Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1912-12-26
MORGAN ON STAND
IN MONEY QUIZ
Defends His Course As a Private
Banker.
BILLIONS IN RULE OF FEW
FlnancIer, Before House Committee,
Asserts Deposits in His Institution
Are Safe Without Federal
Inspection.

Washington, Dec 20.-On the heels
Of revelations of the existence of a
$25,0O0,OO0,OOO money trust dominated
by J. Pierpont Morgan, the financial
monarch himself was called TO the
stand before the Pujo investigating
committee on Wednesday.
Samuel Untermyer's examination Of
the New York financier had not gone
beyond few general questions and a
short discussion of the policy of pri-
vate bankers accepting deposits of in
terstate corporations when adjourn
ment was taken.
Mr.. Untermyer asked Mr.. Morgan
whether his house carried deposits OF
Interstate corporations"
Mr.. Morgan replied that he did not
understand what the attorney meant,
and Mr.. Untermyer explained that he
meant companies transacting business
in more than one state. Mr.. Morgan
said his firm accepted the accounts Of
any corporation It thought reliable.
Have you accounts from interstate
corporations?"
With any corporation we think is
good" said Mr.. Morgan.
Mr.. Untermyer read into the record
statement that in January there
were &c accounts with the Morgan
firm with deposits $68,113,000 and on
November 1 there were 70 accounts
having on deposit $71,968,000.
DO you think that these great cor
poratiOns that have their securities
/ scattered broadcast ought to be per
mitted to make deposits with private
banker?" asked Mr.. Untermyer.
q do" said Mr. Morgan.
Mr.. Untermyer said he referred to
no particular instance, but asked
whether Mr.. Morgan thought that ''as
matter of public policy corporations
really owned by the public" ought
to be allowed to deposit with private
bankers not subject to federal inspec-
ton.
Il do" again said Mr.. Morgan.
Mr.. Untermyer asked for what inter
state corporations the Morgan firm
acted as financial agents.
Mr.. Untermyer asked about the
terms of the agreement under which
Morgan & Co. act as fiscal agents for
the New York Central
You have a right to issue all its
securities, haven't you?" asked Mr..
Untermyer.
IF we can agree on terms" replied
Mr.. Morgan.
Mr.. Untermyer persisted in the ques-
ton as to whether the Morgan Arm
did not have entire control of the Sc
Curities Of the New York Central.
only If we can agree on terms" re
piled Mr. Morgan again.
The power of allied interests, princi-
| paIly IN New York, over the financial,
! transportation, insurance, public utiI-
ity and industrial activities of the
country by means of interlocking di-
rectorates, was shown in charts pre-
scented to the committee.
The firm members and directors
whose affiliations with the Morgan,
/ Standard Oil and friendly financial
groups are thus shown number 1870. In
the aggregate they hold TAG director
! ships in 1874 corporations having total
/ resources or capitalization of $685.
/ 600, OOO
Control of these vast interests is ex-
! ercIsed through IS financial institu-
! lions, as follows:
J.P. Morgan & Co, New York: First
/ National bank, New York; Guaranty
Trust company, New York; Bankers
Trust company, New York; National
City bank, New York; Kuhn. Loeb &.
Co. New York; National Bank Of Com
merce, New York; Hanover National
bank, New York; Chase National
bank, New York; Astor Trust com
pany. New York; New York Trust
| company, New York; Blair & Co, New
York; Speyer & Co, New York; CONT
mental and Commercial National bank
/ Chicago; First National bank, Chica,
go: Illinois Trust and Savings bank,
Chicago; Kidder. Peabody & Co, Bos.
ton and New York; Lee, Higginson &
Co, Boston and New York.