The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-01-17
INVESTIGATION NOW
is APPROACHING
CONCLUSION
Attorneys of Northern Secu-
rites Company and State
Enter Stipulation in Re-
gard to Finances of Com
pany Taking of Tes-
timony Will Soon be Fin
ished.

NEW YORK, Jan. IS. = The last
hearing in New York in the case of the
state of Minnesota against the North
ern Securities company was held this
afternoon and an adjournment was
taken to Jan. 20, at st. Paul, MINI.
Special Examiner Tngersoll stated that
he would have to finish the taking Of
testimony in order to report to the
court in Minnesota by Feb. Is.
The hearing today resulted in a stip
ulation by both sides being drawn up
and placed on record, as to the transact
tions of Dec. %, 1901, at j. P. Morgan
& Co.'S bank, when Northern Pacific
preferred stock, retired, was paid for,
and convertible bonds issued to raise
the money needed to pay for the re-
tired stock were sold to the Northern
Securities company to the extent Of
Securities company on Morgan & Co.
for $34,709,062 was exhibited at the
hearing.
Big Checks Transferred.
The stipulation says that on Dec. Ct
the Northern Securities company own
ed about $41,000,000 of the preferred
stock of the Northern Pacific, prac-
tcally all Of which stock had been Sc
cured from E. H. Hartman and Win
slow S. Pierce, trustee. On Dec. q, che
stipulation says, the Northern Pacific
company paid off and retired at par
the preferred stock presented to it by
the Northern Securities company, pay
ing for the same with its Northern Pa
clflc check on j. p. Morgan & Co. in
favor of the Northern Securities COM
pany for $34, 709 900. On that day the
Northern Securities company paid for
the convertible bonds which it bought
from the Northern Pacific with a check
for 34,7O9,0 62. This check was on Nor
gan & Co., bankers for the Securities
company, as we'll as the Northern Pa
cific, and the difference between the
two big checks was only $62. Both of
the checks were deposited with Morgan
q Co. in the usual course of business.
1t was brought out that the Northern
Pacific had about 100000 on deposit
Dec. q, 1901, besides the money needed
to meet the demands of retiring it's
preferred stock.
Stetson on the Stand.
Francis iynde Stetson. who was
present as general counsel for the
Northern Pacific, was called as a wit
ness, and an effort was made by coun-
sci for Minnesota to get testimony
from him that he discussed, as counsel,
with Mr.. Morgan or Col Clough, the
question whether the proposed COM
pany Northern Securities) would Vio-
late the laws of Minnesota or any law.
Mr. Stetson did not remember that he
did, but he was ready to give his opin-
ION of the legality of the Northern Sc
curities company, indicating that he
believed it had the right as a person to
hold stock of two or more railroads, a
point he thought had been settled by
the Pearsall case. Witness said he ad-
VIsed Col. ClOugh as to the best way
10 form an investment company under
the laws of New Jersey, and he said
that if the incorporators of the North
ern Securities company Mr.. Clough
suggested Mr.. Baker, and Mr.. Perkins
morgan company suggested Messrs.
Hyatt and Trimble
Col. Clough gave some testimony to
be inserted in the records later as to
the home office of the Northern Secu-
rites company, which, he said, was in
Hoboken, N. J., though it had an office
In New York city. 1t had no property
at all in Minnesota. The Great North
ern, he said, acted under a special
charter and could transact it's business
anywhere.