The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-12-19

surrounded by careful guardians who
faced the money trust investigators-
not j. Pierpont Morgan, the wizard or
money.
Can you give the committee a
statement of the total amount OF your
deposits on Nov. 1, 1927 was I'm
termyer's first question.
II haven't Ii here, sir. should
think $1O0.O00,000 TO $llO,00O,0OO.
Morgan replied.
The nnancier promised TO furnish
the figures. He said his firm paid in
terest on deposits.
Are you a director In some OF tnr
firms which are depositors with your
Some OF them"
Morgan promised to furnish state
ment OF the firms In which his. bank
had directors.
1--WE will give you anything OF that
kind" said the banker.
The witness said the Philadelphia
branch, Drexel a. Co., benefited simi
ilarly. He promised to furnish data
from that branch.
"Have you the same system in Lon
don and aris?"
Not TO any great extent"
1T would be infinitely small?'
Practically SO. We don't keep
those accounts here"
Untermyer then turned to the firm $
fiscal agency contracts.
I'VE telegraphed for copies over
night said Morgan. There they are
-copies-in two sections. contracts
with the New York Central and allied
lines, and the New Haven and allied
lines"
How much OF such agreements
have you?"
That's all, except by tacit agree.
ment. We act for the steel corpora,
tion-there Is no written agreement
as 10 IL or others. Its all by cor
respondence or word OF mouth"
/. Untermyer then read the financial
agreements with the New York Cen
trail into the record.
They recited that the firm was given
the exclusive right to market the
securities of the railroads, with power
TO offer up TO 10 per cent TO the pub
lie. There was a provision for can
collation. OF the agreement upon 80
days notice.
There was nothing more than
that explained Morgan.
Il was a member of the New York
Central railroad finance committee"
the witness continued.
You have been member OF the
board of directors for many years."
About 35. | think" said Morgan.
Morgan, after few minutes of the
questioning, settled more comfortably
into his chair and thrust his hand
into his trousers pocket, displaying a
capacious waistcoat, over which was
draped thick watch chain, with a
cameo seal and little gold box that
hung near his watch pocket. He wore
his usual wide winged collar, barring
an expanse of neck. He constantly
put on and tooff of a pair OF horn-rim-
med spectacles. At times, when given
papers TO verify statements, he arose
with a quick, nervous gesture, and
handed or took the documents TO or
from counsel Untermyer
His attorneys constantly lowered
about him, fearful evidently that the
hnancier might make an error in his
testimony. Their attitude smacked
more OF guardianship than OF an ad.
visory character. When they were
not prompting Morgan they were busy
comforting among themselves. study.
ing documents offered in evidence.
The Morgan contract with the Lake
Shore railroad was then read, and
also that with the big Four rail
road The contracts were backed up
by letters between the firm and the
railroads. The letters produced show.
ed that Morgan's commission was TO
,be one and one-half per cent OF the
securities offered 10 the public.
That commission was accepted by
them all. as remember said Nor
gan.
Have any issues of New York Gen.
trail been made in the last 10 years
except through your house?"
Il think So the witness replied, af-
ter pause, but can't recall any"
Not in five years."
Il think So"
You've issued during that time
some hundreds Of millions OF securl-
ties?"
"Oh. yes" said Morgan.
All on commission basis?"
Yes, in i've years." said the wit
ness.
l..