New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-03-27
last two years l can't imagine what we would
want il for. We have all want now.



II this point Mr.. Morgan was turned over to
his own counsel, Francis Lynde Stetson, for
cross-examina:ion. But 1 thought I was going
home" he protested. Have 1 got 10 answer
lot Of questions from you, too?"
You are their Witness" rejoined Mr.. Stetson.
land must cross-examine you"
slr. Boutelle promised Mr.. Morgan to protect
ni!n-
In answer to questions Mr.. Morgan said his
firm had at time since the reorganization in
1896 acted as underwriters for the Northern
Pacific in the sense Of forming syndicate for
supplying money TO finance IL with. He said
far as he knew his firm had never acquired any
transit lines or extensions for the Northern
Pacific.
Q.-Was the retirement of the Northern Pa
cifc preferred stock part OF a plan which Gull
minated in the formation OF the Northern Sc
curities Company? A.-No. sir.
Q.-Was the retirement OF the Northern Pa
cinc preferred part of plan TO allow the North
err Securities Company 10 obtain a Majority of
the Northern Pacific common? A.-Not that
Odd Mr. Hill have anything to do with the
retirement Of that stock. except vote for II
as a director? A-No, sir. 1 am not sure that
he was Il director.
Q.-Was there any plan or scheme entered by
any one TO vest in the Northern Securities Com
pauy OF anybody else the control Of the Northern
Pacific stock? A.-Not that 1 am aware of.
Q-Was the Northern Securities Company
formed with a knowledge the part Of the
organizers that they would be able to acquire IA
majority Of the two stocks? A-None what
ever. We had majority Of the Northern Pa
cifc common already.
40 QUESTION OF RATES INVOLVED.
Q.-At the organization Of the Northern Sc
curities Company was there any understanding
with Mr. HILL or anybody else for the regula-
ton Of rates the sitting of competition or sim
ilar considerations? A-No sir
Mr.. Morgan absolutely denied that there was
any understanding or agreement in the organi-
cation OF the Northern Securities COMPANY
looking 70 the control of rates or traffic or any
agreement that would in any manner obstruct
or contemplate the obstruction of commerce He
said that all parties TO the agreement had acted
INDEPENDENTLY
After Mr.. Stetson was through with his cross
examination Mr.. Morgan taken in hand by
Nj Boutee. Mr.. Morgan said that under the
scheme Of reorganization no plan had ever been
offered TO the stockholders by which they could
change their preferred stock for common stock
"Such plan was never thought Of" he said
Nj BOutelle asked Mr.. Morgan why the re-
iirrment OF the preferred stock was not de-
termined on before 1901. and why It was precipi-
tsted at just that time.
Nj Morgan replied that the retirement Of the
preferred stock at the earliest opportunity was
part Of the reorganization plan Of 1896.
The retirement could not. however" he con-
tinued, be brought about until the credit of the
company had reached a stage where its COM
mon stock sold at par or above. No definite
plan had been determined until the retire
rnent actually took place. There was no other
plan possible under the terms of the reorganiza-
ZION
DO you know that the preferred stockholders
would have refused 10 convert their securities
into common stock" asked Mr. Boutelle
Certainly not; they would have done with
the greatest pleasure" the lnancier replied.
AS the lawyers We're through with Mr.
Morgan an adjournment taken until this
NJ he
stockholders in the Northern Securities Com
pany, will testify.