The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1912-12-21
MORGAN DENIES
A MONEY TRUST
Financier Declares Such a
Thing Impossible.
MANY DEALS GONE INTO

Witness Does Not Admit "Havinu
Vast Powers" and Declares He Does
Not Feel It-Prefers Combination
to Competition in Business Trans,
actions.
Washington, Dec. 20.-"There could
be no money trust. All the banks and
all the money in Christendom could
not control money. The question of
control is personal as to money and
credits" declared J. Pierpont Morgan
to the house money trust investigat.
ing committee.
The fnancier was led up to his an.
swer by the questioning of Samuel
Untermyer, counsel for the commit.
tee, who asked Mr.. Morgan eff he did
not feel his vast power"
Mr.. Morgan answered that he did
not admit he had vast power and did
not feel it.
Once when the lawyer and the wit.
ness got into a discussion Of compe
tition and combination Mr.. Morgan
said:
I'D rather have combination than
competition. l like a little competi-
ton, but / like combination better.
Control is the important thing, but no
one man could monopolize money,
One man might get control of rail.
roads or merchandise, bui never
money or credit"
Has Voice In Steel Control.
Mr.. Morgan testified that he had
approved the prices at which the sub
salaries of the United States Steel
corporation were taken into the big
corporation. Mr.. Untermyer asked if
he had not named the board of direc-
tors of the United States Steel cor
poration, but Mr.. Morgan only said
he might have decided who should
not go on"
Ills holdings of certain bank stocks
; characterized as not very much
about a million dollars" When a laugh
went around the financier Joined in
heartily. Once when his voice got
hoarse, his daughter, Mrs. Herbert l..
Satterlee, gave him a throat tablet.
Mr.. Morgan, surrounded by nearly a
dozen of his partners and attorneys,
answered all questions with apparent
freedom. He agreed that through
voting trusts" several Of which
existed in his company, a few trustees
could name the directors, who, in
turn would name the officers Of great
interstate industrial or railroad cor
porations.
lnterlocking D~irectorates.
Mr.. Morgan denied, however, that
he believed i~nterlocking @irectorates,
where two or three men held direc-
torships in several banks, trust COM
panies or corporations, could bring
about control and a unity of action.
He declared that without a major
ity on the boards, such men could not
dictate affairs or control the corpora
tions.
The financier took issue with Mr..
Untermyer as to the opportunity Of
fered a few men to control general
banking conditions through such par
~ticipation as Morgan & Co. have on
the boards of directors of the leading
banks of New York.
Cant you give the committee a
statement of the deposits of your
banking firm in New York as of Nov.
IT" asked Mr.. Untermyer.
Mr.. Morgan Appropriated it at
about 800, 000, 1000.
Mr.. Morgan said he and his part
ners were directors in some of the
interstate corporations that have ac-
counts with j. P. Morgan & Co." his
counsel agreeing to furnish a list of
those directorships.
Morgan System Best.
Omnipotence of his firm in issuing
securities of railroads, such as the
New York Central and New York,
New Haven and Hartford was also re-
cited by the fnancier. He declared
his opinion that the Morgan system
was best for the companies and for
the public as well. He denied that
better results would be secured from
free open competitive marketing of
such securities.
Morgan's story of steel gripped his
hearers, who crowded, with bated
breaths, nearer the banker as he
talked of billions.
The banker declared the Morgan
achievements in organizing the steel
trust were without written contracts
Just mere correspondence.
The banker glibly told of naming
Judge E. Fl. Gary chairman of the
steel directors. He also admitted that
the prices at which constituent plants
forming the giant corporation were
bought, were absolutely fixed by him.
Yale Men Are Pleased.