New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-09
]. p. Morgan & Co. and the Ne"
Haven Railroads Finances.

In their letter 10 Howard Elliott J. Y. Morgan y
20 dispose Of the charges that their hrm proncu ~
The exploitation of the New Haven Railroad Inc
letter shows that the profits of the house OF Morsa"
during twenty years of marketing OF the New ha'cn
Railroads securities amounted only TO the sur
prsingv small sum Of $350OcO. On the securlues
bought outright aud subsequently sold the Morgan
letter shows that the banking house lost Slooooo T.
The bulk Of the securities handled by Morgan q Co.,
se1OOOOOOO were handled upon commission Inc
charge for handling them amounted TO S99oVoV' Vi
which the house OF Morgan retained So33,o", the
rest being the share Of banking companies when par
ticipated with Morgan in the loans. when Inc
amount lost on the outright purchase and sale trans
scons is deducted from this sum the Morgan profits
from New Haven securities transactions are shown
TO have averaged 800 year for twenty years
The possibility Of any other profits than direct
banking profits is met by the explicit denial that any
of the Morgan firms or any member OF them was
ever interested in any property railroad trolley or
steamship acquired by the New Haven Railroad tne
onIv execution TO this being small interest which
the late J. T. Morgan inherited IN one company &C
ouired by It,
Any interest by the firm any member OF 1t IN the
transactions by which the Westchester q Boston
Railroad was acquired by the New Haven Is also de-
MED TWAS in these transactions that the Interstate
Commerce Commission found S12,00O000 vanished
into thin air" The charge had been made IN some
newspapers that Morgan & Co. 'unloaded' this road
during the panic of 1907 upon the New Haven But
Morgan & Co. produce letter from Mr. Melen'
president of the New Haven dated April 2, 1901 six
months before the panic referring TO an agreement
dated December 4. 1906, with the Mibrook Com
pany. which was financing the Westchester Bos'
ton. in pursuance Of which Morgan & Co. advanced
money to Mr.. Oakleigh Thorne and the Mlllprook
Company The letter assumes responsibility for the
transactions and places Morgan & Co. in the posi-
ton Of agents from the outset Of the New Haven IN
financing the Westchester & Boston
The Morgan statement on this subject IS supported
bv Mr. Oakleigh Thorne who says in The Tribune
this morning that In financing the Westchester &
Boston he dealt directly with the New Haven, and
that Morgan Co figured in the transactions simply
as the New Have1's bankers
Morgan & Co. seem to us to have made 1t clear
that whoever got insiders profits out Of the West
chester & Boston transaction and out OF the other
transactions by which the New Haven monopoly was
created. It was not Morgan Co. Their denials are
complete and explicit and there Is not bit Of evil
dence against them. Surprise will be felt at the
smanes Of their profits out Of their transactions in
the New Haven roads securities But the great
bulk of the transactions a commission basis,
and a false statement regarding the amount of the
commissions would not be put out by any banker In
his senses
The mystery Of the plucking Of the New Haven re-
mains as great as ever. J. P. Morgan & o. should
We among those who would welcome its investigation