Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-04-02
Public Hostility TO Increasing
Concentration Of Financial
Control One Reason.
LOSES TRUSTS MILLIONS
Deposits Of Steel Corporation
Will Be Divided-LiveIy Com
petition Expected,
BY 3. C. FORBES.

I nave IIttlNtu pSIiiliSSlbll 10 iidhE
the following extremely important
announcement:
J. P. Morgan & Co. have decided
not to acquire control of a single
additional bank, trust company or
other institution of a banking nature
The firm has concluded that cir
cumstanoes do not call for oontin-
uation of the policy of extending its
strictly banking ramifieations.
Statement Is Satisfactory.
No statement could possess more
interest for the financial world The
news viii also be hailed with salts
faction by the general public, as well
as by Washington Legislators, for the
universal impression has been that
the younger members of the Morgan
firm were determined to pursue the
policy Championed SO aggrcssiyely
by Henry !. Dawson.
That the change in the firms atti-
tude has been Influenced If not who'll
ly caused, by the recent manifesto
tious Of public and legislative hostil-
ity to the constantly increasing con-
centration Of banking power can not
be doubted. George +. Baker, il will
he recalled. told the Pujo Commit
tee that he thought this concentration
had gone far enough
am informed. also. that certain
very large corporations. including the
United States Steel Corporation, will
not long continue to deposit the
whole Of their surplus cash--ocCa-
sionally running into tens Of millions
with the private banking house of
J. p. Morgan & Coz
Cared for Trusts Millions.
The Steel Corporations liquid cash
has ranged between $4,000, 0OO and
s75,OOO0Oo, the whole OF which has
been intrusted to teh care Of Nor
gan 8, co.
This enormous sum. II is under
stood, win be deposited in "a number
of institutions. including the strong
cst national banks
The question of tine ACCESSIBILITY Of
corporations engaged in Interstate
commerce carrying huge sums with
private bankers was raised b. the
ruio Committee and modification
OF the present practice is planned
otto VI. Kahn the most active
member of Kuhn. Loeb Il Co has
definitely decided, am Informed by
one Of his intimate friends. To give
up an plans FOR retiring at this time
from business to enter the British
House Of Commons.
international bankers to whom
this information Was conveyed re-
garded it as OF great significance
although certain Of them said they
had understood for some time that
Mr. Kahn had arranged to remain in
harness. and that Kuhn. Loeb a GO.
were TO become even more active
than heretofore
Lively Times Are Expected
You viii see very lively times
in the International banking bust
ness from now on, said one Of
those in the inner circle. While
it is true that Mr. Morgan had not
been directing the affairs of his
firm for more than two years, his
personality counted tremendously
Morgan e. Co. with j. r. Morgan
at its head. stood in a class by it,
self although I can assure you he
never interfered with the running
OF MAN. so-called Morgan iustitu-
tious Morgan az Co. without j.
m Morgan at its head will b" q
very different concern. its Drest-e
naturally will suffer
There will De more competition
and less concentration. Kuhn, Loeb
& Co. Will no doubt branch out. So
will Speyer & Co.
Watch Developments m these d.
rections."
The gradual decentralization tHsL
looms ahead ,,u5 be iu harmony with
the democratic. ideas Of the citizens
of this Repubi,