The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-04-01

I Charles II. Coster lived the Morgan
firm would never have undertaken so
tremendous "A proposition as the for
nation of the Steel trust. Coster
was notably a cautious man and had
! been commonly referred TO as Nor
gan's great balance wheel, He
would probably have attempted to
hold MIR. Morgan back in his scheme
for the consolidation of the great
steel interests of the country on such
a plan as was carried through in the
year 1901.
Whether this theory of Coster's
timidity is sound or not, the fact re-
mains that the Steel Trust was form
ed shortly after the entry Of Mr.
Perkins into tho firm and was a pro-
nounced success, despite the fact that
almost unsurmOuntahl obstacles had
to be overcome. Fer the Steer Trust
was formed on an astonishing basis
of ovcrcapitalization. Mr.. Morgan
had q few years earlier gone mod
eratcly into the Industrial trust form
ing business and at the opening OF
+ 1901 controlled the National Tube
company, the Federal Steel company
and had important interests in other
steel and iron combinations. The
threat of the Carnegie interests to
90 into the direct competition with
thing which brought this scheme for
a gigantic steel trust to a head. Mr.
Morgan paid a price for the Car
nege Works which no doubt would
have staggered MIR. Coster. But Nor
gan with his unerring Judgment
+ clearly saw that the only way out of
bad situation was to buy Carnegie
out, even at the latter's own fabulous
/ figures.
] The details in the carrying ont of
I this great com bination developed
largely on the shoulders of Mr.. Per
kins. The financial fathering of this
( combination during it's ten years
career has fallen largely on the shout
ders of Mr. Perkins The record of
this greatest Of the worlds trusts in
I financial growth, in expansion, in
earning power and in increase of
control of natural resources, is clearly
a tribute of the highest kind to the
acumen and ability Of George w. Per
kins.
After ten years of close identifica-
ton with the Morgan House and as
/ the active representative of its in
terests in the industrial field, MI
/ Perkins now withdraws, His per-
sonality IS identified with other mat
tiers than those of the Steel Trust
During his ten-year period the Inter
national Harvester company was
formed with MIR. Perkins as the Nor
gan representative in that company
The international Mercantile Marine
/ combination was also formed but
ID is not clear that MFR. Perkins has
been the chief Morgan factor in this
/ concern. However, viewing the matter
as a whole, it may be safely said
! that Mr.. Perkins connection with the
/ Morgan House has been closely iden-
/ tilted with the entry into the doni-
nation OF the big industrial trust In
terests by the Morgan people.
/ Since the panic of 1907 further
new era has begun for the Morgan
| House. While already conspicuously
I dominant in railroad and industrial
enterprises, the firm had not yet be-
come the one powerful factor In the
/ banking and credit field. The entry
of Henry =. Dawson into the firm
year or more ago marked the shift
ing of position Of the Morgan House
! from that of a sharer in New y ork
banking control to the position Of
practically exclusive banking control
( Mr. Henry p. Dawson was a young
/ man of unusual ability who had work
ed his way up in a comparatively
short period of time from a subordi-
nate position in one of the smaller
banks of the city until as an officer
or the Liberty National bank he some
years ago came under the direct
notice of Mr.. Morgan. From that day
Morgan banks and at the time of his
entry into the Morgan firm in 1909
was vice president OF the Bankers
| Truct company, the most successful
of the younger trust companies in
| New York city.
1t will be noted that all the progress
made in increasing dominance Of
banking interests by the Morgan firm
has taken place since Mr.. Davisons
entry into the firm. The greater in
fuence in the National City bank has
occurred since then; taking over the
control OF the Guaranty Trust COM
pany and the Morton Trust company
\ was an incident OF the past year
acquisition of the controlling stock
from Thomas r. Ryan, of the
! Equitable Life Assurance. society, has
4 occurred since Mr.. Dawson has be-
come a factor.
! Viewing the situation broadly, it can
/ probably now be said that the COM
ing years in the Morgan firm will be
/ characterized more largely by ex-
pansion in the control OF banking in
situations and financial credit, than
/ by any further expansion in the rail-
/ road and industrial fields. AS the death
of Charles Fl. Coster to an extent
| marked the close of the period when
the Morgans were acquiring control
| OF the great railroad interests of the
country, the retirement of George w
| Perkins may also, broadly stated
mark the end of the aggressive work
| on the part of the Morgans for the
control of industrial activities This
| theory IS further confirmed by the
fact that with the retirement of Mr.
| Perkins and Mr.. Whitney new part
}ers. who have In the past exclusively
represented banking interests and
whose experience is entirely along
banking lines. have been taken into
the firm. Mr.. Porter is we'll known
as the successful president of the
Chemical National bank one of the
strongest and most successful COM
mercial banks in the United States,