The evening world. [volume] (New York, N.Y.) 1887-1931, 1912-12-19

Pacific reorganization.
Was that properly reorsanised un-
der . voting trust7''
Mr.. Morgan said II was and that he
| was . member Of the voting trust.
Tn that connection" he added. I'D
Hike TO present these reports OF the vot.
ling trustees for the Northern Pacific
| and the Southern Railway"
Mr.. Unter1nyer looked at the reports
Mr. Morgan presented and asked II
they we're not arguments by the vot-
ms trustees in behalf OF their good
management" Mr.. Morgan replied
they were the reports OF the trustees.
and attorney Linda bury intcrposed to
say they were accounts Of the stew
ardshtp of the voting trustees"
Don't you think that Interstate cor
porations should be entirely free to sell
their securities In the open market and
not be tied up to one Arm, no matter
how Just its methodist" asked M.
Untermyer.
Taking up the Southern Railway sit
uation. he said he saw 20 objection to
directors appointed BY himself a. n
q fiscal agreement with his own nrm
Mr.. Untermycr sskcd IL Mr.. Morgan
did not think securities Of interstate
corporations should be sold In open
competition as we're United Slater
bonds.
IL do not" said Afr. Morgan. He
said there was plenty OF competition
for railroad securities.
Nr. Untsrmysr asked whore there
could be competition between tho New
Raven road and Morgan D 90. N the
sale Of New Maven securities.
"rhey may want . great deal more
for then than We think they are
WORTH" said n1r. Morgan.
"Do you think Il would be better for
the railroad 70 bs able 70 o3sr Its
securities TO another banking houss7"
"Ho, DO not" returned Mr. Morgan.
ne added that, the position OF the bank
Ing house often haa much TO 10 With
the stability ana success Of oorpoSs-
lions.
There's another point about IT," ne
added You must remember that all
securities sold and issued are NOT al
ways good and when there 10 4 respons-
ibie fiscal agent there IL moral strength
behind them"
VIII you name any instance OF
railroad bond proving bad. where your
firm has had 10 pay the loss?" asked
Mr.. untermyer.
Il can't remember any case. but
know there have been several" said
Mr.. Morgan.
"All Of that ocinss ont OF the security
holder" "Mo, ont OF the property"
"Dut that eventually comes ont OF
the security holders" suggsstsA the
attorney. "Look over the whole history
Of the railroad ana see II you can AAA
one csss whore the banker has haA 70
stand the loss"
"wsil rye had Q COCA deal Of rail-
rosd1ng"-- interrupted III. 2os1an,
WITH . snails.
Yes. that's why I'm asking YOU
about g." rejoined Mr.. Untermyer.
Mr.. Morgan said he could recall no
specific case.
Mr.. Untermyer returned to tho hscsi
arrangement With the United states
Steel Corporation.
"Did yol not nans the sntlrs beard
Of directors Of IA United States Steel
oeyyesatien7" ASKED III. Untssmyey.
- think passed on t."
"Dut dianv you hana eus . slip con.
tanning the namssf" III passing on
them 10 naming u. an quite wtllins
to assume all the responsibility" said
III. Morgan.
"Sus dianv yea say who should "a
on and who stay OFT" vsrsistsd the
lawyer. ~ possibly ala tie latter" 70.
Piled the AAanGiss, ana . iaugh swept
out from the crowd.
Mr.. Morgan said he had not passed
on all who went on the board Of the
Steel Corporation. but said no members
had ever gone on the board against his
protest.
Mr.. Untermyer asked II Mr.. Morgan
| had not named Judge u. II. Gary for
Chairman OF the Steel Corporation Fin
ancs Committee when George w. Per.
kins resigned.
II think so. It's very probable.
don't remember now"
"Who fixed the prices at which this
various subsidiary companies should "
into the orgsnization7" asked Mr.. I'm.
termyer. II approved the price," sale
Mr. Morgan.
"But II was left to you to determin,
the price at which they should com,
in?" YES. but I wasn't always abb,
to get them at the price We wanted"
SELECTION OF J. p. MORGAN
CO. Ex-oFFiclO.
which committee OF the Steel Cor
poration selects the banks whore It
funds shall be depositsdT The Fl
nance Committee"
who selected J. p. Morgan q Co. ?
why. II was sort Of ex-oficio. J.
Morgan q Co. then HAD the whole com
pany and NJ funds naturally oame I
ua"
You thought II would be . prontabi
business" suggested Mr.. Untermyei
I'VE did not know then whether
would be profitable or not" said Nj
Morgan. TT didn't look much like
. when It went down to IS a share"
mr.. AorSsA added he had bought o
the Steel stock he could get hold o
that he had never lost confidence
the Steel Corporation ana that he he
I nsvsr advised any one to sell. Z
b know OF NO pools or syn6ioatss fornas
s TO deal In Steel stock.
II ~ have no doubt that there had bee
n pools formed without our knowledge
:, he added. "Sut know Of none"
Mr.. Untermyer took up the sale
l. large issues OF stocks.
l. Mr.. Morgan said that In some instanc
h stock Issues were underwritten
A.