Evening journal., 1907-11-12
HOW MORGAN
WORKED THE DEAL
his Suggestion Enabled Him
to Regain Ills Financial
Prestige
OTHERS PUT UP AND
MORGAN GOT THE CREDIT

NEW YORK, Nov. 12-what aid
Morgan really do in the financial crisis
and how much did he make out Of it7
is a question agitating Wall street.
Careful Investigation completed to-
day shows that Morgan took the lead
ON three principal occasions. In each
his personality weighed more than his
money Both Rockefeller and Carneeia
put up more money than Morgan did.
but Morgan took all the glory. In the
first place Morgan IS not nearly az
rich as he Is generally credited with
being.
The first phase Of tho panic which
brought Morgan into Leadership again
was after the KniclSerbcclrer Trust
Company closed and two other truse
companies needed $4,000. 900 in a hurry
to keep open. Fiften leading bankers
including Morgan met in conference.
Banker Brown told how ne couldn't
helpi but that "Smith" was the one
TO save the country Then Smith would
side step and urged banker N"Jones" to
hll the breach. Everyone successfully
lodged responsibility and nothing was
done Morgan listened and said noth-
ins' FINALLY one OF the bankers ,sug4
gestcd they leave Il TO Morgan
Let's Each Put Up a Million.
Lets each loan q Million" grilnted
Morgan.
This was agreed TO. Morgan ala
nothing more than any one else ana
his suggestion was so easy tho others
wondered they hadn't thought OF II.
'Just plain horse sense" said one OF
them. October oath after the Vest
inghouse failures and when banks In
Harlem and Brooklyn were poppinr
like iirecrackcrs was the next ana
gravest crisis. Panic was on the main
line headed straight for general ruin
with red signals flying everywhere.
/ The stock exchange was loaded with
margin transactions and brokers could
borrow no money to make their GUS
| tomary deliveries. Failure to deliver
Ihy night meant Wholesale assignments
and the bottom cleaned out Of everv-
thing Il Is said that at this crisis
4 lIiockefcller offered to loan 10000 600
and Carnegie S5,OOO.00O but neither oe
them knew how TO place 1the money
TO advantage
Morgan Placed the Pool.
Morgan again was the man who
knew and he placed the pool Of sos
100000 Of which he himself contribute
ed only a small part. Hartman claims
TO have put up more than Morgan.
but Morgan received public credit for
the whole pile. Brokers who borrow
ed this money paid at the rate of ten
per cent annual interest so nobody
made much money out OF II except as
they saved their own properties from
being slaughtered. The next day mar
gin trading was stopped and one dam
ger averted. BY this time Morgan had
accumulated large blacks OF that i'm
|HIIII IINa..4 N.I az
tige" and he found himself a sort OF
Wall street policeman TO whom every
body was telling his troubles
Two trust companies were still on
the run, S8o,O0O,000 cash paid out and
still long line OF waiting people.
They had a lot OF Tennessee Coal and
Iron stock but the banks would not
loan money except on bonds The stock
was on the bargain counter for any
quick buyer. n. G.. rs biggest and
most solvent competitor was the Steel
Trust Fricl and Gary hurried to
Washington to ask Roosevelt not to
put them in jail If they bought. Re-
assured they returned to New York;
and the long Sunday conference in
Morgans art gallery followed Friclc
land Gary had s30000,O00 OF unsold five
per cent. steel bonds in their treas
] uiys MoiEhu Hldue llt trade Tor them
at the rate Of SIG face value bonds
for every 500 face value OF #. c. l.
stock. The trust company crowd were
able at once to raise money on the
bonds and save their banlSs. The steel
trust locked the T. c. l. stock up
in their safe. IL probably represents
S50O,0O0,OOO worth of property What
commission, IL any. Morgan charged
nobody knows. It may have been a
million or two. The biggest point
Morgan has scored says Wall street.
is that he has made a lot of people
like Hartman and the Standard oil
crowd who thought they could get
along without him come back and ac-
Icept his leadership street does non
call his actions philanthropy, but en-
Heightened self-interest They say Car
lnegie and Rockefeller have cornered all
the philanthropy in sight and it is no
longer traded I'm on the exchange.