The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-21
MORCAN'S AID ON STAND
GEORGE w. PERKINS TESTIFIES IN
SUIT AGAINST THE MERGER
Large Blocks of Union Pacific Stock
BoUght by His Firm, but He
INSISTS That Deal Was
Only That of Broker.

NEW YORK, March 2O-George w.
Perkins, of tie firm of ]. p Morgan &
Co., was the first witness today in the
hearing before a special examiner, of
the suit of Peter Power against the
Northern Pacific Railway company The
object of the suit is to prevent the oper-
alton of the Northern Pacific by the
Northern Securities company. His firm
he said, was purchaser of Northern
Pacific between May 1 and May 8 last
year; but how much was bought he did
not know. Neither did he know how
much of the stock ]. P. Morgan & Co.
held May !. 1901.
Mr.. Perkins said ]. P. Morgan e Co
bought about $7S,0O0000 of Northern Pa
cltlc stock from Union Pacific interests
after the Northern Securities company
was formed in November. About S1O.-
100000 was paid in cash and the rest was
to be paid for in stock of the Northern
Securities company
After taking the stock from the Union
Pacific interests j. p. Morgan &, Co sold
it to the Northern Securities company
receiving therefor 100000 in cash and
the balance in stock. The cash received
from the Northern Securities company
was equal to the sum paid the Union
Pacific interests. Mr.. Perkins said that
at the time of the purchase of the stock
by his firm there was no agreement in
existence with the Northern Securities
company in reference to the disposal Of
the Northern Pacific stock
He said his firm simply acted as bro
kers in the transaction In case the
stock was not disposed of to the Northern
Securities company it would have been
turned back to the Union Pacific inter-
ests. Mr.. Perkins said he did not know
whether or not ]. p Morgan & Co.
owned any of the stock of the Great
Northern railroad during the SUMMER or
autumn of 1901, and ne did not know
how much Great Northern stock the
firm owned now.
DO you know that the firm of j. P
Morgan Co. acquired $16,OOO,OOO to SIS
100000 worth of Northern Pacific stock
between May 1 and 9, 19O1," Mr. Perkins
was asked by Judge Lancaster.
The witness said he had no knowledge
OF any such transaction.
Lancaster then asked for a list of all
the members of the firm Of T. p Nor
gan & Co. The list was handed him A
conference ensued during which it was
suggested that subpoenas might be is
sued for some of the members or for all
The next witness was A. P ClougF
vice president and a director of the
Northern Securities company. He said
the transfer of about 100000 shares of
Great Northern stock to the Northern
Securities company had been completed
and that negotiations were pending for
about 300,0 600 or 100000 shares more There
were 100000 shares of Great Northern in
existence, he said. Of Northern Pacific
stock, $15OO00,000 par value had been
turned over to the Northern Securities
company Mr.. Clough said he never
knew Of any arrangement between Mr..
Hartman, Mr.. Morgan, Mr.. Hill and
others, subsequent to May 1, 1901. by
which Mr.. Morgan was to be given the
proxy of Mr.. Hartman in the Union Pa
clflc, in exchange for Mr.. Hartman being
placed on the boards of the Northern Pa
enc and the Chicago, Burlington &
Quincy.