The Bridgeport evening farmer., 1912-12-19

ourselves the fiscal agents for.''
 -Y9u,ve been acting for the Ameri- me pany?" 'Yes, partly"
 You hays ne % agreement in writing
 .And also the. Southern Railway ?" Yes, ever since the re-organizatioi
 ..But your data says you are not trust ?'' Yes"
 Who are the voting trusteea?" "I don't know.
 You are one of them?'' Yes. and
 MT Baker and MT. Lance, I think Morgan admitted his firm re-organ- I ized the Northern Pacific Railway un- | der voting trust
 q have produced here the report of the voting trust of the Northern witness. "I would like to have them 1 in the record as they are very i'm portant, showing the brevets of the l Morgan's lawyers laughed at this sally It's on account of their Lindabury. chuckling. This is an argument in favor of this sort of ad- n1inistration?'' asked Untermyer. Yes. I am still acting for these con eerns. Their securities are being dis posed of through my banks" Pressing the witness. Untermyer developed that there might be other corporations for which the Morgan firm was acting with whom they had no actual contract except as that l made by correspondence. Don't you feel that in dealing in the securities of Southern Railway you are detling with yourselves ?' prodded Untermyer. T don't think So," said the witness. Morgan said it 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. I am speak ing from a broad point of view You must remember that securities sold are not always too good,'' Morgan stated.
 -, That , wouldn't Il. De applied to the bonds in case of reorganization to make them good, the bank assumes the greater moral responsibility When the bonds you have sold de- fault on interest, the property pays the expense of reorganization? ?'' 'sYes. sir.''
 Well. this time the banking house | error of Judgment? ?'' s.ft isn't always an error of judgment ''eys .sz-
 '1The house dosn't suffer any loasg'' Yes, it may. It must protect the
 But they get their money bacle'' Mot always said Morgan. laugh Name an <. nstance," Unterrnyer challenged. Fs"I don't recall any, but there have been" Under this fiscal agreement with United States Steel has your firm is many.''
 z;e Txeu did issue :sso.Oco; 900 of con And in taking over other proper ties?" Possibly. I don't remem- ber."
 .'At the time of the organization of the United States Steel did you name the entire board of directors?' "I think I passed them.''
 the g9u pass oSt Sabadv slip witd me-" said Morgan. after a pause. I'm willing to assume entire responsfbil- ity.''
 ..Didn' tyou say who should go on the board and who should stay of?'' .I probably did the latter,''s said Nor gan, and the committee laughed.
 That's 12 or IA years ago you must rememfber.'' he added. "I will say this,'' the witness went on testifying, Whoever went on went on with my. approval
 Nobody went on until you approv- ed?" Only when I haven't been icantly. The selection is made by the board,'' said Morgan.
 But the board is named by you?' Not now. Nobody is named against my protest
 'Who passes on voting proxies?" The committee of which my son is a member MT. Perkins was for a time chairman of that committee. Judge Gary was before him. added the witness.
 Continuing the witness said the steel companys finance committee is in fact he executive committee. You named MT. Gary for chair man?' Very likely, don't remem- ber''
 While on this question of the steel trust-who fixed the prices ?'' "Of companies forming the steel corpora- tion?'
 .Yes.' 'I approved them Some ines I couldn't get the price fix
 ..who put MT. Perkins at the head of the finance connittee?' '-He did l
 T cant recall all these things" Morgan continued. irritably. Very likely you can't" Untermyer l rejoined sarcastically. Who decided | J. P. Morgan & Company should be 1 agents for the steel corporation securI- | general laugh.
 Morgan declared that there could | not be a "money trust Awakened | from what appeared to be state of | nleasant apathye the wizard of finance | suddenly thrust his bulk forward to- l ward the committeeman and electri | fled them by his own view as to his strength.
 You are against competition?" suggested Untermyer .'No. I like a little but I'm in favor of co-operatiop want to talk of this. It's probably the last chance I'll have to say what I want. DeneVe COnlrOl or money IS | impossible. There is no way in which | one man can gain control of money. You call this a money trust? A man may own all the money in Christen- dom but he can't control it.''
 But" said Unternyer, eff a com petitor of the United States Steel | Company wanted to start up and you 1 owned all the New York banks | wouldn't you want to protect the steel | company? Would he get the money 1 he needed?''
 s'He would" said Morgan.
 When a man has such vast pow
 f'I don't believe I have that"
 "You haven't vast power?"
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