The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-01-07
THRILL GIVEN WALL Street.
MEMBERS OF MORGAN AND BA.
KER HOUSES QUIT OTHER
COMPANIES.
Banking Institutions Will Cut on
InterlOcking Directorates-Head of
the MOneycd Power Announces that
People Now Demand Less Intimate
Relationship Between Corporations.
Untermeyer Not Impressed.


New York, Jan. 2.-The withdrawal
today Of J. P. Morgan & Co., from
more than a score Of great corpora
tions and the statement shortly after
wards by George F. Baker, an almost
equally dominant figure in American
finance, that he soon would take sim
liar action, gave Wall street generally
a thrill that almost brought trading
on the stock exchange to halt.
While it probably is true that many
prominent bankers had information
foreshadowing this momentous mo- S
toward ending interlocking dir s
torates, the public and brokers
no advance knowledge Of what )
taking place in the innef couno > (
the greatest of all American = es
of finance. Wherever telephc md
ticker flashed the news alb the
street, groups Of men gather dis
cuss what was the all-absor. topic
Mr.. Morgan, departing from his
firms traditional spolicy Of silence,
made public statement announcing
the withdrawal Of five members Of ].
p. Morgan & Co., from directorships
in q corporations and the intention
to withdraw from more.
J. p. Morgan made this statement:
THE necessity Of attending many
board meetings has been so serious a
burden upon our time that we have
long wished to withdraw from the d.
rectorates Of many corporations. Most
Of these directorships we have accept
ed with reluctance and only because
we felt constrainedSto keep in, touch
with properties which we had reor-
ganized or whose securities we had
recommended to the Public, both here
and abroad. II
e IAN apparent change In public SEN
ftiment un regard to y directorships
seerhs nowwo warrant us in seeking 70
resign from some ofthese connections.
Indeed, 1t may be. ,in view OF the
change in sentiment upon the subject.
that we shall be in better position
to serve properties and their Sc
curity holders If we are not direct
ors. We have already resigned from
the companies mentioned and we ex-
pect from time to time to withdraw
from other boards upon which we
feel there is no special obligation to
remain"
by withdrawing from these cor
porations. ]. p. Morgan & Co. has sew
cred the connections that have held
together many of the nations most
important corporations in a commu-
nifty Of interests which has been as
sailed within and without congress.
The house of Morgan feels that it has
kept within the law in all OF its COM
plex operations and that no legal ne
cessity or threatened complications
with the authorities at Washington
has made 1t necessary to adopt a
sweeping change In policy announced
today"
Mr. Baker announced his intention
to withdraw in response to ques-
ton whether he intended to follow the
example Of the Morgan firm.
II intend to get out as a director Of
all the companies that will let me-"
said he. "As matter Of fact, have
been beginning to do SO for the past
two years."
The connections between Mr.. Baker
and the Morgan firm, and especially
with she late j. p. Morgan, generally
were regarded as being so close that
1t believed their common decision re-
garding withdrawal from interlocking
directorates was reached as the result
Of concerted action. There was no owl
dence that any general agreement
had been reached among other lead
ing financiers Of Wall street.
1t was predicted, nevertheless, by,
men In Wall street, that the days
events were prophetic of the ending
Of the system OF interlocking director
ates who had been attacked for years
and recently by members Of the pres
ent Washington administration and
members Of congress who have been
lighting what they termed the money
trust" That part of Mr.. Morgan's
statement in which he spoke OF IAN
apparent change in public sentiment
in regard to directorships'' was re.
ferred to as sign of the times.
j. L. Morgan, Sr., at his death, was
q director in So corporations. in
cluding many of the foremost rail
road and industrial companies of the .