New-York tribune., 1902-09-26
HOW STOCK WAS EXCHANGED
METHODS OF NORTHERN SECURITIES
COMPANY IN MERGER TOLD BY
w p CLOUGH.

The hearing in the action of the United States
to prevent the Northern Pacfc-Great Northern
merger through the Northern Securities Company
was continued yesterday in the Federal Building
before Frederick G. Ingersol, the special examiner
appointed by the Minnesota Court. Solicitor General
John T Richards, and Assistant United States At
tornev Beck are representing the government in
the action The defendants have counsel ex
Attorney General J. ". Griggs. Francis Lynde
stetson w p Clough G b. Young c. w. Bum
and NJ P Grover. Yesterday counsel in the case
had long conference with United States District
Attorney Burnett, and then the examiner took his
seat and received from the Solicitor General the
printed testimony taken In the Peter Power case
which by stipulation, is TO be received as part of
the record of the government action
w p. Clough, who is director of the Northern
Securities Company, was called as a witness and
asked by Mr. Richards to tell what the company
meant in It's answer. by the statement that five
sixths of the stock of the Great Northern Railway
Company had been negotiated for" Colonel
Cough said that the Il 10000 shares of 800 which
have been issued, the Northern Securities Company
practically owns 123S,S24 shares, which amount in
cludes 45SOl7 shares controlled for voting pur-
poses.
We were carrying a considerable quantity of
Northern Pacific in the same way" Colonel
Clough said, ''and thought it desirable to carry
some proportion of Great Northern in the same
manner"
o-How much Northern Pacific were you carry
ing? About twenty odd millions. Later more
Q-Did you pay for it on stock Of the Northern
Securities Company? A.-On September l, 1901 we
purchased sS7 .O2S.00o common and $41O85.OO pre-
ferred stock and other shares later: making a total
of s9l 800 for which we paid ss,9l5 s29 in cash
and $50, 4sl .671 in stock at par of the Northern
Securities Company: On December o. 1901 pur-
chased convertible bonds of the railroad company
for s54 709 062 50 for cash
Q.-From whom were those stocks and bonds OH
tanned? Q.-From Messrs. Hartman and Pierce
Their names appear the books of our com
pany owners of the stock issued in part nav
for the railroad stock
Q.-By whom were the negotiations for the pur-
chase carried through? A.-By the firm of ]. 2
Morgan & Co
All the dividends on untransferred stock. accrued
and paid, of the Great Northern and Northern
Pacific Colonel Clough said. went into the treas
ury of the Northern Securities Company. No an
nuai report of the Northern Securities Company
has yet been made. the witness said but all IT'S
records at the service of the government The
annual meeting of the company Is be held on
November 10.
Subject to the right to cross examine Mr. Harri-
man, who has permission to peruse and amend his
testimony, Mr.. Richards said he had no further
witnesses 10 call.
Mr. Griggs said the defendants not ready
to go on just now. He and his associate counsel
went into conference to decide upon the time and
place for the next hearing. 1t announced after
the conference that it had been decided to post
pone the further hearing until Monday October %
in the Federal Building, at st. Paul, Mimi