Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-03-27
Eu'lt Nstss'sVs% JS"s s'"'
MUCH AMUSED.
Morgan Laughs at Questions
in Northern Pacific Inquiry.
SAYS a slO,O00,OOO Deal Is Too
Small to Remember Details.
Likes MIR. Fill and VIII Work With
Him at Any Time.

cifc Railroad 60. He was questioned
for two hours and a half by George
Alfred Lamb OF counsel for Power, and
during that time he answered rapidly
and without the slightest appearance
Of reserve. only once or twice when
questions were asked concerning the
relationship OF J. Pierpout Morgan &
90. and with the firms customers did
he decline to answer. Meiore the hear
ing was opened Mr. Morgan objected
to the presence OF number OF paotog-
riphe.5 ana they We're directed 10
leave the room.
During the examination. Nj. Morgan
leaned back heavily in mis- chair, his
lett hand thrust from time to time
deeply in his trousers pocket. lie
toyed with an envelope impaGently,
now knocking it against his knee, now
against the table Oh which his right
arm rested. His eyes expressed i'm
patience. They rOamci about in cX-
trerne restlessnns5 While the questions
We're being nut to him, hut The moment
he Wa ready to answer they liked
themselves on Mr.. Lamb. Several
times during the hearing the flnanci-r
showed anus ment. once Mr. Lamb
asked IL the price Of Northern Pacific
ala not 10 above its real value while
his firm .ras Duying it in May, 1901
NO" said Mr.. Morgan, 50 amused
that ne had to stop 20 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 if Mr.. Hill had not told him
that there was danger that the Har-
riman Syndicate would buy the Bur-
lington.
No" replied he. but such thing
was only to be expected. Thelpapers
had much in them about railroad in
terests buying roads. I believe that
within a few days we bought every
railroad in the United States" and Mr..
Morgan laughed.
After his examination had been fin
ished Mr.. Morgan was conducted
through several hall ways to Judge
Wallace's private chambers. whence he
made his way out Of the building. All
this was necessary to get away from q
number Of photographers who were
waiting in enc Of the hall ways to take
the financicr's picture as ne left the
cXaninutiOn room.
AR Morgan said Union Pacific men
were put on the Burlington board in
carrying out q community of interest
plan. They could fight among them
Selves however. X they wanted to-.
Harmony was what was desired. There
was no special object in putting Mi.
Gould on the board.
In further explanation of the inten-
ton and purposes leading up to thu
Northern Securities. Co, Mr.. Morgan
a f.,7 tl,a Of
Northern Pacific stock in that organ
ization was concerned, it was done to
have the majority of the stool, placed
in safe hands, SO as TO insure Il contin-
uation of the policy of the road and in
sure the moral control" No other
control was contemplated. the fiuancier
declared. The project of the holding
company for the Northern Pacific com
mon stock had been contemplated for Il
considerable time-as far back as two
years ago. Mir. Morgan said Mr.. Hill
had approached him two years ago
about organizing 4 holding company
which would throw the Northern Pu,i-
fic ana Great Northern interests to-
Eethcr.
Il told Mr.. Hill We Coull work to-
Ecthcr.' said the witness, but that we
could not form any closer alliance aa
that was against the law"
The idea Of forming The Northern
Securities GO. WAS never thought az
previous to May q Mr.. Morgan said
Mr.. Morgan further explained tina;
after the experience OF May he be-
came more strongly im1ued with the
idea of forming 4 holding company for
the Northern Pacific stock
THAT was what occurred to me-" Nh
Morgan continued. Il might die or tha
firm Of J. p. Morgan * c.. might be dis
solved. ana in such an event / wanted
the Northern Pacific stock TO be in 81 t.
hands $50 that the stockhl llcrs might no,
suffer. l did not care who went into the
company as long as the Northern Pacific
interests were safe. as they would he as
# / held 4 majority Of the stock"
such ma i0rity YOU could not have
without Mr.. hin going in with you?'
asked Mr.. Lamb.
4 could. Mr.. Hill did not have control
nor did l."
AIR Morgan here returned to tn tine
when he learned OF the contest for North
crn Pacific control
II was at AK ana so was Mr.. Kc,.ac-
dy. ne said. Mr.. Kennedy was iarg
holder Of Great Northern stool, ana aiSu
Of Northern Pacific He came to mr. IA
AK in the beginning Of May AM sat 4.
What means All this? ! said: 4 don
Know He said: 4 VIII put my Stugt,
into your office Kennedy and ! We're
mates We have hc1n friends for n
years | explained to him what ! had
done and he said anything ! suggested
ne would do All my friends said IN,
same. That Is the way they treated M
in the Northern Pacific transactions.
said Mr.. Morgan.
MIR. Morgan later testified that he ha
made 4 largo sale of Northern Pacific
stock to J. ]. Hill.
How much was it?" asked Mr.. Lamb
81 can't remember" replied Mr. Nor
gan.
Somebody has testified here that il
was S10,000.000 worth" said Mr.. Lamb.
well that may be-
"This seems a rather large transaction
Can you not tell us something about this
negotiations" asked Mr.. Lamb
"A ten million purchase of stock doe:
not seem very big transaction to me
/ have forgotten the details" said Mr.
Morgan. Hill and | worked together
I'll work with him any time If ii har
been different. I'll tell you an instance O
what / could have done. Say that | hat
bought the Union Pacific interests in tn,
Great Northern, what would Hill hay,
done then?"
Mr.. Morgan smiled at this suggestio!
of what might have happened He Sal,
he did not help organize the NortherI
Securities Co.. but he approved the plqn
He thought $50 a share for Great Nor. Il