New-York tribune., 1902-03-20
OBJECT OF SECURITIES CO
1T is OUTLINED BY JOHN s. KFv>-rnr
IN ANTI-RAILROAD MERGER SUIT
THE WITNESS BOUGHT TEN TBo1-s,,--
SHARES OF NORTHERN PACIFIC
STOCK FROM MORGAN & co

John $ Kennedy. banker and philantbro,,s.
was witness Yesterday in the contin,,,,
the inquiry into the affairs Of the N0r.,.
Securities Company. His testimony WAS ,aLo-
In the office of Lamb & Guernsey Isv-,a-.
No. 10 Broadway, before the special exar,i-.N
appointed to take testimony in the suit bror.s.
ny minority Northern Pacific stockholders ~
object Of the suit is To overthrow the mersar -
railroads by which the Northern Securities c.
pany was formed. Mr. Kennedy testified tn.
he was one of the men who held a maioritv q,
Northern Pacific stock. among the other men
being J. J. IIIII n. Willis James and C;eorss
Baker. He said, when asked if J. p. Morse
was not among the majority stockholders th..
he understood J. P Morgan & Co held tbs
stock. Asked if the men he had mentioned IA
not always act together in all matters affectinv
Northern Pacific stock. he replied We wera
an harmonious body. As stockholders of the
company we acted together for common in
terest."
Q-At the time Of o. previous 70 your departu,.
Tor Europe early last May had yoJ any informa-
tion to the effect that Nr Hartman Thrones
kuhn Loeb & Co. was seeking To acquire a ma
Whatever The FIRST I heard of IL Ax-Is-
Q.-.Dtd Mr.. Morgan tell YOU that Hill and hi,
associates had made an agreement not 70 dispose
Q-Did he ask yoU not 70 dispose of your hols
inEs? A-NO sir. I couldn't have disposed ~ ~
abroad and while misa. have sold. copI5 was vas
have delivered the stock
Witness said that in the following August ba
had acquired ten thousand shares Of Northern
Pacific stock from Morgan & Co.
oT7H&ow How d did , You come TO make his pu5shasse
& Co would like to dispose Of some Of their b9Id-
ings. so I agreed TO take ten thousand shares
Q-Had You learned at that time that between
j. tlATUODr lad
chased from sixteen 10 eighteen million dollars
worth of the stock A-No. sir
Mr.. HIP A-No. sir.
Mr.. Kennedy said that the Northern Securities
Company had been thought OF for great many
years before it was formed
.Q-ooWhat was, the Purpose Of the organization,
ALOnIy to hold the stock OF rhe principal stock
continuance Of the policy o. the company.
whatever 10 the policy OF j. J. Fhu and th5zs men,
toned ny YOU aS his associates in the management
Of the Great Northern? A-There has not.
Q.-BUt the original purpose was 70 form A CEN
tral company to hold the stock Of all stockholders
Q.-Cau YOU tell us when the taking in Of the
Northern Pacific was first suggested An the
Q-You knew then tha, Mr Hill Nr Morgan
Yourself and the gentlemen YOU have mentioned as
Northern Pacific stock Al was 50 informed
IN Jnt autumn mn 2t is't ole nor JnsSe gentlemen
the Great Northern stoCks2 Al did not know
they held a majority OF the Northern Pacific stock
at least / was So informed
Mr.. Kennedy said that the object Of the North
ern Securities Company was 70 protect the hold
inss of the Northern Pacific against such ar
attack az occurred here last spring. and whiCE
resulted in "a great panic. He said that originally
il the idea To- pool the Northern Pacific
stock only.
,.Q.--Why not Great Northern stock as vel? You
t,Ife of Iiu2 Al cannot say. Those concerned in
the agreement held enough stock Of the Great
Northern To- prevent "a controlling interest being
purchased by any outsiders.
Q.-WaS it the purpose OF YOU gentlemen 70 place
the stock of the Northern Securities Company
the market for miscellaneous purchasers. Al
cannot remember that any such thing ever dis
CJSsed or suggested.
1t was arranged that the hearing should be re-
Sumed at = p. m. tomorrow. After Mr.. Perkins
and Mr.. Steel have testified, il there Is time,
Jacob H. Schif viii he called.