The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-03-21
M0RGAN'S MAN
ON THE STAND
Member Of the Big Firm Exam
ined in Railway Suit.
HOW MERGER WAS FORMED
TESTIMONY SHOWING THE GEN
ESIS OF THE FOOL.
low MERGER WAS FORMED

NEW YORK. March 20.-George Per-
~ kins Of the firm of J. P. Morgan
& Co, was the first witness today
in the hearing before a special exam
iner Of the suit Of Peter Power against
the Northern Pacific Railroad company.
The object of the suit is to prevent the
operation Of the Northern Pacific by
the Northern Securities company. His
firm he said, was a purchaser Of
Northern Pacific between May / and
May Q last year but how much was
bought he did not know. Neither did
he know how much of the stock J. P.
Morgan held on May /. 1901
Mr.. Perkins said J. 2. Morgan & Co.
bought about $4,000. 600 of Northern
Pacific stock from Union Pacific inter
ests after the Northern Securities COM
pany was formed in November About
Sl0,00000O was paid in cash and the
rest was to be paid for in stock Of the
Northern Securities company
After taking the stock from the
Union Pacific, J. Z. Morgan & Co. sold
it to the Northern Securities company,
receiving for the same SO, 000. 000 in cash
and more in stock. The cash received
from the Northern Securities company
was equal to the sum paid the Union
Pacific interests AIr. Perkins said at
the time Of the purchase Of the stock
by his firm there was no agreement in
existence with the Northern Securities
company in reference to the disposal Of
the Northern Pacific stock.
He said his firm simply acted as
brokers in the transaction. In case the
stock was not disposed of TO the North
ern Securities company it would have
been turned back 70 the Union Pacific
interests. Mr.. Perkins said he did not
know whether or not J. p Morgan &
CO. owned any Of the stock Of the
Great Northern company during the
summer and autumn of 1899, and he
did not know how much Great North
ern stock the firm owned now.
DO you know that the firm Of J. P.
Morgan & Co. acquired S16,000,000 to
SlS,000.000 worth of Northern Pacific
stock between May 1 and May g. 1901 %
Mr. Perkins was asked by Judge Ian
caster.
The witness said he had no knowl-
edge Of any such transactions. Ian
caster also asked for a list Of all the
members of the firm of J. P. Morgan
& Co. The list was handed him. A
conference ensued, during which it was
suggested that subpoenas might be
issued for some Of the members or for
al
The next witness was 4. P. ClOugh,
vice president and a director of the
Northern Securities company. He said
that the transfer of about 500 000 shares
Of Great Northern stock to the North
ern Securities company had been COM
pieted and that negotiations were
pending for about 100000 or 400 600
shares more. There were 1,250 900
shares Of Great Northern stock in ex-
istence. he said. Of Northern Pacific
stock. 15OO00.000 par value had been
turned over to the Northern Securities
company. Mr.. Clough said he never
knew Of any arrangement between Mr..
Hartman. Mr. Morgan. Mr. Hill and
others subsequent to May I, 1901. by
which Mr.. Morgan was to be given the
proxy Of Mr. Hartman in the Union
Pacific in exchange for Mr.. Hartman
being placed on the boards Of the
Northern Pacific and the Chicago, Bur-
lingtOn & Quincy.
The hearing was adjourned until to-
morrow.