Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-02
Administration Officials
Were Aware of Intention
of Morgan Banking House

Administration officials here have known
for some days that a movement was en-
foot in New York to separate. the Morgan
house from some Of it's larger directo-
rates, and as expressed by one familiar
with their affairs to. get in line with The
wishes of the people and the spirit OF
the times as set forth by the President.
This information was highly gratifying
to cabinet circles, but in the absence of
President Wilson from Washington It was
not known whether the prospective move
ment had been made known to him. II
is viewed as primarily important in being
the first practical step on colossal sca.e
to adoLt the spirit Of the movement
AGAINST the so-called interiocking direc-
torates, and also as affecting number
of properties in which government ac-
ton for dissolution is pend -ng.
j. p. Morgan & Co.'S participation In
the control of many corporations ana
the presence of members OF the nrm
upon the boards of directors of many IN
dustrial concerns and powerful financial
institutions in New York and elsewhere
was one of the principal points of attack
by the so-called money trust invesuea-
ton of the Sixty-second Congress.
The voting trusts 81 the Guar anty Trust
Company and the Bankers Trust Com
pany of New York, of which members
Of the Morgan firm were members, was
scored in the money trust report, ana
membership upon many other boards by
individuals of the firm was character
lied by the PujO investigating commit
tee and by Samuel Untermyer, It's chleI
investigator, as one of the evidences of
the so-called money trust
Bills Hit Interlocking Directorates.
As a result of that congressional in-
vestigation several bills aimed at IN
terlocking directorates were framed;
the Senate committee, which conducted
an extended investigation Of the trust
situation, upon it's own account, con-
sidered bills which included inhibitions
against interlocking directorates, and
even the administration currency bill.
recently enacted into law, was threat
ened with amendments to that eject,
though the measure got through ooth
Houses without them.
Several bills now pending before the
House judiciary committee. which Will
serve as ps latiai groundwork at least
for the projected trust legislation of the
present Congress. contain provisions
against the so-called ''interlocking con-
troll of corpo: atoms Secretary Red
field of the Department of Commerce. in
his annual report recommended legiS,a-
ton against 1t.
President Wilson's views upon that
phase of the question. according to well
informed officials. were expressed in
the recent arrangement by which the
American Telephone and TIE egraph
Company gave up it's relations with
the Western Union. 1t Is generally
understood that the Presidents views
were communicated in me sure to
big business through Attorney Gen.
eral McReynolds. who conducted the
telephone case negotiations, and was
hearty commended by President Will
son on the result
Individual members and directors of the
Morgan firm and some former members
are defendants in government suits now
pending for the dissolution of combina-
tons under the Sherman law. Notable
among them are the suits against the
United States Steel Corporation, the In
tel ma sional harvester Company and the
so-called shipping trust.
The governments contemplated ac-
tion against the New Haven also
would include the Morgan directors il
tied out Of court, as promises to be the |
case. |
Morgan Holdings Shown.
Members of the old money trust |
committee were away from Wash |
ington today, but their report de- |
clared that the Morgan house had |
directorships in thir-
teen banks and trust companies,
having total resources Of $1.406.000,- |
900 and total deposits of S889, 900;
four directorshps in four insurance COM |
panies and a controlling stock interest in |
another the total assets being 81 ,249OOO. |
900: twenty drectOrships in twelve trans |
portation systems, having a total capi-
talization of $4.379. OO0, 900; twelve direc-
torships in seven producing and trading |
including the United States
Steel, Pullman, General Electric and