The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-03-20
MORGAN'S DEFENSE.
Brief in Merger Case Filed by
Financier's Attorneys.

St Louis, March 20.-The following
abstract of a brief prepared by David
Wilcox and signed by him and by
Francis Lynde Stetson has been pre-
scented in behalf of J. Pierpont Morgan,
Robert Bacon and Daniel S. Lamont in
the Northern Securities case.
1t sets forth that during the reOrga-
nization of the Northern Pacific com
pany the firm of ]. P. Morgan & CO.,
of which these defendants, Morgan and
Bacon, are members, acted a reorga-
nizatiOn managers, and has ever since
been the fiscal agent Of the company.
The firm has accordingly at all times
desired to, further the best in
terests of the company and all its
stockholders, and especially to aid in
steadily developing the business of the
company and the prosperity of the
country which it serves. The firm con-
sidered that these results We're accom-
plished so far as possible by the policy
of the company during the existence of
the aforesaid voting trust Not long
after the termination of the voting
trust, however, and very early IN May,
1901 the firm became aware that I'M
usually large purchases of the stock of
the company were il progress in the
stock market, apparently in single
interest The firm was apprehenslNe
that these purchases were for the pur-
pose of securing control of the direc-
ton of the Northern Pacific company
and thus managing it, not for what the
firm conceived to be the best interest
of the company. but for some Interior
purpose of which the firm was not IN
formed Accordingly the firm. prior to
Nav T. 1901. purchased common stock
of the Northern Pacific company in
considerable amounts, and their mold
ings upon that day amounted to about
two hundred thousand shares In maxi
ing these. purchases. the firm acted on
its own account and in behalf of no
other person whomsOeVer, and was act
uated by no motives save those above
stated.
and others who We're interested in the
Great Northern company, but not in
GLIDING these defendants, had in con-
temptation the formation of corpora
ton for the purpose of purchasing their
separate interests in that company,
with the general object that said in
terests should be held together and the
policy and course of business of the
/ Great Northern company should De
continuous in developing the company $
lsvsten and the territory served by it
and not subject to radical change and
possible Inconsistency from time TO
+ time On or about August, 1901. as this
plan was approaching maturity, said
parties for similar reasons, determin-
/ ed that they would also sell to the new
company when formed, their interests
/ in the Northern Pacific company, which
we're considerable in amount. and ina [
the capital of the new company Snouia
be made sufficiently large TO enable IL
! 70 purchase all the shares of the Great
/ Northern and Northern Pacific com
panies which the holders might desire
/ to sell and any other shares which tne
new company might deem 1t adVlsa pie
to acquire.
Nv this time it had become known
that the purchases in the market OF the
shares of the Northern Pacific company,
to which reference IS made above, mao
I in faa74If of a CORPORATION
known as the Oregon Short Line rail
road company controlled. by the Union
Pacific railroad company and that there
were held in the interest shares OF the