New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-28
MORGAN TO PUJO.

We wish that every citizen who has
heard about the money trust and
who has not might read the letter OF
j l.. Morgan 4 CO. To the Pujo com
mittee Let him grant that MessrS
Morgan q Co give interested testl-
nony. hut let him read their letter. dis
counting il as much as he VIII. ana
see if ii is not persuasive in many re
spects. see if ii does not clear mp
numerous suspicious upon which Is
founded the theory that the credit OF
the country is in the hands Of lot Of
grafters. suspicious which Mr. Inter
MYERS handling of the inquiry as
been calculated TO deepen.
Let MS take the subject Of the ap-
nointment by the railroads and other
large corporations of Morgan Co., or
some similar house. a. their fsca
agents instead of an arrangement Tor
selling their securities ri public auc-
lion or over their own counters. Ihe
money trust" graft theory OF TINS l.
that certain bankers sit in the dlrec-
toratn of such ia ilroadS or other cor
porationS dominate the boards ana 80
practically appoint themselves fiscal
agents Of the corporations whose III
rccorS the are, 80 their own great
rersonal profit.
Now. let Us give 4 paragraph Of Nor
ran 4 COS letter on this subject OF
,nnointjnc fiscal agents instead of sell
ing securities At auction. ANA see II II
i not AT least as credible a. the
money trust" graft theory
Another consideration inducing 'alge
corporau0ns to appoint fiscal agents
is that frequently such corporations
arc obliged TO undertake operation OF
such magnitude and compleNitN over
!, series of years that they mus IN
yoke uninterrup;edly the best imam
,ial advice Ohtainable An operation
ike that Of the Pennsylvania ana the
Long Island railroads IN tunntllinS re-
slectiVely the Hudson and the Last
tivers and building an enormous ter
minal in the heart of New YORK IN
VOWED the expenditure of say S-''-
uGOOpO and from inception TO compile
lion occupied the best part 0i Gee
lpon such A development and OF rely
nc through good times ana bad, pane
pe,iods and otherwise. upon the safe
If 5000 OpO coo bonds bV auction 10 the
pubNc. could hardly be characterized.
even il 10 were conceivable. Another
avampIe might be mentioned in the H.
rigation enterprise Of the West. II ~
estimated that there mas been eA-
nended i'm such development mol IesS
fban 5000 600 600 How far Womb
such development have gone, how Tar
would those regions have beeh opehto
TO agriculture. had dependence for OBJ
tanning that great sum been placed
upOn the nearby communities, or even
by means Of public auction upon m
vestors IN New York or Chicago Nho
know little Of the safety OF such IN
Vestments?
Through having fiscal agents cor
poratious obtain access 10 The investors
who have faith in the bankers appoint
cd as such fiscal agents and who habit
uany buy through them. They add 10
whateve~ confidence they themselves
enjoy he confidence the la king house
enjoys lmOns investors. accomplishing
his partly by naming il as fiscal agent
and partly ny appointing members of II
io their boards OF directors They
Gain the constant advice during
financial operation extending over
long period of skilled fnanciers and
they avoid the uncertainties Of the
money market.
Messrs. Morgan 4 Co.'S letter * as
effective against many other points In
he money trust indictment as II il
against this one The public should
read il if il is not To be misled into
false opinions and the enactment of
legislation which would seriously Grip
ple business development in this coun-
FRY