Omaha daily bee., 1914-01-04
PUJO COMMITTEE SCORES
Five Recommendations Effective
Without New Laws.
MORGAN AND THE STEEL TRUST
Speculation as 20 whether Finnn-
cier VIII sever Connection
VITA the Pet Project Of
HIS Father.

NEW YORK, Jan. 3-The announce
ment OF the retirement OF }. =. Morgan
and four OF his partners from thirty
directorsh,ps in twenU-seven corpora
tions and Mr.. MoTgans reference 10 the
change IN public sentiment in regard to
dlrectorships. has called attention to the
fact that five important recommendations
of the Puio committee were already being
put into effect in advance Of legislation
requiring them.
They include the abandonment Of fiscal
agency .sgresmcnts. such as existed be-
tween the New Haven and Morgan &
Co the abolition of interlocking director.
ates, the abolition of voting trusts, re-
form in the stock exchange and reform
in the clearing house
Attitude Tovvnrd steel COmhiTse.
Whether Mr.. Morgan will decide to
withdraw from the directorate of the
United States Steel corporation was the
subject of a great deal OF speculation
today. The general opinion was that as
the so-caAed trust was the greatest Of
the Morgan creations and was considered
by the elder Morgan the crowning
achievement of his carer in finance, his
son will consider his duty to remain
Identified with It in an active capacity
especially until the government suit has
been decided one way or the other.
However, the Morgan firm was no less
actively identified with the financial de-
4 velopmeht OF the New York Central lines.
for which Mr.. Morgan was the banking
sponsor throughout the greater part Of
his career His connection with II dated
from the time of Commodore Vanderbilt
and during the time OF William II. Van
derbnt It was through Mr.. Morgan's in
fIuence that English investors placed
enormous sums of money in the securities
Of the road. The resignation of the pres
ent j. p. Morgan from the New York
! Central directorate was one of the most
surprising features of his announcement
yesterday
/ ]. p. Morgan's friends say that he has
been not only deeply impressed by the
change in public sentiment during the last
few years but that he has been deeply
grieved over the criticism of the firm in
connection with the affairs of the New
York, New Haven Hartford railroad
company. n tisA
ef Opinion of Mr.. BOvett.
Robert S. Lovett, chairman of the Union
| Pacific railroad company in commenting
today on the Morgan action, said:
Il think strong bankers on railroad
boards are very desirable, but 1t all de-
pends on who represents the railroads on
the board" .l
a. Barton Hepburn, chairman of the
Chase National bank, expressed the opln.
ion that finterloeklng directorates were q
good thing so long as they did not re.
suit in unlawful monopoly.
u have found in,my personal expert.
er6e.' he added, that ny being on tn,
board OF certain corporations. = aJs able
to get much better knowledge of thei,
financial standing. Used for such pur
pose, being a director on one or more cor
porations- us t~po >Taeans ARjurious oil
Z Auhlawf,b ss,f.5s s, ~. - 1R
I. 4 S2pf colirse,a where the knovledgt
eeeeSarsd through interloeking directorate,
Is used for selfish Profits. the custom IL
to be deeried, ;.