The chronicle=news., 1912-12-19

nave HO uOuOt tuit kHVic hANS
been pools formed wI,hou, our
knowledge" he added. but ! know
OF none"
Mr. cnt.rmycr took up the sale Of
large issues OF stock Mr.. Morgan
said that in somc instances stick Is.
sues were under valued by syndIcatcs
formed by his firm.
Mr.. Morgan said many banks and
trust companies in New York were
allowed to participate in the syndi-
Gates.
Can YOU tell us the amount OF Sc
lcurlties marketed by your firm. year
by year," asked Mr.. uu,ermycr.
Mr. Morgan could not say. but he
did not believe II would amount to
81 l.""o.0Oo.oo0 . year. lie agreed to
furnish = statement 10 show the
amount.
II think 1t is generally ovcrcstl-
mated" he remarked.
Mr.. Morgan took up the rcla tioDs
Iof the Morgan firm and the First
National bank. which he referred to
us bankers bank" He said he. per-
sonally. had been close to George
r. Baker since 1873" lie said tho
TWO firms worked together in great
many bond and stock issues.
Mr.. Morgan said his son. no, him
self. was n director In III. National
CITY bank.
But YOU are a large stockholder:"
suggested Mr.. untermyer.
On. no. only about q million dol
lars worth" said Mr. Morgan. He
seemed surprised at the general
laugh tina, greeted the answer but
joined In II.
Mr.. unt.rmy-r asked II he We're u
large holder in the National Bank
OF Commerce.
No" said Mr.. Morgan again. He
consulted II moment with Henry u.
pavi.son. one OF his partners and
finally said si.000.0oo worth OF
stock in the Bank OF Commerce was
held by his firm aud s6s5.0o0 worth
by partners In the firm.
Mr.. rntcrmysr suggested that
American stockholders took little In
tcrest IN the management OF their
corporations.
Yes" said Mr.. Morgan. that is
why when company is ieoPEsnized
We organize voting trust In order
TO protect the COMPANY said Mr..
Morgan.
That's the reason for this patcr?
nalism part Of reorGa nizers?"
Yes
After u short recess Mr.. Morgan
resumed the stand. while Mr. Cuter.
myer read into the record laws GOV.
eriuE tho voting powers OF stockhold.
c:s In foreign banks. Mr.. Inter
myer referred to cumulative voting.
You know that there is cumuls-
tive voting In tho Pennsylvania rail.
road. Under that plan one seventh
OF the stockholders can Ket together
and elect u director. Two sevenths
oan elect two directors. Thus they
can secure minority representation.
Now most dircctorstey arc controlled
by hare matorities. he said
Yes agreed Mr.. Morgan.
Don, you think tina. tho minor
isy should be represented in q d.
II think that's II very good PLAN
he added he would iayO. cumulative
voting u IL would secure thar result.
Mr.. Morgan observed that the fig.
urcs howinx stock voting methods in
foreign banks AZ interpreted by Mr..
Untcrmycr. seemed 10 indicate con-
'rol by what rcscmbel voting
trusts
''Thrv could simply put their stock
under different names and evade the
law. | don't want to suggest that.
but II could be DONE" he said
But they don't allow that sor, of
h"cus pocus over there" remarked
Mr. Cntcrmyer
II think the records will show diff
l"rcntly," he returned. There is
no place where mergers and consoli-
cations have taken place to the ex-
ten, they have in Great Britain
Mr.. Morgan added.
Mr.. rn,crmyer declared under