The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1914-01-07
Up. MORGAN 8 CO
TAKE THE LEAD
vs~ vx/sNt~ a 49, ~ E~ - ID -
In Withdrawing From Big
Corporations.
APPEARS BEGINNING OF END
To Interl0cking Direct0rates
Apparent Change In
Public Sentiment"
THE TURNING OF A NEW LEAF

New York, Jan. 2.-The with.
drawal to-day of j. p. Morgan & Co.,
from more than a score of great cor
porations and the statement shortly
afterward by George F. Baker, an
almost equally dominant figure in
American finance, that he soon
would take similar action, gave Wall
street generally thrill which al
most brought trading on the Stock
Exchange to halt.
While it is probably true that
many of the prominent bankers had
information foreshadowing this mo-
mentous move toward ending inter-
locking directorates, the public and
brokers had no advance knowledge
of what was taking place in the in
ner councils of the greatest of all
American houses of finance. Wher-
ever telephone and ticker flashed
the news about the street, groups of
men gathered to discuss what was
the all-absorbing topic.
Mr.. Morgan, departing from his
firms traditional policy of silence,
made public statement announc-
ing the withdrawal of five members
of J. p. Morgan & Co. from direc-
torships in twenty-seven corpora
tons and the intention to withdraw
from more.
J.. =. Morgan's statement follows:
''The necessity of attending many
board meetings has been SO serious
a burden upon our time that we
have long wished to withdraw from
the directOrates of many corpora
tions. Most of these directorships
we have accepted with reluctance,
and only because We felt constrain-
ed to keep in touch with properties
which we had reorganized, or whose
securities we had recommended to
the public, both here and abroad.
''An apparent change i'm public
sentiment in regard to directorships
seems now to warrant us in seeking
to resign from some of these connec-
tons. Indeed, it may be, in view of
the change in sentiment upon the
subject, that We shall be in better
position to serve such properties and
their security holders il we are not
directors. We have already resign
ed from the companies mentioned,
and We expect from time to time to
withdraw from other boards upon
which We feel there is no special OBJ
legation to remain"
Mr.. Baker announced his inten-
ton to withdraw in response to
question whether he intended to fol-
low the example of the, Morgan firm
II intend to get out as a director
of all the companies that will let
me-" said he. LAS matter of fact,
| have been beginning to do so for
the past two years"
The connections between Mr..
Baker and the Morgan firm, and es-
pecially with the late ]. p. Morgan.
were generally regarded as being so
close that 1t is believed their COM
mon decision regarding withdrawal
from interlocking directorates was
reached as the result of concerted |
action. There was no evidence that
any general agreement had been
reached among other leading finan-
ciers of Wall street. Both Kuhn
Loeb q Co. and James Speyer & Co.
silence. 1t was predict
ed. nevertheless, by men in Wall
street who have followed the trend
Of events in finance and politics in
recent times that the days events
we're prophetic of the ending of the
'ystem of interlocking directorates,
which has been bitterly attacked for
'ears and latterly by members of
he present Washington Admins
ration and members of Congress
Who have been fighting what they
ermed the money trust"
In Wall street that part OF Mr..
Aorgan's statement In which he
poke of IAN apparent change in
'ublic sentiment In regard to direc-
orships." was referred to as sign
II the times. One international
tanker. who in the past has served
IS director In many well known
operations, had this to- say;
There Is not the slightest doubt