Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-02
MORGAN CO. QUITS
B|GCORPORAT|ONS


the firm had assumed a responsibility
In this connection which could not
be lightly laid aside. The recent trend
of political events, such as the money
trust" investigation by the Pujo COM
mittee, and reports from Washington
that the administration is considering
legislation against ,nterloclsing direc-
torates, has created situation which
made 1t possible to enter upon this
change in policy.
For several days Wall Street has
heard rumors that Morgan G. Co. had
decided upon an important change in
its policy. The report most frequent
ly heard was that as the first step,
the firm would give up the trustee
ship of several corporations, including
the Southern Railway Company. No
confirmation of these reports could be
obtained prior to today, and, in fact,
1t was understood that if any action
of this kind were taken it would be
in the shape of designations from time
to time of various members of the
firm whenever the occasion was pre-
scented. No such blanket withdrawal
from no less than thirty corporations
had been even limited at, and Mr..
Morgan's announcement created a
sensation such as Wall Street has
rarely experienced.
Still on Important Boards.
In spite of the large number of
designations announced today, Nor
gan q Co. are still represented on
the boards of number of important
corporations. J. p. Morgan remains
director in the United States Steel
Corporation, Northern Pacific rail-
way, International Mercantile Ma
rine Company, National City Bank
and National Bank of Commerce of
New York. Mr.. Steele is still on the
boards of the Atchison, Lehigh Valley.
Northern Pacific, Erie, Southern, Chi
cago. indianapolis and Louisville
Chicago Great Western and Alabama
Great Southern railroads, and the
General Electric Company, Interna-
tional Harvester Company, Interna-
tional Mercantile Marine and Adams
Express Company Mr.. Davidson is
on the boards of the Erie and Cincin-
natl, Hamilton and Dayton railroads,
the Western Union Telegraph Com
pany, the First National Bank, the
National Bank of Commerce, the
Liberty National Bank of New York.
the First Securities Company and the
Bankers Trust Company of New
York. Mr.. Porter is represented in
five New York banks, the United
States Life Insurance Company, the
Pere Marquette railroad, the Reming-
ton Typewriter Company III, H. w.
Johns Manville Company, the Fidelity
and Casualty Company, the Cruik-
shank Company and the Associated
Land Company Mr.. Lamont is still
on the boards of the Northern Pacific
railway, the International Harvester
Company, the International Agricul-
tural Corporation, the First National
Bank-of New York the Guaranty
Trust Company and various lesser
concerns
Morgan & Co. have played PROM
inent part in the affairs of a number
of corporations whose stock is held
under a trusteeship. No information
could be obtained today whether the
firm would withdraw it's members
who are among the trustees of these
corporations. In the list are the
Southern railway, the Chicago and
Great Western, the International
Mercantile Marine Company. the
California Petroleum Company, the
International Agricultural Corpora
ton and the Loose-Wiles Biscuit
Company.
BY withdrawing from these corpora
tions ]. P. Morgan & Co. have cut
the strings that have held together
many of the country's most important
corporations in a community of in
terests which has been assailed with
in and without Congress. The house
of Morgan feels that it has kept with
in the law in all of its complex oper-
ations, and that no legal necessity or
threatened compiled lions with the au-
thorities at Washington has made it
necessary to adopt sweeping change
in policy announced today.
The only effect on the stock market
of Morgan & Co.'S announcement was
to bring trade virtually to a stand
still When the news was flashed by
telephone and news ticker to the
stock exchange brokers dropped their
business, and for some time the ex-
change was practically given over to
discussion of the announcements,
which probably was complete sur
prise to every man on the floor The
announcement had no influence upon
the market. Even the stocks of cor
porations most directly connected
with the house of Morgan did not vary
in prices.
Attorney General McReynolds,
whose presence in New York during
the last few DAYS is supposed to be
connected with negotiations for dis
solution of several large corporations.
among which the American Sugar Re-
filming Company and the New York,
New Haven and Hartford Railroad
are mentioned most commonly, did
not seem to be at all surprised at the
news. He did not intimates, how
ever, that he had any advance in
formation on the subject.
ut is very interesting" he said,
"but ] do not think it would be be-
coming of me to make any comment"
In making the announcement the
Morgan firm departed from its long
established custom in regard to its
dealings with the public. In times
past the head of the house has been
almost unapproachabie- Today tele-
phone notice VAS sent to various
newspaper offices asking that repre-
sentatives call at the Morgan bank
ing house TO see Mr. Lamont.