Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-01-31

A director In an important enterprise
once remarked. "Mr. Morgan is a
member Of our board, and practically
dictates what should be done. The
interest which he represents TX a very
small minority, but added this gem
tleman, Mr.. Morgan Is 50 mastertul
a man that he Is bound to control
wherever he has a voice.
This plain statement from experience
explains much OF what might Otherwise
be looked upon as a mystery, fol Il IS
a very we'll Atnown fact that Mr. Nor
gans interest. personal or through mis-
itm, In the various enterprises (which
he is reputcd to control is usually very
small.
In the steel trust Itself the show Of
hands at the vote on stock conversion
proved thar out Of the ten million
shares OF preferred and common stock
Mr. Morgan himself held only 1900,
ana j. z. Morgon a Co only $500 The
same is true OF most other so-called
Morgan enterprises
But personal force and power are not
all Ten years ago neither Mt Nor
gan nor his firm occupied the COM
handing position now held by them.
Perhaps the most noteworthy element
In his subsequent rise TO prestige was
his achievement IN the syndicate
formed TO save the treasury's gold re-
serve In 1895 The foreign exchange
houses were much averse to entering
on such an agreement but Mr.. Morgan
simply informed them that they would
have TO do so, and they did.
This was the beginning Of a remark
able series OF incidents OF the same
kind which have eliminated of late IN
important New York banks taking a
share In the Morgan underwriting syn
dicates, even when they preferred not
TO do So one bank president per-
sonally admitted, In connection with
the first steel trust syndicate, that he
did not care to join the underwriters,
but, he added III is not easy TO stay
out when Mr. Morgan has limited that
one ought to be a member OF IT, IL
should, however, be added that even
in 1895, the "Morgou schemes followed
the same rule as has prevailed this
year IN layishing huge sums Of cash
on people who shared the risk with
him The Morgan government bond
syndicate OF 1895 practically turned
over $g,jOQO0O at the ueasury's eX-
pense.
Mr.. Morgans prestige was thought TO
be al its height IN 1885, It's real cuIml-
nation was reached, however in March,
1901 when the steel trust was organ
lied. 1t Is incorrect to suppose, as
Englishmen often do, that the inter-
national shipping trust was the hlgh
mark OF his American reputation. 80
FAR is this from the truth that the
main greeting accorded 10 the shipping
trust announcement was that II was q
Piece Of folly MI Morgan IS the real
Napoleon OF finance" well-knoWn
Wall-street man remarked at that
time, speaking of the foolish comforting
Of such titles on the Ferdinand Wards
OF Wall street. He is" bystander
replied, emphatlcally; ''and he has got
his troops into Warsaw"
This opinion, so far as concerned the
outlook for the promotions thrust mus
helter-skelter on the market, was very
general and it was correct The
reasons why such convictions were not
courageously outspoken are q little
curious. one was the belief Of the
average hnancier that the schemes
were bound to succeed and that there
fore il was unwise to oppose them.
But much more than this, the silence
and criticism during the operations OF
1901 are TO be explained by the extra
ordinary attitude Of the press,
1t Is probably not understood abroad
1t is, in fact, not generally known
even in America-that the press OF
New York has been virtually gagged
as TO criticism Of these operations The
statement may, think, be made with
out qualification, that, outside Of the
sensational papers, which, Of course,
have no financial standing. there are
not more than two newspapers In New
York. daily or weekly, which have
dared to tell the truth regarding these
later promotions. 1t is within my per-
sonal knowledge that editors OF some
highly respectable and important
newspapers have in private converse
ton freely professed their dislike OF
these schemes; yet they have contln-
ued to approve them in print.
The explanation is threefold; first,
and least Objectionable among the rea-
sons, is the curious idea which has pre-
vailed IN this country during the last
two years, that to critlclse any Of what