Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-19
1412-14H Street NV.

G.
trustees of the Reading Railroad Com
pany made in 1904, when the trustees
| surrendered the company to the stock
holders.
Mr. Untermyer read the figures showing
the prosperity the voting trustees had
brought to the Reading.
How much has the price OF coal been
| raised" said Mr.. Untermyer. when he
finished.
Mr. Morgan said he did not know.
You don't know how much the Read
ing has increased the price of coal to Sc
| cure this prosperity" said Mr.. Inter
myer.
| been." said Mr.. Morgan.
MY idea is that voting trust is a
| necessity to a big company in it's infancy
| in order to protect the company" said
Mr.. Morgan when Mr.. Untermyer asked
his opinion as to the prosperity Of voting
trusts.
"Mr. Morgan" said Mr.. Untermyer
don't you think these voting trusts
bring enormous control and concentra-
his opinion as to the propriety Of voting
hands?"
NO. sir. I do not" said Mr. Morgan.
Mr.. Untermyer asked il one banker.
| such as Mr.. Morgan. would not have
enormous control if he had voting trusts
corporations.
But that would be impossible said
Mr.. Morgan.
Mr.. Untermyer persisted that the sys-
| tenn brought about great concentration
and control.
do you think they ought to have the
same representation in competing con-
Germs? Let us take a concrete example:
Members Of your firm are directors In
the Bankers Trust, the Guaranty Trust,
First National Bank. the Bank of Com
merce. Chase National Bank. the City
National Bank. Liberty National Bank.
| the Chemical National Bank. the Astor
| Trust and other companies
Representation, Not Control.
| Mr.. Morgan explained that he did not
believe that from one to three men on
| each board of directors could exercise
| control.
you take three men and put them in
all those banks. In one bank they are
| three out of fifteen, in another three out
Of twelve, in another three out of ten
But through voting trust they might
| have appointed all the board CT di-
| rectors." said Untermyer.
They could not control the bank SO
| long as they were in the minority" said
Mr.. Morgan.
He became emphatic in his answers,
| edged forward to the stenographers' ia
BILE and brought his hand down on it
| forcibly. He declared:
Il don't think l could carry any propO-
SitiOn through any board of directors
| against the wishes Of the stockholders.
You are opposed to competition?'
| Declares Money Trust Impossible.
| mo. But 1 would rather have combina-
| ton than competition. / like little COM
petition. but 1 like combination better.
| I'd like to say something right here that
| | may not have a chance to say again.
Without control you can't do a thing.
Control is the important thing. Now you
speak of a money trust. no one man can
get control Of all the money
You mean no one man could monopol-
ize money!"
| Eyes, that's it."
But when a man has vast power
| such as you have-as You admit you have,
| don't you.' asked Mr.. Untermyer.
NO" answered Mr.. Morgan.
Don't you feel it,
| mo DON'T said the big financier
mo man. you think, could keep control
Of money" asked Mr.. Untermyer You
believe that when he abuses his power
he loses it,
That's right" said Mr. Morgan. 1.-THE
question Of control is personal as to
money credit. All the money in Christen-
dom and all the banks in Christendom
| could not control money. There could
| be no money tr:Ist''
Mr. Untermyer asked il individual men
| had not mOnopoliZed railroads and in
| dustry in the past and abused their pow
ers.
Il am not discussing the question of
| about money and credit" replied MI.
Morgan.
He said a man might get control of the
| former. but could not get the latter
agk< yxy11o fHo>
gan thought competition among banks, or
| concentration, would be better.
Prefers Competition Among Banks.
I'D rather have competition" said MIR.
Morgan. when pressed for an answer
He said he thought several men could
| be directors in different banks and COM
petition still be maintained between the
banks He added. answering questions
that he did not believe one man should
run great enterprise
Don't you run your frm?'
mo. do not
He said he did not favor one-man con-
| troll OF great enterprises of any kind,
| even railroads.
You believe in concentrated power"
said Mr.. Untermyer.
We'll. that is a question Of personal
| power, OF personality" replied Mr.. Nor
gan.
Mr.. Untermyer asked about the pos
| sibilities of competition between the
Guaranty Trust Company, the Bank
ers' Trust Company and the Bank of
Commerce.
Mr.. Morgan said that he knew moth
| ing of the details Of the management
of these concerns. He said that the
bankers and guaranty company had
taken in seven other companies and
really represented nine old trust COM
panies.
THAT 10 an example Of combination
and concentration" said Mr.. Inter