The evening times., 1901-04-16
MR. MORGAN And Hts DEALS
Has FIGated Billions Of Dollars
Worth of Securities.

Worth Of Securities,
some Transactions VI hi"h Nctted the
Crcz.. EEl=assucfxr Vast Fortunes in
Pro- svcr GOT over His Failure
ia C-z-y Island EIephDnt scheme.
NEW YORK. April I6.-Therc have been
created IT. the last FIVE years in the United
States securities whose face valUe Il es-
tiu1ated at Sla.ag5-o'0g5o. The firm of J. p
Morgan x Co. at Wan and Broad Streets.
New York has fIoated 81 Sis II these
new securities
J. Pierpolt Morgan has come to be
known the world over as the physician
and SURGE. L. f1vaIided corporations SO
great Is n -tnius for revicifying finaG-
cfaI ruins .--I devising schemes for re-
juvenatiDg the unsuccessful corporate
enterprises of others that the word re
organization has come To be known in
Wall Street as -remoTganiZatio ton
One of the few failures that AiT- Nor
gan has met with in his wonderful career
was when he organized the company
which built the famous elephant at ConeY
Island. 1t is said that in after years Mr.
Morgan never looked at that elephant
Nilll'ui q SlEii II AAfTt illi4i A4Af'i'' N''-N'
sands of dollars and the company which
he organized finally went to pieces 1t
was q novel idea and = monument. until
it burned down to the inventive genius
OF the man who eventually organized the
great United States Steel Corporation.
The first enterprise which attracted the
attention of the financial world to Alr-
Morgan was the marketing Of S25-"'9. 9.o59
Of New York Central stock in Europe
twenty years ego through his agency
Mr. Morgan through his father. had
formed valuable foreign connections when
he was 4 member Of Dabnty- Morgan &
Co 2 house which had been formed by
the elder Morgan for the purpose Of plac-
ing his son il business. Young Morgan
secured an option on the $25,9A',ooo Of
stock at I2a put the stock up 70 l3A IN
this market and then sold out TO his Eu-
ropean friends at the latter price. He
won the lasting friendship of William II
/ Vanderbilt by this successful coup and
made over 81. .Oe9.019 for himself by the ven
ture- Mr. Morgan-s recent sale of the
PENNSYLVANIA Coal Company to the Erie
Railroad and Of the Jersey Central To the
| Reading were carried out on plans exactly
! similar to that of his first great venture.
! The second great venture which again
! won the gratitude of the Nauderbiits was
! the leasing of the West Shore Railroad to
/ the New York Central The building uf
/ the West Shcre Road has been called It
I monumental folly The boi1ness Of the
/ enterprise caused . panic amons the Van
/ dcrbiItS William II. was almost beside
/ himself Some bad advisers counseled
/ him 10 begin a ruiuous war against the
uev road. The fight lasted many months
! The dividends 5f the New York Central
] were cur in TWO and West Shore was fore
/ ed into bankruptcy. The ste ckh0iders lost
! everything The bcndhoIdeTs were forced
! to consent TO a cutting down Of their in
/ vcstments By onc-third This was the
( plan by which Nlr. NI0rga eSreed 20 save
j them from the loss Of ali their holdings.
/ When the West Shore Railroad was turn
! eG over for ninety-uine years 10 the New
/ York Central William H Vanderbilt was
| SO grateful that ne presented AIT. Nor
| gan with a silver service tEat cost $sgDJH-
/ y few years after that Al Morgan at
tempted 10 revivify the LGn.- Island Rail
/ road This Is one of his ventures thar vas
not successful lie finally abandoned the
| plan 10 Austin Corbin.
I Mr. Morgan made S2-6a1.5a0 out OF Jhe
/ first financial rehabilitation of the EaIti-
/ more and Ohio Railroad In his rrorgauf-
cations Of Reading and Erie nc was very
/ successful. All these. fowcvar. were ac-
+ complisEs5 before he had reached the ze-
/ NTH of his career
/ one oE the great organizations which
/ AIR Morgan accomplished since 1895.
/ when the great boom in corporation val
/ ues began was the combination of all
! the making companies of the United
/ States under the name of the American
/, Mating Company. This company was
{ organized under the laws Of the State of
/ New jersey on September y. 1876. The
/ company acquired by the issuance OF Sla.-
/ 54H.99J common stock and $f2.J35.HgJ pre-
f-Tred stock twenty-five mating plants
/ scattered throughout the country. the
{ value o. which Was conservaIEsir estl-
mated at SlgE]u.VjU in addition 10 the
| plants. The company acquired by the pre-
! ferreG stock $. .0S9. COO. The common stock
( was given as q bonus TO the underwriting
( syndicate. which MT. Morgan formed. and
! 40 the owners Of the mailing plants aS
! an inducemeut for them TO enter the com
/ silaJIGG- During the year 1888 the com
/ pauy purchased for Sll2. 900 cash and $40
! COR IN its own preferred stock eight other
/ mating plants In March, 1898, the com
/ uany- finding that il sun did not have a
| Sufficient percertaSe OF the mating
! plants OF the country To give il
a monopoly. bought the various plls1 Is
OF NiedIuger x Sons for 81 10000 IN pre-
/ ferred stock. $1,000 in common stock and
100000 in cash IN the summer Of Isss
| il WIS forced 10 purchase fOrty-One Gle
/ tdaoT pants III aAllll1totfLI ittt WHICH u
! paid 1922 in cash A short time after
This il Wds announced in Wall Street that
| the American Mating Company was AZ
trouble The securities fell over - pei
cent IN value Then il was announced
that its working capital was inst iiIcient
| and SH.g1Hu worth Of HTSt-HOTJE1Ee b.
ueT cent bonds were issued
Du January 10 lt.n- \ special committee
/ consisting of Fred JHimau- r N Gallo
! way. and p. p Old was appointed 10 eZ-
annie into and report on the affairs OF
the company. After months Of labor they
found out that dividends had been paid
ont Of the working capital of the compa-
/ ny that had not been earned and that the
! floating dept Of $Z-g1N.iZ3 had been aCCU-
! rnuIatrd The company had been oyer
| capita IiZeC. absurd valuations had beer
/ placed ON the plants purchased, and th=
| 1uBiic that had invested millions OF dol
lars in the american Mating Company
| had lost their all The prevailing quota
tfon on the stock has been about for the
| common and - for the preferred The
/ stock Is seldom traded IN and is not re-
I eard-d as marketable
Mr. Morgan was the chief organizer oi
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