New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-20

such as Mr.. Morgan. would not have
enormous control If he had voting trusts
I'm all the railroads, banks or inhstria'
| corporations.
! .p,,, H.. r,outd bo ir,nossihla" said
Mr.. Morgan.
Mr. Untermyer insisted that the system
brought about great concentration ana
control.
do you think they ought to have the
same representation in competing con-
cerus?' he asked. let as take a con
crete example. Members Of your firm are
directors in the Bankers Trust the Guar
anty Trust, First National Bank. the
Bank of Commerce Chase National Bank
the National city Bank, Liberty National
Bank, the Chemical National Rank, the
Astor Trust and other companies
Mr.. Morgan explained that lac did not
believe from one 10 three men on each
board Of directors could exercise control.
You take three men and put them in all
those banks In one bank they are three
out Of fifteen, in another three out OF
twelve, in another three ont OF ten h.
| said.
But through voting trust they might
have appointed an the board of d-
rectors.' suggested Mr.. Uutermyrr.
! They could not control the bank 50
4 long as they were in tine minority" said
Mr. Morgan. 81 don't think / could carry
any proposition through any board of di-
rectors against the wishes of the stock
/ holders"
Prefers Combination to Competition.
You are opposed to competi'n?'
mo; but / would rather have com
| biration than competition. like a little
/ competition. but like combination better.
! Ia like to say somethlne right here that
/ J may not have a chance to say again.
/ Without control YOU can't do thing.
! Control Is the important thing Now, you
/ speak Of q money trust. mo- one man cen
! get control of all the money"
/ You mean, no one man could monopo-
lie money!
! yes, that's H."
/ But when a man has ID vast power.
such as YOU havc-oe you admit you have.
/ don't you?' asked Mr. Untormlycr.
No answered Mr. Morgan
Don't you feel it," asked the lawyer.
no, ] don't replied the nrpnci,r.
No man. you think could keep great
( control Of money" asked Mr. Untcrmycr.
! You believe that when boo abuses his
| power Dc loses it,"
That's right" said Mr. Norean. The
| question of control is personal as 10
money and credit AN the money in CHS
tendon and an The banks IN Christendom
could not control money. There could be
no money trust
Mr. Untcrmyor asked If men had not
monorolized railroads and industty and
abused their powers.
81 am not discussing the question Of
railroads or merchandise. I'm talking
about money and credit" said Mr.. Nor
gan. adding that man might get con-
troll Of the former. bur could not get the
latter.
MI l'ntermyer asked whether Mt Nor
gan thought competition among banks or
concentration. would he better
I'D rather have competition" replied
Nil Morgan when prcssd for an answer
Doesn't Run His Firm.
The banker said be- Thought several
men could be directors in different banks
and competition still be maintained be-
tween tie banks. lie added that me did
not believe one man should run great
enterprise.
Don't you ran your drm?'
NO ! do not
Mr. Morgan said he dill not favor one
man control of great enterprises Of any
kind. even railroads.
sfEp, bsfloy-a concentrated mower 1f'
asked Mr. Uutermycr
Well that IS n question Of personal
power. OF personality" replied Mr.. Nor
gan.
M Untermyer asked about the posi-
bnities of competition between the Guar
anty Trust Company the Bankers Trust
Company and the Bank of Commerce.
Mr. Morgan said he knew nothing Of the
details of the management of those con-
Germs lie said the Bankers and Guar
anty compauics had taken in seven other
I companies and really represented nine old
trust companies.
THAT is an example OF combination and
concentration" said Mr. Untermyer
.How far do you think they ought to be
allowed 10 go''
Il think they have got enough said
Mr. Morgan.
you don't think they ought to absorb
amy more
.No. They may be forced 10 take iu
some more companies.
Forced for the good Of The companies
absorbed" asked Mr.. Cntormyer.
YES Forced to absorb them TO protect
them"
Cumulative Voting.
NJ. Untermycr read into the record
laws covering the voting powers OF
stockholders I'm foreign banks. and then
took up the matter OF cumulative voting
you know that there is cumulative
voting I'm the Pennsylvania Railroad. I'm
der that plan one-seventh Of the stock
holders can get together and elect a
director. two-seycnths can elect two de
rectors Thus they can secure minority
represcntatlon. Now. most directories
are controlled by bare majorties,' he
said
yes" agreed Mr. Morgan.
"Don't van think that the minority