Norwich bulletin., 1914-01-03
Morgan Quits
Corporations
RETIREs FROM DIREcToRATEa
OF OVER A SCORE
YIELDS TO SENTIMENT
Head of Firm Issues Statement
George F. Baker, Another FinaneiA
Leader, to Take Similar Action.

New York, Jan 2-Ths withdrawa,
today Of J. P. Morgan and COMPANY
from more than a SCORE OF great corr
porations and the statement shortly
afterward by George F. Baker, an all
most equally dominant figure in
American finance, that he soon would
take similar action. gave Wall street
brought trading on the stock exchanges
to halt.
While 1t is probably true that many
Of the prominent bankers had inform~
alton foreshadowing this momentou1
move toward ending interiocking di-
rectorates, the public and brokers had
no advance knowledge of what wal
taking place in the inner councils OF
the greatest Of all American houses
OF finance.
The Morgan Statement.
Mr.. Morgan, departing from his firms
traditional policy of silence, made tho
following public statement announc
ing the withdrawal of five members
Of J. p. Morgan and company from
directorships in twenty-seven corpora
tions and the intention to withdraw
from more:
The necessity Of attending many
board meetings has been so serious
long wished to withdraw from thu
directorates of many corporations
Most of these directorships we havs
accepted with reluctance, and only be-
cause we felt constrained to keep IN
touch with properties which we havS
reorganized, or whose securities we
had recommended to the public, both
here and abroad.
tAn apparent change in public sem
timent in regard to directorship.
seems now to warrant us in seeking I'd
resign from some of these connec-
ti0nq he in 1Tfex II
the change In sentiment upon the
subject, that we shall be in a better
position to serve such properties and
their security holders If we are not
directors. We have already resigned
from the companies mentioned, and
we expect from time to time to with
draw from other boards, upon which
we feel there is no special obligation
to remain"
Two Finaneiers Closely Connected.
Mr.. Baker announced his intentiok
to withdraw in response to a Ques-
ton whether he intended to follow thB
example of the Morgan firm.
Il intend to get out as 8 directos
of all the companies that will let me-
said he. las a matter OF fact 1 have
been beginning to do so for the past
two years"
The connections between Mr. Baker
and the Morgan firm and especially
d.. gen.
orally regarded as being so close that
it Is believed their common decision
regarding withdrawal from interlock%
ing directorates was reached as the
result Of concerted action There wa6
no evidence that any general agree
ment had been reached among the
other leading financiers of Wall street
Both Kuhn, Loeb and company and
James Speyer and company main
tained silence. 1t was predicted,
nevertheless by men in Wall street who
have followed the trend of events in
that the days events were prophetic of
the ending Of the system of interlock-
ing directorates.
J. P. Morgan, ST., at his death was
a, director in f1fty-nine corporations
including many of the foremost rail-
road and industrial companies Of the
country and several of the largest
banking institutions and to these di-
rectorshfps his son succeeded His
partners are directors in many more
corporations and the firm, for years tha
dominant banking institution of tbs
United States, has been financial spon-
sor for considerable number of them
In the organization of several IN
Guiding the United States Steel corpor-
alton, the International Harvester
company and the International Mer-
camille Marine company, J. P. Morgan
and company took the foremost part
and it was instrumental in the reor-
ganization of others. notably the Erie
and Southern railroads.
George F. Baker is a director ib
more corporations than any other ons
man in the country, numbering over
sixty.
Directorates Now Eeiinquished.
In connection with the statement Of
Mr.. Morgan there was given out th6
following list of the Morgan partners
and the directorates from which they
already have resigned:
J. P. Morgan
New York Central and Hudson River
West Shore Railroad company.
Lake Shore and Michigan Southern
railway.
Michigan Central Railroad company.
New York. Chicago and st. Louis
Cleveland. Cincinnati, Chicago and
ST. Louis railway.
New York, New Haven and Hartford
railroad
Central New England railway.
New York, Westchester and Boston
railway.
road.
MiiIbrook company.
New England Navigation company.
New England Steamship company.
Rhode Island company
Rutland Railway company.
Hartford and Connecticut Western.
New Yerk, Ontario and Western rail-
way,
Western Union Telegraph company,
Charles Steele:-
Jersey Central Railroad company,
United States Steel corporation.
FL. r. DaFison.-
American Telephone and Telegraph
company.
Astor Trust eonpaay.
Guaranty Trust company Of New
York,
Chemical Natiana1 bank.
". III, fpyferf--
HaHkeFE Trust company
Guaranty TFust company or New
York
n, W. Laln6Hts-
Westinghouse Eleetrie ana MaaafAe-
turing company
Utah Copper company
AsteP Trust eaHapaHY
Bankers Trust eeFanaHy,
Nsthins Said AhsHt Rsak.-
NethiRz is said ia the statssnsnt
abest tka diTeetera,SHE held by xnsr,-
h