The Birmingham age-herald., 1912-12-20

 banking house often had much to do with the stability and success of cor poratons.
 Steel Transactions
 MT. Untermeyer then turned to the fs- cal arrangement with the United States Steel corporation. He asked Mir. Morgan if he did not name the entire board of directors of the steel corporation. Mir. Morgan replied that he thought he con firmed it.
 Mir Intermeyer then asked if he did not hand out slip containing the names. MT. Morgan said passing on a board is not naming the whole board for which he was not willing to assume responsibility.
 But didn't you say who should. and who should not go on it?' he was asked. T possibly did the latter" replied the banker. Laughter followed. MT. Nor gan said he did not pass on all of the steel board. but added no member had ever gone on the board over his veto.
 MT Untermeyer asked if MT. Morgan had not named Judge E. H. Gary tor chairman of the Steel corporation finance committee when George W. Perkins resigned.
 Witness replied he thought so adding it was probable. He said he did not remember
 He was asked who fixed the prices at which the various subsidiaries should be taken in.
 MT. Morgan said hes approved the figures
 But it was left to you to determine the price at which they should come imp Untermeyer asked
 Yes, but l was not always able to get the price we wanted" Morgan re- piled
 Which committee selects the right ones for the different banks?" Unter- meyer asked.
 The finance committee?" Morgan an- swered
 Who selected J. P. Morgan & Coz" Untermeyer asked.
 Why it was sort of ex-officio," Nor gan answered, "J. P. Morgan had the funds and the funds naturally came to the company"
 You thought it would be profita- ble business?" Untermeyer asked
 We did not know then whether it would be-" Mir. Morgan answered Ut did not look much like it when it was smeared to sS share"
 The f1nancier added that he had bought all the steel stock he could get hold of; that he had never lost con- fidence in the Steel corporation and that he had never advised any one what to do or not to do.
 Knows of No Pools
 Witness said he knew of no pools or synGicates formed to deal in steel com modities.
 MT. Untermeyer took up the sale of large issues of stock.
 MT. Morgan said in some instances stock issues were underwritten by syndicates formed by his firm. He explained that the personnel of the syndicates was generally different. He said the syndicates had been generally profitable to the banks and those who participated, he added were satisfied.
 MT. Untermeyer asked about the other side of the question.
 MT. Morgan then explained. Witness said the banks In New York city were not allowed to participate in the Nor gan underwriting. He said many do not want to participate
 MT. Untermeyer when asked if he could tell about the amount of securities mar keted by his firm year after year. MT. Morgan said he was not lightning cal culator, adding he believed it would amount to $1 ,000 100000 He agreed to fur nish a statement to show the amount. Witness said he believed it was generally overestimated.
 The financier said his son, not himself, was a director in the National City bank in New York.
 But you are large stockholder," Un- termeyer asked.
 'Ah, no only really s1,000000 worth," Morgan answered.
 Witness seemed surprised at the gen. eral laugh that greeted the answer, but entered into the spirit
 MT. Untermeyer asked if he were large stockholder in the National Bank of Commerce.
 MT. Morgan replied in the negative. He added maybe he was interested to the extent of s1,000.000.
 MT. Morgan said he knew of only two or three voting trusts now outstanding in the Morgan house organized for the hand ling of securities.
 MT. Untermeyer asked about the possi- bilities of competition between the Guar anty Trust company, the Bankers Trust company and the Bank of Commerce. Witness said he knew nothing of the details of the management of those con- cerns. He said that the Bankers and Guaranty companies had taken in seven other companies and really represented nine trust companies.
 That is an example of combination and concentration, Untermeyer intimat-