Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-03-12


The statement that they did not
make any money out OF it removes
the last excuse Morgan & Co. could
have had for the running of New Ha-
VEN heavyweight financier re-
marked to me with a significant ia
cial expression. ITO have done it for
profit would have been bad enough
to have done it without even that ex-
cuse is-well, let's just call it worse. "
When ], P. Morgan died, one of his
close associates said to me: Mr..
Morgan was NOT a great banker,
Three times in five his own judgment
was wrong. The secret of his power
lay in the confidence of others in his
honesty That's why every banker
was willing to accept his leadership
during the panic"
The Morgan letter confirms this
view.
When J. P. Morgan & Co. issue an
offlcial statement giving extracts from
their ledgers | for one am prepared TO
accept its accuracy without question
nobody is foolish enough to imagine
that the firm stole the New Haven
millions that were lost But before
analyzing the figures and criticising
the convenient fiscal agency" ar
rangement made with the New Haven
by the bankers, | believe ! can throw
valuable light on the whole New Ha-
ven tragedy and its motif.
For several years before his death
j. P. Morgan was obsessed by a
mania for buying things. for monop-
oily Latterly it became so pro-
nounced in respect to art objects that
MS associates were genuinely
alarmed
Next to Heaven. Mr.. Morgan be-
lieved most in the New Haven Rail
road. OF all earthly things ii was
his chief JOY and pride He made of
II his own child. And, as a special
mark of affection, he lavished upon it
his peculiar Misunderstanding was too
big or too dear for it to buy. He set
his heart upon making New Haven
the greatest, the most complete trans
pOrtation monopoly history had ever
known. Steam railroads. electric
railroads, traction systems, troleys,
steamship lines wharfs, piers
everything and anything that fitted
into his monopoly scheme was ac-
CURED, no matter how exorbitant the
price. That all this was in violation
Of the law did not bother MIR. Nor
gan, His eyes were on one goal and
he would let nothing stay his prog
ress toward 1t.
When this ruinOus policy began to
show defects. when the New Ravens
credit began to weaken. Mr. Morgan
thought the public must be mad to
harbor the most shadowy doubt about
the stability of the system. He took
it as personal affront when advised
that unlimited millions of new Sc
Curities should not be snapped up
eagerly by investors. What? Cues
ton the credit of the New Haven, the
pride Of his heart? The thing was
preposterous. But the public did
question the strength OF New Haven.
Then MIR, Morgan died.
Mr. Morgan. you will see, was not
in New Haven to wiring from it un-
counted dollars. His dominating mo-
tive was not money making-at least
not immediate money making. 1t was
monopoly monopoly at any cost Of
cash or lawlessness. OF course mo-
nopoly once firmly established, would
Yield unrestricted profits. But the
main thing. the force that impelled
him forward, was MONOPOLY.
That Morgan and his o-directors
followed a crassly mistaken policy
everybody realizes. Some of the
things done were not only absurdly
foolish, not only economically I'M
sound, but markedly criminal, in fla
grant violation Of the law.
The fruits have been carnage I'M
parallel over half a hundred
deaths and nearly half a thousand
maimings-in three years; the be-
smirching OF many reputati IN
calculable graft among those who
fed Mr. Morgan's monopoly mania
the sellers of traction and steamship
lines; and, not the least. the inh.c-
ton OF heart breaking losses upon
thousands and thousands OF smoll
trustful investors among them more
than ten thousand women.
The Morgan letter detailing its
commissions is a poor uncomforting
answer for all that has ben done
It meets none of the basic charges
that the system was saddled with
of unduestionable value and
charged therefor staggering sums -
which somebody must have pocketed
and which were flched from the
slender purses OF New England
trustful inhabitants
Taking the letter by itself i'll
presents a record that calls for plain
spoken criticism and furnishes al
pointed Jason for demanding reform
in the relations between bankers
and railroad chiefs.
When Morgan 4 20. did the New
Haven financing on an open or com
pettive basis they lost money on
Securities Purchased Prior to Els
cal Contract the firm shows our
PROFIT $545.164' and "Our Loss.
This was net loss or
$l93,360
Then when the collapse Of the
system made fl difficult 10 raise
funds. lo the fiscal agency device
was dropped and New Haven was
told # would have to pay l-2 per
cent, or Sl.650,O0O commission an
its next bond issue, although the
bonds we're selling in the market
away above par
"Flscal agency" or in plain LAM
guage. monopoly banking. IS i'm
moral Morgan & Co. have been it,