The Montgomery advertiser., 1902-03-27
Hill Conceived Plan Of Secur.
 ities Company.
No Agreement or Undsstanding Looking to the Control of 1Atss CT Trahac or to obstruct i.
 Commerce

Examiner Mabrey in the suit of poeep Power asainst the Northern Pacinc Na3I- way to test the legality of the turning over of control of that company to the Northern Securities Company. numbGr of photographers who were present e secure portraits of Mr. Mcruaa wvzUs fcrced to leave at Mr. Morsan's request.
 Replying to Mir. Eamb ceunsSl fer Power, M-. Morgan said 1t was the busa- ! ness of the firm of J. P. Morgan . e. to take up anything in . financlal iinG that was creditabie and which misht sug-s sest itself as profitable. The nrm he1 much to do with the reorganization of tho Northern Pacific in lsss involving about s7s. .ooo
 Mir. Lamb asked Mir. Morgan in regard to . transaction in which $260oo.ooo par value of Northern Pacific stock was pur- chased for J. J. Hill and associates In 1sss The witness said he did not know whether all the purchasers of that bIool1 of Northern Pacific stock were 0feaA Northern people. The witness said If the Northern Pacific wanted anything today, it would he financed by his house.
 Has your firm loaned the Northern Pacific moneyf' Mir. Lamb asked.
 Yea
 '"on7 whose account have thsse lo.us been nader"
 Would Not Answer
 That I won't answer. From whom it was sotten.I will net say"
 Mir. Morgan said the Northern Pacific had not been controlled by any other railroad since 1ses. Since that time its value had steadily increased. The Great Northern, to a certain extent, was cora- petitor of the Northern Pacific.
 Concerning the Burlington purchase, the witpess said he had made up his mind that the Northern Pacific ought to have an eastern terminal in Chicago
 '1 wanted the St. Paul. said MT. Nor gan. "and Hill wanted the B,irIingtnn and finally the Burlington was selected. It was the chief desire of Mir. Hill that the Great Northern should have a ter- minsl in Chicago desired the same for the Northern Pacific. There was nothing secret at all about the operations. Mir. HUI made the negotiations. The price Of Seoo a share for the Burlington stock was demanded by the Burlington directors.
 At the present time the Burlington is operated as independently of all othsr roads as any railroad in the country"
 Mir. Morgan then told how he heard that the Northern Pacific control was sought by other roads.
 T was at Aix les Baines," he said, 'and heard that the Union Pacific had ac- auired the majority. doubted it at frst.
 Bought e15, ,00O, ,0O0 Worth.
 However, tho news came to me 50 strong that between May and May va went into the open market and bought SIS, ,oo0 900 worth of the stock. We knew that such an amount would be sure to have the majority of the common stock"
 You did not buy anything at private sale?" ssa
 Not a share.''
 Mir. Morgan said Union Pacific rnsn were put on the Burlington road board in carrying out a community of interest plan. The plecing of the Northern Paciac stock in the Northern Securities Company was done to have the majority of the stock placed in safe hands go as to insure a continuation of the policy of the roaa and insure the moral control No other control was contemplated. Mir. Moran said Mir. Fill had approached him two years ago about organizing a helaink company which would throw the North- ern Pacific and Great Northern interests together.
 'T told Mir Hill that we could work together" said the witness, but that they could not form any close alliance as that was against the law"
 The idea of forming the Northern Se- curtttes Company was never thought Of previous to May 2. MT. Morgan said.
 MT. Morgan later testified that he had made a large sale of Northern Pacific stock to J. J. Hill. He did not remember the amount. but in reply to a suggestion from MT, Lamb that 1t was sf0.o0O. .ooo, he stated that was probably correct. He said he did not help organize the North ern Securities Company. but he approved the plan.
 The witness said I. P. Morgan 6 Co. hold between 10000 and 13O.0o0 shares of Northern Securities stock at present
 On cross-examination by his attorney, Francis Lynde Stetson. Mir. Morgan de- nied that there was any understanding or agreement in the organization ef the Northern Securities Company looking to the control Of rates or traffic. or any a gree ment that would in any manner ob- struct contemplate the obstruction of commerce. He said that all parties to the agreement had acted independently.