The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-21
NORTHERN PACIFIC DEAL
TESTIMONY BEFORE THE SPECIAL
EXAMINER AT NEW YORK.
j. Il. Morgan & Co.'S Enormous Fjnan-
ciaI transactions Explained by n
Member of the Firm.

NEW YORK, March 20.-George w. Per-
kins, of the firm of ]. P. Morgan & Co,
was the first witness to-day in the hearing
before a special examiner of the suit of
Peter Power against the Northern Pacific
Railroad Company. The object of the suit
is to prevent me operation of the Northern
Pacific by the Northern Securities Com
pany. His firm, he said, was a purchaser
of Northern Pacific between May 1 and
May 9 last year, but how much was bought
he did not know. Neither did he know
how much of the stock j. P. Morgan held
on May 1, 1901. Mr.. Perkins said ]. p. Nor
gan & Co. bought about SIS, OOO. 900 of the
Northern Pacific stock from Union Pacific
interests after the Northern Securities Com
pany was formed on Nov. l.. About slO.-
100000 was paid in cash and the rest was
to be paid for in stock of the Northern Sc
curities Company. After taking the stock
from the Union Pacific interests j. p. Nor
gan e. Co. sold it to the Northern Securities
Company, receiving therefor so. 900, 900 in
cash and the balance in stock. The cash
received from the Northern Securities Com
pany was equal to the sum paid the Union
Pacific interests.
Mr.. Perkins said that at the time Of the
purchase of the stock by his firm there was
no agreement in existence with the North
ern Securities Company in reference to the
disposal OF the Northern Pacific stock. He
said his firm simply acted as brokers in
the transaction. In case the stock was not
disposed of to the Northern Securities Com
pany it would have been turned back to
the Union Pacific interests. Mr.. Perkins
said he did not know whether j. p. Morgan
& Co. owned any of the stock of the Great
Northern Railroad during the summer or
autumn of 1901, and he did not know how
much Great Northern stock the firm owned
now.
do you know that he firm of j. p. Nor
gan & Co. acquired S16,O00,0 900 to SIS, 900, 900
worth of Northern Pacific stock between
May l and 8, 1902 Mr.. Perkins was asked
by Judge Lancaster.
The witness said he had no knowledge OF
such transaction. Judge Lancaster then
asked for q list of all the members of the
firm Of j. p. Morgan & Co. The list was
which il was suggested that subpoenas
might be issued for some of the members
or for all.
The next witness was A. 2. Clough. vice
president and a director of the Northern
Securities Company. He said the transfer
of about 100000 shares of Great Northern
stock to the Northern Securities Company
had been completed and that negotiations
were pending for about 100000 or 400, GOO
shares more. There were 1,250. 900 shares of
Great Northern in existence. he said. OF
Northern Pacific stocks $3.50, 600, 900 par value
HAD been turned over to the Northern Sc
~.curities Company. MIR. Clough said he never
knew of any arrangement between Mr.. Har-
riman, Mr.. Morgan, Mr.. Hill and Others
subsequent to May 1, 1901. by which Mr..
Morgan was to be given the proxy of Mr..
Hartman in the Union Pacific in exchange
for Mr.. Hartman being placed on the
boards of the Northern Pacific and the Chi
cago, Burlington & Quincy. The hearing
was adjourned until tomorrow.