The Birmingham age-herald., 1912-12-20

ed How far do you think they ought to be allowed to go?r
 T think they have got enough" the fnancier answered
 You do not think they ought to ab- sorb any others?' Untermeyer asked.
 No; they may be forced to take in some weaker companies" the financier answered.
 Forced! For the good of the compa- nies absorbed2' Untermeyer asked.
 Yes. forced to absorb them to protect them," Morgan answered.
 Recess for Dinner
 With the arrival of this iuncture tho noon recess was taken for dinner.
 When the committee reassembled Mr. Morgan took the chair again. MT. Un- termeyer frequently referred to cumula- tive voting.
 You know that there is cumulative voting in the Pennsylvania railroad. and under that plan a seventh of the stock holders can get together and elect a di- rector, two-seyenths can elect two drec- tors," Untermeyer intimated. "They thus obtain a minority control"
 Nowadays Morgan answered, 'only bare majorities.
 Do you not think the minority should be represented in directorate?'' MT. Un- termeyer asked
 "Yes, it's a good plan" the financier answered.
 Witness said he would favor oumula- tive voting if it attained that result.
 Witness said he did not believe there was any great combination among bank CTS in this country.
 Do you know of any railroad financed independently in recent years?" the inquisitor asked
 NO, but I think either the domina- tion of railroads by bankers or the unity of interest of bankers Is con- cerned," the financier answered.
 Do you not and others control the Pennsylvania" the inquisitor asked.
 "No," Morgan answered.
 The inquisitor briefly hesitated
 You took over the Baldwin loco- motive works, I believer" he asked MT. Morgan.
 Witness said they handled the se- curities.
 Prior to that time the American Locomotive company had been formed?" MT. Untermeyer asked. Witness re- piled affirmatively.
 "Now that you and Baker control the great railroad systems of the coun- try and between you, you are inter- ested in the American Locomotive company, what chance do you think new locomotive company would have lO SuCCeeu CnlerulcyeT dSkeu
 "A good chance; we could not buy our engines all from a single com pany," Morgan aswered.
 Do you think it a healthy condi- tion for the interests in the supply company to be identical with the in- terests of the railroads that buy sup plies?" Untermeyer asked.
 Yes" Morgan answered.
 Consolidation of Roads
 The consolidation Of the Lake Shore and Michigan Central roads into the New York Central lines was then preached.
 You believed in buying up the com peting liner" Untermeyer asked.
 Why, of course" Morgan answered
 Witness testified that he bought control of the Equitable Life Assur- anee society from MT. Ryan and Har- riman. He said he secured about 51,- 900 shares of stock for which he paid about $3,000,000. The company pays 2 per cent dividends he added
 That's about $3,000,000 on your stock?" Untermeyer asked
 Yes, about" the financier answered about s3,700,000."
 About an eighth or ninth of one per cent on the investmentg Unter- meyer asked.
 Yes" Morgan answered
 The inquisitor insisted on knowing why Morgan thought 1t good business to buy the Equitable stock at a price that paid only ninth of one per cent interest Witness said he bought it for he thought 1t was good. The inqsis-
 Continued on Page Eleven)