The evening times. [volume] (Washington, D.C.) 1895-1902, 1902-03-26

(Continued from Elrst Page)
1896. and was a director Of the road about
1892
he said that he had absolute charge Of
the reorganization OF thar road Asked
for an outline Of that reorganization Nor
gan replied that he would prefer to offer
a plan Of the reorganization.
IF the Northern Pacific should issue
new stock or raise money, would it he
done through your house?"
I would expect il to be"
Was any member Of your firm desig-
mated to attend TO the finances Of the
Northern Pacifc2'
NO"
You have loaned sums Of money to the
road"
AT times"
''Do you know James J. HIP
'I DO"
DO you remember that at the time Of
the reorganization Mr. Hill purchased
S26.oOO,OO0 worth Of Northern Pacific COM
mon stock2''
He did; but the exact amount don't
remember. Several men were associated
with him in the purchase"
DO you remember the names OF those
associated with HIP"
u do not"
DO you think that $4,000, 600 is a large
amount Of money!"
No; because the stock sold for only
about SIS a share. making only 8. 0O0. 600
deal"
Did your firm puchase at that time any
Northern Pacific, common"
VERY likely"
Are you interested in the Northern
Pacihc2"
we are the fiscal agents" %
Asked what charges were made for
these loans, Mr.. Morgan replied that they
were frequently made FOR nothing
Have you a great interest in the
road?'
Yes. but 1 do not know all Of its trans
actions. ] know Of its policies. though"
Has not the policy Of the Northern Pa
eihc been to conduct its affairs alone2"
Up to today. yes"
DO you know If it has had any ALI
aance with any other road2"
That I know nothing about"
Has the stock of the road since 1886
and up to 1901 been in any other control
than where it is now"
NO"
since you reorganized the road. it has
been prosperous. has il not?'
1T has. The market for those stocks
has steadily gone up"
rs the Great Northern Railway a COM
petitor Of the Northern Pacifc?"
TO some extent, yes"
rs it not a sharp competitor at vari-
Gus points,
Il should say yes.
do you know in a general way if the
Great Northern Railway has been pros
porous in recent years."
yes. so I have heard"
When was it decided to dissolve the
voting trust Of the Northern Pacifc2a
in October. 1901"
For what reason2"
Il thought il better to retire the pre-
ferred stock as that road was so pros
porous, and dissolve the trust so that
the holders Of the common stock could
decide the question themselves"
why was not the question submitted
to the stockholders as a whOle?"
The directors had absolute power 20
retire the preferred stock When the
Northern Pacific was reorganized, the
times were very bad. and the indebted
ness was very large. and public opinion
was against a syndicate raising a large
amount Of money. MT. COster and myself
then decided that we would issue pre-
ferred stock on which we would not have
% pay interest, and which would be bet
ter than bonds. This preferred stock was
issued. and old debts were taken up and
paid. We realized at that time that at
a future date the preferred stock would
he taken up"
Who financed this transaction"
This $4,000 900 was raised in cash2"
1t was"
WAS there a large number OF common
stockholders at that timer
Yes, though large blocks we're held by
single parties"
When asked about the plan 10 retire
the preferred stock OF the Northern Pa
cifc Company for common stock, Morgan
replied that was a matter attended % Dr.
the board Of directors Of the road.
when did you first hear that the
Northern Pacific road intended 20 buy
Chicago, Burlington and Quincy"
Two years ago ] made up my mind
that the road should enter Chicago. and
the question came up how it should be
done ] came TO the conclusion that three
lines were available. the 81. Paul. Wis
consin Central. and the Chicago. Burling-
ton and Quincy
Later / suggested 10 Mr.. Hill that we
gel together and secure the St. Paul Hill
wanted the Burlington but ne finally
agreed TO take the ST. Paul. il was no
secret. We went 70 the directors Of the
road.
The reason that Hin wanted the Bur
lington vas because it would bring more
freight than the ST. Paul
These negotiations went on for some
time, but the directors Of the road would
not consent 70 the transaction. I told
Hill 70 take up the negotiations with the
Burlington. which we did