The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-25

ton Of Mr.. Hill Mr. schih was asked
10 give the name OF his chief bookkeeper
and did so. 10 was understood the book
keeper would be called as a witness
w I. ClOugh. vice president or the North
ern Security Company, was then called on
10 furnish a COPY of the bylaws OF the
company and list OF Its directors
Charles Steele, OF J. +. Morgan & Co. was
called. He said M Bacon OF that nrm
mad conducted the purchases or burlington
stock made last year The nrm otSanlzed
a syndicate 20 raise SG.0e,eo cash which
was necessary In order 10 buy control or
the Burlington. The object OF the purchase.
ne said. was 10 reap the pronts mat Woulo
result from getting eastern ana southedst-
ern connections for the Burlington. there be-
ing valuable grain and timber lands IN the
territory traversed by the other company.
Nj. steele said there had never been any
iro1-bound agreements between MI nm
ana Mr.. Morgan that they would hold on
10 their Northern Pacific. The plan OF
retiring Northern Pacific preferred, had
come up before 1901 he said. On May 1.
1901. j. Z. Morgan 4 Co. had about 70
10000 worth OF Northern Pacific. common.
and between May and May they bought
about S5.ogo.0O worth. In the middle OF the
summer they sold SlO0a0.000 worth OF IL TO
the Northern Securities Company. receiv-
ing stock OF the Northern Securities Com
pany' in return.
The purpose OF a conference immediate
~ after the disturbance OF Nav 2. Mr..
Steele said was TO allay public apprehen-
sion, and TO that end the Hartman inter-
ests consented 10 give Mr.. Morgan their
Northern Pacific proxies at the next cleo
ton. This done he said. because the
public had confidence in Mr.. Morgan. Five
new directors Of Northern Pacific were
elected al the suggestion of Mr.. Morgan.
Mr.. Hartman was placed on the North
ern Pacific and Burlington boards 10 quiet
any apprehension that might exist as TO
the intentions Of those in control of the
Burlington.
Next followed some testimony as to the
sale OF the seVenty-five millions worth OF
Northern Pacific common 10 the Northern
Securities Company. Mr.. Steele said the
Northern Securities Company paid ninety
millions FOR the stock. In reply 10 ques-
tions he said the idea OF turning the stock
of the Great Northern over 10 a holding
company was first brought 10 his attention
as long IS a year ago. and as to the North
ern Pacific Company the plan was brought
70 his attention in the latter part OF the
summer Of 1901 He said he was not aware
that all the negotiations during the sum-
mer Of 1901 had been with a view of get
ing a majority of the Northern Pacific
stock and TO dispose OF the stocks Ia the
manner in which they were disposed Of
At this point the witness was turned
over to Mr. Stetson, who Is counsel Tor the
firm of j. p. Morgan & Co. The early part
of Mr.. Stetson's examination was for the
purpose of disprOving the claim OF the
other side that the negotiations for North
ern Pacific common, the Burlington pur-
chase, the formation Of the Northern Sc
curities Company, and the placing of Mr..
Hartman and other representatives of the
Union Pacific in the boards OF the Bur-
lington and the Northern Pacific were all
part OF pooling scheme which originated
and matured during the summer Of 1901.
previous TO the formation of the Securities
Company. with Mr.. Morgan. Mr.. Hill and
Mr.. Hartman and their associates as the
principal factors. Mr.. Steele said there
was no prior understanding that after they
had acquired the Northern Pacific stock
from the Hartman interests IL was to he
put into the Northern Securities Company.
I'VE found" said Mr. Steele. that the
Hartman holdings were not quite as large
as we had assumed, and as we had repre-
scented them to be. AS a result the securi-
ties company refused to take them at the
figure agreed upon. 1t was only after we
had effected a compromise and at sub
stantial reduction in price that we succeed
ed in disposing OF them to the company.
$50 far as you know. or as far as known
to your firm, was there any intention. at
the organization of the Northern Securities
Company and the transfer OF these holdings
TO il, to restrain trade, stifle competition or
regulate rates?"
There was an objection from Mr.. Boutelle.
which was noted on the record in the alb
sence Of any one TO deliver ruling on the
matter. Then witness was allowed 10
answer and gave his answer i'm the mega
tive.
Another point brought out on cross-ex-
animation was that there never was any
contest for the Northern Pacific common
Witness said this contest did not exist out
side of the newspapers. IL was this con-
test. the existence of which the witness
denied, that eliminated in the Pacific nina
last.
on redirect examination Mr.. BouteIle
devoted much time TO the retirement OF the
Northern Pacific preferred last fall
An adjournment was taken until Wednes-
day morning. Mr.. Morgan was to have APP
peared before the examiner to-day and had
been subpoenaed for that time. but he sent
word through Mr.. Stetson that the earliest
time he conveniently could appear was the
time to which the adjournment was taken.
Mr.. Stetson asked the lawyers for the
other side TO produce Mr.. Powers. the
plaintiff who has thus far kept I'm the
background. George Alfred Lamb after
ney for Mr. Powers, said he would produces
not only his client but also other stock
holders who had come into the case since
the proceedings were commenced.