New-York tribune., 1902-03-27

ern Pacific? A-No.
Q.-It was a matter that came under the at
tention OF any member OF the firm? A.-Of any
partner who happened TO be running the ma
chine at the time
Q.-I presume in that period you loaned the
Northern Pacific large sums of money? AT
times.
Q.-Or obtained large loans for them? A
Yes
Q.-I take IT for granted that since that time
il has been necessary TO raise large loans. VIII
you say whether your house raised the money
for their own account for others? Al don't
feel called upon to answer that question can't
say for whose account they were made We
have been their fiscal agents, and got the money
wherever could get it,
Q.-And the Northern Pacific has from time
TO time paid for this service? Al think so.
sYNDICATEs NOT ALWAYS PROFITABLE.
Q.-Every time an underwriters syndicate is
formed there is a commission paid to the
banker and some profit TO the underwater? A
Not always. Naughter)
Q.-That is the usual custom2 Ave should
expect it to be. otherwise the transaction would
not be made.
Q.-You would expect TO be paid for your ser
vices? A.-Not always
Q.-When you negotiate for railroad don't
you make it pay you? A.-Not always.
Q.-You do it sometimes without any consid-
Grafton? Ave do. 1t may not be desirable to
make a charge. 1t depends on the character Of
the transaction. In great many cases no
charge whatever is made.
Q.-Do you do that work for nothing? Ave
= do il for nothing
Q.-In the matter Of the purchase of branch
lines, or the building Of extensions, who would
usually negotiate for the Northern Pacific? A
The company directly.
Q.-Not through your house? A-No.
Q--Do you know what special officer Of the
company would nave that matter in charge? A
That depends on the bylaws. / haven't been
director Of the Northern Pacific since the re-
organization.
Q.-But you must know? Al have def
mite knowledge.
Q,-Haven't you taken a great interest in the
road? A great deal
Q.-And you would take especial care to know
how its business was being conducted? Al
would not ! would probably know the results
and the policy. but not he details.
Q.-I didn't speak OF the details. Al have
told YOU that ] have known the policy OF the
Northern Pacific in a general way, and don
think any large transaction would be made
without my knowledge. hut there is nobody un-
der any obligation TO keep me advised. and II
lhey maze transactions without my hHo"Ieuse
should say they had a right TO do so.
Q-What has been It's policy since lo5o! has
ii not been conducted as an independent organi-
zation prior to 1901? A-Cp to date should
say it has.
CIT has not formed any alliance with any
traffic line or railroad A-What kind of an
alliance That is a pretty broad term
Q.-I mean ii has been conducted as an abso-
lutely independent organization and entered into
alliance with any railroad. A.-That / don't
know anything about
Q-It has not been the policy of the road TO
enter into alliance from 1896 to 1901 for the
division Of traffic with other roads? A.-That l
Q.-To your knowledge. Mr.. Morgan, has its
stock from 1896 to the first Of 1907 ever been
controlled by any other organization? A.-No.
Q.-Neither railroad nor otherwise? A.-No
AN INDEPENDENT POLICY FOLLOWED.
Q.-And its policy since 1896 has been abso-
lutely iudependeur2 A-Absolutely
Q.-And TO operate its affairs without refer
ence 10 any other railroad? A.-Absoiutely.
Q.-Sinoe you reorganized the company its af-
fairs have been very prosperous. have they not?
A.-They have
CIT has paid dividends right along? A
How can I tell? Oaughter) I couldn't answer
that.
Q.-You do know that the market value Of its
securities has steadily advanced in public fa-
vor ever since the reorganization? A.-Yes
With some reactions.
Q.-The Great Northern Railway is a compet-
tor IN many respects with your Northern Pa
cific. is it not? A.-To certain extent. yes.
.Q--And there is you know, pretty sharp
competition in some places
Here Mr.. Stetson interrupted by saying: ASK
Mr Morgan the question instead Of making the
observation"
Q.-Is there not. at various points. sharp COM
tween the Great Northern and Northern Pa
CHIC Al SItuuIl say don't know any
time when it was greater than to-day
Q--And the Great Northern Railroad Com
pany from the period since you TeorganiZed the
Northern Pacific, has several times increased
its capital stock. Al don't know.
Q.-Dc you know in a general way how pros
pe-cus the Great Northern Railroad has been in
recent years? A--From common report 1 should
consider it very prosperous. 1 have already said
that the details l am not familiar with
Q.-You don't know about increases in their
capital stock? Al have heard that they have
been made, but from definite knowledge 1 know
nothing.
Q.-When was it first decided to dissolve the
voting trust OF the Northern Pacific? Al
think IN October, 1900.
RETIRING THE PREFERRED STOCK.
Q.-why was that decided? A.-Because I
came TO the conclusion that the condition OF the
company was such that it should be turned over
TO the stockholders and for the reason that
thought the time approaching when it would
be desirable 10 retire the preferred stock
Q.-Was that question ever submitted to the
stockholders? A.-The retiring of the preferred
stock was in the hands Of the directors. but
these directors were elected by the voting
trustees There was an election in October, 1900
TO elect directors and l desired that the stock
holders should have the selection Of these di-
rectors.
$50 that the responsibility for retiring the
preferred stock should fall upon the stockhold-
ers? A-No. So that the directors who should
decide that question should be elected by the
stockholders and not by the trustees
Q.-Don't yOI think that the stockholders
themselves could decide that il might have been
well 20 submit the question TO the stockholders
as & whole? A-Decldedly not. ! viii explain
why IL you wish.
OWN you explain why the question of retir-
ing the preferred stock Of the Northern Pacific
Railroad was submitted TO the stockholders?
A.-Because the directors had the power. That