New-York tribune., 1904-09-02

Hearing Of SHt to Rcc0rcr North
Cra Pacific Corner Loss.

James ). Hi president Of the Great Northern
Railway. the first witness Yesterday at the
beginning OF the hearing Ia the suit of john J
o'Leary. = capitalist of Chicago, To recover a loss
OF $4,000 from Stcrnberser. Field & Sim a stock
exchange firm. growing out of transaction the
time OF the Northern Pacific corner. The hearing
was held in The Offices OF Philip +. ReVille No. 70
William-st.. who was appointed commissioner by
the Illinois court to take testimony in the case.
The hearing behind closed doors. Mr. Hill
on the stand only fifteen minutes He called
to tell what he knew about the famous corner and
panic May 9, 1901.
Mr.. Hill said he was not conversant with the de-
tails. On the day Of the panic he remained in his
office. and was busy considering the buying Of new
locomotives for his road. When asked by Henry
Wilcox. Chicago counsel for the plaintiff. the
apportionment OF the stock before the panic. Mr..
Hill said that his personal holdings in Northera
Pacific amounted TO SI,o0OCoO. and an additional
s40OOooO was held by his friends 7. r. Morgan's
share. he said, was S9oGOo.00o. These holdings in
volyed the common stock.
II announced that there was little probability
that T. p. Morgan would testify I'm person, al
though some representatives of his firm will be
present. it is said. before the hearings are ended
E II. Hartman also has been subpoanaed, IT IS re
ported. Mr.. OLeary. on the day Of the panic in
Northern Pacific was caught short about 300 shares
at 1925 He had deposit with Sternberger. Field
& Sim s55oO0 margin. The brokers closed him
out after buying 100 shares at $3.50 and 100 shares at
500 a share The plaintiff declares that his trades
the firm with negligence in failing to consult him
before closing out his stock.
Among the other witnesses examined was r H
Thomas. formerly president OF the Stock Ex-
change. His testimony brought out the fact. for
the first time. that he caught heavily in the
corner. having been compelled TO buy in a hundred
shares at $1,000 share.
One OF the most important points. according to
the defence. the production Of checks and
purchase slips showing the actual purchase OF the
stock in controversy at the figures mentioned.
The checks indicated that Sternberger. Field &
Sim bought and paid for hundred shares OF
Northern Pacific at $3.50 from Charles NJ Schott &
Co. and that the delivery was made on May 2
From =. d. Mendham of Mendham Brothers. the
second block of stock purchased at 800 a
share. on the proof Of this transaction counsel
for the Stock Exchange brokerage firm Contended
that no ground left for charges of conspiracy.
Kuhn, Loeb a Co. who were named in O'Learys
complaint as figuring in the transaction by which
Sternberger, Field & Sim acquired 1 part Of the
case by the testimony OF j. \. Heinshemer. a
member OF the firm. He said that they had held
a large amount Of stock for investment. but that
II not for sale at the time Of the corner.
Kuhn, Loeb & Co. neither bought sold on
that day. for several days prior, he said.
neither did they lend any stock
Other witnesses examined were George II.
pany, and Maurice n. Sternberger OF the defen-
dant brokerage company. The hearing was ad-
journed at $3.50 o'clock, and Will be resumed this
morning at 1890 o'clock.