The Washington times. (Washington [D.C.]) 1901-1902, 1902-03-27
CUPID LAUGHS AT
CAPITOL GUARDIANS
Mr.. MORGAN TELLS
DETAILS OF MERGER

ern Pacific he deemed it his duty TO act
at once. He consulted nobody in max
ing up his list of new directors, and said
his object in giving the Union Pacific
representation was TO observe the COM
munity- interest idea.
Community of Interest.
What do you mean by the community
of interest idea?''
at is the idea that the men who run
the railroads can do what they please
with them without continual dissensions
and friction 1t means harmonious coop
GRAFTON for the benefit Of all interests
Undoubtedly the Union Pacific men were
surprised when they found that / had
nominated Mr.. Hartman and Mr.. Schih
for members of the Northern Pacific
board
To Prevent Change of Control
The fact that the Northern Securities
Company has a capital CT s4G0 COO, 900 was
an important consideration said Mr.
Morgan. Il was anxious to get major
ity Of the Northern Pacific stock so placed
that sudden changes in the control and
policy could not occur. 1t is not within
the range of human probabilities that any
single interest will be able to buy the con-
troll of tie Northern Securities Company
away from its present owners
Did not your firm sell very large
amount of Northern Pacific stock 10 MIR.
Hill and his associates after your return
from Europe?'
Yes We sold some stock. ] do not re-
member the amount
WAS it not $40. GOO .c0O?"
III might have been; I do not remem-
Der exactly"
We'll, Mr.. Morgan, a $4,000 GOO trans
| action is a pretty big transaction"
A Very Small Sum.
Il don't think So" said Mr.. Morgan,
brusquely When you are in transac-
! lions involving several hundred of mill
, ions you are not apt to be impressed with
. S10000.0 900 transaction. In fact. S10.-
000,CG0 does not amount TO much nova
days Of course, l mean comparatively
speaking
Mr.. Morgan said that he had nothing
to do with the organization of the North
ern Securities Company, but he approved
the scheme. He said that he considered
the price of $50 allowed by the Northern
Securities Company for Great Northern
stock little low, and the price of us
/ allowed for the Northern Pacific stock as
pretty good under the circumstances"
How much of the Northern Securities
stock do you now hold?'
Mr.. Morgan at first declined to answer
but changed his mind and said: We
now hold between 10 900 and 100 600
shares of Northern Securities stock"
Common Stock Defended.
Mr.. Boutell, of counsel for Mr. Power,
asked Mr.. Morgan why the Northern Pa
cific stockholders had not had an oppor-
tunity to exchange their holdings for new
common stock
Because that would have been in vio-
lation of the spirit and terms of the reor-
ganization plan" said Mr.. Morgan.
1T was expressly stipulated that the
preferred stock should be retired at par
with per cent interest per annum up to
its retirement. The common stockholders
were to have all the benefits of this re-
tirement. Had the Northern Pacific di-
rectors determined against my advice to
allow the preferred stockholders to ex-
change their holdings for new common
stock. /, as holder of common stock
would have got out an Injunction to stop
the proceeding"
1t is expected that George F. Baker
president of the First National Bank, will
be examined tomorrow.