New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-03

u think strong bankers on railroad
boards are very dosirable-but OF course
IL all depends who represents the rail
road on the board"
Elbert'H. Gary. chairman Of the United
! States Steel corporation. refused to com
ment on the announcement Of the resig-
nation Of Mr. Steele. Of J. p. Morgan II
Co. from the corporations directorate.
Nothing TO say at present" said Judse
Gary. except that We are very sorry 20
lose him."
MeReynolds Not Surprised.
Attorney General McReynods did not
seem TO be at all surprised at the news.
He did not intimate, however. that he
/ had any advance information on the sub
ject
1T is very interesting he said but
I do not think it would be becoming OF
me to make any comment"
According TO the testimony last win
ter before the Pugo Congressional commit
tee. J. T. Morgan q co. OF November l,
| 1912 held deposits Of sl62, 49l $40, OF which
1 Ssl. 96S 42l was deposited by seventy-eight
/ corporations. on the directorates OF thir-
ty-two Of which they represented. Dur
| ing the years 1902 to 1912 inclusive the firm
directly procured the public marketing OF
security issues of corporations amounting
in round numbers to 81. $50 600 coo, including
only issues Of interstate corporations.
The voting trust which controls the
! Guaranty Trust Company will be dis
solved on January 50. This trust consists
of two Of the Morgan partners, Henry 7.
| Dawson and William II. Porter and
/ George +. Baker. chairman OF the FIRST
National Bank The voting trust OF the
Bankers Trust Company, when lncIuueu
Henry p Dawson. George b. case one
OF the trust company's counsel anu
Daniel c. Reid, formerly chairman OF the
Rock Island Company and chairman Oh
the American Can Company was as
solved on October -.
The Morgan firm got control OF the
Guaranty Trust Company in 1910 when
it purchased from the Mutual Life IN
surance Company and Mrs. h. H. HARM
man 1900 OF 2O,000 shares.
Samuel Untermyer issued this state
ment when he heard Of the announce
! ment Of J. p. Morgan & Co:
1t is gratifying to note that puolic
sentiment and agitation have at last made
an apparent impression, however slight
and unsubstantial may be the results
thus far achieved. 1t is at least be-
ginning.
1T is TO be regretted that the published
list Of designations does not include the
more important interlocking bank directo-
rates in the financial district held by the
firm. such as those in the First National
and National City banks and that while
|, for instance Messrs. Dawson and Porter
resigned from the board of directors OK
the Guaranty Trust Company Messrs.
Dawson. Porter and their close associate,
George f. Baker have not dissolved the
voting trust Of that institution. as hey
have the power to do but that on the
contrary they remain as the sole voting
trustees who select all the directors for
the trust company. That is not very
valuable concession TO public sentiment
Patience, Urges Untermyer.
1T appears also that while some of the
partners resign from the board Of given
company one or more remain, which
would seem 10 indicate that there is more
in the nature of a business convenience
than a surrender TO public sentiment and
that nothing very substantial has Jeen
as yet accomplished in the way of vindi-
eating the principle for WHICH the ldvo-
Gates Of corporate reform have been con-
tending. But the promise held out in the
interview is encouraging.
1T will doubtless all come in time. We
must be patient The work Of construc-
tive legislation for which the founda-
tons were laid in the investigation and
report Of the Pujo committee has just
begun The pity of it is that these gen
tlemen. with their farreaching influence,
do not lend prompt and helping hand.
They should be pioneers in the move
ment for financial reform. They must see
that the past regime is at an end and
that new moral standards are eXacted.'
Culfport Miss. Jan. president VIII
son had just completed a round of golf
here to-day when he was told of the re-
tircment Of Morgan interests from the di-
! rectorates of many important corpora
tons.
That is very interesting" he said, but
when asked If he had anything to say re-
gaIding the matter he smiled ant an
swered: ooh, no."
President Wilson has been deeply alb
sorbed in preparation here OF the message
he expects to read to Congress dealing
with the trusts and big business" one
of the subjects with which he expects to
deal is interlocking directorates. That the
President confidently expects legislation
on this phase Of the trust problem is
known TO those with whom he conferred
before leaving Washington.
Withdrawal from discussion Of the cur
rency bill in the House Of provision
with respect to interlocking directories
was with the Presidents consent and with
the assurance TO its advocates that sepa-
rate legislation would be forthcoming at
the regular session of Congress.
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