The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-03-27
MORGAN A WITNESS
KING OF FINANCE TALKS OF
NORTHERN DEAL.
THE BURLINGTON PURCHASE.
WANTED "MORAL" CONTROL OF
NORTHERN PACIFIC.

in the Big Fight with Hartman
& Co. for Control of Northern Pa
cifc, said the Witncss-WanteG
Control in Order to Protect Minor
ity StocEhOldcrs-Likes to Work
with j. j. HiII-NOrthern Securities
Company an AfterthOught.
New York, March 26.-J. Pierpont
Morgan gave evidence to-day before
Special Examiner Mabey in the suit
of Peter Power against the Northern
Pacific Railway Company He was
questioned for two hours and half
by George Alfred Lamb of counsel for
Power, and during that time he ans
wered questions rapidly and without
the slightest appearance of reserve.
Only once or twice when questions
were asked concerning the relationship
of ]. r. Morgan G. Co., with the firms
customers did he decline to answer.
Before the hearing was opened Mr..
Morgan objected to the presence of a
number of photographers, and they
were directed to leave the room.
During the examination Mr.. Morgan
leaned back heavily in his chair, his
left hand thrust from time to time
deeply in his trousers pocket. He toyed
with an envelope impatiently, now
knocking it against his knee,
now against the table on which
his right arm rested. His
eyes expressed impatience. They roam
ed about in extreme restlessness while
questions were being put to him, but
the moment he was ready to answer
they fixed themselves on Mr.. Lamb.
Several times during the hearing the
financfer seemed amused. Once Mr..
Lamb asked if the price of Northern
Pacific did not go above its real value
while his firm was buying it in May,
1901.
mo" said Mr.. Morgan, so amused
that he had to stop to control himself
before he answered. 1T did when
they came to deliver the stock, but not
when they actually bought"
At another point the witness was
asked if Mr.. Hill had not told him that
there was danger that the Hartman
syndicate would buy the Burlington.
mo" replied he, "but such thing
was only to be expected. The papers
had much in them about railroad in
terests buying roads. | believe that
within a few days we bought every
railroad IN the TINTED states, and
Mr. Morgan laughed.
After his examination had been I'm
ished Mr.. Morgan was conducted
through several Railways to Judge
Wallace's private chambers, whence he
made his way out of the building. All
this was necessary to get away from a
number of photographers who were
waiting in one of the Railways to take
the financier's picture as he left the
examination room.
The Burlington Purchase.
Concerning the Burlington purchase,
Mr.. Morgan said he had made up his
mind that the Northern Pacific ought
to have an eastern terminal in Chi
cago. II wanted the st. Paul, said Mr..
Morgan, land Hill wanted the Bur-
lington. and finally the Burlington was
selected. 1t was the chief desire of
Mr.. Hill that the Great Northern
should have a terminal in Chicago. 1
desired the same for the Northern Pa
cific There was nothing, secret at all
about the operations. Mr.. Hill made
the negotiations. The price of 5000 a
share for the Burlington stock was de-
manded by the Burlington directors
and / told Mr.. Hill by all means to
take it,
did you know that there was
competition between the Northern Pa
business of the Burlington?"
- II never knew two railroads that
did not compete" the financier re-
piled.
WAS not the Burlington deal pre-
cipitated because somebody else was
after it?''
81 don't know. If you ask my per-
sonal opinion, I might say, Yes
The Control of Northern Pacific.
Mr.. Morgan then told how he heard
that the Northern Pacific control was
sought by others. When he heard the
Union Pacific had acquired the ma
jority he thought he had better make
safe, and so between May 2 and May
Z went into the market and bought
SIS, 900, 900 worth of the stock.
81 figured the matter up and knew
that such an amount would be sure to
have the majority of the common
stock"
why were you so anxious to have
a majority interest in the Northern
Pacific stock?"
well our firm was fiscal agent Of
the road. / felt it as a moral obliga-
ton upon myself toward those who
had entrusted me with their interest
to see that the road did not pass into
the hands of the Union Pacific inter-
ests. / felt in honor bound to prevent
that as a matter of protection to the
minority stockholders" said Mr.. Nor
gan.
What did you learn when you came
home as to who had control of the
road?"
1--WE had control"
"By we, you mean yourself and Mr..
HIP"
mot at all. I mean J. P. Morgan &
Co. and their associates"
Mr.. Morgan said Union Pacific men
were put on the Burlington board in
carrying out a community of interest
plan. They could fight among them
selves, however, if they wanted 10.
Harmony was what was desired. Mr.
Morgan said that as far as the placing
of the Northern Pacific stock in the
Northern Securities Company was CON
cerned, it was done to have the major
ity of the stock placed in safe hands
so as to insure a continuation of the
policy of the road and insure the
moral" control. No other control was
contemplated, the financier declared.
Mr.. Morgan said Mr.. Hill had APP
preached him two years ago about or
ganizing a holding company which
would throw the Northern Pacific and
Great Northern interests together.
Il told Mr.. Hill that we could work
together" said the witness, but that
we could not form any closer alliance
as that was against the law"