The Providence news. (Providence [R.I.]) 1891-1906, 1902-03-27


10 buy. Then Mr.. Hnl went TO Burlington
and opened negotiations That's all there
was TO t."
INDEPENDENT DEAL. ~,
'.The Burifngfori tsansactior was closed
before went To Europe in March, - con-
tinued Mr.. Morgan ut was a transac-.
tion nerfectly independent On iroy psrt for
the Northern pSfiae aud gon NO h,Ti's
that Ii; we shoy,d sSfs' thr BurIhgtos to- 70,
Mr. Morgan theh isot occasion TO reply
TO "A question In regard 20 the stock mar
ket that: Mr.. Hill negotiated the pur-
chase OF the Burlington road at 500
share. And / will say right here. when
gentlemen are acting I'm official capacity
they are not specializing in the stock mar
ket."
why was $500 a share paid?"
I'VE felt that IL was worth a great
deal more than that for the purposes for
which we wanted IT,"
Ibid not the Great Northern and Bur-
lington competeY'
''I never knew two roads yet that didn't
work In competition"
''Are you aware that Burlington is re-
sponslble for Great Northern's debts?''
"And vice versa That's always the
case In Joint stocks" was the reply
ibid this purchase OF Burlington tend
TO bring the two roads together?"
mot necessarily
THE SECURITIES COMPANY.
"ShortIy afterward the Northern Securi-
ties was formed. was IL not?"
AT least a year after the question OF
ST Paul came up"
when did you hear OF H."
"A few days before II was organized"
what relation has Burlington to
Northern Securities?'
mo more than between New York and
Kamskatka."
"At the time were there not reports of
the Oregon Short Line buying Burling-
TOM"
According 10 the newspapers. ! should
think that the farmers must have bought
all our railroads about that time"
You approved Mr. Hills proposal TO
buy Burlington at 500 a share In per
cent bonds?"
"1 told Mr.. Hill, yes"
Then the Burlington was bought?"
'It was"
And you approved it?"
THE directors approved H."
about last May, when did you first
hear that some one was trying TO buy
Northern Pacific?"
1T was no imaginary transaction. II
was fact and learned IL about May l.
We always supposed that we had freinds
with us with whom We could control this
property. i decided some OF them had
sold and felt morally responsible TO buy
control"
You had TO pay very high prices?"
Did you buy Il at the market2"
i did. all OF It,"
PAYERS OF BIG PRICE.
stXyba nafd the hgrh ,Nrfrog
THE others bought II at high price
when they came to deliver what we had
bought"
About $40 share"
Did you buy the stock for any road
or for Mr.. Hill?"
Il did not. l bought IL for my house.
Did you get control?'
Il believe we did.
do you recall that Mr.. Hill said he
would stand without hitching?' I"
Il do not but l think 1t very likely
he did saw IL.
This deal aroused great deal of criti-
cism on the part OF the public, did 1t not2'
The public not interested in any rail-
road became alarmed and IL was decided
TO leave the interests OF the Northern Pa
cifc in my hands, and issue statement
that there were no hostilities between the
interests involved for the time being"
ION your return from Europe last sum
mer did you consult with Mr. Hill or Mr..
schiff about what should be done?"
II did not. felt that the matter was
left 20 me and ! felt morally responsible
20 allay public apprehension on the SUBJ
Is called community of interest prin-
ciple that the various roads were acting
upon"
asked 10 define that term. Mr. Nor
gan said: 1T means when certain men
own a. property they can do what they
What was done then?"
TO ESCAPE DANGER
eve thought we had escaped great
danger that OF having competing line
purchasing control of our property with
out our knowledge or consent so we
planned the Northern Securities COM
poIS no IN This control OF dn the soS hrppeT pe
in when l was I'm Europe, for Instance.
and buy II. IL protected the policy OF the
road and it's management against all at
Subsequent TO May l wanted some
thing done which would protect that pol,
icy OF the Northern Pacific, which mad
been so successfully carried on. Mr.. Hiil
and i talked over the community OF in-
terest plan. People who held Northern
Pacific stock wanted our policy maintain
Office and said: We want your policy
maintained That's what our friends
did Mr. Hin didn't control Great North
ern and didn't control Northern Pacific,
but a majority of the stockholders of
each were in favor OF our plan.
Did you sell Mr.. H:il Slo'oW'OoO oil
northern ldClUC SleNk
III didn't say so. We sold him some
stock. / don't remember how much"
did you favor the Northern Securities
plan and turn your stock into N?
'I did. and advised my friends to dc
KNEW THE PRICE.
Did YOU know the price at which both
Great Northern and Northern Pacific was
going in?"
II did before placing my stock in. and
thought that Great Northern went in a
little low AS for Northern Pacific there
was some uncertainty as TO what we
would be able 10 do with the Union Pa
| cific people We were not sure that We
| could retire the preferred Jan. ! without
a legal contest When that time came
we foucd out"
Mr.. Morgan said that Mr.. Hill had had
| the idea OF forming a holding company
| for oil OF his companies for a long time
why were the stocks Of both of these
companies put into the Northern securi
| ties company
1T was simply the custodian OF oul
stock"
What benefits accrued2"
THE capital was 40 large that I'm hu
man probability no one could obtain con
| troll OF the holding company. III IL WASH
safe there IL wasn't safe anywhere. that's
ali 4 hoe ha ata1ks 10 hals s..,s,t