The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-03


the innuence of high money rates. and II
was unaffected by the Morgan action.
That 1t did not decline on account Of the
Motgan announcement was accepted by
Stock Exchange members rs thorough
Indication that the Morgan withdrawal
was not regarded as a Instantaneous
Influence IN the light of the spirit Of the
times. The hesitancy Of the market was
accepted AZ an Indication that the Stock
Exchange was awaiting the expression OF
opinion OF the big bankers and financial
leaders regarding the effect Of the action
on business, believing itself that tn action
was timely and propitious.
A tabulated list of the directorates from
which members OF the Morgan Arm with
draw and those In which they retain their
places will he found elsewhere.
The principal companies In which direc-
torthip Is retained for the Morgan firm
are, among industrials. the United States
Steel Corporation, International Harvester
and International Mercantile Marine;
among railroads the Northern Pacific.
Lehigh Valley and several small lines
which were reorganiZed and In which the
hrr4 has therefore "a direct responsibility.
Membership on tho boards Of the leading
bariks and trust companies Is retained by
NJ least one member of the firm. 1t Is
Known. however, that though no declara-
ton of intention regarding complete with
drawal from these has been made. action
of the members Of the arm will be guided
largely by the construction that is put
upon q clause In section 90 of the cur
rency law A strict Interpretation of this,
in 4he opinion of many bankers. would
preclude any private banker. member OF u
national bank board, from receiving any
Zee, commission, gift or other considera-
ton" from the bank in any business
transaction. thus making 1t impossible for
private bankers to sell securities TO ma
tional banks or perhaps even To make
interest drawing deposits.
Untermyer's Attack Fails.
Samuel Untermyer issued a statement
after the Morgan announcement impugn-
ing the good faith of the declaration of
retirement from much of the corporation
activity of the firms members. Mr.
Untermycr claimed credit for the action
as having been brought about by the
Pujo investigation. lie declared that the
action. however, was insufficient evidence
of q bona fide intention on the part of Mr.
Morgan and his partners to do away with
interlocking directorates and as proof Of
this point he instanced the fact that the
bank board membership of the partners
was retained, though this had been the
centre of his attack
SPECIFIC evidence of lack of good faith
he declared, was in the fact that the Guar
anty Trust Company voting trusteeshp.
II nd
George +. Baker. had not been dissolved
Wall Street Immediately recognized the
false note in this attack of MIR. Inter
myer IN the fact that on December 22
the stockholders of the Guaranty Trust
Company received letters from the three
voting trustees announcing the termina-
ton of the voting trusteeship to take place
on January So
This announcement OF the voting trus-
tees is sufficient to terminate the agree
inent, as the trustees have the power to
end II at any time. retiring to the stock
holders their stock and voting power.
Wall Street felt that Mr.. Cntermyer's
charge Of bad faith had fallen to the
ground.
viii Remain ON some boards.
Is k0OWI WINE MOIBdu hHu
his partners intend to withdraw from time
to time from large number Of their
other directorships, certain of these
places will be retained Mr.. Morgan will
not retire from the Steel Corporation.
This place he regards as a responsibility
of the firm. The corporation was
launched by his father and has been
peculiarly an enterprise of the firm. The
obligation to stockholders and other in
vestors Is regarded as one that demands
the continued attention of Mr.. Morgan.
In this connection IT is known that with
drawal from all corporation activities Is
by no means contemplated. the Morgan
firm believing that II is within its legal
rights in continuing on various boards
and Ii following out the dictates Of wis
dom In doing SO, particularly In those
where the firm has assumed an obligation
through former reorganization or other
responsibility in influencing investment In
these companies
II is learned on the highest authority
that the Morgan firm or partners will not
sell their stock or other security interest
IN the various companies from which they
have withdrawn. The declaration of
withdrawal was misinterpreted yesterday
in come quarters not in close touch with
the situation as possibly meaning that the
Morgan firm in WEAKNESS and disgust
with the constant stream OF public and
legislative attack concentrated upon II
had thrown over all its interest in the
companies named.
1t was authorltatively said yesterday
that this was far from the case. While
ofical and directing connection had been
severed the firm will continue to be deeply
interested In such properties az the New
Haven, the New York Central and the
Telephone company, both through Its
stock interest and through independent
financial support that these companies
NAV seek from IT, The fiscal agency with