Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-03-27

the nnancler declared. The project Of
the holding company for the Northern
Pacific common stock had been con
contemplated for considerable time
as far backlas two years. Mr. Morgan
said Mr. Hi had approached him two
years ago about organizing holding
company, which would throw the
Northern paci0c and Great Northern
interests together 81 told MI Hill
we could work together" said the Wit
ness, "bnl that we could not form any
closer alliance as that was against the
law"
The idea Of forming the Northern
Securities company was never thought
Of previous to May ., AR Morgan
further explained that after the ex-
perience Of May he became more
strongly lmbued with the idea Of form
ing holding company for the North
ern Pacific stock,
"This was what occurred TO me-" Mr..
Morgan continued. IF might die or
the hrm Of j p, Morgan & Co might
be dissolved and In such an event
wanted the Northern Pacific stock 70
be- in safe hands, so that the stock
holders might not suffer | did not
care who went into the company as
long as the Northern Pacific interests
we're safe as they would be II / held a
majority OF the stock"
"Such q majority you could not have
without Mr. lIill going In with your
asked Mr. Lamb
~ could Mr. Hin aid not have con-
troll, nor did l.
Mr.. Morgan returned to the time
when he learned OF the contest Tor
Northern Pacific control
II was at AK les Balns and 40 was
Mr.. Kennedy he said
MI Kennedy Was large holder OF
Great Northern stocks aud also OF
Northern Pacific He came to me az
AK les Balns in the beginning Of May
and said What means all thIsY
II said, ] know he said I win
put my stock into your office
Kennedy ANA We're mates we
have been friends for 10 years. ] told
him what ! had done ana he said any
thing | suggested nc would do All my
friends sad the same. That IL The way
they treated me In the Northern Pa
ciGc transaction said Mr. Morgan.
MT Morgan later testified that he
had made a large sale of Northern Pa
clhc stock to j. j Hin
How much was it?' asked Mr..
Lamb
II cannot remember"
Somebody has testified here that 1t
was $lO0OOOOO worth?"
well that may be"
This seems rather o large trans
action Can you not tell US some
thing about the negotiatlons2" asked
Mr.. Lamb.
"A SlO,OOO,O0O purchase Of stock does
not seem a very big transaction to
me. | have forgotten the details said
Mr.. Morgan "Hil and / worked to-
gether. IN work with him any time,
If II had been different I'll tell you an
instance Of what l. could have done.
Say that / had bought the Union Pa
cific interests in the Great Northern,
what would Hin have done then2' Mr..
Morgan said as a suggestion OF
what might nave happened, He said
he did not help organize the Northern
Securities company, but he approved
the plan He thought $3.50 a share for
Great Northern rather high, and Sis
somewhat low for Northern Pacific,
The witness wanted TO put his North
crn Pacific stock in a company that
was so large that nobody could buy 1t.
If It was deposited in a small company
At might be bought lie saw Mr. HatM-
man ON his return from Europe, but
they did not talk about Union Pacific
nor about Northern Pacific,
The witness said j. p, Morgan & co.
hold about 100000 or 10000 ares Of
Northern Securities stock a the pres
ent time,
There was friendly cross-eyamina-
ton Of MIR Morgan by Francis Lynde
Stetson To him the witness said the
retirement of the Northern Pacific pre-
ferred stock was not part Of the plan
which eliminated in the formation or
the Northern Securities company nor
was II part OF plan % allow the
Northern Securities company 10 obtain
the majority of Northern Pacific COM
mon Mr.. Morgan denied that there
was any understanding In the organi-
cation Of the Northern Securities COM
pany looking TO the control OF the rates
or traffic. or any agreement that would
In any manner obstruct or contemplate
the obstruction Of commerce. He said
that all parties to the agreement had
acted Independently,