The age-herald., 1902-03-25
Testimony Begins in Northern
 Sucufit Company Gases
MORGAN RAISED $5O,OOO,OOO
Close cross-Examinatlon Brings Out Point That There Was Never Any Contest for Northern Pa
 cific Common Stock.

New York. March 2A-The hearing in the suit commenced by Peter Power, in the United States court for the district of Minnesota for the purpose of determin- ing the standing before the law of the purchase and holding of Northern Paci- fic and Great Northern stocks by the Northern Securities Company, was con- tinued this afternoon
 Jacob H. schiff of the firm of Kuhn, Loeb & Co., was questioned by A. M. Boutelle of Minneapolis of counsel for Peter Power. MT. Schiff said that as far as he could recollect the purchase made by his firm of Northern Pacific before May last year amounted to $7S000, 900. IA few weeks later this stock was trans ferred part to the Union Pacific and part to the Oregon Short Line. The Union Pacifc's Northern Pacific stock was sold to J. P. Morgan & Go. and payments was made in nine or ten millions of dollars cash, and eighty or ninety millions of dollars in stock of the Northern Securities Company.
 MT Schiff said the Union Pacific and the Oregon Short Line sold their North ern Pacific because they thought 1t would be a good thing to get profit on their stock.
 Organized a $5o,ooo,ooo Syndicate.
 Charles Steele. of J. P. Morgan & Co.,, testified that his firm organized a syndi- cate to raise S50,00O,0O0 cash in order to buy control of the Burlington. The ob- Ject of the purchase was to reap the profits that would result from getting n cfo Tor the Burlington. MT. Steele said there never had been any iron-bound agree ment between Mir Hill and MT. Morgan that they would hold on to their Northern Pacihc stock J. P. Morgan 6 Co., had sold $10,0O00 GOO of their $20, 900, 900 of North ern Pacific common to the Northern Se- curities Company, receiving stock of the Northern Securities Company in return.
 The Northern Securities Company had paid $9O000,000 for the seventy-five mill lions worth of Northern Pacific common
 Questions asked the witness by MT. Stetson, counsel for the firm of J. F. Morgan & Co.,, were for the purpose of disproving the claim of the other side that the negotiations for Northern Pa cific common, the Burlington purchase. the formation of the Northern Securities Company and the placing of MT. Harri- man and other representatives of the Union Pacific interests on the board of the Burlington and Northern Pacific, were all part of a pooling scheme which origi- mated and matured during the summer of 1901, previous to the formation of the se- curities company with MT. Morgan, MT. Hill and MT. Hartman and their asso- ciates as the principal factors. MT. Steele said there was no prior understanding that after they had acquired the Northern Pacific stock from the Hartman inter- est 1t was to be put into the Northern Securities Company.
 Never Any Contest for Common.
 A point brought out on cross-examina- tion was the fact that there was never any contest for the Northern Pacific common. Witness said this contest did not exist outside of the newspapers. It was this contest, the existence of which the witness denied, that eliminated in the panic of May g last
 On redirect examination MT Steele said the plan for buying the holders of the preferred stock out at par was adopt ed because the directors decided upon that as just and equitable arrange ment and that 1t was not for the pur- pose of throwing the control of the road into the hands of those who held the SS,- GOO, 900 worth of the common stock.
 An adjournment was taken until We'd nesday when Mir. Morgan will be heard.
 Another Suit to Prevent Merger.
 Minneapolis March 24.-It Is stated that w. B. Stratton, attorney general of the State of Washington, will bring suit in the United States Supreme Court against the Northern Securities Company to pre- vent the merger. As all the corporations party to the suit are outside of Wash ington, the question of Jurisdiction which caused Minnesota's petition to be de- nounced will be avoided. MT. Stratton has been here a week secretly consulting with Attorney General Douglass.
 To Begin Action Soon.
 St. Paul, March M-Attorney General Douglass will begin action against the merger in the state courts within ten days. It will be brought in the District Court at St. Paul and will be in the form of an application for an injunction to re- strain the Northern Securities Company from voting the stock of either the North ern Pacific or Great Northern Railroad Company.
 tuMpER co CASE DISMISSED,