The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-10-25
Profits of J. Pierpont Morgan
ON the Years Business
From the Great Combinations
Engineered by Him.
OTHERS TO FOLLOW.
In Some of the Deals He Did
Not Put Up a Cent.
How He Saved Wall Street from
Panic and Ruin.

New York, Oct 25-The year 1902 will
be banner year for j. Pierpont Morgan.
1t Will be one that the great financier
will remember with joy all his life, for
up to today the firm of ]. P. Morgan &
Co., has cleared $42 100, 900 in profits
from the great combinations that he
has engineered. This is outside of the
interest from investments. the amount
of which no one knows. Mr.. Morgan is
a director, trustee or officer in compan-
les whose combined capitalization
amounts to S4.S02. .2S0.5z7.
His greatest profit was made in the
promotion of the United States Steel
corporation. He headed syndicate
that put up $25,000,000 to underwrite the
stocks of the concern This 900
was the first installment of 5000, ,000, 900,
but the remainder was never called for.
The members of the syndicate received
interest and profits on the full $500, ,000,-
600, which, with the next payment, to be
made about November IA. VIII amount
to SOC, ,50O,O 900, or about 200 per cent on
the actual investment.
ONE BUNCH OF PROFITS.
Mr.. Morgan. it is understood, gets 80
per cent of this sum, which, with the
stock he received and the $10,000.000
cash, makes his profits from the steel
corporation about $20,340,000.
His next largest profits were made in
the L. and N. deal. ard amounted to
Sc, 600, 600. He bought 100000 shares of
L. and N. stock at $130 share, and sold
it to the Atlantic Coast Line for $50,
getting a profit of $2.000.000. He also re-
ceiVed 81 100000 par value of the new
bonds. which are valued at $147.70, thus
making another 81 470, 1000 profit. For
the full 306.000 shares turned over to
the underwriters at $3.50 share, the
value of which was $45. 600, 900, there was
freceived $4,000 900 in cash, $35. 900, 900 in
4 per cent bonds and $5,000,000 in At
lantic Coast Line stock Figuring the
bonds at par and the stock at $147.70 a
share, it is clear that Mr.. Morgan's
profit out of the deal approximated
Sc, ,0OO 900, and probably more.
In the purchase of the Chicago, Indian
apolis & Louisville Mr.. Morgan's genius
was shown to better advantage than in
any other of his deals. For this reason.
He did not put up cent, yet made a
profit of $950000, which, according to
Wall street. is a great financiering feat.
| SAVED WALL STREET.
| Mr.. Morgan cleared in the Northern
Securities combination $4,500,0 900, and no
where has he earned a profit more legit-
imately. BY his prOmptness in coming
to the rescue of the financial world at
the time of the Northern Pacific panic
he saved Wall street from ruin. Forty
leading commission houses were ready
to close their doors and there was hard
ly an operator on the street that was not
ruined but for Mr.. Aforgan's action.
In the steamship combination Mr..
Morgan made 81, 500 000 and in the United
States Realty merger $3,000,o00. His
latest profits are to come from the great
combination of harvesting and farm
manufa ctures. The amount received for
financing this merger was S65, 900 000
and Mr.. Morgan received outright for
engineering the combination a fee of 81
600 900. The remaining 3,500.000 was
made by the purchase of the Milwaukee
Harvesting company's plant This was
bought for s., 500 000 and was put into
the combination for $4,000 000
Thus Mr. Morgan has received S42,-
is known that there are several great
combinations to be launched before the
year is ended if the condition of the
money market warrants it. One of these
is the great packing combine. Then
there is the Gould Holding company,
the Forge works merger, the probable
union of the United States Leather
company and the Hide and Leather
company, and several others. In one or
more of these, and probably all of them,
Mr.. Morgan will play prominent part.