The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-17
.PRES'T HILL
IS QUIzzE.D
He Takes the Stand in the
Peter Power
Case.
He Talks With Apparent
Freedom, but No Great
Certainty.
The Burlington Deal One of
the First Points of
Attack.

James J. Hill, president of the Northern
Securities company and also OF the Great
Northern Railway company, gave testi-
mony to-day in the action brought by Pc
ter Power, owner of 100 shares Of North
ern Pacific preferred stock, against the
Northern Pacific Railway company. The
taking OF testimony before Referee R. A.
Mabey began at 10 a. m. in the federal
court room. Peter Power was represented
by George Alfred Lamb of. New York, A.
w. Bulkley of Chicago and M. H. Boutelle
and Judge w. A. Lancaster of Minneapolis.
Mr.. Hill and President Charles S. Mel
len of the Northern Pacific were on hand
promptly for the morning session. G. w.
Bum. general consul for the Northern
Pacific, was not present. The. interests
of that corporation were looked after by
Frank B. Kellogg and Judge George X.
Young of st: Paul. M. D. Grover, general
counsel for the Great Northern, accom-
panied Mr.. Hill.
President Hills testimony consisted of
answers to questions put by Judge Lam
caster, who conducted the hearing for
the plaintiff Many of these questions
the Great Northern magnate answered
readily. Others, he said, involved details
beyond his recollection. At the 1ime the
Burlington deal was under way, he ex-
planned, he was decidedly busy man, and
for n tho 6nta cd with it
he would have to go to the records before
making an accurate answer. On several
questions Mr. Grover came to the assist
ance Of his chief Mr.. Hills attitude was
not that of a stubborn or unwilling wit
ness SO much as that of a man who be-
grudged the time he was giving to the
hearing. He impressed upon the minds
of the attorneys that he desired to have
the taking Of testimony as expeditions
as possible. Throughout the most Of the
morning session he sat low down in his
chair, and at times seemed to be think
ing more. on some other subject than the
matter in hand. Attorneys for both
the Great Northern and Northern Pacific
were vigilant in keeping the transporta-
ton king right on matters of detail.
Tracing Up Burlington Deal.
Most of the questions put to Mr., Hill
were in, connection with the acquisition
Of the Burlington system by the Great
Northern and Northern. Pacific. Several
times when both roads we're coupled in
the same question, Mr.. Hill protested that
he was able to speak authoritatively for
the Great Northern only. The plaintiff S
attorneys followed line of questioning
seeking TO 2rove that there were serious
irregularities connected with the acquisi-
ton of the Burlington. The membership
Of the boards of directors of the three
systems was gone into in detail and the
exact time when changes in the various
boards took place; this with the intention
of later on showing the relation of the
Hill systems to the Northern Securities
company. The last annual report Of the
Great Northern to which was attached a
map OF the combined Northern Pacific,
Great Northern and burlington systems
was submitted as evidence. Another i'm
portant exhibit was the trust deed OF
the Burlington containing the conditions
of the transfer to the Northern Pacific
and Great Northern. The plaintiffs at
torneys hc1e 10 intro duce in evidence q
provision in this deed by which the North
ern Pacific loses to the Great Northern
it's interest in the Burlington whenever it
defaults in interest on the collateral trust
bonds issued jointly by the roads in pay
ment for Burlington stock.
G.. Ms Relation to Other Interests
d The first part of Mr.. Hills testimony
had to do entirely with the Great North
ern. The question of control by the Great
Northern system of the various con-
stituent properties was gone into. Mr.. Hill
said that while some of the lines were
operated as separate companies, the stock
was substantially all held by the Great
Northern. After examining the dotted
lines on the combination map. referred to
he said they represented surveys or prob
able surveys for, possible extensions In
some instances they were placed there
simply as an advertisement or sugges-
ton of possible extension. The dotted
lines from Portland to Seattle, he said
covered grade built ten years ago, but
the Great Northern had no intention OF
building the line.
His election to the Northern Pacific
board, he said, took place about July %
He did not qualify or accept the place
until after the annual election in the
fall. He attended one meeting and after.
wards resigned because he did not con-
slider himself eligible. He would be
obliged to refer to the records to make
sure that he was director of the ole
Burlington company prior to Dec. 30, 1901
It was at this point that the attorneys
for the plaintiff began to dig into the Bur-
slington deal. Mr.. Hill said that the
Northern Pacific and Great NortherI
board took action approving Of the pur-
chase in April, 1901. Prior to that he
had held no stock in the Burlington. Per-
sonally. he never did hold any Burling-
ton stock, does not now,s and never will
unless to qualify as director of the Bur-
lington. Mr.. Hill added that he did nod
know whether he was a director of the
Burlington or not.
Voting of Burlington Stock.
Negotiations for the Burlington were
carried on by Mr.. Hill for the Great
Northern, members of the firm of j. P
Morgan & Co., Robert Bacon, and George
f. Baker, for the Northern Pacific, an6
members of the Burlington executive com
mittee for that system. The Burlington
executive committee advised its $4,000
stockholders what it considered was a
good price for the stock. Mr. Hill was
present when the basis of purchase was
agreed upon. The whole thing was re-
duced to writing. He did not recollect
whether he made q written or a verbal
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