The daily morning journal and courier., 1902-03-27
J.P MORGAN EXAMINED
Continued from First Page,)

MT. Morgan here returned to the time when he learned of the contest for Northern Pacific control.
 ''I was at Aix, and so was MT Ken nedy," he said. MT Kennedy was a large holder of Great Northern stock, and also of Northern Pacific. He came to me at Ak in the beginning of May and said What means all this@ I said T don't know He said I will put my stock into your office.
 Kennedy and I were mates we have been friends for forty years, I explained to him what I had done and he said anything I suggested he would do, All my friends said the same. That is the way they treated me in the Northern Pacific transaction" said Mr Morgan.
 MT. Morgan later testified that he had made a large sale of Northern Pacific stock to J. J. Hill.
 How much was it?" asked Mr Lamb.
 "I can't remember" replied MT. Nor gan.
 Somebody has testified here that is was $10,OO0,000 worth" said MT Lamb.
 Well, that may be-
 This seems a rather large transac- tion. Can you not tell us something ahout the negotiations asked MT. Lamb.
 "A ten million purchase of stock does not seem a very big transaction to me, l have forgotten the details,' said MT. Morgan Hill and I worked together. I'll work with him anytime. If it had been different, I'll tell you an instance of what I would have done. Say that I had bought the Union Pacific interests in the Great Northern, what would Hill have done then?'
 MT. Morgan smiled at this suggestion of what might have happened. He said he did not help organize the Northern Securities company but he approved the plan. He thought $1SO a share for Great Northern rather high, and $115 somewhat low for Northern Pacific.
 The witness wanted to put his Northern Pacific stock in company that was so large that nobody could buy it. If it was deposited in a small company it might be bought. He saw Mr. Hartman on his return from Flu rope but they did not talk about Union Pacific nor Northern Pacific.
 
 hold between 100000 and 130,00O shares of Northern Securities stock at the present time.
 There was a friendly cross eXamina- ton of MT. Morgan by Francis Linde Stetson. To him the witness said the retirement of the Northern Pacific pre- ferred stock was not part of the plan which eliminated in the formation of Ia was it part of plan to allow the Northern Securities company to obtain a majority of the Northern Pacific com- mon. MT. Morgan denied that there was any understanding or agreement in the organization of the Northern Securities company looking to the control of rates or traffic or any agreement that would in any manner obstruct or contemplate 1 the obstruction of commerce. He said that all parties to the agree | ment had acted independently. MT. Morgan said that it was never contemplated that the holders of North l ern Pacific preferred could change l that stock for common stock The re- | tirement of the preferred stock as early | as possible was part of the reorganiza- tion plan of 1896. The retirement how ever, was not practicable until after the | common stock sold at par or above. The l preferred stockholders, the witness thought, would have changed their shares for common stock if they had l had the opportunity This closed MT. | Morgan's testimony and the hearing went over until morrow when George F. Baker will be called