The evening world. [volume] (New York, N.Y.) 1887-1931, 1912-12-19

VIII IL ~ VI
not believe that from one to three men
on each board Of directors could exer-
else control
you take three men and put them An
all those banks. In one bank they arc
three out OF fifteen, IN another three out
OF twelve, In another; three out Of ten"
he said.
But through a voting trust thsy
might have appointed all the board OF
directors" suggested Mr.. Untsrmyer.
They could not control the hank 20
long as they werc in the minority" said
Mr.. Morgan. Il don't think I could
carry any proposition throush any
board OF directors asainst the wishes OF
the stocithoiders."
"withous control yoa eaaS % q
thing. Control 10 the important thing.
Vow you speak Of Q money trust, no
one man can gst eontroi Of al the
money"
"You mean no one ma, couia mo-
aopoiiss money!" Eyes, that's H."
such ~ you havs--as you admit you
have, don't you" asked TT. Untsr-
myss. 40" answered lgS. Morgan.
"Doat you feel it7" asked the law
Yer. "Ho, Z don't," replied the fina1-
c1sf.
mo man. you think. could keep great
control OF money! asked Mr. Inter
myer. You believe that when he
abuses his power he loses 1T"
That's right" said Mr.. Morgan.
the question OF control is personal as
to money and credit. All the money In
Christie ndom and all the banks in
q 81 ct I'D
There could be no money trust"
Mr.. Untermyer asked II men had not
monopolized railroads and industries
and abused their powers.
NOT DISCUSSING RAILROADS,
BUT MONEY. =
II am not discussing the question OF
railroads or merchandise; I'm talking
about money and credit" said Mr.. Nor
gan. He said a man might get control
OF the former, but could not get the lat
ter.
Mr.. Untermyer asked whether Mr..
Morgan thought competition among
banks or concentration would be better.
"rd rather have competition" replied
Mr.. Morgan when pressed for an an
swer.
He said ne thought several men could
be directors In different banks and COM
petition still be maintained between the
banks. He added that he did not be-
lieve one man should run q great enter
prise.
"Dont you run your hrmf
NO, ! DO not"
He said he ala not favor one man
control OF great enterprises OF any
kind, svsH railroads.
you believe IN concentrated powsrr
asked lGr. Untsrmysr.
well, that 10 . question OF personal
power, Of personality" replied m. Nor
6sn.
Mr.. Untermyer asked about the posi-
bilities OF competition between the Guar
anty Trust Company. the Bankers Trust
Mr.. Morgan said that he knew nothing
Of the details OF the management OF
those concerns. He said that the
Bankers and Guaranty companies had
taken In seven other companies and
really represented nine old trust COM
panies.
THAT Is an example Of combination
and concentration" said Mr.. Inter
myer. How far do you think they
ought to be allowed to so7' Il think
they have got enough" said Mr.. Morgan.
"You don't think they ought to absorb
any morer mo. They may be forced
to take In some more companies.'
Forced. for the good Of the COM
panies absorbedT" asked Mr.. Untermyer.
Yes. Forced to absorb them to pro-
tect them"
Mr. Untermyer referred to cumula-
tive voting.
"You know that there Is cumulative
voting In the Pennsylvania Railroad.
Under that plan one-seventh OF the
stockholders can get together and elect
q ha nj tVup
directors. Thus they can secure a
minority representation. Now most
directorates are controlled by bare ma
Jorities," he said.
YES" agreed Mr.. Morgan.
he WOULD FAVOR CUMULATIVE
VOTING.
Don't you think that the minority
should be represented in a directorate?
II think that's q very good plan" He
added he would favor cumulative voting
II II would secure that result.
Mr.. Morgan observed that the hg.
ures showing stock-voting methods ir
foreign banks a. introduced by Mr.
Untermyer seemed to indicate contro
by what resembied voting trusts"
"Thsy could simply Pat their stool
under different names ana svsde tha'
law. aoAV waAt 70 suS6est that
| Uoe - VS0Ao - 008vs NJ oosos
But they don't allow that sort oil
hocus-pocus over there" remarked Mr
Cntermyer II think the records will
show differently" he returned. There
Is no place where mergers and consoli.
dations have taken place TO any exten,
they have In Great Britain" Mr.. Nor
gan added.
Mr.. Untermyer declared under tn,
English system there were many group.
of bankers entirely Independent Of eacf
other. and that persons desiring 4
finance proposition could go to an,
one OF them.
III. Morgan said he did not bslisv
there was Any great combination amonl
bankers In the United States.
do you know OF any railroad finance,
Independently In recent years?' aske,
Mr.. Untermyer.
Mr.. Morgan said he did not know o
any but did not think. however, tina
either the domination OF railroads b.
bankers. or the unity OF interest o
bankers had anything to do with IT,
Don't you and other bankers contrc