The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-04-01
] P MORGAN REGARDED AS WORLDS FOREMOST FINANCIER|
THE HOUSE OF MORGAN
/. A CONTROLLING CENTER
by John Moody. in The independently

.fhe firrn OF j. T.. Morgan 4. Company
have focused renewed public attention
upon this great banking house anc
the personnel Of the many men whC
make up the partnership. For any
notable change in the composition 81
the firm which is admittedly the larg-
est private banking house in America
and rates as the third most important
financial firm In the civilized world
is naturally OF very keen interest 70
the general public on both sides OF the
Atlantic.
But when we say that the House Of
Morgan is the largest private bank
ing concern in America We have not
nearly stated It's real prominence. For
the. Morgan House is great deal more
than a mere private banking firm.
Broadly speaking II is the great con-
trolling center q corporate activity in
the United States. Directly or indi-
rectiy the House Of Morgan and its
close associates practically control the
financial destin3es Of Am erica. Since
the death Of Nj, Hartman and the
recession sOmew hat into the back
ground OF the so-Called Hartman
group Of finanCiers' the Morgan in
ferests have stood out as the one doni-
mating force in the American railroad
situation. Probably it is not saying
@.~seso rfrcri - assert that no really vital
and far-rHachins financial plan could
be today put through in connection
with railroad control or development
in this country without at least the
acquiescence. If not the cooperation,
of ]. +. Morgan & Company.
And further. while this seems
sweeping statement TO make. IL does
not indicate the full scope Of the McrT
~Ran influence in finances. For the
-Nforgan growth in financial power dur
Ing the past decade or more has not
been confined merely TO the railroad
field. The rise Of. the great industrial
trusts, which has been such striking
feature In the United States since the
Spanish war has been closely identi-
fled with the firm OF J. +. Morgan g.
Company, The formation and suc-
cessful business growth of the United
States Steel corporation Is one of the
monumental achievements of the Nor
gan House. The creation of the In
ternationai Harvester company, known
as the Harvester Trust" which, dur
ing its FIVE or six years of existence,
has presented an astonishing record
of vitality and success, is also q pro-
duct Of the Morgans. The great In
Sensational Mercantile Marine COM
pany, which is combination Of all the
important Atlantic transportation
lines. with the exception Of the Gu
nard line and the German companies.
was formed and financed and is still
controlled by. the House Of Morgan.
In addition 10 these notable aggre-
cations Of capital in the industrial
field, the Morgan House has been
responsible for the formation and
financial welfare of a very large num-
Der Of other Industrial trusts Fur
ther than this in the public utility
field the Morgan House has in mod
ern times been "A notable figure The
great General Electric company, which
IL not only the largest manufacturer
OF electrical implements and eleCtri-
cal machinery in the United States
hut is also powerful holding com
pany controlling numerous trolley
: lines and electric light plants, has for
many years been fully under the con-
fToI OF the House of Morgan. The
american Telephone and Telegraph
company. he vast holding corporation
which dominates the telephone busl-
ness from the Atlantic to the Pacific
and now controls the Western Union
Ielegraph company, is now Morgan
aggregation. And il we will turn. to
other fields, such as those involving
the development of natural resources
we VIII ind that the Morgan person
atty is everywhere met with In the
opening up of the mineral resources
of Alaska. the Morgan House is found
TO be the chief factor with which all
others must reckon; in the financing
of government debts. including not
ioniy those Of the United States but
Fof many foreign countries. the Amer
lean branch of the Morgan firm has
seemed to be powerful factor al
ways, while the London and Paris
houses of this great organization are
recognized all over the civilized world
rs powerful centers for invested CAM
tai and as interests to be given first
consideration whenever government
leans are to be underwrttten or
financed.
But within recent years there has
been further significant develop
ment in the power OF the Morgan
House which carries greater meaning
than all the facts which have been
enumerated above. For the House Of
Morgan, or the Morgan group of
nnancierss are not only the fiscal
agents and financial representatives
Of the great corporate aggregations
IN this country, but even in greater
measure II can be stated that they
are now the representatives and dom
mating factors in the control OF money
and credit in this country.
In the city of New York there ex-
list today considerably more than 100
nattonal and State bank and trust
Sslnpanfes. The deposits and re-
sources of these many institutions run
into enormous amounts. The aggrc-
gate banking power Of the banks and
trust companies of New York CITY is
roughly indicated by the fact that
their total deposits at the present
time aggregate more than $1,000, 000,-
0Ga
An analysis Of this banking Aitua-
ton In New York city will however
ttivulge some interesting facts. Thus
Ii viii he found that of the total re-
sources OF all the hundred and odd
4 banks and trust compa MES three
great national institutions appear 10
dominate the whole. The Natiena!
City bank, the First National bank
and the National Bank Of Commerce
themselves alone represent aggregate
deposits OF nearly $3.50, GEO 900 and
total resources Tar exceeding this
amount.
If we should eliminate these three
institutions which are known In the
Street as THE Big Three" we would
find that the, remaining national blink
ing institutions are not such q big
factor after all, But II we take a step
further and examine the trust com
: .pany exhibits Of the city Of New
4 7 ork. we shall find that, as ia the
< case OF the national banks, the bulk
of the total resources is Represented
by only three or four institutions The
Bankers Trust company, the Guaran-
II ~ Trust company, the Farmers Loan
and Trust company and the United
States Trust company appear 10 rep
Y resent, in q dominating way. the back
bone of the trust company business
" n New York city.
few EgAr- ago y1yas a}<y