The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1913-05-15
MORGAN AS A WITNESS.
Famous Financier Had Supreme Con-
fidence in Himself.

Ida NJ. Tarbell writes about "The
Hunt for Money Trust in the May
American Magazine. She was present
at many of the hearings of the Pujo
committee when Samuel Untermeyer,
the governments inquisitor, eXamin-
ed some of the most famous witness
es. In regard to J. P. Morgan's testi-
mony, wherein the great man OF
Wall street" showed the wonderful
confidence he had in himself, Miss
Tarbell says in part:
This superb and primitive conf
dence in his power to decide each
case as it came up, apparently on
instinct, certainly without formulat-
ed reason, he showed best perhaps in
telling how he acquired the Equitable
Life Assurance Society. This society
has now assets of something over
100000, and by virtue of his
ownership of 81 per cent of its stock
it's future was in Mr.. Morgan's hands.
For this control he paid "somewhere
in the neighborhood" of S3,000,OO0.
He drew on his investment seven per
cent dividends or about $3.50 q
year, about one-ninth of one per
cent. Why did he make such an in
vestment?
'''I bought the Equitable from Mr..
Ryan and Mr. hartman, Mr.. Nor
gan told the committee, because
thought it was a desirable thing for
the situation. I have an agreement
with Mr.. James Stillman and Mr.
George F. Baker to take half the
interest off my hands if 1 wish it, but
I hold it all till suppose it was safe
in Mr.. Ryan's hands, but thought it
was greatly improved in the hand OF
myself. The purchase was not a
question of money. I thought it was
better with US than where it was.
told Mr.. Ryan so. He hesitated about
it, but sold it,
al have never had any question
about the disposition of the Equitable.
My idea has always been to have it
turned over to the policyholders.
do not know how it can be done.
Whatever is done must be done by
the trustees. I think the legislature
of New York can fix that. I am
living in hopes that they will.
'Mr. Untermeyer evidently could
not believe his ears-I do not under
stand yet, Mr. Morgan, why you
bought this company he insisted.
'''I did not buy it to make money.
did it because thought it was bet
ter in my hands. I have no critl-
cism of anybody. I thought it was
best to have that stock where there
was no danger of it being divided up
into small lots. Mr.. Ryan had al
ready sold half of it and you could
not tell. Mr.. Hartman died few
months afterward and if that had
gone with his estate you could not
tell how it would be divided and
when the policyholders wanted it, it
could not have been had. 1 did it be-
cause l thought it was the thing to
do and that is the only reason 1 had
and the only thing that 1 can say.
You can not analyze my reason any
further. I can not do it myself
81 see no reason to doubt and never
have that Mr.. Morgan in purchasing
the Equitable sincerely desired to do
his part towards helping in the i'm
portant and difficult matter of max
ing mutual life insurance companies
mutual-making them truly for poll
cyholders and not stockholders, COM
panies where the full surplus which
in equity belongs to the policyholders
will be used for their benefit and
theirs alone. Certainly the documents
in the case which Mr.. Morgan asked
to have printed in the Record sup
port this view.
But we are discussing whether
Mr.. Morgan, as the head Of this ag-
gregation of interest and resources,
had any power. He said he did not
feel it. l doubt if in contemporary
financial history there is single in
cident, which so startles an outsider
with a sense of his power as his pur-
chase of the Equitable from Mr..
Thomas Ryan"