The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-01-15
FOR GOOD OF G. N.
Testimony in Merger Case as to Rea-
son for Organizing Northern
Securities Company,
Hearing in Minnesota Suit Resumed
Before Examiner Ingersoll
~~> in New York.
Special to The Journal.

Special to The Journal. .
New York; Jan. 16.-The hearing in the
Minnesota case against the Northern Sc
curities company was resumed here be-
fore Examiner Ingersoll.2 The testimony
of George F. Baker and W.. 8. Thorne has
been taken. Mr.. Baker testified that he
was a, stakeholder in the Great Northern
during 1901, holding over 1000 shares;
also a stakeholder in the Northern "a
cific, holding 10000 shares. He had been
a stakeholder in both companies for sew
eral years. In answer to a direct question
by Mr.. Mum, the witness said he was one
of the original stockholders Of the Great
Northern who entered into the agreement
for a general ownership Of the stock. He
co-operated with Mr.. Hill in: voting for the
stock and had heard about the Northern
Securities company just previous to Its
formation. He had had several talks with
Mr.. Hill about the forIna ton Of the com
panys and decided that it would be a
good thing for the Great Northern's stock
holders to Join in the plan Said he:
1.-THE stockholders thought that either
the Union Pacific or some other southern
company might get control Of the North
ern Pacific and we did1not want to have
the Northern Pacific goafntoe the hands: OF
parties adverse to our interests Il
- In answer TO- O1ISGl QNSSliOHS tlle VIZ
ness stated that he did not desire to have
| the Great Northern or the Northern Pa
cific stock IN a position where it could
be- raided, and that it, was the4 general
understanding that thissWas the result to
be accomplished He was III a. coteries OF
Great Northern : stockhp lders who were
able to control the and expected
that: BY the transfer as tSe~Great Northern
holdings to the Securities company to be
petually. ~ T&yts=9 A:1< "sH>ts>sS
! The witness said he had no part In max
ing up the basis of exchange for Grea
| Northern and Northern Pacific stock. blu
was told by Mr.. Hill that it would b.
! 100 for Great Northern and 115 for North
ern Pacific. The witness thought thi
{! basis fair. He discussed. the Npurposes@o
the Northern Securities company witt
Mr.. Hill,3 but Mr.. Hill personally arrange
i had 10000 shares of Northern Pacific be
fore the formation Of the Northern Sc
curities. ~
his purpose in transferring his Grea
Northern and Northern Pacific holdings t
the Securities company was because h
thought it would make them more va1u
able. %On redirect examination the wit
nesssstated that the object for fixing tn
ownership OIL the StTcaL NOFtNern ana III
i Northern Pacific in one holding compan
4 was understood by the stockholders to b
adyisablesin order that the two compar1ie
might not be assailed by outside influence,
He. and the other stockholders believe
that this was for, the interest of the tw
companies and that by SO doing the
would enhance, or at least prevent a de
probation of the value of Great Norther
and Northern Pacific stock.
Mr.. Baker, testifying that the purpose
the organization Of the Securities com
pany was to centralize control OF tn
4 Northern Pacific and the Great Norther
in a single holding company, and, spe
officially stated, this was done for the pur
pose Of protecting the interests Of tn
i stockholders Of the Great Northern.