The times. [volume] (Richmond, Va.) 1890-1903, 1902-03-27
PlERPONT MORGAN
PROVESCOODWITNESS
Answered Questions Put to
Him Readily.
SHOWS SOME AMUSEMENT.
Great Financier Smiled While
Talking Of Millions.
PURCHASE OF BURLINGTON.
Needed Chicago Terminal aud Decided on the
Psrchase Of that Road-Boughi Majority
Of Northern Pacific Stock to Saf:-
guard Minority Stockholders.
Regarded It Moral Obliga-
tion-Securities Co.
@ 4.
Great Financier Smiled While
Talking Of Millions.
PURCHASE OF BURLINGTON
(By Associated Press.

(By Associated Trcss.)
NEW YORK, Marcn 96-J. Picrpont
Morgan gave evidence today before Spc-
.ial Examiner Mabry in the suit of Peter
Power against the Northern Pacific Rail-
road Company. lie was questioned for
Two hours and a half by George Alfred
Lamb. of counsel for Power. and during
that time he answered questions rapidly
and without the slightest appearance OF
reserve. Only once or twice, when qucs-
lions were asked concerning the rela-
1ionship of ]. P. Morgan and Company
with the firms customers. did he decline
TO answer.
Before the hearing was opened Mr.
Morgan objected to tne presence OF 'luil'-
Der of photographers, and they were oi-
Iected to leave the room.
During the examination Mr.. Morgan
leaned back heavily in his chair, ms ieIt
hand thrust from time to time deeply IN
his trousers pocket. lie tcycd with an IN
envelope jmpa tiently, now Knocking >.
ugainst his knee now against the tabie
on which his right arm rested his eyes
expressed impatence. They roamea
about in extreme rcstlessncss "hlie
questions were being put TO him, but 1i'e
moment he was ready to answer they
liked themselves on Mr.. Lamb. Several
times during the hearing the fnanclcr
seemed amused. Once Mr.. Lamb asked
il the price of Northern Pacific did not so
above its real value Willie his tlrm Vas
buying it in May. 1901.
WAS AMUSED. -.
a M Nnrcan.@ So amused
: that he had to stop TO control himself
before he answered. 1T did when they
came TO deliver the stock, but not when
they actually bought.
AT another point the witness was asked
IL Mr. Hill had not told him that there
was danger that the Hartman sy-ndl-
cate would buy the Burlington.
No replied he but such a thing
WAS only expected. The papers had
much in them about railroad interests
buyinS roads. believe that within a
few ,iays we bought every railroad in
The United States And Mr. Morgan
laughed.
After this examination had been i'm
ished Mr.. Morgan was conducted through
several hallwars to Judge Watlaces s
private chambers, whence he made ms
way out of the building. All this vas
necessary to get away from number
OF photogra piers, who were wa11iES IN
one of the Railways to take the Imam
c,c,'s picture as he left the eXaHlna-
tion room.
NEEDED CHICAGO TERMINAL
Concerning the Burlington purchass,
Mr.. Morgan said he had made UP III:
mind that The Northern Pacific ough
10 have an eastern terminal in Chicago
81 wanted the st. Paul.. said Mr.s Moi
gan, ..and JIill wanted the Burlington,
and finally the Burlington was selected.
1t was the chief desire of Mr.. 11ili that
Tie Great Northern should have ter
NINA, in Chicago. ] desired the same
Tor the Northern Pacific. There was
nothing at all secret about the opera
tons Mr. Hill made the negotiations.
g'he price Of 5000 a share for the Burl-
imston stock was demanded by the Bnrl-
iagton directors, and / told AIR. Hill by
al, means to take 1t.
.sDid YOU know that there was a com.
reti,ion between Northern Pacific and
Great Northern for the business of the
Iurlington?''
II never knew two railroads that DID
not compete" the iinancier replied.
WAS not the Burlington deal precipitatcd
because somebody else was after it?
II don't know If YOU ask my personal
opinion, might say Yes.
DECIDED TO Make SAFE.
Mr. Morgan then told how he heard
that the Northern Pacific control was
sought by other. When he heard Unio,
Pacific had acquired the majority he
.nousb. he had better make safe and so
l,o:wocn May ID and Nay 9TH went into
The market and bought SIS, ,0Oe,ee0 worth
OF the stock Il figured the matter
UP and knew that such an amount would
l,e sure to have the majority of the COM
mon stock
why were You so anxious to have
majority in the Northern Pacific stock.
We'll. our firm Was fiscal agent Tor
the road. ] felt it as a moral obligation
upon myself towards those who had en-.
trusted me With their interest to see that
the road did not pass into the hands
of the Union Pacific interests. i fel,
In honor bound to prevent that as a mat
Ter of protection TO the minority stock
loldels',s said Mr. Morgan.
What did you learn when you came
homo as TO who had control Of The
road"
i've had control
by we, you mean yourself and Mr.
HiI?"
COMMUNITY OF INTEREST.
Not at all. mean j. p. Morgan and
Company and their associates. 2 Mr.:
Morgan said Union Pacific men We're put
on the Burlington board In carrying out
a community OF interest plan. They
could fight among themselves. however.
&c they wanted TO. Harmony was what
was desired. Mr.. Morgan said that as
far as the placing of the Northern Pa-
citic stock in the Northern Securities
Company was concerned. II was done to
have the majority Of the stock placed
sn safe hands. SO as 10 insure a con
tinuation OF the policy OF the road and
ansarc the moral control. No othe;
oontrol WAS contempt dated, the flnancier
declared.
MIR Mor<an said Mr.. Hill. had al,-
preached him two years ago about or
ennizing holding company which wouit