The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-03-19
MORGAN IS FORMING
TRUST IN SURETIES
New York Financier Plans Consoli-
dation of Eleven Big
Companies.
AGENT SOUNDS ST. LOUIS MEN.
Branches in Big Cities of the Uni
ted States 10 Form Proposed
Line of Bond aud Title
Institutions.

J. Pierpont Morgan IS the chief promote
! of plan which coutemplates the merging o
3 eleven of the principal surety companies o
the United States. as well a large mum
: Der OF the more Important title ard trus
companies in he large cities.
Since last May Mr. Morgan has been th'
( principal stakeholder and promoter OF th'
/ Aetna Indemnity Company of Hartford
! Conn. and 1t is reported on good author
J ity that the Aetna is TO be the parent OF the
! gigantic combinations of surety companies
which will control practically all the bust
ness in the United States
/ Among the companies which it is proposed
1 to take into the merger are:
The Fidelity Casualty Company of New
! York capital s2yoo,OO0.
| Fidelity and Deposit Company of Balti-
more. capital. $2,COO.o09
Lawyers Surety Company Of New York
| capital. 500 Co.
/ American BONDING and Trust Company OF
| New York. capital, sl,OcOOoO.
American Surety Company OF New York.
capital. s.. 10000.
City Trust Safe Deposit and Surety Com
pany of Philadelphia. capital. s5ooooo.
National Surety Company of New York.
capital. 800 Goo
Pacific Surety Company OF San Francis
CO, capital. $3.50. eco.
United States Fidelity and Guarantee
Company of Baltimore. capital. $3.50 600.
United States Guarantee Company OF New
York, capital. $500
SOME CONCERNS AFFECTED MAY
BE PRACTICALLY WIPED OUT.
The surplus of these companies is much
greater than their capital stock. and the
profits for the last few years have aver
aged more than 20 per cent on business
transacted. A great amount of the bust
ness transacted by these surety companies
comes from the interests which are con-
trolled by Mr.. Morgan, one of the largest
concerns being the United States Steel
Company. When the merger is effected the
business Of the United States Steel Compa-
ny WILL of course be placed where Mr..
Morgan directs. and the same policy will
be followed with regard to other corpora
lions which he controls.
All the surety companies will retain their
individuality after the merger is effected.
but the work Will be centralized, and some
of the institutions will practically be put
out of business.
The plan Of controlling the title guarantee
companies in the large cities Is one Sec
ondary TO the surety company merger al
though tie movement is an important one.
An agent of the Aetna Company has been
In ST. Louis several days, and for the last
week 1t has been reported that an effort
would be made to purchase the majority
stock in the Title Guarantee Trust Com
panY and the Missouri Trust Company.
The Title Guarantee Trust Company was
organized about three years ago. 1t has a
capital stock OF sl,5OO,0o0 and surplus OF
$4,000. When the company was organized
a number of smaller trust companies and
title plants were merged with 1t.
The Missouri Trust Company does a regu-
lar business besides maintaining title de-
partment
1t is said that II the Aetna Company es-
tablishes branch in S.. Louis in competi
ton with the Title Guaranty Trust Com
pany and the Missouri Trust Company It
probably will get support from those small
corporations, and individual investors who
were not taken in when the Title Guaranty
Company was organized. Another source OF
support would be the business derived from
the personal interests OF Mr.. Morgan.