The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1902-03-25

was originally purchased because
Kuhn Loeb & Co., thought it a good
thing to do. 1t was the object Of the
firm to obtain as much as possible of
the stock.
The first information witness had
OF the organization of the Northern
Securities company was when he read
about it in the papers. He had moth
ing to do with the organization of
the company, nor had he any interest
in its affairs until he became a di-
rector at the invitation of Mr.. Hill.
w. T. Clough, vice president of the
Northern Securities company, was
then called upon to furnish copy of
the bylaws of the company.
Chas Steele of Morgan & Co., was
then called. He contended that Mr..
Bacon, of that firm, had conducted
the purchases of the Burlington stock
made last year. The firm organized
syndicate to raise the $50,O0O,OOO
cash which was necessary in order to
buy control of the Burlington. The
object of purchase, he said, was to
reap the profits that would result from
getting an eastern and, southeastern
connection by the Burlington, he hav-
ing grain and timber lands in the ter
rltory traversed by the other COM
pany. Mr.. Steele said there had never
been any iron bound agreement be-
tween Mr.. Hill and Mr.. Morgan that
they would hold onto their Northern
Pacific stock.
The plan of retiring Northern Pa
cif1c preferred had came up before
1901, he said
On May 1, 1901, j. P. Morgan &
Co. had about $5,oOO,OOO worth of
Northern Pacific common and between
May l and May Is they bought about
ST. 100000 worth.
In the middel of the summer they
sold $10,OOO,000 worth of it to the
Northern Securities company, taking
stock of that company in return.
The purpose of the conference i'm
mediately after the disturbance Of
May 9, Mr.. Steele said, was to allay
public apprehension and to that end
the Hartman interest consented to
give Mr.. Morgan their Northern Pa
cific proxies at the next election. This
was done, he said, because the public
had confidence in Morgan.
Five new directors of the Northern
Pacific were elected at the sugges-
ton of Mr.. Morgan. Mr. Hartman
was placed on the Northern Pacific
and Burlington boards to quiet any
apprehension that might exist as to
the intentions of the men in control
of the Burlington.
Next followed some testimony as to
the sale of s75,ooo,0oo worth of North
ern Pacific common to the Northern
Securities company. M. Steele said
the Northern Securities company paid
$90,00O,OO0 for the stock.
In reply to questions ne said the
idea of turning the stock of the Great
Northern over to a holding company
was first brought to his attention as
long ago as a year and as to the
Northern Pacific company the plan
was brought to his attention in the
latter part of the summer OF 1901. He
said he was not aware that all the ne
gotiations during the summer Of 1901
had been with view Of getting a ma
jority of the Northern Pacific stock
and to dispose of the stocks in the
manner in which they were disposed
of.
At this point witness was turned
over to Mr.. Stetson. who is counsel
for the firm of J. p Morgan & Co. The
early part of Mr.. Stetson's examina.
tion was for the purpose of disprov-
ing the claim of the other side, that
negotiations for the Northern Secur-
tiles company and the placing of Mr.
Hartman and other representatives
of representatives of the Union Pa
CHIC on the boards of the Burlington
and Northern Pacific were all part of
a pooling scheme which originated
and matured during the summer of
1901, previous to the formation of the
Securities company, with Mr.. Morgan,
Mr.. Hill and Mr.. Hartman and their
associates as the principal factors.
Mr. Steele said there was no prior
understanding that after they had ac-
quired the Northern Pacific stock in
the Hartman interests, it was to be
put into the Northern Securities COM
pany.
AEMERICAN AGRICULTuRlSTS