The daily banner. (Cambridge, Md.) 1897-2008, 1912-12-20
NO MONEY TRUST,
SAYS MORGAN
Declares It Impossible, With.
Bang Of His Fist
OPPOSES OkE-MAh C6hfR0f
tion," But Likes "combination" Bet

tiStiI QUA @iNCo SSUtbbtdtsSh S00
ter.
Washington, Dec. 20.-J. Pierpont
Morgan spent nearly five hours before
the house money trust" Investigating
committee, giving his views on con
centration of credits, interlocking di.
rectorates, clearing houses, combina'
tions, competition and kindred sub
jects. After excusing Mr.. Morgan the
committee took a recess until Jan. 6.
The burden of his testimony was
that there could be no money trust, :
that monopoly of money was impos-
sible, and that while he did not be-
lieve in one-man control Of industries,
he preferred combination to competi-
ton for the unity of action 1t made
possible in management
There could be no money trust. All
the banks and all the money in Chris
tendon could not control money. The
question of control is personal as to
money and credits" was the fnan-
cier's fiat declaration on that phase of
his examination. The declaration was
emphasized with a bang of his fist on
the arm of his chair.
The financier was led up to his an
swer by the questioning of Samuel
Untermyer. counsel for the commit
tee, who asked Mr.. Morgan whether he
"did not feel his vast power"
Mr.. Morgan replied that he did not
admit he had vast power and did not
feel it.
Then, when the lawyer and the wit
ness got into discussion of competi-
ton and combination, Mr.. Morgan
said:
''Td rather have combination than
competition. l like little competi-
tion, but 1 like combination better.
Control is the important thing; with
out it you can't do thing, but no one
man could monopolize money. One
man might get control of railroads or
merchandise, but never money and
credit"
The witness testified that he had
approved the prices at which the sub
sidiaries of the United States Steel
Corporation were taken into the big
corporation. Mr.. Untermyer asked
whether he had not named the board
of directors of the Steel Corporation -
At first Mr.. Morgan said he g
proved the list of steel directors.
when pressed by Samuel Unf9FmyT yTsF.
counsel for the committee and NOV
ing spirit in the probe, as to wherhes-
he did name" the entire board, the
distinguished witness replied that, If
"approving" the list was naming" the
directors he was willing to accept the
responsibility"
Mr.. Morgan agreed to supply the
committee with statements of various
phases of his great business enter
prises and affairs, including one 81 =
ing the amounts of securities his
marketed annually. He declared 4---
was greatly over-estimated and
thought it was less than $1,000,000,-
900.
The dominant flnancier of the coun-
try also was quizzed by Mr.. Inter
myer about the deposits with his firm,
which he estimated at about $100,000,-
900 and on agreements, copies Of
which he submitted to the comm tee,
making his firm the sole fiscal agent
for the New York Central and the
New Haven railroad systems. Other
similar agreements, he said, were only
verbal.
Mr. Morgan denied that he believed
interlocking directorates, where two
or three men held directorships in sew
eral banks, trust companies or cor
porations, could bring about control
and unity of action. He declared that
without majority on the boards, such
men could not dictate affairs or con-
troll the corporations.
The Northern Pacific and Southern
railway voting trusts were gone into.
Mr.. Morgan did not think that it was
Objectionable that the directors of the
Southern. appointed by him as a vot-
ing trustee, should designate his firm
as the fiscal agent for the railroad.
Mr.. Morgan answered all questions
quite cheerfully. Once his voice be-
came very husky and he asked his
daughter, Mrs. Herbert L. Sattelee,
lor luIodt tdoiel, pul ieluseu glass
Of water proffered by Mr.. Untermyer
and declared he was not fatigued. Sew
eral times he caused general laugh,
in which he joined, especially when he
was asked whether he was not large
stockholder in the First National Bank
of New York, and replied: mo, only
about a million dollars WORTH
Again the auditors in the crowded
hearing room were highly amused
when the ffnancier announced that he
did not run" his firm. He coupled
not favor one-man control of great en-
terprises of any kind even railroads.