Omaha daily bee., 1902-11-19
Tells How Railways Were Bought and
for What Consideration.
cloUGH DOES BUT LITTLE FIGURING
Cannot Tell What Accounts Really Mean
When Presented with Details.
HARTMAN IS SERVED WITH SUBPOENA
sends Word, However, that He IL
Nursing sick Brother and So
Cannot Attend for
Few Days.

NEW YORK, Nov. 1s.-when the hearing
was resumed today in the case Of Mime
sofa against the Northern Securities com
pany, E. T. Nichols, secretary and treas
urer of the Northern Securities company.
was called to the stand. He with Abraham
Hyatt. Richard Trembie and George F.
Baker, r., organized the company. He did
not know whether ]. P. Morgan Co. was
employed by the securities company TO
purchase the Hartman interests In the
Northern Pacific company. but he said the
securities company borrowed ABOUT ts'OOO'-
900 from Morgan g. Co.
1--WE acquired Al ,045, 900 Of Northern Pa
cifo preferred stock" said Mr.. NICHOLS
land S37, 900, 900 of common stock by giving
Ss2 4e1 .s71 in Northern Securities stock and
IS, ,915 ,629 in cash"
"Did not the Northern Securities COM
pany receive nearly Sb0.000,0OO OF Great
Northern stock In its own name before you
discussed the advisability OF receiving any
future deliveries in the name of trusteesT
81 don't remember the amount. / sug-
Rested that some OF the stock should stand
in the name Of trustees in case / needed
any Of 1t for collateral"
Mr., Nichols said he selected the trustees.
Most of them are clerks in his ofhce. He
promised to send the names to the exam
iner for the record. His company owns
in all between 100000 and 100000 shares OF
the Great Northern Railway company
Three or four hundred of those shares are
in the names Of the trustees" OF whom ne
spoke.
Replying to other questions, Mr.. Nichols
said no annual statement OF the Northern
Securities company has been completed and
Dc haiU0 DrpnaTed.
CIough IL in Box.
w. p. Clough, a director of the Northern
Securities company was then called Coun-
sel for the state of Minnesota endeavored
to show that the Northern Securities COM
many secured the purchase Of Northern Pa
cific stock at $l15 share In its stock.
Mr.. Clough was asked II he had noticed
that at the rate OF s115 a share the COM
pany had paid ~, ,44s,e5O more than neees-
sary. rfre,N
witness replied that he had not computed
the figures, but the Northern Securities
company was anxious to get the STOCK al
the price settled upon.
He was next asked II the parties inter-
ested acquired the St. Peter company char
ter of Minnesota to use It as holding
company.
Mr.. Clough believed II was considered
in the spring of 1901, but denied that to his
knowledge ]. ]. Hill acquired 1t in the
name OF his associates In the Northern
Securities company. The Northern Sc
curities company would have preferred q
territorial charter, which was beyond any
danger Of alteration by the Legislature.
When asked II the securities company
had been incorporated in New Jersey be-
cause of fear that It could not operate
under a territorial charter in defiance o.
the Minnesota state law. he replied:
mot entirely. We never doubted thu
legality Of our Incorporation nor the pur'
poses of the company" The Northern
Securities company held more than $3.50,
100000 Of the S155 100000 common stool
Of the Northern Pacific Railway company.
How much acquired since December 4
last now stands In the name of the com
pany." was asked.
None" replied the witness. "It 4
held in trust or by trustees"
Your company 10 capitalized at $500,
900, ,OoOH"
''Yes, sir"
Ibid you calculate In fixing that sun
that It would cost few thousand dollar
less than s40o. .O00, 900 to secure all the Grea
Northern stock at $50 and the Northern
Pacific stock at $1l57"
Il have not made the computation. In
figures must speak for themselves"
The examination Of Mr.. Clough was no
completed when the hearing was adjourned
A subpoena had been issued for z. II
Hartman, but word was received from hi
secretary today that Mr.. Hartman woul
not be able TO attend the hearing for
day or two, being detained at the bedsid
Of a sick brother.
Reading Company Replies.
WASHINGTON, Nov. 1s-The answer O
the Philadelphia a Reading Railway com
pany to the complaint Of William r. Hears
OF New York. against the anthracite cos
carrying roads was filed with the Inter
state Commerce Commission today.
enters a general and specific denial to al