The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-12-19
THE DAILY GATE CITY


Under this fiscal agreement with
United States steel, has your firm =
sued many securities?"
Not great many"
You did issue $250, 900 Of convert
lille bonds once?'
Yes
And in taking over other proper
fies?,
Possibly. I don't remember
Morgan's Power.
At the time of the organization Of
the United States steel did you name
the entire board OF ai-ectors?' r.
Il think passed on them"
Didn't you pass out slip With all
the names ?''
Nobody assisted me" said Morgan,
after pause. -I'm willing to assume
entire responsibility.
Didn't you say who should go ON
the board and who should stay OF 2"
Z probably did the latter said
Morgan and the committee laughed.
That's twelve or fourteen years
ago. you must remember he added.
II viii say this the witness went on
testifying. whoever went on. went
on with my approval
Nobody went on until you approx
ed %
Only when l haven. been here"
answered the financier significantly.
The selection Is made by the
board" said Morgan.
But the board is named by your"
Not now. Nobody is named against
my protest Z
Who passes on voting proxies?"
The committee, OF which my son
is member. Mr.. Perkins was for q
time chairman Of that committee.
Judge Gary was before him." added
the fnancier.
Continuing the witness said the
steel company finance committee Is
In fact the executive committee.
You named Mr.. Gary for chair
man."
Very likely, I don't remember"
While on this question OF the steel
trust'-who fixed the prices-of COM
psnies forming the steel corpora
i tion ?"
/ Yes. approved them. Some
times | couldn't get the price l
/ fixed
Who put Mr.. Perkins at the head
OF the finance committee. He did 1t
himself2''
i can't recall all these things, Z
Morgan continued irritably.
Very likely you can't untermyer
rejoined sarcastically who decided
j. P Morgan and Company should be
agents for the steel corporation Sc
i curities?"
7 did, said Morgan amid general
laugh.
Morgan said he didn't know at the
time whether it would be good bust
mess for the Morgan firm to handle
the steel matter.
1T proved SO, however, suggested
i Untermyer.
Yes chuckled the fnancier. aBui
Il was afraid when it went to So 8
share
The company has power to deal In
its own shares?"
4 don't know. 1t must buy for its
workmen.
Morgan said he knew of only few
buying pools or syndicates in the
steel class
There have been many syndicates
formed without our knowing anything
about it, he said.
You do underwrite large issues?'
asked Untermyer.
mo. we offer them to the public
!; and the public takes them,' Morgan
parted. I'VE form al underwriting
Syndicate and sell the securities FOL
the company"
q Sometimes you buy them out
right?"
, Yes: then we sell for the syndicate
Tor for ourselves"
You've list of people you invit,
: into syndicates?"
Yes. but we do not always go b,
Here Untermyer sought to pin Nor
J gan down to naming the list to whom
he offered velvet securities.
Il cant tell" said Morgan. "W,
have different customers for differen
amounts of securities
Don't You keep a list of persons
available to offer participation, il
syndicates?"
Not to my knowledge
Then you make up a separate lis
for each?"
Yes
But these syndicates have beer
very profitable for banks In you
firm?'
yes, as a general rule
) Do you issue invitations to allo
these syndicate underwritings?''
Sometimes. Il it's valuabl,
security, we tell them we allot then
(, SO much.'
You tell them they can have onl.
. SO much?'
Yes. freaently, If they apply TO