The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-27

Northern Pacific and the Great Northern
over the Burlington. who would VIM
II don l. know
Was not the Burlington deal precipi-
tated because somebody else was after it,
u don't know. II you ask my personal
opinion l might say yes"
THE NORTHERN PACIFIC DEAL
Mr.. Morgan then told how he heard that
the Northern control was sought by other
roads. II was at AK les Baines." he said,
and I heard that the Union Pacific had
acquired the majority. 1 doubted IL be-
cause I thought could depend upon inter
ests that were associated with us as hold
ers OF the Northern Pacific common TO
hang on 10 their holdings. However. the
news came 10 me so strong that 1 thought
/ had better make safe. and so, between
May ? and May Z we went into the mar
ket and bought Sl5,000.G0O worth Of the stock.
J. figured the matter W and knew that such
an amount would be sure 10 have the ma
tnrtty OF the common stock.
"Nhy were you so anxious 10 have a ma
Jority interest In the Northern Pacific
swell. our firm was fiscal agent Of the
road. i felt IL as "a moral obligation upon
myself towards those who had iutrusted
me with their interest to see that the road
did not pass into the hands Of the Union
Pacific interests. / felt in honor bound to
prevent that as a matter OF protection TO
~ AAt+-1A@~a
You bought your stock in the open mar
ket?"
yes. sir
You did not buy anything by private
Not a share
what did you learn when you came
home about the discussions as 10 who had
control OF the rOad?"
W had control"
by we you mean yourself and Mr..
HfH?'
mot at all. I mean ]. p. Morgan & Co,
and their associates"
put on the Burlington road board In car
Tying out a community OF interest plan.
They could fight among themselves, now
ever. If they wished to. Harmony was
h was desired. There was no special
object In putting Mr.. Gould on the board
In further explanation of the intention
and purposes leading up 10 the Northern
Securities Company MIR. Morgan said that.
as FAR as the placing of the Northern Pa
ci1c stock in that organization was con-
cerned, il was done to have a majority OF
the stock placed in safe hands, so as TO in
sure a continuation of the policy of the
road and insure the moral" control. No
other control was contemplated. the hnan-
cier declared The project of the holding
company for the Northern Pacific common
stock had been contemplated for a consid-
cradle time-as far back as two years ago.
Mr.. Morgan said Mr.. Hill had approached
him two years ago about organizing a hold
ing company which would throw the North
efn racine ana GTeat northern interests
together. II told Mr.. Hill that we could
work together" said the witness. "but that
we could not form any closer alliance, as
that was against the law
NORTHERN SECURITIES COMPANY.
The idea of forming the Northern Securi-
ties Company was never thought of pre-
vious TO May 0. Mr.. Morgan said. Mr.. Nor
gan further explained that after the expert
ence OF May 9 he became more strongly i'm
bued with the idea of forming a holding
COMPANY for the Northern Pacific stock.
This is what occurred to me-" Mr.. Morgan
continued. II might die. or the firm Of j.
p. Morgan & Co. might be dissolved. and in
such an event L wanted the Northern Pa
ciic stocks 10 be In safe hands, so that the
stockholders might not suffer. / did not
care who went into the company as long as