The Birmingham age-herald., 1913-04-03
Big Financier Was Star Wit
ness Before PujO Inyesti-
eating Committee
ALL STRUCK BY HIS
GENUINE FRANKNESS
Declared That When Men Entrusted
With Power Ceased to Deserve
1t, They Would
Lose 1t
nv G. E. STEWART

Washington, April 2.--(Speclal)-lf there
is or was such thing as a money trust
in the United States, it undoubtedly CEN
tered around J. p. Morgan. There is
much speculation in congressional circles
as to what effect the death of the master
financier of this age, or probably any
other age, will ultimately have
upon big business" Who will take his
place?
Unauestionably the great banking house
of Morgan & Co. will continue to exist
and will still be as in the past the most
potent factor in financing the great in
dustries of the country; but is there an
other individuality such as possessed by
the senior Morgan? Is there another
mind which can grasp all the various
threads of the financial system of the
United States and in the greatest emer-
gencv so control them as to avert
panic?
Before Puio Committee
In the recent investigation by the PuJo
committee seeking to prove the existence
in the United States of money trust
or combination of bankers which apsoiute-
lv control the financies of the country,
and through agreements, 1nterlocklng ui-
rectorates and combinations nave the pow
to make Ut DIcth uhy oiiS -
the great corporations in the industrial
world or name their own terms as to
the financing of such institutions, Mr..
Morgan was particularly in the limelight.
Unlike many of the great captains OF
finance, Mr. Morgan came to Wasnington
to testify willingly and cheerfuliy, anu III
no way or manner attempted to evaoe the
questions put TO MIN py the tHeiess anu
searching Untermyer
Tho fipapcipr was. of course, the. Sldr
witness in the money trust investigation.
When he was on the stand the commit-
tee room was crowded with the curious
Congressman, senators and many promi-
nent people packed the room to overflow
ing To hear what he had to say in de-
fense of the system" In many respects
the testimony of Mr.. Morgan was disap-
rointment to Untermyer and the commit
fee. He denied the existence of money
trust. or any combination looking toward
the control of the money and credlt OF
the country. He said that 1t could not
be done.
VERY Frank in Testimony
He frankly and willingly told OF the
connections of his firm and the con
troll by interlocking directorates ana py
the group of bankers of which he was
tbe head of the First National bank, the
City National bank, the National Bank OF
Commerce, the Chase National bank, tne
Guarantee Trust company, and the BANK
ers Trust company, with totai khoWh re-
sources in these corporations alone OF
81. 800 900 900 but he defended nteriock-
ing directorates and the combination VI
those institutions on the grounds that
thev were necessary to make it possible
10 finance the big corporations OF the
country. who would otherwise be. com
nel1ed to seek aid in foreign countries
Thus delaying and gripping Industry IN
the United States.
Mr. Morgan admitted that there was a
greater concentration OF money anu cieui'
now than ever before, and that TINS con-
centratiou was increasing, but he denled
that it would be fruitful of harmful re-
suits and that such a situation Woulu
rioht ITSELF He declared that when the
men intrusted with such power ceased 70
deserve it they will lose 1t, and 'deposl,s
would be withdrawn from their paiiNs.
MIR. Morgan frankly admitted the pur-
chase of the Equitable Life insurance
stock at a price at which it could oniy
nav him one-ninth of ] per cent per
annum, but denied that 1T was LOT lie
purpose of gaining the control OF tiie
vast resources of that institution, out LOT
the protection of others and TO keep II
from falling into unworthy hahos'
Although Mr.. Morgans testimony was
a. variance with one of his associates
Mr.. Raker-who declared that concehtra-
tion had 'gone far enough because IN
the hands of the wrong men 1t would pe
very had"-he nevertheless impressed the
COMMITTEES and the public with his SIN
cerlty. and the free and frank manner
in which he told of the gigantic opera
tions of his firm and their associates
Have Eye on Dawson
or those of the immediate firm OF MOI MOI
gan & Co., who appeared peioie ~ 70
mittee. 1t is the opinion that Henry
Dawson was by far the nearest approach
TO the head of the firm Ii MOI san -
10 be replaced in he finances OF ne oni-
ed states. 1t will be Dawson VINO VIII take
his place. 1t was Dawson who issued
that statement from the Morgan Urn I'm, W
The effect that all the financial Ills OF
the country were in no sense chareeaple
to the existence of money trust, ST. but nut
to the inadequacy of the banking ana cur
rency laws. He declared that II CON
cress would devote its attention TO tne
Solution of these problems, that the 1ear
geenrally prevailing of money trust