Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-03-27
ONE OF HILLS IDEAS
j. Pierpont Morgan Says MinnesOtan Orig
mated Northern Securities.
NEW YORKER AT FIRST OPPOSED IT
Not Participant in Organization, but He
Approves the Deal.
SAYS BURLINGTON IS RUN INDEPENDENT
Operated by Neither of the Northern Coast
Railroads.
w YORKER AT FIRST OPPOSED IT
AVS BURLINGTON is RUN INDEPENDENT
ACQUIRED AS AN EASTERN TERMINAL
Financial King Denies Purpose of
Consolidation is to obtain Control
of Rates or Tramc or OBJ
struct Commerce.


NEW YORK, March 26.-JA erpont Nor
gan gave evidence today before Special Ex-
aminer Mabie in the suit of Peter Power
against the Northern Pacific Railroad COM
pany.
He was questioned for two hours and a
half by George Alfred Lamb, counsel for
Power and during that time he answered
questions rapidly and without the slightest
appearance of reserve. Only once or twice
when questions were asked concerning the
relationship of ]. p. Morgan & Co. with the
firms customers did he decline to answer.
Before the hearing was opened Mr.. Nor
gan objected to the presence Of a number
of photographers and they were directed to
leave the room. During the examination
Mr.. Morgan leaned back heavily in his
chair, his left hand thrust from time 20
time deeply in his trousers pocket. He
toyed with an envelope impatently, now
knocking 1t against his knee, now against
the table, on which his right arm rested.
His eyes expressed impstience. They
roamed about in extreme restlessness while
questions were being put to him, but the
moment he was ready to answer they fixed
themselves on Mr.. Lamb.
Amused at the Attorney.
Several times during the hearing the
hnancier seemed amused. Once Mr.. Lamb
asked If the price of Northern Pacific did
not go above its real value while his firm
was buying it, May, 1901. NO." said Mr..
Morgan, so amused that he had to stop to
control himself before he answered. 1T
did when they came to deliver the stock,
but not when they actually bought"
Mr.. Morgan said it was the business OF
the firm of ]. p. Morgan & Co. to take up
anything in a financial line that was credi-
BILE and which might suggest itself as
profitable. The firm had much to do with
the reorganization OF the Northern Pacific
in 1895. The amount involved In that re-
organization was something like SIS 1000 600.
Mr.. Lamb next asked Mr., Morgan In re-
gard to-tire TRANSACTION In which $26 900 900 :
par value Of Northern Pacific stock was
purchased for J. ]. Hill and associates In
1896 The witness said he conducted the
negotiation for that amount He did not
know whether all the purchasers Of that
block of Northern Pacific stock were Great
Northern people.
Too SmnII 10 Remember.
Mr.. Morgan said he did not remember all
the details OF the transaction.
'Of course, 1t is a great transaction and
1t is only natural that you might not be
able to remember" said Mr.. Lamb.
1T did not look very large to me-" said
the witness. 1.-THE amount of cash involved
was not more than about 5000, ,000."
"If the Northern Pacific wanted anything
today it would be financed by your house,
uOu ot M
Yes. undoubtedly"
Has your firm loaned the Northern Pa
cihc money!"
Yes"
ION whose account have these loans been
made?"
That won't answer. We were commits
stoned to raise the money. We got IL
wherever we could. From whom it was
gotten / will not say"
Mr.. Morgan said the Northern Pacific
had not been controlled by any other rail-
road since 1896. Since that time Its value
had steadily increased. The Great North
ern to a certain extent was a competitor
OF the Northern Pacific. J. Pierpont Nor
gan & Co. received no commission for
fnanciering the retirement of Northern Pa
cihc preferred.
Needed Eastern Terminal.
Concerning the Burlington purchase the
witness said he had made up his mind the
Northern Pacific ought TO have an eastern
terminal in Chicago. He talked the matter
over with all the persons interested and
they agreed. He said there were three lines
available, the Wisconsin Central, the Bur-
lington and the st. Paul.
The first he said, he would not have. ''I
wanted the St. Paul" said Mr.. Morgan.
''and Hill wanted the Burlington and finally
the Burlington was selected. It was the
chief desire OF Mr., Hill that the Great
Northern should have a terminal in Chi
cago desired the same for the Northern
Pacific. There was nothing secret at all
about the operation. Mr.. Hill made the
negotiations. The price OF $500 a share for
the Burlington's stock was demanded by the
Burlington directors and told Mr.. Hin By
all means to take it,"
burlington L. Independent.
AT the present time is the Burlington
operated jointly by the Northern Pacific and
Great Northern railroads?" asked Mr. Lamb.
Nothing OF the kind. The Burlington is
operated as Independently OF all other roads
as any railroad In the country"
Mr.. Morgan then told how he heard that
the Northern Pacific control was sought by
| other roads.
! Il was at Aix-Les Rains" he said, "and
heard that the Union Pacific had acquired
| the majority. l doubted It because
| thought / knew ! could depend upon the in
terests that we're associated with us as
holders of the Northern Pacific common to
hang on to their holdings. However. the
news came to me so strong that thought
| had better make safe, and SO between
May and May We went into the market
and bought SIS, ,OOO, 900 worth Of the stock.
/ figured the matter up and knew that such
an amount would be sure 10 have been the
majority of the common stock
Fiscal Agent of Burlington.
why were you 30 anxious 20 haze . ma
jority Of the Northern Pacific stOskT'
| well, our Arm was fiscal agent Of the
road. | felt il as a moral obligation upon
myself towards those who had intrusted me
with their interest TO see that the road did
not pass into the hands OF the Union Pa
| ciHc fnterestR 1 felt In honoF hound "a