The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-25
MERGER CASE HEARING.
j. III. SchiR Declines to Answer Cues
tions as to His Firms Business.

NEW YORK, March 24.-The hearing in
the suit commenced by Peter Power in the
United States Court for the District of
Minnesota for the purpose of determining
the standing before the law of the purchase
and holding of Northern Pacific and Great
Northern stocks by the Northern Securities
Company was continued here this afternoon
by Richard A. Mabey, a special examiner.
Jacob II. Schiff of the firm Of Kuhn, Loeb
& Co, was the first witness. He was
questioned by A. NJ. Boutelle. of Minneap-
oils. of counsel for Peter Power. Mr.. Schiff
rectOrs Of the Northern Pacific since the
latter part of 1897 and had been elected a
director of the Chicago. Burlington &
Quincy Railroad during 1901 lie is also a
director OF the Northern Securities Com
pany. Up to 1901 he was a director in the
Great Northern. He did not remember how
much stock he had in the Great Northen.
He had not held any of it since the sum-
rner OF last year. He was a member Of
ifnanciers who i'm 1896 purchased $26,O0O000
worth of Northern Pacific at the time OF
the reorganization of that road.
WAS Mr.. Hill in that deal? was asked
'Mr. Hill can tell YOU" replied Mr. Schiff.
The witness said he had purchased 10000
shares OF Burlington stock in 1901
For whom did you act in purchasing
that stock?"
Il decline to answer
ests?"
II decline to answer decline to answer
any questions regarding the business of
Kuhn. Loeb & Co, unless compelled TO do
So" was the reply Of Mr.. Schiff.
He said that the stock was not purchased
for the purpose of securing control of the
Burlington and Union Pacific. He also de-
clined to answer a question as TO whether
he had acted for any railroad interests I'm
making the purchase of Burlington stock.
He said he had no previous knowledge OF
+to AZ nd he
Great Northern TO get hold OF the Burling
ton
Mr.. Schiff said his firm never represented
the Union Pacific or the oregon Short-line
as bankers in the stock market. He de-
clined to say whether the firm had so repre-
scented Mr.. Hartman. As far as he could
recOllect the purchases made by MS firm or
Northern Pacific before May last year
amounted to S7S000.O00. A few weeks later
this stock was transferred, part TO the
Union Pacific and part 10 the oregon Snort
line The witness said he had no conference
with Mr.. j. +. Morgan concerning these
purchases, but there was conference be-
tween himself and Mr. Hartman on one
side and James J. Hill and Mr.. Steel. OF j.
=. Morgan & Co, on the other. He be-
lieved there were two such conferences, but
at neither of them was there showdown
TO determine whether the Hill or Hartman
interests held "A ajority OF Northern Pa
cihc common stock. Mr.. Schim said he did
not learn Of the fact that the Union Pacific
was disposing of its Northern Pacific hold
ings until the matter came before the board
of directors. Of which he was a member
The stock was sold TO j. p. Morgan & Co
and payment was made I'm 100000 or So
100000 cash and So 10000 or $4,000 900 in
stock of the Northern Securities Company.
The witness said Eir- Hill asked him 10
take place on the Northern Securities
board Mr. Schiff said he first learned OF
the retirement of the Northern Pacific pre-
ferred stock at the time or its actual re-
tirement He did not know whether Mr.
Hartman had been consulted in the matter
Mr.. Schif said the Union Pacific and the
Oregon Short-line sold their Northern Pa
ci1c holdings because they thought IL would
be a good thing TO get a profit on their
stock The stock was originally purchased
because Kuhn. Loeb & Co. thought il was
a good thing TO do. IL was the object OF the
firm TO obtain as much as possible OF the
stock The first information the witness
had of the organization OF the Northern
Securities Company was when he read
about il in the newspapers. He had moth
ing 10 do with the organization OF the COM
pany nor had he any Interest I'm its affairs
until he became a director at the invita-