The Sentinel=record., 1914-01-03
MORGAN & co. AND GEO. F. BA kER WITHDRAW FROM INTER
 LOCKING DlREcToRATES.
GETTING ON THE SAFE SIDE
Proposed Action of Congress Forbid. ding This Practice Probably Caus- ed This Move on the Part of the Big Financiers.

New York, Jan 2.-The withdraw al today of J. P. Morgan and Con- pany from more than a score of great corporations and the statement short ly afterward by Geo. F. Baker, an almost equally dominant figure in American finance, that he would soon take similar action, gave Wall street generally a thrill that almost brought trading on the stock exchange to a halt
 While it probably is true that many prominent bankers had information foreshadowing this momentous action toward ending interlocking directo- rates, the public and brokers had no advance knowledge of what was talk ing 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 clss the topic.
 Mir. 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 di- rectorships in twenty-seven corpora tions and the intention to withdraw from more.
 Mir. Baker announced his intention to withdraw in response to a ques- tion whether he intended to follow the example of the Morgan firm
 q intend to get out as a director of all the companies that will let me, . said he AS a matter of fact, l have been beginning to do so for the past two years"
 The connections between Mir Ba- ker and the Morgan firm, and espe- cially with the late J. P Morgan, gen. orally were regarded as being so close that it is believed their com mon decision regarding withdrawals from interlocking directorate was reached as the result of concerted action.
 There was no evidence that gen. eral agreement had been reached be- tween other leading financiers of Wall street. It was predicted nev- ertheless by men in Wall street that the days events were prophetic of the ending of the system of interlock ing directorates. which has been at tackled bitterly for years and recently by members of the present Washing ton administration and members oi Congress-. who have been fighting what they termed the money trust. That part of MT Morgan's statement in which he spoke of "an apparent change in public sentiment in regard to directorships," was referred to as sign of the times. One internatlon- al banker had this to say;
 There is not the slightest doubt in my mind that the announcement made by J. P. Morgan and Company is only the forerunner of many siml- lar announcements that will be made in the near future, and from my point of view the effect will be wholesome and far-reaohing.
 Only a few days ago the American Telesraph and Telephone Company showed that it was in sympathy Wllh tho spirit of the times by announcing that it would surrender controi or the Western Union Telegraph Sonl- many. and today's announcement IS just another indication that our DIE men appreciate that public 6e pleased policy is better than the o'u public be damned idea.
 For ten years we have had open antagonism between the puphc ana men of affairs. I believe today an no,ncement and those that will foi- low will be met by the public m the right spirit. Tn brief, the events oi the mast few days regarding corpora tions affairs have encouraged lie more than anything that has happen ed in many years"
 J. P. Morgan, Sr., at the time or his death was director in hfty-nlne corporations, including many Of the foremost railroad and industrial com panies of the country and several or the largest banking institutions, ana to these directorships his son sue ceeded. His partners are directors n many more corporations. and the hrm for years the dominant banking insti- tuition of the United States has been financial sponsor for considerable number of them In the organization of several J P. Morgan and Company