The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-28
MERGER CASE HEARING
BANKER KENNEDY CROSS-EXAM-
MED AS To STOCK PURCHASES.
w. II. CIough, Vice President of the
Northern Securities
Also a Witness.

NEW YORK. March 27.-John S. Ken
nedy, banker, was recalled to-day for cross
examination in the hearing of the suit of
Peter Power against the Northern Pacific
Railroad Company. He said he bought a
block of Northern Pacific stock-about S.
900 1000 wOrth-in 1896. There was no agree
ment on his part with any one as to how
he was to vote or sell his Northern Pacific
stock. Mr.. Kennedy held about $40, 900, 900
of Great Northern stock, which was voted
by James j. Hill on a proxy. The forma-
ton of the Northern Securities Company
was not dependent on the requirement OF
either Great Northern or Northern Pacific.
Mr.. Kennedy said he had never heard of
any agreement i'm the Northern Securities
Company that any set of men were 10 con-
troll the company. He also said that in the
sale of Northern Pacific stock to the North
ern Securities Company each stakeholder
acted for himself. The witness never heard
that there was any question or discussion
TO the effect that the Northern Securities
Company was organized to acquire a major
ity of stock of both roads to maintain rates
and control competition. The retirement of
the preferred Northern Pacific stock had
not been part of a plan to enable any one
TO control the Northern Pacific Company so
far as he knew.
ern securities Company, was then called.
Mr.. Boutelle, of counsel for Power, ques-
toned him.
You have testified that a large amount
OF Great Northern stock was never trans
ferred to the Northern Securities Company.
VIII you explain this -
The purchase of about 100000 shares was
completed, but negotiations for about 800, O0C
were not completed"
Mr.. ClOugh declined to say whether the
Northern Securities Company had received
dividends on the Great Northern stock held
by il. He said that Charles Steele, of J.
PierpOnt Morgan & Co, George f. Baker,
jr., and y. b. Hepburn held proxies for
the Northern Pacific stock in the possession
of the Northern Securities Company. LAS
TO the proxies for the Great Northern
stock" said Mr.. Clough, my memory is
not so good, but l think it is held by j. J.
Hill and by edward Sawyer in Mr.. Hills
absence" Witness said $3.50, 10000 worth OF
Northern Securities stock had been issued
This concluded the examination of Colonel
ClOugh.
Mr.. Kellogg, Of counsel for the Northern
Securities Company, asked for an adjourn
ment until Saturday. At that session. he
said, he wanted to examine Mr.. Perkins
of the firm of j. Z. Morgan & Co. He also
notified Mr.. Boutelle that there were GER
tain slight corrections 10 be q in the
testimony OF Mr.. Morgan, and il was agreed
that these would be made in writing AND
entered on the record. Mr.. kellogg also
asked that Peter Power, the plaintiff in
this suit, be produces at the next session
Reply was made that Mr.. Power would be
produced as soon as the direct testimony
was in. 1t was then agreed that the ad-
iOurnment taken to-day should be subject
to the call of the examiner, and it was said
it would probably be three weeks before
the next session would be held. e. II. Har.
riman is TO be the next witness examined.