The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-12-19
THERE CAN'T BE
A MONEY TRUST

CONTINUED from Page One.l
the New Haven. Morgan & Co. pro-
posed in return for being made sole
financial agents for the New Haven
lines to loan the New Haven road W
per cent of the agreed sale price OF
it's securities at a reasonable rate
of interest and to give the road the
benefits of counsel and advice"
This proposal was accepted January
II, 1911, by the Maine Central, Decem-
Der %, 1910, by the Boston & Maine,
and December 19, 1910, by the New
York, New Haven 81 Hartford, the ac-
ceptance in each case being signed by
Charles S. Mellen-
Northern Pacific Reorganization.
Can you give US from memory a
list of other interstate corporations for
which you are fiscal agents?'' asked
Mr.. Untermyer. Mr.. Morgan could re-
member no others except the U. S.
Steel corporation and could not esti-
mate the number. Mr.. Morgan said
his firm had supplied the committee
with data on that point. Mr.. Inter
myer replied that such data included
only those corporations with which
Morgan & Co. had formal agreements.
Mr.. Morgan said his firm acted for
the American Telephone & Telegraph
company, the Northern Pacific and
Southern Railways, although they had
no agreement with them.
MIR. Untermyer took up the North
ern Pacific reorganization. WAS that
property reorganized under a voting
trust?" aE
Mr.. Morgan said it was and that he
was a member of the voting trust.
I'm that connection he added, I'D
like to present these reports of the
- T~I la
and the Southern railways e-'
Mr.. Untermyer looked at the reports
Mr.. Morgan gave and asked if they
were not arguments by the voting
trustees in behalf of their good man
agement?"
Voting Trustees.
Mr.. Morgan replied they We're the
reports of the trustees and Attorney
Lindabury interposed to say they were
accounts of the stewardship of the
voting trustees"
Don't you think that interstate cor
porations should be entirely free to sell
their securities in the open market
and not be tied I'D to one firm, no
matter how just its methodist asked
Mr.. Untermyer.
mo, not necessarily" replied Mr..
Morgan.
Taking up the Southern railway sit
to a director appointed by himself as
a member of voting trust entering into
a fiscal agreement with his own firm.
Mr.. Untermyer asked If Mr.. Morgan
did not think securities of interstate
should be sold in open
competition as were United States.
81 do not" said MIR. Morgan. He
said there was plenty of competition
for railroad securities.
Mr.. Untermyer asked where there
could be competition between the New
Haven and Morgan & Co. in the sale
of New Haven securities.
They want great deal more for
them than we think they are worth, -
said Mr.. Morgan.
do you think it would be better for
the railroad to be able to offer it's Sc
curities to another banking house ?"
He added that the position of the
banking house often had much to do |
with the stability and success of cor |
porations.
Not All Securities Are Good
There's another point he added.
You must remember that all securi- !
ties sold and issued are not always
sible fiscal agent there is moral
behind them
will you name an instance of a !
railroad bond proving bad, where
our uTIn mas ndu 10 pay the loss
asked Mr.. Untermyer.
Il can't remember any case, but |
know there have been several" said
Mr. Morgan.
Mr.. Untermyer turned to the fiscal I.
with the q. S. Steel cor
poration.
Did you name the entire board of di-
rectors of the U. S. Steel corpora
tion?'' asked Mr.. Untermyer.
81 think 1 passed on it,
But did not you hand out a slip |
containing the names?"
eff passing on the board is naming |
it, I am quite willing to assume all !
the responsibility" said Mr.. Morgan.
But did not you say who should I
go on or stay OFF," persisted the law .
yer.
II possibly did the latter" replied |
the financier amid a laugh.
Mr.. Morgan said he had not passed !
on all who went on the board of the
steel corporation, but said no members /
had ever gone on the board against !
his protest.
Mr.. Unternyer asked if Mr.. Morgan
had not named Judge E, H. Gary for
chairman of the Steel corporation
finance committee when George W.
Perkins resigned.
II think so. It's very probable. 1
don't remember now
who fixed the price at which the
various subsidiary companies should
go into the organization % asked Mr..
Untermyer.
He Fixed the Prices.
Il approved the prices" said Mr..
But it was left to you to determine