The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-01-16
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Bears Tbs n Tho Kind You Have h;aays E9lgs
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MERGER
CASE OF RAILROADS JOINING rs
BROUGHT UP.
Banker Baker Gives Some Interesting
Testimony.

New York, Jan. 15.-TeStimony taken in
| this city since Tuesday last in tie hear
| ing incident to the suit brought in Min
nesota to test the validity of the merger
| CT the Northern Pacific and Great North
| ern in the Securities company, was made
public today. The principal New York
witnesses already examined are G. F.
Baker. president of the National Bank.
end Nathan Thorne, one of the stock
FOLDERS in the merger and member of the
Securities company.
Mr. Baker testified that during 1901 he
owned stock of the Great Northern Rail
way company which he had held for five
years. He had been for some years the
Cwner of several thousand shares of the
common stock of the Northern Pacific.
He admitted that he was regarded as one
OF the coteries of Great Northern stock
holders, which included President HILL
john S. Kennedy d. Willis James, and
others. who habitualy cooperate with
Mr.. Hill in voting their stock. He said he
first heard of the purpose of forming the
Northern Securities company about thirty
days prior to its formation from Presi-
dent James ]. Hill. He also admitted
that he and Mr.. Hill had discussed the
subject on several occasions. but he could
not remember what was said between
them. He alluded TO the effort that had
been made in May by the Union Pacific
interest TO get control of the Northern
Pacific and finally admitted that he and
Mr.. Hills other associates felt that they
wanted to get the Northern Pacific and
Great Northern stocks placed with some
company where the control would re-
main permanently and where those stocks
could not be attacked by adverse inter
ests. His conferences with Mr.. Hin were
along these lines. and it was expected
that the formation of the Northern Secu-
rites company as the holding company
would accomplish that end.
Mr.. Baker, asked if he assented to the
formation of such company. replied.
We'll. I made no objection" So far as
he was concerned. Mr.. Baker said. he
understood the purpose of the formation
of the Northern Securities company to Be
that the coterie of stockholders which had
always been able 10 control the Great
Northern should so intrench itself as TO
be able permanently to control not only
the Great Northern. but also through the
ma iority of the common stock to con-
troll the Northern Pacific The witness
transferred his Great Northern and /
Northern Pacific stock to the security |
company very soon after its formation. |
November Is. 1901 The traDsfer was on |
the basis of $3.50 for the Great Northern |
End sl60 for the Northern Pacific shares. |
Mr.. Baker conceded that these topics had |
been discussed when he and John 5.
kennedy and Mr. James and others OF /
the so-called coterie of stockholders were I
present. but when asked to repeat what /
he or the other gentlemen said on thos /
occasions. he replied: Il don't think we !
cid much of the talking: we We're listen
ers''
Under cross examination the witness !
explained that the formation OF some !
&C mpany to hold something Ike thirty /
million Of Great Northern stock owned 4
by Mr. Hill himself and the seven OF eight 1
associates referred 10. had been talked OF 1
years ago His purpose in transferring I
his Great Northern and Northern Pacific /
stock to the Securities company, he said.
was 10 make those stocks more valuable 1
or to prevent foreign interests from get
ting control and divertine the business of
the northwest down 10 California. on !
direct examination. IL was brought out
that what Mr. Baker called the sale of
his shares TO the Northern Securities
company was in reality anly their ex-
change for shares % that company
stock AZ fixed ratio.
When Samuel Thorn. another director
o. the Northern Securities company teoS
the stand. he admitted the Ownership for
years Of some iE1s3 shares Of Great
Northern stock he said that he also
owned Northern Pacific stock. in which
he bought from J. p. Morgan IN Iss-- and
that he acquired about s@a aidiiioss2l
shares % Northern Pacific common fruu,
J. p Morgan. IN l9si-
Mr.. Thorn made admissions snbstan-
ilsIiy similar 10 ihose made BIZ 1r- Pa
ker Il Vss h-augh; ous shss wtsne
President George = Baker. - TIE First
bsEk. = a director q IRE North
en- Securities oorzpany. rs son. C@orge
r Baker. Jr. ag1-ess as ore q its "a
co-Pora;ors