The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1902-03-25
Mr.. scHIFF DECLINES TO AN
sWER MANY QUESTIONS.
BURLINGTON WAS BOUGHT
To Give Eastern and Southern Con-
nection on Account of Lum-
ber and Grain.

New York, March 24.-The hearing
in the suit commenced by Peter Pow
court for the district of Minnesota
| for the purpose of determining the
standing before the law of the pur-
chase and holding of Northern Pa
cific and Great Northern stocks by
the Northern Securities company, was
continued here today, before Richard
Mabey, special examiner. Jacob H
was the first witness. He was ques-
toned by A. M. Boutelle of Mime
apolis, of counsel for Peter Power.
Mr.. Schiff said he was a member of
the board of directors of the North
ern Pacific since the latter part of
1897, and had been elected director
of the Chicago, Burlington & Quincy
railroad during 1901. He was also a
director in the Great Northern. He
did not remember how much stock
he had in the Great Northern, he had
not held any of it since the summer
of last year. He was one of number
of fnanciers who in 1896 purchased
$2S,00O,OOO worth of Northern Pacific
common at the time of the reorgani-
zation Of that road.
"Was Mr.. Hill in that deal?" was
asked.
"Mr. Hill can tell you,' replied Mr..
Schiff.
The witness said he had purchased
10000 shares of Burlington stock in
1901
t'For whom did you act in purchas-
ing that stock?"
II decline to answer
did you act for the Hartman in
terests?"
II decline to answer. I decline to
answer any question regarding the
business of Kuhn Loeb & Co., unless
compelled to do so," was the reply of
Mr.. Schiff.
He said that the stock was not pur-
chased for the purpose of securing
the control of the Burlington for the
Union Pacific.
He also declined to answer a ques-
tion as to whether he had acted for
any railroad interest in making the
purchase of Burlington stock
He said he had no previous knowl-
edge of the efforts of the Northern Pa
cific and the Great Northern to get
hold of the Burlington.
His firm never represented the
Union Pacific or Oregon Short Line as
bankers in the stock market. He de-
cined to say whether the firm had so
represented Mr.. Hartman.
AS far as he could recollect the
purchases made by his firm of North
ern Pacific before May 5, last year,
amounted TO $S,00O,O0O A few weeks
later this stock was transferred, part
to the Union Pacific and part to the
Oregon Short Line.
Witness said he had no conference
with j. P. Morgan concerning these
purchases, but there was conference
between himself and Mr.. Hartman
on one side and J.. J. Hill. and Mr..
Steele of J. P. Morgan & Co. on the
nfhor coid fxry0
conferences, but at neither of them
was there showdown to determine
whether the Hill or Hartman inter-
ests obtained majority of Northern
Pacific common stock.
Mr.. Schiff said he did not learn of
the fact that the Union Pacific was
disposing of it's Northern Pacific pos
sessions until the matter came before
the board of directors of which he
was q member. The stock was sold
to J. P. Morgan & Co., and payment
was made in nine or ten millions of
dollars cash and eighty or ninety mil
lions of dollars worth in stock in the
Northern Securities company.
Witness said Mr. Hill asked him to
take. place in the Northern Securi-
ties board. Mr.. Schiff said he first
learned of the retirement of the
Northern Pacific preferred stock at
the time of it's actual retirement. He
did not know whether Mr.. Hartman
had been consulted in the matter.
and Oregon Short Line sold their
Northern Pacific stock because they
thought it would be a good thing to