The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-26
]. P. MORGAN
ON THE STAND
He Tells About a Trifling
Deal of Three Million
Dollars, 49,. .'.
Snapshot Artists Are Barred
From the Courtroom at
His Request.

New York, March 26.-J. P. Morgan was
Mabey in the suit Of Peter Power against
the Northern Pacific Railroad company
to test the legality of the turning over
Of control of that company to the North
ern Securities company.
Mr.. Morgan was questioned by George
Alfred Lamb of counsel for Power.
Photographers who were present with a
view Of securing portraits Of Mr.. Morgan
were forced to leave the room al the re-
quest of the witness.
Mr.. Morgan said it was the business
of the firm Of ]. P. Morgan & Co. to take
up anything in a financial line which was
creditable and which might suggest itself
as profitable. The firm had much to do
with the reorganization of the Northern
Pacific in 1896. The amount involved in
that reorganization was something like
SITS, 900 900.
Mr.. Lamb next asked Mr.. Morgan as to
transaction in which $26, 900, 900 par
value of Northern Pacific stock was pur-
chased for J. J. Hill and associates in
1896.
The witness said he conducted the ne
gotiation for that amount. He did not
know whether all the purchasers Of that
block of Northern Pacific stock were
Great Northern people. Mr.. Morgan said
he did not remember all the details of the
transaction.
"Of course it is a great transaction,
and it is only natural that you might not
be able to remember" said Mr.. Lamb.
1T did not look very large to me" said
the witness. The amount of cash in
volved was not more than about 49,
600 000.'
IF the Northern Pacific wanted any
thing to-day it would be financed by your
house, would it not?" asked Mr.. Lamb.
Yes, undoubtedly"
HAS your company loaned the North
ern Pacific any money!"
Yes
''On whose account have these loans
been made?" 49,.
That 1 won't answer We were COM
missioned to raise the money. We got
it wherever We could. From whom it
was gotten l will not say"
Mr.. Morgan said the Northern Pacific
had not been controlled by another rail-
road since 1896. Since that time it's value
had steadily increased The Great
Northern, to a certain extent, was a COM
petitor.j J. P. Morgan & Co. received no
commission for tinanciering the retire
ment of Northern Pacific preferred. Con-
corning the Burlington purchase, he had
made up his mind that Northern Pacific
ought to have a terminal in Chicago. He
talked the matter over with all the per-
sons interested and they agreed He said
there were three lines available, the Wis
consin Central, the Burlington and the
St. Paul. The first, he said, he would not
have.
Il wanted the st. Paul. said Mr.. Nor,
gan, "and Hill wanted the Burlington;
and finally the Burlington was selected.
1t was the chief desire of Mr. Hill that
the Great Northern should have a
terminal in Chicago. l desired that same
for the Northern Pacific. There was
nothing secret about the operations. Mr..
Hill made the negotiations. The price of
$500 share for the Burlington stock was
demanded by the Burlington directors;
and told Mr.. Hill by all means to take
( it."
Mr.. Morgan was asked what was the
basis of valuation OF the stock and re-
Piled that the stock was worth that
amount for the purposes for which it was
wanted.
Did you know that there was compete
ton between Northern Pacific and the Greal
Northern for the business of the Burlins-
AaA3.