The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-01-04
OTHER BANKS TAKE
HINT FROM MORGAN
MAY FOLLOW LEAD IN,wiTHDRASv-
ING FROM OUTSIDE d.
RECTORsHiPS.
WAS PUJO r EFF O r M
w HETHER MORGAN WILL QUIT
PANY NOW TOPIC ron
WALL STREET.

NEW YORK, Jan. 3.-The an
nouncement of the retirement of j. 2
Morgan and four of his partners from
thirty directorships In twenty seven
corporations and Mr. Morgan's refer
ence to the change in public sentiment
in regard to directorships has directed
attention to the fact that I'VE i'm
portant recommendations Of the Pujo
committee were already being put
into effect in advance of legislation re-
curing them.
They included the abandonment of
flscais agency agreements such as ex-
listed between the New haven and
Morgan e. Co; the abolition of inter
locking directorates, the abolition of
voting trusts. reforms in the stock eX-
change and reforms in the clearing
house.
Whether Mr.. Morgan will decide to
withdraw from the directorate of the
| United States Steel corporation was
the subject of a great deal of specula-
ton today.
Morgan and Steel Tr'ist.
The general opinion was that as the
so-called steel trust was he greatest
Of the Morgan creations, and was con-
! sidered by the elder Morgan the
browning achievement of his financial
career. his son will consider 1t his
DUTY to remain identified with it in an
active way, especially until the gov
eminent suit has been decided one
way or the other.
However, the Morgan firm was no
less actively identified with the
financial development OF the New
York Central lines, for which Mr.
| Morgan was the banking sponsor
throughout the greater part of his
career. His connection with 1t dated
from the time of Commodore Wander
bilt, and during the time of William
II. Vanderbilt it was through Mr..
Morgan's influence that English in
securities of the road The re signation
Of the present j. T. Morgan from the
New York Central directorate was one
of the most surprising features of his
announcement yesterday.
j. p. Morgans friends say that he
has been not only deeply impressed
/ by the change In public sentiment dur
ing the last few years. but that he
has been deeply grieved ever the
criticism Of the firm in connection
with the affairs of the New York.
New Haven and Hartford Railroad
company.
II. S. Lovett's Comment.
Robert s. Lovett. chairman Of the
Union Pacific railroad company. in
commenting today on the Morgan
action, said; II think strong bankers
on railroad boards are very desira-
ble--but it all depends who repre-
sents the railroad on the board"
A. Barton Hepburn. chairman of
the Chase National bank expressed
the opinion that interlocking direc-
torates were a good thing so long
as they did not result in unlawful
monopoly II have found In my per-
sonal experience" he added, that by
being upon the boards of certain cor
| porations, ! am able to get a much
better knowledge of their financial
| standing. Used for such a purpose.
being a director on one or more cor
porations is by no means injurious
I or unlawful. OF course where the
knowledge acquired through inter-
locking directories is used for selfish
profits, the custom is to be decried."
/ Baker to Take Similar Action.
I The withdrawal of j. P. Morgan &
/ Co. from more than score of
great corporations was followed
| shortly afterward by a statement by
] George +. Baker, an almost equally
dominant figure in American finance,
that he soon would take similar ac-
ton.
! Mr.. Baker announced his intention
to withdraw, in response to a ques.
ton whether he intended to follow
| 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 a matter of fact I have
been beginning to do so for the past
two years.
Mr.. Baker Is director In more than
sixty corporations. a greater num-
| Der than any other one man in the
country Mr.. Baker who heretofore
has adhered to a policy of silence as
rigidiy as Mr.. Morgan, expressed his
views in his testimony before the
congressional Puto committee early
/ last year. Speaking of the concen-
tration Of money and credit In the
hands of a comparatively few men.
| he said: IT think 1t has gone far
enough. 1t might not be dangerous.
but still 1t has gone about far enough.
In good hands. / do not see that 1t
would do any harm. II 1t got into
| bad hands 1t would be very bad"
Predict Ending Of System.
/ The connections between Mr.. Baker
and the Morgan firm. and especially
with the late J. p. Morgan. were
generally regarded as being so close
/ that ii is believed their common de-
/
teriocking ffrectorates was reached
as the result of concerted action.
There was no evidence that any gem
eral agreement had been reached
| among othr leading financiers of Wall
Street. Both Kuhn, Loeb a. Co. and
I James Speyer A. Co... maintain silence,
| 1t was predicted. nevertheless. by
men in Wall Street who have followed
the trend OF events In finance and poll
= In,
events were prophetic of the ending of
the system Of interlocking director
ates, which has been bitterly attacked
for years and latterly by members Of
the present Washington administration
and members of congress who have
been fighting what they termed the
money trust"
In Wall Street that part OF Mr. Nor
van's statement in WHICH he spoke OF
IAN apparent change In public sert'-
ment In regard to directorships" was
raParred 10 90 q sign OF the fimee One