New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-20

was q director in the National city Bank.
But YOU uo large stOckhoider?
suggested Mr. Untermyrr
cob. no: only about a million dollars
worth" said Mr.. Morgan, who seemed
surprised ~ the laughter that greeted
the answer but Joined il.
Mr. Untermycr asked II ne were large
stockholdar in the National Bank of Com
mcrce.
40" .aid Mr. Morgan again. maybe
million dollars" BE consulted mo-
mcnt with Henry T. DAWSON, one Of his
partners. and finally said $1,000" worth
/ Of stock in the Bank # Commerce was
/ held By his firm and sts600 worth by
partners in the firm.
MANAGEMENT Of Banks.
To whom do Won leave details Of man
arcment in the case ~ banks Identified
with your firm asked Mr. Untermyer
TO any member OF tho firm who hap
pens TO be familiar with the matter said
Mr.. Morgan.
Mr.. Uutcrmycr asked n the Morgan
house dtd not look after the prosperity
and welfare Of the banks In which 1t mad
holdings
we don't bother ourselves much about
that. They look after themselves said
Mr. Morgan.
But members Of your lirn are on their
boards OF directors
Yes"
And they are supposed To look out for
the interests Of your arm2
Yes"
They give their time 10 H."
Yes. have always said they give too
much time. said Mr.. Morgan.
The banker said he knew OF only two
or three voting trusts now outstanding In
the Morgan house, organized for the
handling OF securities.
You established enc for the Chicago
Great Western" asked Mr. uuicrmyer
Yes. / forgot that
There WAS one for the international
Harvester Company
Il did not know anything about that
But 10 was In your Office
Yes I guess II was. but Nh. Perkins
had charge OF that" -aid AIR Morgan.
And you didn't know anything about
IT."
NO, sir. I saw il In the papers the next
day" said Mr. Morgan.
Morgan Firms Voting Trusts.
The banker said he did not know OF the
organization OF voting trusts within the
firm for the international Agricultural
Company lie admitted there probably wer
voting trusts In his firm for the corpora
lions named and for the Erie Railroad,
the International Mercantile Marine, the
Southern Railway and two trust COM
Tanles.
"The voting trustees I'm all these cor
porauons Lave the power to name the
boards Of directors. have they not?
asked MIR. Untermycr.
Yes. SIR" said Mr.. Morgan.
And they, in turn. usually select the
oficers?'
Yes. sir"
Have you ever known Of an instance
where a company's stock is widely scat
tered. where the stockholders were able
10 procure o change Of MANAGEMENT
Mr.. Morgan said he knew OF no such in
stance.
Mr.. Untermyer suggested that Ameri-
can stockholders took little interest in the
management Of their corporations.
Yes" said Mr. Morgan. that is why,
when a company Is reorganized. We or
ganize a voting trust, in order TO protect
the company
That's the reason for this paternalism
on the part of the reorganizers?"
Yes"
Readings Voting Trustees.
Mr.. Morgan had Mr.. Untermyer read
into the record the report Of the voting
trustees Of the Reading Railroad Com
pany made in 1904, when the trustees sur
rendered the company to stockholders.
The lawyer read the figures showing the
prosperity voting trustees had brought 10
the Reading. and asked:
How much has the price Of coal been
raised?"
Mr.. Morgan said he did not know.
you don't know how much the Read
Ing has Increased the price OF coal 10
secure this prosperity" asked Mr.. I'm
termyer.
NO; I don't know what the price has
been" said Mr.. Morgan. My idea is
that "A voting trust is a necessity TO a big
company in its infancy, in order to pro-
tect the company"
"Nir Morgan" asked Mr.. Untermyer.
don't you think these voting trusts bring
enormous control and concentration or
money and business In a few hands?''
NO. sir. I don't" said Mr Morgan