The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-12-19
I think not" Morgan answered.

II think not" Morgan answered.
Shouldn't the companies be able
TO have other banks compete with
you. In order TO get higher prices?"
1T could be done"
Don't you think 1t ought TO be
open?"
mo, / don't"
"Untermyer framed his question in
another form.
And there's another point that |
think Of" began Morgan
Answer me, please" insisted I'm
termyer.
Il don't think So" the anancler an
swered, meekly.
Now" said Untermyer. what were
you going TO say"
IT'S gone out OF my head. now" the
financier replied. waving his hand
You must remember that secur.
tiles sold are not always too good.
Morgan continued.
THAT wouldn't be applied TO the
New Hayen?"
mo, there's something In a name in
protection OF the bonds, in case OF re-
organization, to make them good the
bank assumes the greater moral re-
sponsibility."
when the bonds you have sold de
fault in interest, the property pays the
expense OF reorganization"
Yes, sir"
We'll this time the banking house
isn't losing any money through It's
error OF Judgment"
1T isn't always an error OF judg,
ment."
The house doesn't suffer any loss p
Eyes, II may. II must protect the
bonds"
But they get their money backT
Not always said Morgan, laugh.
ing.
Name an instance" Untermyer
challenged.
Il don't recall any. but there have
been"
Under this fiscal agreement with
United States steel, has your firm Is
sued many securities?"
mot a great many"
You did issue $3.50, 100000 OF con
veritable bonds once?"
Yes"
And in taking over other proper.
ties?"
Possibly. | don't remember"
AT the time of the organization OF
the United States Steel, did you name
the entire board of directors?"
Il think | passed on them"
Didn't you pass out slip with all
the names?"
Nobody assisted me-" said Morgan,
after a pause I'm willing to assume
entire responsibility"
Didn't you say who should go on
the board, and who would stay off?"
Il probably did the latter" said
Morgan. and the committee laughed.
That's II or IA years ago, you
must remember" he added. Il will
say this" the witness went on, testi-
flying, whoever went on went on
with my APPROVAL"
Nobody went on until you APP
proved?"
only when / haven't been there
answered the flnancier, significant
ly.
The selection is made by the
board. said Morgan
But the board is named by your"
mot now. Nobody Is named
against my protest"
who passes on voting proxies?"
THE committee. OF which my son
is a member. Mr. Perkins was for
a time chairman OF that committee
Judge Gary was before him." added
the financier.
Continuing the witness said the
steel company finance committee Ii
In fact the executive committee.
you named Mr.. Gary for chair
mann
Very likely, l don't remember"
while on this question OF the
Steel trust'-wko fixed the pricesf''
"Of companies forming the Steel
corporationH"
Yes"
al approved them. Sometimes
couldn't get the price fixed"
"Who put Mr.. Perkins at the head
OF the finance committeeT"
"He did It himself?"
81 can't recall all these things"
Morban continued iritably.
Very likely you can't" Inter
myer rejoined, sarcastically. who
decided j. p Morgan and Company
should be agents for the Steel col :
poration securities?'