The evening world., 1913-01-23
VOTING TRUSTS"
FORMEDbY BANKS
FOR PROTECTION
Morgan Partner Dawson Says
They Are a Shield Against
the Unscrupulous.

WASHINGTON. Jan .. - ''voting
trusts TO control banks ~ d6ensas
against unscrupuicus Wall street pro.
moters were praised to-day At the
Money Trust inquiry by II. p. Dawson.
partner Of J. Pierpont Morgan q 30.
Attorney Untermyer confronted Davt-
son with a list Of the young mon"
whom. Dawson said, had organised the
Bankers Trust Company. included were
men sixty and seventy years OF aGe.
You bought you were all % young
that you needed protection by a votins
trust from promoters of the susstr'
untermysr asked. ironically. I'VE felt
We did." he replsed. laughing.
''Oae OF them was George w. Perkins.
was he one who felt he needed protcc-
ton? Yea" DaVison said.
PLANNED MERoER WITH the
DANkERs' TRUsT.
Mr.. Dawson. who has been . member
Of J. r. Morgan & Co. since Jan. I.
lsce. testified that he negotiated the
purchase Of the stock In the Guaranty
Trust Company for the orGanisers OF the
yoting trust for the Trust Company.
George r. Baker. he said. had nothing
&c do with the negotiations. Mr.. Baker
waS ut that time connected with both
the Mutual and the Guaranty Trust
Purchases Of 5000 shares from Mrs. r..
II. Hartman and 500 from the Mutual
Life Insurance Company. NJ. Dawson
SAID. gave the oNanisers control Of
1000 out Of the 5000 shares Of the CON-
pany.
Mr.. Davtson said thst the Guaranty
Trust Company was acquired BY himself
and his associates With the idea that
Il would be merged into the Bankers
Trust Company. He made this state
nent ~ 10 the voting trust sgrsemsnts'
I'VE younger men organised the
Banhers' Trust Company IN ieoa and ~
that time We organized the voting
trust. The purpose Of this voting trast
Was to preclude the posslbnity OF the
purchase u control Of the stock by men
active In New York at that time whose
credit and responsibility wss questioned.
when we came TO plan to take IN the
Guaranty Company the voting trust had
worked 90 well In the Bankers Trust
We organized the Guaranty under the
same plan also. that Il might eaAlly bs
taksn over
Mr.. Untermyer brought out In Ques.
t.on,nx that several organ.sers Of the
Bankers Tssst Wsrs widely known
baAbcrs sixty or seventy years oA.
WILLING 70 DISSOLVE rkl
voTiNo rRusre.
"On this question Of voting trusts.
said Mr.. Dawson, II an perfectly will
ing to recommend that these voting
trusts be dissolved. The voting trusts
- such. have had no more TO DO with
the real management Of the business
than the Pujo committee"
Mr., Untsrmyer and the witnsss In.
duiged In an argument over the use.
fuinsss Of voting trust arrangemsntl
for the control Of financial institutions
WELL said Mr.. Untsrmysr. eve
will be we'll satisasd with your state,
msnt that you Will use your infiueno<
to dissolve these voting trusts."
''hut I 1idn't say that" objscted Mr.
Davtson. y say that now see no use
ful yurOoss 70 bs ssevsd by thass vet
ing trusts and on mature consideration
! would probably recommend, 10 "a,
~ my vote u concerned. that they b'
diasSwsd."
NJ. Untsrmyer brought out that tn,
voteo a two Of me three trustees o
the penksrs' and Guaranty companies
esuh dissolve the trusts and that Mr.
Thomas w. Joyce, ooundential clerk 4
J. pisrpoat Aor0an. testified that h,
was security clerk for che Morgan firm
by which he had been employed twenty
eleht years.
tscopds we're psoduesd. showing tina
The arm had ef1.oeo.eoe deposited In Nev
Yerb banks on Nov. I. 1sl1. and eeoo. %