The Bridgeport evening farmer., 1912-12-20
MORGAN
 GRILLED
 INPROBE
CContinued from Page One)


 Following is the result of the grilIing g inquisition of Morgan by Attorney Untermyer before the Pujo commit tee adjourned late yesterday after noon until Jan. 6:
 Reverting to underwriting of com pauies and the fiscal contracts, Inter n1yer sought the admission that if there was a loss 1t came out of the property being fIoated and the bank would not suffer. But Morgan said hes'couldnt recall any instance"
 Repeated questioning developed that Morgan's office selected directors of 2 several companies which were re-or- gahized and whose securities Morgan disposed of-among them the Reading and Northern Pacific. Voting trusts. t was developed, were also held at
 In the Reading reorganization ye-en't there three In the voting Eruet % Untermeyer asked. Morgan had forgotten completely about this that he had to look up the directorate discovering himself to be one of the The Cramp shipbuilding Company, of Philadelphia, had, a voting trust, he said-a member of his firm was one Voting trusts. Morgan explained. named the directors who in turn named the officers.
 They are in absolute power?" Are the stockholders satisfed?''
 well. did you ever hearg5of a big corporation with scattered stockho1d- CTS who were dissa atisf1ed2 And would it do them any good if they were?''
 No. that's why the voting trust is excellent,s. Morgan Insisted Et4 gro prove that continued Morgan, s.Ec like to read thfs Reading report slsowing it's increase in value under a voting Hrust.' E. EFE Gs
 Untermyer read the report showing that from 1887 to 1904 a deficit of s400, Oo0 jumped to balance of over a mil lion with many Improvements in the ~And during that times how much did coal increase in price to the con sumer2" asked Untermyer, meaning sI don't know" said Morgan. @But lind out each month when get my Don't these voting trusts tend to coastructiCn and control7''
 eNo. sir
 the great railroads by voting trusts vouldnt 1t be great concentra- sThat would be impossible.''
 ssBut if it were possibIe?''
 eThess directors would nullify the ~In the last ten years there has been without bank assistan ance.'' said Unter- .Thats true,' replied Morgan.
 stHaven't conso1idat ton and concen- tration of great systems increased T' Do you attribute it to the dozni- nance Of banlxs7'' f
  rDo you attribute it to the difficulty ofgetting more capital for connecting sI do. Nobody wants to put money into a new railroad at this tiIne.' [ You and one other firm control the Raadiugs don't youf'' T don't think we do. If we do I You don't think you have any pow CT h any industry And you're not seeking it?'' Ths purposs you've had is the com Yes if 1t Is for the good interests ..Ispst a man. sub-consciouslyi apt to I think it's for the interest of the ceun- try h its sood business f' 1T Eont think eo-' 5s aAnd you act on that aasun ption all I the ttnnezs And yet you're judgment may be -stsYes'' YsAnd yet may not your wish be fa- tfer to the thought, that concentra- ton Is for the good interests of the | n don't think so, sir @ .srake this instance- you issued se- eurities to the Baldwin Locomotive Yes in PhiIadelphia.s s7 s-But, it was your firm ?''
 Yes it all goes into one pooL''
 .so far you've no reason to com s.I don't complain about anything ~Assuuing that you and MT. Baker roads and the Baldwin Loconotive works, what chance would an inde- pendent company haveT
 They'd have plenty of business. we wouldn't do all the business. We can't get enough locomotives DO you think this a healthfu1 con- dition when interests in supply and demand are the same?' Aren't the Baldwin interests dom mate the railroads?''
 when trouble comes do you con sider yourself under duty to your '-Yes. if they are in trouble
 Suppose new competition was :'To throttle it2" asked Morgan.
 Somebody might call it that or something else,'' said Untermyer
 well. call it what you nke.'' said Morgan, tartly-
 ssDo you think it would be your duty to protect it9'' No. do not ..oo vou remember in 1Sss independ- ent operators, including. Simpson and Rogers controlling independent mines, organized independent road?''
 Do you remember that MT Bacon xot1r partner, tock in collieries and the railroad was not ouflpF
 Then you consider your firm, as fs- caI agent under no sort of obligations to discourage competing railroads that might ruin your?
 T can't say. Under general princi- ples though, do not Morgan said he, thought it best to buy the Lake Shore railroad to pre- vent it's competing with the New York Central
 DO YOU believe in buying up com netting railroadS?' ssI'd take each case by itself"
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