. 2. STOCK WAS
BOUGHT INDEPENDENTLY

POWERS COUNSEL DECLARES MORGAN
FoRGETs WHEN HE TALKS OF ALSO
Lutte OWNERSHIP OF RAILROADS.
John g. Kennedy. a director OF the Northern
Securities Company. recalled for cross-eA-
animation yesterday before Richard a. Marcy
special examiner, in the suit OF Peter Power
against the Northern Securities Company. Inc
examination was held in one OF the courtrooms
Of the Postoff1ce Building. Colonel W. T. Clough'
general counsel and first vice-president Of the
Great Northern road was also recalled TO an
swer questions relating 70 his former testimony.
When asked by F. b Kellogg, Of counsel for
the Northern Pacific Railroad Company. what
he meant when he said that the stockholders OF
the Great Northern acted in harmony in the
question Of The merger with the Securities com
pany. Mr. Kennedy replied that they were salts
fed with Mr.. Hill. Mr.. Kennedy added, in sub
stance:
y understand that Mr.. HILL Lord strathcona.
y. Willis James and others purchased about
S2600O000 of Northern Pacific stock. This was
bought individually ! bought my stock for
myself. There was no agreement or under
standing 10 how We're 10 vote or sell this
stock 7 bought ten thousand shares Of North
ern Pacific from J. =. Morgan & Co. No one
asked me 10 take any steps regarding my hold
ings. We had no community Of interest We
merely sent our proxies 10 MI. Hill
Il never heard Of any agreement that any
group of men were TO control the Northern
Securities Company. When the Northern Sc
rurities Company was projected I heard no dis
cusslon or question raised that the company
would be organized TO acquire a majority Of
stock Of both roads for the purpose of con-
trolling competition and maintaining rates.
When the question Of the new company was
under consideration I understood that the ma
3oTity Of the Northern Pacific stockholders
would 90 in. Mr.. Hill and Mr.. Bacon gave me
that impression. AS far as l know. the retire
raent of the Northern Pacific preferred stock
part of plan TO enable any one to con-
troll the Northern Pacific company
Mt. Kennedy. in answer to a question put 70
him by Mortimer II. Boutee. Of counsel Tor
Power. said that he understood that the board OF
directors OF the Northern Securities Company
would control its property. Just as "ouId any
other corporation organized for such purposes.
He said there was no difference between Ihls
Colonel Clough was then called. Mr.. Lamb
asked him when the last dividend Of the Great
Northern was declared The witness SAID on
February Of this year
oeive that divdend?"
The witness declined TO answer
Was not The dividend on the stock trans
ferred 10 tire Northern Securities Company
The wituezS gain declined TO answer
Colonel CIcurh then described the manner OF
voting the stocks controlled by the holding COM
pany. He said:
There have been no meetings Of the North
ern Pacific OF Great Northern companies since
the formation ~ the Northern Securities com
pany. 4 proxy deemed necessary Inc
board decided that for the present its proxies
ct Northern Pacific meetings should be Charles
steele George +. Baker. t., and A B. Hep
burn The proxy for the Great Northern is j. J.
Pin. or IL his absence. Edward Sawyer"
George Alfred Lamb. Of counsel for Peter
Power, who examined Mr.. Morgan on Wednes-
day. said yesterday:
The testimony or Mr.. Morgan showed clearly
his firm belief that community Of interest by
the owners Of ell tho railroads Of the United
States. leaving them free 10 do with their own
property what they wanted TO- would be de-
sirable. q proper and Il legal thing. Mr.. Morgan
forgets however that the owners Of these rail
roads received their charters from and owe
;heir very existence TO the people OF the varl-
Gus States they traverse. These charters have
n almost every instance been granted subject
20 certain clearly expressed conditions There
IS no such thing * the absolute ownership OF
p railroad. Ownership IS subject TO the condi
lions and the terms under which the charters
we're granted to them. and compliance with the
law When Mr.. Morgan speaks Of absolute
ownership he forgets a great many things"