New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-20

Mr.. Untermyer.
Didn't Bother with Contracts
The organization Of the billion dollar
stool CORPORATION. MIR Morgan ac-
,.,o,,ledoed was effected without VIII"
tao contracts. 1t was accomplished oy
corroenondence he testified, Wh'le
members of the Pujo committee anu
snectarors blinked almost increduiousiS'
The underwriting of millions OF Sc
c,rities Of the New York. New Haven
G. Hartford and the New YORK Ceh'r"i
railroads. the reorganization OF the
Northern Pacific and Southern tI'
nurchase OF the Equitable LiIe
stock. the handling of AFFAIRS Oh
dozens Of banks and other cor
,orstions-a great system OF gigah-
tic financial operations centring IN the
banking house Of this genius OF wan
street-were related in matter-o1-Iact
manner bv the. banker, whose Iliiiu
.ooned as alert to-day as ever al
though the appearance OF creepi"S
,bvsical infirmities was evident even u
the casual observer.
Cant YOU give the comm''lee
statement Of the deposits OF your oaiiN-
ing firm in New York as OF November
-" asked MIR. Untermyer in beginning
tho examination Of Mr.. Morgan to-day
A. Morgan approximated it at about
500 100000. and said he would luiii''"
a statement showing the figures
AIR Morgan said he and his partners
,,.o~o directors in some Of the Interstate
generations that have accounts WIN
= Morgan & Co" His couilSel
acreed to furnish list Of those olIe0-
torshipS.
Mr.. Morgan produced copies oil 'i'e
fiscal agreements between j. +. Morgan
& Co, and the New York Central ana
the New York. New Haven x Hartford
Railroad companies. He said no other
such agreements were made 10y ms
house The firm acted as fiscal agent
for other companies by tacit agree
ment."
"you are acting for a number OIL
other corporations. are YOU not IN
ending the United states Steel Cor
poration?" suggested Mr. Cntermyer'
Eyes. but that is 10y resolution Oh
,ho boord NJ directors of the steel Cor
poration." said Mr.. Morgan.
Agreements "by Word Of Mouth
Ae IN other agreements whereby the
Norgan house became fiscal agent lor
generations. he said they were by
word Of mouth or by correspondents
Mr.. IIntermyer read pam of the Ne"
York Central fiscal agreement by WI'ich
Morgan & Co. were made sole bankers
for the railroad. Mir. Morgan sald NJ
had been a director of the New YORK
Central about thirty five years.
Included in the fiscal agreement Tor
the New York Central lines were the
Michigan Central. the Lake Shore ana
the Cleveland, Cincinnati, Chicago *
st. Louis railroads.
Mr.. Morgan said some issues Of New
York Central securities had been mace
in the last ten years through other
-,,ankers than his house. Il can't recall
any, out thlIlh NHtIc "ciN GUM
added.
I'm the last five years.
4 don't remember any none that
can recall just now" adding that his
firm would furnish information ON that
point.
Mr. Morgan said the firm had ham
died several hundred million dollars
worth of New York Central securities
and ne thought that in the last ten
wears those securities had all been
handled on commission basis. He
thought the New Haven, too had
issued securities not handled by Nor
gan & CO. in the last ten years
Mr.. Untermyer read from the papers
furnished BY Mr.. Morgan the proposal
from the Morgan house accepted by the
New Haven. Morgan &.Co. proposed,
in return for being made sole fiscal
agents for the New Haven lines. 20
loan the New Haven road 90 per cent
Of the agreed sale price of its securi-
ties. at reasonable rate of interest
and to give the road the benefits OF
counsel and advice
This proposal was accepted on Janu-
AIRY II, 1911, by the Maine Central; on
December %, 1910, by the Boston &
Maine, and on December 10, 1910 by
the New York, New Haven & Hartford,
the accordance in each case being
signed by Charles $. Mellen.
Can't Remember All Corporations.
Can you give us from memory list
~ other interstate corporations for
which you are fiscal agents. asked
Mr. Untermyer.
Mr. Morgan could remember no 9TH
ers except the United States Steel Cor
poration. and could not estimate the
number He said his firm had supplied
the committee with data on that point.
Mr. Untermyer replied that such data
included only those corporations with
which Morgan & Co. had formal agree
ments. Mr.. Morgan said his firm acted
for the American Telephone & Tele-
graph Company. the Northern Pacific
and the Southern Railroad, although
they had no agreements with them.
a. IL hn