The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-18
YESTERDAYS FINISH
Devoted to n. p. Retirement and
Northern Securities Organization.

Devoted to N. p. Retirement and
Northern Securities Organization.
Mr.. Hills testimony late yesterday aft
ernoon went into the retirement OF the
Northern Pacific preferred stock and the
organization of the Northern Securities
company The plaintiffs attorneys en-
deavored to ascertain the exact part which
Mr.. Hill played in the retirement OF the
preferred. Many questions were asked
him about arrangements made with the
Standard Trust company for furnishing
the money necessary to retire the stock.
He said that he had discussed the matter
with members of the firm of Morgan &
Company and with Mr.. Counselman. Mr..
Hill spoke of J. Pierpont Morgan's pride
in the Northern Pacific and the fact Nor
gan did not want it to fall into the hands
Of the Union Pacific. The Great North
ern had vital interest in the matter.
1t would never do for the southern road
to acquire the Northern Pacific as the
Union Pacific in that case would soon
have controlled the Great Northern. He
said that Great Northern owRars would
not have cared to fight with single line
all of the rest Of the big western lines,
and would have let the property go.
N. p. Retirement Taken Up.
The question of how the preferred was
retired and the advantage if any that 1t
gave the common stock holders over the
preferred was gone into. Mr.. Hill here
again took occasion to tell+SJudges; Ian
| caster that he was losing time for all
concerned in continually confounding him
with the NortFern Pacific, as,he knew lit
| tie about the business of that system.
The exact method of retiring the pre-
ferred and what was done in that connec-
| ton was the business Of the Northern Pa
ciic board. He was Interested only as
any other, stakeholder Previous toS the
meeting of the board he had been ac-
quainted with the proposed program in a
general way only. He knew that it had
been Mr.. Morgan's intention to retire the
preferred from the time of reorganiza-
ton. The provision that the company
could retire the stock was int the charter
and in the certificates of stock, Here the
attorneys had another bout, Mr. Kellogg
objected to examination on matters which
were already in written form. The plain
tiff's attorneys emphasized that whether
| the company retired the stock or not
might be question later on. Mr.. Kellogg
said that the certificates and charter. gave
the COMPANY permission to retire the
stock, the company did retire it, and
the regularity of the proceedings could
| not be questioned.
of the stock was not really done for the
benefit of the common stock holders, an
swerel that it was done for the benefit Of
the company.
Policy of the Securities Co.
On the organization of the Northern Sc
curities company, Mr.. Hill said its pri-
| mary purposes was to allow certain share
holders of the Great Northern, some of
whom were very old men, and who had
always acted together to more firmly ce-
ment their, holdings and perpetuate the
policy they favored It had been dis
cussed for two years, and at first, Great
Northern stockholders were the only ones
concerned. After the purchase of North
ern Pacific stock in April or May it was
suggested that they include in the hold
ling company when it should be formed
their holdings In Northern Pacific.
| This was for the purpose of unifying
your interest in both roads" asked Judge
Lancaster
s.For the purpose of unifying our inter-
ests in each road was the answer.
| Mr.. Hill said that when it was decided
| to organize the company it was agreed
that as the Great Northern had always al
lowed all of its shareholders to partici-
pate in all moves made by the system,
| instead of forming a close corporation
lit was decided to give all a chance to
come in. The basis for exchange Of stock
! was fixed by Mr.: Hill. s3