Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-02
MORGAN FIRMS
MOVE PLEASES
CABINET CIRCLES
Viewed as First Practical Step
to Eliminate InterIOcking
Directorates.

WASHINGTON. Jan. 2.-Adminis-
tration officials here have known for
some days that a movement was on
foot In New York to separate the
Morgan house from some Of It's larger
directorates. 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 BIZ
the President
Tfis tnf0rnlHtiuu was mighty grafi--
flying to cabinet circles, but in the
absence OF President wilson from
Washington it WAS not known
whether the prospective movement
had been made known to him. It
Is as primarily important in
being the first practical step on a
colossal scale to adopt the spirit Of
the movement against the so-palled
interlocking directorates and afso As
affecting a number OF propertiks r.
which government action for d1sspiis
ton is pending.
J. r. Morgan q Co. s particips.
in the control of many corpolra Is i.s
and the presence of members r.
firm upon the boards of directors of
many industrial concerns and pow
erful financial institutions in New
York and elsewhere, was one of the
principal points of attack by the So
called money trust Investigation Of
the slxty-second Congress.
Scored In Money Trust Report
The voting trusts of the Guaranty
Trust Company and the Bankers
Trust Company of New York, Of
which members of the Morgan firm
We're members. was scored in the
money trust report. and membership
upon many other boards by indlvId-
uals of the firm was characterized oy
the Pujo investigating committee and
by Samuel Unternyer. its chief in
vestigator, as one of the evidences of
the so-called money trust"
As a result of that Congressional
investigation several bills aimed at
interlocking directorates were framed;
the Senate committee, which conduct
ed an extended investigation of the
trust situation upon its own areeunt.
considered bills which included inhi-
bitions against interlocking diree-
torates, and even the administration
currency bill recently enacted into
law was threatened with amendments
to that effect though the measure got
through both houses without them.
Several bills now pending before the
House judiciary committee, which will
serve as q partial groundwork at least
for the projected trust legislation of
the present Congress contain pro-
visions against the so-called Inter
locking control of corpora tions. Sec
retary Redheld. of the department of
commerce. in his annual report,
recommended legislation against It.
President Wilson's views upon that
phase of the question, according to
in the recent arrangement by which
the American Telephone and Tele-
graph Company gave up its relations
with the Western Union. IT is gen
orally understood that the President's s
views were communicated in a
measure to ''hig business through
Attorney General MeReynolds, who
conducted the telephone case nego-
tiafions and was heartily commended
by President Wilson on the result.
Firm Members Are Defendants.
Individual members and directors
of the Morgan firm and some former
members are defendants in govern
ment suits now pending for the disso-
luton of combinations under the
sherman law Notable among them
are the suits against the UniVd
States Steel Corporation, the Inter
So called shipping trust
The governments contemplated
action against the New Haven also
would include the Morgan directors
If it is finally filed instead of being
settled out of court as promises to be
the case
Members of the old money trust
committee were away from Washing
ton today. but their report declagd
that the Morgan house had twenty
three directorships in thirteen banks
and trust companies. having total re-
sources Of 81 406 600 900 and total de-
posits of SgSq, 900 900: four director
ships in four insurance companies.
and a controlling stock interest in an :
otber, the total assets being 81. 24a. :
900, 600: twenty directorships in twelve
TRANSFORMATION Systems. having a to-
ntai capitalization Of $4s579. 900 900;
twelve directorships in seven proda1r-
ing and trading corporations. incllid-
ing the United States Steel. Pullman,
General Electric and others. having a
tCan1Snned on rage 3. CeImnIn 50 ;