Newark evening star and Newark advertiser., 1912-12-19

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Samuel Untermyer. Government Atty.
been pools formed without our knowl-
edge" he added; but 1 .know of
none"
Mr. Untermyer took up the sale of
large issues of stock Mr.. Morgan
said that in some instances stock
issues We're underwritten by syndi-
cafes formed by his firm. He ex-
planned that the personnel Nof the
syndicate was generally different.
Mr. Untermyer wanted to know If
there existed list of names from
which those syndicates were made
up.
1T depends something on the
nature of the securities" said Mr..
Morgan. THE class we would offer
one kind of securities to we would
not offer another"
syndicates Profitable to Banks.
Those syndicates have been gem
orally profitable to banks and those
who participated, have they not?"
asked Mr.. Untermyer.
"Yes, generally. If they had not
the members would not go into
them"
Mr.. Morgan said many banks and
trust companies in New York wers
allowed to participate in the syndi-
Gates.
Mr.. Untermyer declared that Lee
Higginson Company, of Boston; the
First National Bank of Chicago and
other institutions often wanted to
participate in these syndieates.
'9They don't work with us, but they
take or refuse an offer IL we make, ;"
said Mr.. Morgan.
They don't often refuse. do they?"
"Oh, yes, often"
"Then you offer them another op-
portunity?"
yes, sir"
Mr.. Untermyer asked if there were
not many banks in New York not
allowed to participate in the Morgan
underwritings,
Many don't want to participate"
replied the witness.
Market 81 ,OOO, 900 Annually.
Can you tell us of the amount of
securities marketed by your firm
year by year"
Mr.. Morgan could not say. He did
not believe it would amount to ST.
1000, 900 a year He agreed to fur
nish a statement to show the amount
Il think it's generally overestimated,
he remarked.
Mr.. Morgan took up the relations of
the Morgan firm and the First Ma
tional Bank, which he referred to as
Bakers Bank" He said he person
ally had been close to George F.
Baker "since 1873" He said the two
firms worked together in a great
many bond and stock issues. Mr..
Morgan could not remember when
the first securities company was or
ganized or whether its board of di-
rectors was identical with the board
of directors of the First National
Bank
Mr.. Morgan said his son. not him-
self, was a director in the National
City Bank.
"But you are a large stockholder?'
Not Large stockhoIder.
"Oh, no; only about a million dol
lars worth" said Mr.. Morgan. He
seemed surprised at the general laugh
that greeted the answer, but joined
in it.
Mr.. Untermyer asked if he were
large stockholder in the National
Bank of Commerce.
NO" said Mr.. Morgan again. may
be a million dollars" He consulted a
moment with Henry P. Dawson, one
of his partners. and finally said
81 ,00O, 900 worth of stock in the Bank
of Commerce was held by his firm
and $3.50, 900 worth by partners in the
firm.
ITO whom do you leave details of
in the case of banks
identified with your firm?" asked Mr..
Untermyer.
ITO any member of the firm who
happens to be familiar with the mat
ter" said Mr. Morgan.
Mr.. Untermyer asked if the Nor
gan house did not look after the pros
perity and welfare of the banks in
which 1t had holdings.
I'VE don't bother ourselves much
bout that; they look after them
Selves said Mr.. Morgan.
But members Of your firm are on |
heir boards of directors"
Yes
"And they are supposed to look |
nut for the interests of your firm?'
YES"
"They give their time to it?"
Yes. Il have always said they |
rive too much time said Mr.. Nor
san.
Mr.. Morgan said he knew OF only |
wo or three voting trusts now out
standing IL the Morgan house. or