The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-03-27

Mr.. Morgan was asked what the basis
of valuation of the stock was and re-
piled that the stock was worth that
amount for the purposes for which it
was wanted
Railroads Compete.
Did you know there was II competi-
ton between Northern Pacific and the
Great Northern for the business OF the
Burlington?
II never knew two railroads that did
not compete the iinanciei replied.
AT the present time the Burlington
is operated Jointly by the Northern
Pacific and the Great Northern rail-
roads?' asked Mr.. Lamb.
Nothing of the kind The Burling-
ton is operated as Independently of all
other roads as any other i'm the coun-
try"
In the event of II dispute between
the Northern Pacific ana Great North
ern over the Burlington, who would
VIM"
II don't know"
Was not the Burlington deal pre-
cipated because somebody else was
after it?"
~ don't know. If you ask my per-
sonal opinion [ might say, yes"
Mr.. Morgan then told how he heard
that Northern Pacific control was
sought by others
II was ut AK Les Bains," he said
and heard that the Union Pacific had
acquired the majority doubted it
because ! thought ] knew ] could de-
pend upon the interests that were as
sociated with MS as holders of the
Northern Pacific common. to hang on
to their holdings. However. the news
came to me so strong that I thought
had better make safe and so between
May and May Z, we went into the
market and bought S15.0O0000 worth OF
the stock / figured the matter up and
knew that such an amount would be
sure to have the majority of the COM
mon stock"
why were you so anxious to have n
majority interest in the Northern Paci-
tic stock"
We'll. our firm was fiscal agent or
the road. felt 1t as Il moral obliga-
tion upon myself towards those who
had intrusted 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.
Mr. Morgan said Union Pacific men
We're put on the burlington board in
carrying out community of interest
plan Harmony was what was desired.
There was no special object in putting
Mr.. Gould on the board. In further eX-
PLANTATION of the intention and pur-
pose leading up to the Northern Sc
curities company. Mr.. Morgan said
that as far as the placing of the North
ern Pacific stock was concerned II
was done to have the majority of the
stock placed in safe hands. so as to in
sure continuation of the policy of the
road and insure the moral control
No other control was contemplated, the
fnancier declared. The project of the
holding company for the Northern Pa
cific common stock had been contcm-
plated for Il considerable time-as far
back as two years ago.
MI. Hills Proposals.
Mr.. Morgan said Mr.. Hill had APP
preached him two years ago about ar
ganizing holding company, which
would throw the Northern Pacific and
Great Northern interests together.
II 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"
The idea of forming the Northern Sc
rurities company was never thought of
previous to May 9, Mr.. Morgan said.
Mr. Morgan later testified that he had
made a large sale of Northen Pacific
stock to j. j. Hill.
How much was it?" asked Mr..
Lamb.
II can't remember" replied MI Nor
gan.
Somebody has testified here that it
was ten million dollars worth 2" said
Mr.. Lamb.
well, that may be-"
This seems d rather large transact
tion. Can you not tell us something
about the negotiations" asked. Mr.
Lamb.
"A ten million purchase of stock does
not seem very big transaction to me.
have forgotten the Details" said Mr..
Morgan. Hill and | worked together.
I'll work with him anytime. If it had
been different, I'll tell you an instance
IF what ] could have done Say that
bought the Union Pacific interests
N the Great Northern, what would Hill
nave done them"
Mr.. Morgan smiled at this suggestion |
Of what might have happened, He said
ne did not help organize the Northern
Securities company but he approved
he plan. He thought $3.50 share for
Great Northern rather high, and $115
low for Northern Pacific.
The witness wanted to put his North
.rn Pacific stock in a company that
VAS so large that nobody could buy it, |
It it was deposited in Il small COM |
)any it might he bought. He saw Mr. !
Iarriman on his return from Europe. |
)ut they did not talk about Union !
Pacific nor about Northern Pacific.
The witness said j. p. Morgan Il Co. |
lold between 10000 and 100000 shares |
If Northern Securities stock at the |
present time.
There was II friendly cross eXumina- |
ion of Mr.. Morgan by Francis Lynde |
itetsGn. To him the witness said the |
etmement of the Northern Pacific pre-
erred stock was not part of the plan |
which eliminated in the formation of !
he Northern securities company nor
vas il part of plan to allow the
Northern Securities company to obtain
majority of the Northern Pacific
company.
Mr. Morgan denied that there was
my understanding or agreement i'm
he organization of the Northern Sc
urities company looking to the con-
rol of rates or traffic, or any agree
nent that would in any manner OBJ
truct or contemplate the obstruction
a