Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1903-01-17
EVIDENCE TAKEN SINCE Tues
DAY GIVEN OUT IN MINNIE.
soTA MERGER SUIT.
HEARINGS IN NEW YORK
Principal Witnesses So Far Examined
Are George F. Baker and Samuel
Thorn, Both Large Stockholders in
the Great Northern and Northern Pa.
cific and Members OF Board Of Oirec.
tors Of Northern Securities Company.


hearing incident to the suit brought
In Minnesota to test the validity of
the merger of the Northern Pacific and
Great Northern railroads in the North.
ern Securities company, was made pub.
lie during the day. The principal New
York witnesses already examined are
George F. Baker. president of the First
National bank, and Samuel Thorn,
both large stockholders in the merged
corporations and members of the board
of directors of the Northern Securities
company
Mr.. Baker has testified that during
1901 he owned stock of the Great
Northern Railway company which he
had held for five years. He had been
for some years the owner of several
thousand shares of the common stock
of the Northern Pacific He admitted
that he was regarded as one of the
coterie of Great Northern stockholders.
which included President Hill, John S.
Kennedy. d. Willis James and others,
who habitually co-operated with Mr..
Hill in voting their stocks. He said
he first heard of the purpose of form.
ing the Northern Securities company
about thirty days prior to its fOrma.
tion from President James J. Hill. He
also admitted that he and Mr. Hill had
discussed the subject on several oc.
casions, but he could not remember
what was said between them. He al.
luded 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
remain permanently and where these
stocks could not be attacked by ad.
verse interests. His conferences with
Mr. Hill were along these lines. and il
was expected that the formation of the
Northern Securities as the holding
company would accomplish that end
Mr. Baker, asked if he assented to
the formation of such a company. re-
piled:
We'll, / made no objection"
So far as he was concerned, Mr.
Baker said, he understood the purpose
of the formation of the Northern Sc
curities company to be that the cOterie
of stockholders which had always been
able to
Control the Great Northern
should 90 irtreuch itself as to be able
permanently to control not only the
Great Northern, but also, through the
majority of the common stock, to con
troll the Northern Pacific. The witness
transferred his Great Northern and
| Northern Pacific stock to the Secur
tiles company soon after it's formation
! Nov. 13, 1901 The transfer was OF
the basis of $3.50 for the Great North
! ern and $ll5 for the Northern Paciti,
shares.
Under cross-examination the witness
! explained that the formation of some
company to hold something like 80.
OOO, 600 of Great Northern stock. Ownea
by Mr. Hill. himself and the seven o.
eight associates referred to, had beer
| talked of years ago His purpose ir
transferring his Great Northern and
Northern Pacific stock to the Secur
tiles company, he said was to make
those stocks more valuable or to pre-
vent foreign interests from getting con
troll. and diverting the business Of the
Northwest down to California. On
direct examination 1t was brought out
that what Mr. Baker called the sale OF
his shares to the Northern Securities
company was in reality only their ex
change for shares of that company :
stock at fixed ratio
When Samuel Thorn. another direc'
tor of the Northern Securities com
pany. took the stand. he admitted the
ownership for years of some l4.ooo
shares of Great Northern stock tie
said that he also owned North ern Pa
i citic stock, which he bought from } +
Morgan in 1897. and that he acquitted
about 5000 additional shares OF North
ern Pacific common from ! y Mofsan
In 1901 Mr. Thorn made admissions
substantially similar to those made ny
| Mr.. Baker. II was brought out tina;
while President George + Baker OF III.
First National bank is directo o iht
| Northern Securities company, his son
| George r Baker Jr.. figured as on. q
Its incorpOratOrs.