El Paso herald. (El Paso, Tex.) 1901-1931, 1912-12-19

DOraLlQn
funds shall be deposited2'
The finance committee"
who selected J. P. Morgan & Co. %
Why, it was sort of eXOfficio. J. P.
pany and its funds naturally came to
You thought it would be a profit
able business suggested Mr.. Inter
1--WE didn't know then whether it
would be profitable or not" said Mr.
Morgan. 1t didn't look much Ike IL
when it went down to So share
Mr.. Morgan added he had bought all
the steel stock he get hold OF; that he
had never lost confidence in the steel
corporation, and that he had never
advised anyone to sell. He knew of
no pools or syndieates forced to deal
in Steel stock
Il have no doubt that there have
been pools formed without our knoWl-
edge" he added, but I know OF
none"
UAderwrite stock Issues.
Mr.. Untermyer took up the sale Of
large issues Of stock. Mr. Morgan said
that in some instances stock issues
were underWritten by syndicates
formed by his firm.
Mr.. Morgan said many banks and
trust companies in New York were al
lowed to participate in the syndicates.
Can you tell US the amount of Sc
curities marketed by your firm year
by year2" asked Mr.. Untermyer.
Mr.. Morgan could not say, but he
did not believe it would amount to
$1,000, 100000 q year He agreed tC
furnish a statement to show the
4 think it is generally overesti-
mated" he remarked.
Mr.. Morgan took up the relations
OF the Morgan firm and the First Ma
tiOnal bank, which he referred to as
Bakers bank" He said he personally
had been close to George F. Baker
since 1873" He said the two firms
y
stock issues.
Only a Million in One Bank.
Mr.. Morgan said his son, not him
self. was director in the National City
bank.
But you are a stockholder?" sug-
gested Mr.. Untermyer.
"Oh no; only about 81, 100000 worth,
said Mr. Morgan He seemed surprised
at the general laughter that greeted the
answer, but Joined in it.
Mr.. Untermyer asked If he were a
large stakeholder in the National Bank
OF Commerce
NO" said Mr.. Morgan again, maybe
SlOO0,000.., He consulted moment
with Henry P. Davidson one of his
partners, and finally said S1,000,000
worth of stock in the Bank of Com
merce was held By his firm and $685.
900 worth by partners of the firm.
Mr.. Morgan said he knew of only two
or three voting trusts now outstanding
in the Morgan house. organized for the
you established one for the Chicago
Great WESTERN" asked Mr.. Untermyer.
Yes, I forgot that"
Perkins Handled Harvester Case.
There was one for the International
Harvester company"
Il didn't know anything about that"
But it was in your officer
Yes. I guess it was, but Mr.. Perkins
had charge Of that" said Mr.. Morgan.
And you didn't know anything about
II"
NO, sir; I saw it in the paper the
next day" answered Mr.. Morgan. He
said he did not know Of the Organiza-
ton of voting trusts within the firm
for the international Agricultural COM
pany.
Answering questions by Mr.. Inter
myer, Mr. Morgan admitted that there
were voting trusts in his firm for the
corporations named, and for the Erie
railroad, the International Mercantile
Marine, the Southern railway and two
trust companies.
Mr. Untermyer suggested that
American stockholders took little in
terest in the management of their cor
poratiOns.
Yes" said Mr. Morgan, that is
why when a company is reOrganized
We organize a voting trust in order to
protect the company" said Mr. Nor
gan.
That's the reason for this paternal-
ism part of reorganzers?'
Yes"