Omaha daily bee., 1902-03-27

the minority stockholders" sald Mr.. Nor
gan.
you bought your stock on the open mar
ket?".
yes, sir"
You did not buy anything by private
sale?'
"Not a share"
what did you learn when you came home
about the Discussions and as to who had
control Of the road?"
I'VE had control"
by we, you mean yourself and Mr.. HIP"
mot at all. / mean J. P. Morgan q Co.
and their associates"
Mr.. Morgan said Union Pacific men we're
put on the Burlington board in carrying out
a community Of interest plan.
Old scheme of Mrs.
The project Of the holding company for
the Northern Pacific common stock had been
contemplated for a considerable time as
far back as two years. Mr.. Morgan said
Mr.. Hill had approached him two years ago
about organizing a holding company which
would throw the Northern Pacific and Great
Northern interests together. II told Mr..
Hill that we could work together said
that witness, but that we could not form
any closer alliance, as that was against
law. The idea OF forming the Northern Sc
c%urities company was never thought OF
previous to May o." Mr.. Morgan said.
Mr.. Morgan further explained that after
the experience Of May Q he became more
strongly imbued with the idea OF forming
a holding company for the Northern Pacific
stock. "This was what occurred to me-
Mr.. Morgan continued. II might die or the
firm Of J. p. Morgan G. Co. might be dis
solved and In such nm event l wanted the
Northern Pacific stock TO be in safe hands,
that the stockholders might not suffer. l
did not care who went into the company 80
long as the Northern Pacific interests we're
safe, as they would be IL / held a majority
Of the stock"
such a majority you could not have
without Mr.. Hill going in with your" asked
Mr.. Lamb.
81 could Mr.. Hill did not have control,
nor did l."
Mr.. Morgan later testified that he had
made a large sale OF Northern Pacific
stock to ]. j. Hill.
How much was IT." asked Mr.. Lamb.
81 ant remember" replied Mr.. Morgan.
Somebody has testified here that it was
SO, 900, 600 WORTH said Mr.. Lamb.
''well, that may be-"
This seems rather a large transaction.
Can you not tell us something about the
negotIatIons?' asked Mr.. Lamb.
"a $40, 900, 900 purchase of stock does not
seem a very big transaction to me. l have
forgotten the details" said Mr.. Morgan.
"Hil and l worked together. I'll work
with him any time. II It had been different
I'll tell you an instance OF what l could
have done, Say that l had bought the
Union Pacific interests in the Great North
ern, what would Hill have done then?"
Mr.. Morgan smiled at this suggestion OF
what might have happened. He said he
did not help organize the Northern securi-
ties company. but he approved the plan.
He thought $3.50 a share for Great Northern
rather high and Sill somewhat low for
Northern Pacific.
The witness wanted to put his Northern
Pacific In a company that was so large that
nobody could buy It.. II II was deposited
in a small company II might be bought.
He saw Mr.. Hartman on his return from
Europe, but they did not talk about Union
Pacific nor about Northern Pacific.
The witness said J. p. Morgan & Co. hold
between 12o, 300 and 100, 900 shares Of North
ern Securities at the present time.
There was a friendly cross examination
Of Mr.. Morgan by Francis Lynde stetson.
To him the witness said the retirement of
the Northern Pacific preferred stock was
not part of the plan which eliminated in
the formation Of the Northern Securities
company, nor was 1t part Of a plan to al
low the Northern Securities company to OBJ
tain a majority of the Northern Pacific
common.
Mra' Morgan denied that there was any
understanding or agreement in the organ
izatlon OF the Northern Securities company
looking to the control Of rates or trafac, or
any agreement that would in any manner
obstruct or contemplate the obstruction Of
commerce.
He said that ali parties to the agreement
had acted Independently.
Mr.. Morgan said IL was never contem-
plated that the holders OF Northern Pacific
preferred could change that stock for COM
mon. The retirement OF the preferred stock
as early as possible was part OF the re-
organization plan Of 1895. The retirement,
however. was not practicable until after
the common stock sold at par or above. The
preferred stockholders. the witness thought,
would have changed their shares for COM
mon stock II they had had the opportunity.
This closed Mr.. Morgan's testimony and the
hearing went over until tomorrow, when
Ha0r0a r Rakpr will ha ballad