Omaha daily bee., 1902-03-21
BUYS STOCK OF BOTH ROADS
Northern Securities Takes Over Northern
Pacific and Great Northern Shares.
TESTIFIED TO BY STOCKHOLDERS
Member of j. p. MOrgRn's Firm 10
Slow 20 Disclose Relation of that
Concern to Merger
Operations.

NEW YORK, March 2O.-George W. Per-
kins Of the Arm of J. P. Morgan & Co. was
the frst witness today in the hearing before
g. special examiner Of the suit OF Peter
Power against the Northern Pacific Rail-
road Company. The object Of the suit is to
prevent the operation Of the Northern Pa
cifc by the Northern Securities company.
His Arm, he said, was a purchaser OF
Northern Pacific stock between May i ana
May Q last year; but how much was bought
he did not know. Neither did he know how
much OF the stock J. P. Morgan & Co. held
on May /, 1901. Mr.. Perkins said J. p. Nor
gan & Co. bought about SIS. 000. 900 OF North
ern Pacific stock from Union Pacific inter-
ests after the Northern Securities company
was formed In November. About $40, O00, 900
was psid 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 II
to the Northern Securities company. re-
ceiving therefor $40, 900, 900 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 dBIcCmGul III GAlolCuCE Win tue ENOIln-
ern Securities company in reference to the
disposal of the Northern Pacific stock. He
said his firm simply acted as brokers In the
transaction. In case the stock was not
disposed OF to the Northern Securities COM
pany It would have been turned back to the
Union Pacific interests.
Mr.. Perkins said he did not know whether
or not J. p. Morgan q Co. owned any Of the
stock Of the Great Northern railroad durins
the summer OF 1901 and he did not know
how much Great Northern stock the Arm
owned now.
do you know that the hrm Of ]. p. Nor
gan & Co. acquired $3.50 900 to SIS, 900, 900
worth OF Northern Pacific between May
and 9, 1902" Mr.. Perkins was asked BY
Judge Lancaster.
The witness said he had no knowledge
OF this transaction.
Judge Lancaster then asked for a list o.
all the members OF the firm OF ]. p. Nor.
gan & Co. The list was handed him.
A conference ensued during which II wal
suggested that subpoenas might be ISSUED
for ZONE OF the members or for all.
The next witness was A. P. ClOugh, vic,
president and a director OF the Northern
Securities company. He said the transfe
Of about 500, 900 shares Of Great Northern
stock to the Northern Securities compan,
had been completed and that negotiation
were pending for about 800, 900 or 400. 90
shares more. There we're 1880. 900 shares o
Great Northern in existence, he said. o
Northern Pacific stock $3.50. 900, 900, pa
value. had been turned over to the North
ern Securities company, Mr.. Clough sal
he never knew OF any arrangement be
tween MI. Hartman. Mr.. Morgan. Mr.. Hi
and others subsequent TO May 1. 1901, b
which Mr.. Morgan was TO be given tn
proxy OF Mr.. Hartman in the Union Pacih
in exchange for Mr.. Hartman being place
on the boards OF the Northern Pacific an
the Chicago, Burlington & Quincy.
The hearing was adjourned until tomor
row.