The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-25

territory traversed by the other company.
Mr.. Steele said that there had never
been any ironbOund agreements between
MIR. Hill and Mr. Morgan that they would
mold on to their Northern Pacific stock.
The plan Of retiring Northern Pacific
preferred had come up before 1901. he
said. May l, 1901, j. p Morgan & co.
had about 100000 worth of Northern
Pacific common, and between May / and
May they bought about $15OOOOOO worth.
In the middle of the summer they sold
$lO,OO,OOO worth of it to the Northern
Securities company, receiving stock of
the Northern Securities company in re-
turn.
The purpose of a conference immedi-
ately after the disturbance of May 9. Mr.
Steele said, was to aIlay public apprehen-
sion, and to that end the Hartman inter
ests consented to give Mr.. Morgan their
Northern Pacific proxies at the next cleo
ton. This was done, he said because
the public had confidence in Mr. Morgan.
Five new directors of the Northern Pa
cific were elected at the suggestion of
Mr.. Morgan. Mr.. Hartman was placed
on the Northern Pacific and Burlington
boards to quiet any apprehension that
might exist as to the intentions of those
in control Of the Burlington
No Trust Was Planned.
Next followed some testimony as to the
sale of the $75,000,0 900 worth Of Northern
Pacific common to the Northern Securi-
ties company. Mr.. Steele said the North
ern Securities company paid $50 600 600 for
the stock In reply to questions he said
the idea of turning the stock of the Great
Northern over to a holding company was
first brought to his attention as long as 4
year ago, and as to the Northern Pacific
m hn Mo xr-nc I,
tention in the latter part Of the summer
of 1901. He said he was not aware that
all the negotiations during the summer
Of 1901 had been with view of getting a
majority Of the Northern Pacific stock
and to dispose of the stock in the man
ner in which they were disposed.
At this point the witness was turned
over to Mr.. Stetson, who is counsel for
the firm Of ]. P. Morgan & Co.
The early part CT Mr.. Stetson's examin-
alton was for the purpose of disproving
the claim Of the other side that the ne
gotiations for Northern Pacific common
the Burlington purchase, the formation OF
the Northern Securities company and the
placing of Mr.. Hartman and other rep
resentatiYeS of the Union Pacific inter
ests on the boards of the Burlington and
the Northern Pacific, We're all part of a
. pooling scheme which originated and
vious to the formation of the securities
company with Mr. Morgan, Mr. Hill and
Mr.. Hartman and their associates as the
principal factors.
No Purpose to stihe Competition.
Mr.. Steele said there was no prior und-
erstanding that after they had acquired
the Northern Pacific stock from the Har-
riman interests, it was to be put into the
Northern Securities company.
eve found" said Mr.. Steele. that the
Hartman holdings were not quite as
large as we had assumed, and as we had
represented them to be. AS a result the
Securities company refused to take them
at the figure agreed upon. 1t was only
after he had effected compromise and
at a substantial reduction in price that
we succeeded in disposing Of them to the
company.
80 far as you know, or so far as
known to your firm, was there any in
intention. at the organization Of the
Northern Securities company, and the
transfer of these holdings to it, to re-
strain trade, stife competition or regu-
late rates?"
There was an objection from Mr.. Bou-
telle, which was noted on the record,
in the absence of anyone to deliver ruI-
ing on the matter. Then the witness
was allowed to answer, and gave his an
swer in the negative.
Another point brought out on cross
examination was that there was never
any contest for the Northern Pacific COM
mon. Witness said this contest did not