Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-01-16
Baker and Thorne Testify in
Minnesota VS.. Northern Sc
curities Company Case
SUBSTANCE oFTHElR TESTIMONY
Baker States He Was One of Original
Stockholders of Great Northern, Who
Entered Into Agreement for General
Ownership Of the stock-Also Stock
holder in Northern Pacific.

New York, Jan. 16.-The hearing in
ern securities company was resumed
here before Examiner Ingersoll. The
testimony of George F. Baker and w.
S. Thorne has been taken. Mr.. Baker
testified that he was a stakeholder III
the Great Northern during 1901, hold
ing over 10000 shares; also a stock
holder in the Northern Pacific, holding
20, 700. He had been a stockholier In
both companies for several years. In
answer to q direct question by MI.
Mum, the witness said he was one OF
the original stockholders OF the Great
Northern who entered into the agree
ment for a general ownership OF the
stock. He co-operated with Mr.. ELL IN
voting for the stock and had hearo
abort the Northern securities company
inst previous to it's formation. he mad
had several talks with Mr. Hill about
the formation of the company ana oe-
cided that it would be a good thing LOT
the Great Northern's stockholders 10
ioin in the plan. Said he:
"The stockholders thought that either
the Union Pacific or some other soutn-
ern company might get control OF tue
Nonthern Pacific and we did not Want 10
have the Northern Pacific go into the
hands Of parties adverse to our IN
terests" -.
In answer to direct questions the VII
ness stated that he did not desire 10
have the Great Northern or the North
arn Pacific stock in a position Wnere
a could he raided, and that 1t was the
gen eral understanding that this was the
,ac,,,t RI he accomplished. He was IN
q coterie Of Great Northern stockhoia-
ers who were able to control the con-
many and expected that by the .ians
fer of the Great Northern hololnss ~
The securities company TO De ao'e -
control the Great Northern perpetluaii y: y.
The witness said he had no Pafe ~
making UP the basis OF eAchanse 10.
Great Northern and Northern racine
stock. but was told by Mr.. Hill that !.
would he $50 for Great Northern ana
Xix for Northern Pacific. The witness
thonyht this basis fair. He discussed
the nurnoses Of the Northern Securl-
Has Company with Mr.. Hill. but MT.
Hill personally arranged the details OF
the merger. The witness had 10000
shares of Northern Pacific before the
Formation of the Northern Securities.
On cross examination the witness
s.id his purpose in transferring ms
Great Northern and Northern Pacific
holdings to the Securities company was
because he thought it would make them
more valuable. On redirect examination
the witness stated that the object for
fixing the ownership of the Great
Northern and the Northern Pacific IN
one holding company was understood by
the stockholders to be advisable In Or
der that the two companies might not
be assailed by outside Influences. he
and the other stockholders believed that
this was for the interest OF the two
companies and that by so doing they
would enhance, or at least prevent
depreciation OF the value of Great
Northern and Northern Pacific stock.
Mr.. Thorne substantially cororborat-
ed Mr.. Baker, testifying that the pur-
pose of the organization of the Securi-
ties company was to centralize control
of the Northern Pacific and the Great
Northern in a single holding company,
and, specifically stated. this was done
for the purpose of protecting the inter-
ests of the stockholders of the Great
Northern.