The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-28
CLOUCH ON STAND
FURTHER TESTIMONY Is TAKEN in
POWERS SUIT AGAINST
THE MERGER
J. J. HILL HOLDS PROXIES
Testimony Is to the Eject That In
tcntiOn of Northern Securities
Company Is Not to Control
Rates or Bar Competition.

NEW YORK, March 27.-John s. Ken
nedy, banker, was recalled today, for
cross examination in the hearing of the
suit of Peter Power against the North
ern Pacific Railway company. He said he
bought block of Northern Pacific stock
about $5,O0O,OO0 worth in 1896. There was
no agreement on his part with anyone as
TO how he was 10 vote or sell his North
ern Pacific stock. Mr. Kennedy had
about $1O,O0O,C0O of Great Northern stock
which was voted by James j. Hill on a
proxy. The formation of the Northern
Pacific was not dependent upon the ac-
quirement Of either Great Northern or
Northern Pacific.
Mr.. Kennedy said ne had never heard
of any agreement in the Northern Securi-
ties company that any set of men were
TO control the company. He asserted
that in the sale Of Northern Pacific stock
10 the Northern Securities company, each
stockholder acted for himself The wit
ness denied that there was any question
or discussion to the effect that the North
ern Securities company was organized to
acquire majority of stock of both roads
TO maintain rates and control competition
The retirement Of the preferred North
ern Pacific stock had not been part OF a
plan to enable anyone to control the
Northern Pacific company, so far as he
knew.
w. P. Clough, vice president of the
Northern Securities company was then
called
Mr. Boutelle, Of counsel for Power,
questioned him.
You have testified that a large amount
of Great Northern stock was never trans
ferred to the Northern Securities COM
pany. VIII you explain this?"
The purchase of about $4,000 shares
was completed but negotiations for about
100000 were not completed"
Mr.. Clough declined to say whether the
Northern Securities company had received
dividends on the Great Northern stock
held by 1t. He said that Charles Steele,
of ]. Pierpont Morgan & Co.: George f.
Baker Jr., and A. B. Hepburn held proxies
for the Northern Pacific stock in the pos
session of the Northern Securities COM
pany.
"As to the proxies for the Great North
ern stock said Mr.. Clough. my mem
CRY is not so good, but 1 think 1t is held
by ]. ]. Hill and Mr.. E. ]. Sawyer in
Mr.. Hills absence"
Witness said $3.50, 100000 worth of North
ern Securities stock had been included
mis- concluded the examination Of Col
Clough.
Mr.. Kellogg, of counsel for the Northern
Securities company asked for an adjourn
ment until Saturday. At that session he
said he wanted to examine Mr.. Perkins
of the firm of j. P. Morgan q Co. - He
also notified Mr.. Boutelle that there were
certain slight corrections to be made in
the testimony Of Mr. Morgan and it was
agreed that these would be made in writ
ink and entered upon the record
Mr.. Kellogg also asked that Peter
Power, the plaintiff in this suit, be pro-
duced at the next session. Reply was
made that Mr.. Power would be produced
as soon as the direct testimony was In.
IL was then agreed that the adjournment
taken today should be subject to the call
of the examiner and 1t was said that it
probably would be three weeks before
the next session is held. E. H. Hartman
is TO be the next witnesses examined.