The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-12-19

agent for the New Haven" l
Since the date of the copy OF the
contract. Before that they made most
OF their arrangements through us,
Can you recall any not made
through your firm?'
Yes, within the last 10 years, but
| can't recall exactly"
The contract was read. II was iden-
tical with the New York Central
agreement, and included the Boston
& Maine railroad fiscal policy.
Can you give US the names OF
other corporations for which you
acted?"
II cannot, sir"
Can you name any others than the
Steel company"
Il cannot, sir" said Morgan, laugh
ingly.
What is a fiscal agency"
1T is contract acknowledged by
the board OF directors"
Morgan was pressed for a list OF
other corporations for which he Is
the fiscal agent.
I'VE have given you that state
ment,' said the banker, hastily we
oil llOot llidN VIC
ourselves the fiscal agents for.
You've been acting for the Ameri
can Telephone & Telegraph Coz"
Yes, partly So"
"You have no agreement in writing
with them?"
mo"
And, also the Southern railway"
Yes, ever since the reorganization
in 1894"
But your data says you are not
acting for that company. | suppose
that company is under voting
trust?"
Yes"
who are the voting trustees
IL don't know"
you are one of them?"
Yes. and Mr.. Baker and Mr.
Lanier, | think"
Morgan admitted his firm reorgan
lied the Northern Pacific railway
under a voting trust.
Il have produced here the report OF
the voting trust on the iorthern Pa
cific, and the Reading" said the wit
ness. Il would like to have them in
the record, as they are very import
ant, showing the benefits of the vot
ing trust"
Morgan's lawyers laughed at this
sally.
ITS on account of their steward
ship" interJected Attorney Lindabury,
chuckling.
This is an argument in favor Of
this sort OF administration? ?" asked
Untermyer
yes. | am still acting for these
concerns. Their securities are being
disposed OF through my banks"
Pressing the witness, Untermyer de-
veloped that there might be other cor
porations for which the Morgan firm
was acting with whom they had no
actual agreements, except as made by
correspondence.
Don't you think 1t would be better
for the railroads if they were free TO
sell their securities in open competi.
ton instead of being tied to any bank.
Ing houseY' Untermyer asked.
II shouldn't think SO; no sir" an
swered Morgan promptly.
Don't you feel that in issuing Sc
curtties OF the Southern railway, for
instance, that you are dealing with
yourselves Untermyer prodded.
II don't think so. We don't deal
with ourselves. When you elect the
board. they vote independent Of the
trustees" said the witness.
Morgan said 1t was better to have
his firm name the directors OF the
railways the firm controlled.
Because" he explained, I'VE get
the best men possible. | am speaking
from a board point of view"
Then you think that you have less
control over them that way than
otherwise?"
That's been my experience" said
Morgan
And it's on that theory you have
no objection TO fiscal agreements"
Yes" Morgan declared.
you issue hundreds of millions OF
securities year.
yes"
Don't you think that it's feasible
that they should be sold by open COM
petition like United States and NUM-
eipal bonds?"
Il do not" said Morgan.
Don't you think there should be
some competition between the banks
and original purchaser"