Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-25
MORGAN is QUITE INFLUENTIAL
Congressional Investigation Brings
This Fact to Light.
OLD SUSPICION is NOW CONFIRMED
Query Among FinRnciers IL, Can Com
Eress Curtail MOrRRn's Power
Effectively, and AZ it Can
Would He he Unhappy
BY PRESTON c. ADAMS.

Bee. the congressional investigation OF
the steel trust has developed the startling
fact that John Pierpont Morgan has a
good deal of influence In the financial
affairs of the country. A suspicion that
this may have been the case had spread
even beyond the conflne of Wall street.
but It is nevertheless gratifying and per
haps useful to have all doubts on the point
cleared way and the fact made Of public
record.
Mr. Morgan does have influence, great
influence, in fact, dominating influence
in all matters Of high finance in this
country. 1t may be that congress will
find a way to curtail or at least in a
measure control this power and even Mr..
Morgan would not be unhappy IL 1t did
For, while 1t may be said that he is a
broad-minded, patriotic man, who hon
estly seeks to use his power wisely and
for the benefit Of the country. 1t is per
fectly conceivable that some man may
be raised up with the combination Of
brains and unlimited millions entirely with
out any artistic sentiment who would en-
danger the very life of the republic.
This is real contingency which chal-
lenges the best brains of the country to
guard against.
Inc AHNcmcgcr OnAes
Another fact of very general interest
developed by the congressional investga-
tions is the fact that II. o. Havemeyer,
for years the head Of the sugar trust, abb
solutely dominated that S9O,OOO,OOO though
he owned only 100000 OF the stock. The
question is being asked how many more
of the giant corporations are in the hands
Of men whose stock ownership is prac-
tically negligible.
Effect of Decisions.
What effect is the dissolution of the
Standard oil and American Tobacco com
ranies to have on the subsidiary COM
panies composing them? None, would be
the offhand answer; but It is doubtful IL
this would be correct except for a very
limited time.
1t was James ]. Hill who remarked that
certain famous court decision meant that
stockholders would get one blue and one
green certificate in place of one red one,
and that that would be the total result 81
the decree. The Standard Oil and the
American Tobacco companies will have to
devise many colors in order to comply with
the recent supreme court decisions. At
first the owner Of the present share may
simply deposit his varigated collection in
his strongbox where he kept the original
certificates, but when estates come to be
divided up some of the heirs are likely to
get certain colors and others others. rad
ually, too, 1t is expected there will come
about chances in the ownership of subsi-
diaries. That. however, is a matter of the
future.
Financiers Have Faith.
How is business? The closing weeks of
the first half of 1911 find American finan-
ciers better satisfied with the outlook than
they were when the year began, and the
best opinion is that at the opening of 1912
prosperity will be more pronounced than
it is today or has been during the last
eighteen months. The current year has
brought dlsappolntments, but it has also
brought encouragement. After twenty
years corporations are at last learning
how they may reform with the Sherman
law. and by the opening months of 1912 the
legal method of conducting huge interstate
industrial enterprises should be clearly de-
fined and sanctioned by the courts. This
is a long step forward.
Agriculture, money, our trade balance
and politics-these fundamentals have done
well during the first half of 1911. The gov
eminent and private reports covering the
cotton prospects show conclusively that an
unprecedentedly large acreage has been
planted and that the early condition of the
staple is very promising, hence the expec-
tation of a bounteous crop is justified
Then the governments elaborate statistics
on the grain crops issued last week are
also full of encouragement A yield Of
4S0, 900 bushels of winter wheat is fore
Swallowed. while the unparalleled acreage
under spring wheat suggests the possibility
OF a harvest of nearly 2S5 100000 bushels
making a total wheat harvest OF nearly
765, 100000 bushels, or considerably greater
than produced in any year heretofore. The
American money market has been entirely
satisfactory from the business viewpoint.
Good Trade Balance.
Our foreign trade balance at the end of
June should exceed 5000 900, thanks to
exports of greater volume than ever before
attained-a position radically different from
that OF last year. Furthermore. the prom
ised abundance of cotton and wheat should
enable us to export very large amounts
during the second half OF the current year
and the quietness in domestic trade, COM
bined with the lowering OF costs, tends to
stimulate exports OF general merchandise
Therefore it may confidently be said
business is all right.
Turkish business Visitors
Several importing merchants and bankers
of Saloniki, Turkey, are in this country for
the purpose of making a commercial tour
Of the United States. This trip was sug-
gested to them by Consul George Horton
of Saloniki with view to increasing Amer
lean trade in the Levant.
The visiting business men will bring with
them samples of cotton goods. hardware,
etc, to show the class OF goods in demand
in Turkey. They will be interested in
varied line of textiles. shoes. rubber foot
wear, flour. cotton seed oil, agricultural
implements, furniture, hardware, chemicals
etc, and wish to visit American factories
and TO meet American business men.
French is spoken by the members Of the
party.