The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-12-24
Morgan Before and After His
Testimony In Washington

when he puts down HIS head and gets
the glare in his eyes. II is merely the
instinct TO reach out and acquire. He
was born so. His father was preda-
tory for years before this Morgan
was a man. and when he arrived at
his majority he won his spurs In the
proper fashion for his calling, by
cheating the government, by using the
courts TO defraud. by following a rot
ten dollar for months and years until
he had trailed down the last one with
the last penny OF blood interest.
How did Morgan begin his money
making career? How, after dodging
military duty at the age OF "a. did ne
make his first stake? Here is the
story. II Is worth telling with some
detail, as set forth. with all refer
cnces and citations to the official doc
uments, In a carefully prepared three
volume work called the History OF
the Great American Fortunes" by
Gustavus Myers. The book has been
widely circulated, and although two
years have passed since Its publica-
ton, there have been no denials ard
no refutation OF the charges. Good
reason. The facts were dug labOrious-
ly, from the court records, from con-
gressional documents and the files or
the court of claims. Here's the tale:
During the early months OF the
Civil. war, there was an eager demand
by the government for arms. Any
body who could get bunch OF good
rifles could sell them at good price
to the embarrassed government. Army
contractors were alive TO the oppor
tunity and were active In making the
profit which the opportunity afforded
Young J. Pierpont Morgan was among
The latter. Morgan obtained g. stock
OF rifles and sold them to the govern
ment at a price Of ;22 apiece. The
government declined to-pay the bill
and brought out the following facts:
That In 1857 the army inspecting ON
GERS had condemned q large number
OF Halls carbines as thoroughly uu-
serviceable and OF obsolete and dan
gerous pattern. The government there
upon auctioned OF quantities OF them
from time To time at prices ranging
from between 81 and 81 each. Five
thousand Of them, however, still re-
NAMED In the army arsenal In New
York city and were there when tho
Civil war broke out. That on May 70.
1861, Arthur NJ. Eastman, Of Ranches
ter, New Hampshire, made an offer to
the government To buy these rifles at
SO each. That these rifles were actu-
ally sold to Eastman at $3.50 each, bu.
hat Eastman, lacking money for pay
ment, or being merely q dummy for q
principal, one Simon Stevens ap-
hacker to the extIlt OF $4,000 for
which loan Stevens took lien on the
rifles. That Stevens secured the
funds from J. Pierpont Morgan.
Now note the sequel. Stevens tele
graphed on Aug. s, 1861, to Gen. Ere
mont, commanding at st. Louis, that
he had 5000 new carbines In perfect
condition and inquiring whether Ere
mont would take them. Word was
sent to ship them to army headquar
ters at Ct Louis at once. Tereupon
Morgan paid the government $l7.4st
at the rate OF $3.50 a carbine-and
the rifles were shipped from the gov
eminent arsenal in New York to the
government army headquarters at 81
Louis. The bill made out to Fremont
called for payment at the rate OF ~:
apiece for the consignment. A con
gressional committee In 1862. investi
eating this affair, reported on L.
Thus the proposal actually was &c
sell to the government at $22 eacf
| 5000 OF It's own arms, the intention
being, II the offer was accepted. tc
obtain these arms from the govern
ment at $3.50 each. - It. IL yer,
evident that the very funds witt
which this purchase was effected were
borrowed on the faith Of the previous
agreement TO sell. The government
not only sold one day for s17,4S6 arms
which II had agreed the day before
TO repurchase for $109.912-making q