The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-02
HILL ON NOR. PAC. CORNER.
HAD NO PART IN RUNNING UP
THE PRICE, HE SAYS.
Questioned in Suit Brought by Chica 80 Man
Against Brokers Who Bought for Him
100 shares for SIS ,OOO-Member
OF Kuhn, Loeb d. Co. Also q Witness

Referee Philip E. Reville began taking
testimony yesterday behind closed doors
at his office, 10 William street, in the sui,
Of John j. O'Leary Of Chicago to recover
SIS, 600 from the Stock Exchange firm of
Stirnberger. Fuld Sim. The plaintiff
got caught in the Northern Pacific corner
of May o, 1901, when that stock scared
2 to 81 900 a share. He was short 200 shares
at 1927, and the defendant firm covered it
by buying in the market 100 shares at $3.50
and 100 shares at $500.
OLeary alleges that these prices were
far in excess of the actual value Of the
stock, that there was conspiracy to run
1t up on the market and that the brokers
were negligent Of his interests.
James j. Hill, president Of the Northern
! Pacific, was the first witness examined
He testified that prior to May he and his
friends had bought 100000 shares Of the
nothing to do with the panic, as he had
neither bought. sold nor loaned any Northern
| Pacific stock on May o, 1901, OF for some
| time prior to that date.
| What caused the rise in the price OF
the stock?" Mr.. Hill was asked by Lawyer
| Moran, counsel for the plaintiff.
1t was due to selling by men who did
not have the stock and couldn't deliver it,
Mr.. Hill replied. There was a scramble
! to get it when there was none to be had"
party to any conspiracy to run up the price
of Northern Pacific, and that so far as he
knew there never was any such conspiracy.
He also declared that he had nothing to
do with cornering the securities.
Louis A. Heinsheimer of Kuhn. Loeb
Il Co. was then examined He swore that
his firm had alec bought large amount Of
Northern Pacific stock prior to May Q.
l90l-how much he could not tell without
consulting the books. He said it was
thaf n
IT was bought, sold or loaned on May 0.
He admitted that his firm had loaned 1900
shares Of the stock on May Z. The loan
was called on May 8, he said, to be delivered
on the morning Of May at 2l5.
MFR Heinsheimer also denied all knowl-
edge Of a conspiracy to initiate the value
u MaSri Ss N. stirnberser, senior member
Of the defendant firm, testified that OLeary
He got an order he said id one one Ma1 81 1901,
to buy 200 shares Of Northern Pacific at
the market" from James j. Townsend,
broker Of Chicago, who is also member
OF the New York Stock Exchange Hs
buying 100 shares at $50 from Charles VI.
Schott, DR., a stock broker of SO Broadway,
and 100 shares at 400 from Maurice r Mend
ham broker Of 20 Broadway.
Mr.. Stirnberger produced his check book
to schott and s4O,O 600 to Mendham He
also exhibited the purchase slips to prove
that 1t was a bona fide transaction and that
the stock was delivered on that day
Broker Schott corroborated Mr., Slim
berger's testimony.
Ransom H. Thomas, ex-president Of tho
Stock Exchange. and now a member Of the
board OF governors was called to the stand,
but was excused before he had given any
important testimony. Mr. Thomas, il is
said paid 900 for 100 shares of Northern
Pacific stock on the day of the panic and he
will 30 testify when he is called again,
The hearing will go on at 1890 o'clock
this morning. Among those who have
been subpDnaed are Charles Steele, Temple
Iowt DIN, George H. Earl, secretary of the
Northern Pacific Railroad Mortimer l.,
Schif OF Kuhn, Loeb & Co, and Maurice
B. Mendham
William Wilcox, one of OLeary's law
yers, announced after the morning session
that there was no intention on the part Of
the plaintiff to criticse in any way the
actions Of Mr.. Hill and other financial men
subppnaed in connection with the North.
ern Pacific case. He said that Mr.. Hill
and others had been summoned merely
to bring out necessary technical points