The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-09
MORGAN SIDE IN
NEW HAVEN ROW
Nnanciers Deny Big Profits
in Dealings With
Railroad.
OPEN BOOKS IN PROOF
Got Only $35O,265 for I'm
pOrtant Services of
20 Years.
ELLIOTT ADDS NEW FACTS
Tells Of Lines Dealings With
Kuhn. Loeb 4 Co. and
:; Other Bankers.
ELLIOTT ADDS NEW FACTS


replying to the charges that the firm
and its partners absorbed huge profits
from. the New Haven railroad Tho re-
lations OF the firm with the railroad since
they began n 1895 are detailed In cor
respondent. including >,s,isticsi tables,
with Chairman Elliott
Mr. Elliott In n letter 10 the nm re-
auested information covering the main
general and specific charges that have
been levelled at the railroad and the bank
ing Arm on the score OF their financial
relations.
The leading statements in the corre-
spondence made public by J. p. Morgan
4 Co. are as follows:
% That the net pronts to the Arm. In
Guiding the New York. Philadelphia. Lon
don and Paris houses. in the twenty years
Of financial relations total the surprisingly
small amount OF $3.50. 265. The par value
OF the securities handled from which this
troat was derived was sSS3.cs2. sos
No Interest In Properties.
az That neither the arm In any OF its
houses nor any member OF the Arm ever
had any interest In any of the properties
acquired by the New Haven or its subsid-
Aries with a single exception. In this
the late j. +. Morgan exchanged l.232
shares OF the South Bay Wharf and Ter
uinal Company valued at $40 a share
FOR sl+ shares OF New Haven stock. At
the highest price for New Haven. 1879. In
January. 1907. when this transaction was
pade. this exchange at these figures rep
Nsented a loss to J. p. Morgan OF s53s94
'tO The celebrated Account No. 2" OF
the New Haven with J. p. Morgan 4 Co
used IN the attacks upon the bankers as
the mysterious account which. It has been
alleged. has hidden the secret profits OF
the arm with the road IL opened. 1t shows
nothing more than the investigation os
New Haven by former Interstate Com
nerce Commissioner Prouty. showed.
namely. that the New Haven deposited
with the bankers In a special account a.
various times from November 3, 1906, to
September 25. 1907. the sum OF Sll,I56.-
900. This amount reimbursed the bankers
for a similar total Of advances made by
them 10 the Milbrook Company for the
acquisition OF the New York, Westminster
and Boston.
60 That neither the arm nor any MEM
Der had any transactions with the Mill
brook Company outside OF those for the
account and upon the order OF the New
Haven as presented In the extract from
the loan ledger and Special Account
No. O." published below. There was no
profit or commission In any OF these trans
actions TO the firm or any member
Paid Interest on Deposits.
90 That the firm has paid the New
Haven per cent on average annual de-
posits OF si.4l5, go since 1908, when de-
posits began.
In giving out for publication the. cor
sespendence regarding New Haven affairs,
J. p. Morgan 4 Co. made the following
stassment:
chairman Howard Elliott Of the New
York. New Haven and Hartford Railroad
Company recently addressed a letter to uA
asking us certain questions as to our fiscal
relations with the New Haven companies
covering the last twenty years. and as to
our profits In the sale OF New Haven and
allied company securities during the same
period.
believing that Chairman Elliotts in
auiries and our answers thereto may be
Of interest to the public. as well as TO the
directors and stockholders OF the New
Haven. we have decided, with the consent
Of the New Haven company. to give out
for publication the entire correspondence.
setting forth In detail the informa ton re-
9uestsd."
ruary 81, 1914. addressed TO J. p. Morgan
4 Co.. was AZ follows:
~ have been asked questions by our
directors and by others about the trans-
actions between your Arm and this COM
pany. both before and since the fiscal
agency contract, which was In effect from
December 10. 1910. to December 4. 1913.
and which was terminated by notice from
yong arm. 81
Asks for Complete Statement.
AN examination OF the books OF the
New. Haven company WIN, OF course, show
these transactions, but as there are "a num-
Der OF subordinate companies and inter-
company entries. II would be convenience
10 me, and would save some time, II
could obtain from you complete state
ment OF all transactions OF the New Haven
road and It's allied companies involving
tho placing Of Its securities or the pur-
chase of securities for 1t, In which your
iirmsor It's predecessors Messrs, Drexel.
Morgan Il Co, have taken part since
January l. 1894
In addition 10 furnishing this informa
ton Il would assist me greatly. although !
ta M technical right IN ho INF l.,