The Liberal democrat. [volume] (Liberal, Kan.) 1911-1924, 1914-01-09
BIG MONEY KING
CUTS OWN SWAY
J. p. MORGAN REDUCES VAST
POWER IN FINANCE THAT HE
INHERITED FROM FATHER.
GIVES PUBLIC UIsFAVOR AS REASON
He and His Firm Members Quit offices
In 90 Big Railroads and ship Lines
George F. Baker, Second Greatest
Financial Monarch, Says He VIII
Follow Same Course.

New York, Jan. 3.-The withdraw
al today of j. P. Morgan and COM
pany from more than score of great
corporations and the statement short
ly afterward by George F. Baker, an
almost equally dominant figure in
American finance that he would soon
take similar action, gave Wall street
generally a thrill which almost
brought trading on the stock exchange
to halt.
While 1t is probably true that many
of the prominent bankers had infor-
nation foreshadowing this momentous
move toward ending interlocking d.
rectorates, the public and brokers had
no advance knowledge of what was
taking place in the inner councils OF
the greatest of all American houses OF
finance. Wherever telephone and
ticker flashed the news about the
street groups of men gathered to dis
cuss what was the all absorbing top
ic.
Mr.. Morgan, departing from his
firms traditional policy Of silence,
made a public statement announcing
the withdrawal of five members Of j.
P. Morgan and company from direc-
torships in twenty-seven corporations
and the intention to withdraw from
more.
]. P. Morgan made this statement:
1.-THE necessity of attending many
board meetings has been so serious
a burden on our time that we have
long wished to withdraw from the
directories of many corporations.
Most of these directorships we have
accepted with reluctance, and only
because We felt constrained to keep
in touch with properties which we had
recognized or whose securities we had
recommended to the public, both here
and abroad
An apparent change in public senti-
ment in regard to directorships seems
now to warrant us in seeking to re-
sign from some of these connections.
Indeed, it may be, in view of the
change in sentiment on the subject,
that we shall be in better position
to serve such properties and their
security holders If we are not d.
rectors. We have already resigned
from the companies mentioned, and we
expect from time to time to withdraw
from other boards upon which we feel
there is no special obligation to re-
main"
Mr.. Baker announced his intention
to withdraw in response to a question
whether he intended to follow the ex-
ample of the Morgan firm.
81 intend to get out as director OF
all companies that will let me-" he
said. "As a matter of fact, l have
been beginning to do so for the past
two years"
The connections between Mr.. Baker
and the Morgan firm and especially
with the late ]. P. Morgan, were gen.
orally regarded as being so close that
it is believed their common decision
regarding Withdrawals from interlock-
ing directorates was reached as the
result of concerted action.
There was no evidence that any gen.
eral agreement had been reached
among other leading financiers of Wall
street. Both Kuhn. Loeb & Co., and
James Speyer & Co. maintained ST.
lence 1t was predicted, nevertheless,
by men in Wall street who have fol-
lowed the trend OF events in finance
and politics in recent times, that the
days events we're prophetic of the
ending Of the system of interlocking
directorates, which has been bitterly
attacked for years and latterly by
members of the present Washington
administration and members of cor
gress, who have been fighting what
they termed the money trust"
In Wall street that part of Mr. Nor
gan's statement in which he spoke
of IAN apparent change in public sem
timent in regard to dictatorship" was
referred to as a sign of the times.
j. P. Morgan, Sr., at his death was
director in fifty-nine corporations, in
Guiding many of the foremost rail
road and Industrial companies of the
country and several of the largest
banking institutions To these direc-
torships his son succeeded.
George F. Baker is director in
more than sixty corporations. a greater
number than any other one man in
the country. Mr.. Baker. who hereto
fore has adhered to a policy of silence
as rigidly as Mr.. Morgan, expressed
his views in his testimony before the
congressional Pujo committee early
last year.
TURNS DOWN NEW SYSTEM