The Washington herald., 1914-01-03
MORGANS INAUGURATE
NEW SYSTEM, QUITTING
MANY DIRECTORATES

New York, Jan. 2.-The. first result OF
the government campaign against the
system of interlocking directorates was
shown when members Of the firm OF J. p.
Morgan & Co., today resigned from a
large number OF corporations, including
banks and industrial concerns.
The following statement was issued by
]. p. Morgan & Co:
The necessity OF attending many board
meetings has been so seriouus a burden
upon our time that We have long wished
to withdraw from the directorates of
many corporations. Most OF these direc-
torships we have accepted with reluc-
tance, and only because we feel con-
strained to keep in touch with properties
which We had organized or whose Sc
curities We recommend to the public both
here and abroad.
An apparent change in public senti-
ment in regard to directorships seems
now to warrant us in seeking to resign
from some of these connections. Indeed
it may be, in view OF the change in senti-
ment upon this subject, that We shall
be in a better position to serve such
properties and their security holders If
We are not directors"
Quits New York Central. =.
which the designations have taken place:
]. p. Morsan-New York Central lines,
New York, New Haven and Hartford SUBJ
sidiaries, and Western Union.
Charles Steele-Central Railroad OF New
Jersey and United States Steel Corpora
ton.
Fl. p. Davidson-American Telephone
and Telegraph. Astor Trust. Guaranty
Trust, and Mechanics National Bank.
W. II. Porter-Bankers' Trust and
Guaranty Trust.
T. w. ACKNOWLEDGEMENTS Electric
and Manufacturing, Utah Copper Astor
Trust, and Bankers Trust
During the investigation of the money
trust by the Pujo committee at Wash
ington it developed that the house of
Morgan. James Stillmen, of the National
City Bank: George +. Baker. and Kuhn,
Loeb & Co, had a community of inter-
ests that prompted the one to offer to the
others a share of any venture that was
about to be launched. 1t was during the
investigation that the system OF interlock-
ing directorates was revealed, under
which. it is was charged. less than 800
men. by having places in many boards,
dominated the financial and industrial sit
uation in America.
1t was shown that the combined in
fluences of J. p. Morgan and John ID.
Rockefeller controlled 3o5 banks with a
total capital, surplus, reserve, and de-
posits. of ss.097, S51 oil. This influence does
not appear to have been dropped in any
way by the new move because the names
o: no banks appear in the list of ]. p.
MorSan's dropped holdings. and the firm
is Otherwise represented in trust COM
panies from which the partners retired.
Inaugurate New System.
In inaking the announcement the Nor
gan firm ;naugurAtctl n new system of
dealing with the public In times past
the head of the house has been almost
GHapp.racha'lc Today telephone notice
was sent to various newspaper offices ask
ing that representatives be sent to the
Morgan banking house at leo to see Mr.
Lamont, one OF the p7rtne-s
At that hour Mr.. Lamont said to the
assembled group of reporters:
Mr.. Morgan has something he wishes
to say and will do so himself"
Then Mr.. Morgan entered Tho room, and
greeting the newspaper re-
porters, said:
II have here a little piece OF news to
give you. We are resigning from a num-
per OF directorates. have the list here
and also little interview which explains
the reason"
Then Mr.. Morgan handed around type
written slips with much good humor and
many greetings Of New Years good
wishes
Among the corporations in which Mr..
Morgan still remains a director are the
Steel Trust International Mer-
,antile Marine, Natioral City Bank, and
National Bank of Commerce.