The Washington times., 1914-03-09
Firm, in Letter to Chairman
Elliott. Denies Getting Van-
ished S12,OOO,O 1000.
HAS HANDLED S333.OOO,OO0
INIAST TWENTY YEARS
II Has No Interest in Railroad
Except 814 Shares Owned
by Late J. P. Morgan.

NEW YORK. March s.-Asserting
that in the twenty years it has acted
as fiscal agent of the New Haven rai'-
read it has made a profit OF only SSSo'-
ppo-slightly more than one-tenth of 1
per cent-although it took part in the
sale of sss3. .osN.ooo OF securities, ]. P.
Morgan & Co has made public letter
Il had sent to Chairman Howard Elliott,
Of the New Haven. The letter in effect
constitutes a denial of the charges that
have been made that the Morgan firm
had a rart in looting the New Haven
of the s12oO00oo which the Interstate
Commerce Commission said had ''van-
ished into thin air.
The letter also says that no member
Of the Morgan firm ever had any in
terest in such properties as the West
chester, the steam railways. the trolley
lines or the steamship companies &C
quired by the .Sew Haven or any OF its
subsidiary companies. with the single
exception of l.222 shares of stock of the
South Bay Wharf and Terminal Com
nany. which the late ]. P. Morgan had
left to him bv his father. He later ex-
changed these shares for Sl4 shares of
New Haven stock.
Deposits and Loans.
According to an extract from the
loan ledger which accompanies the let
ters the bulk. of the &l1,155.oO0 loans
was turned over to Mr.. Thorne and
afterward to the Millbrook Company
the same day it was deposited with
Morgan & Co by the New Haven. In
1907 the dates of deposit by the New
Haven and the loans to the Millbrook
Company, together with the amounts,
are the same
On January 9, for instance. the New
Haven deposited si.2oo,0oo with Morgan
& Co.. and on the same day Mr..
Thorne obtained a loan of 81, 10000
Between october ls, 1906 and January
., 1877, MI. Thorne got ss,250,oO from
Morgan & Co. On January 1S 1907, thus
entire loan of ss,5Oo,ooo was transferred
TO the Millbrook Company. From then
until september Is, 1907, the latter COM
pany kept borrowing until its indebted
ness to Morgan & Co. had reached s1,-
l55.c0o.
New Haven company october 80. 1877,
the funds used being known as spe-
cial account No. -
In other words the New Haven de-
posted $l.loo,vb WIFI NoTSdA q ".
who in turn lent it to Mr.. Thorne or
the Millbrook Company. The last loan
made was on September .. 1897, which
is the date of the last New Haven de-
posit. About a month later the New
Haven used its deposits to pay off the
Nillbrook loan.
Says Road Ordered Loans.
The loans OF l1.155,Oo0 TO Oai.leish
Thorne and afterward to the Millbrook
Company, the letter saJs, were made by
order and for the account of the New
Iaven. and letter from Charles S.
MeIlen is quoted to this effect In none
of these transactions. the letter to Mr..
Elliott says, was there any profit OF
commission TO a member of the Morgan
arm.
The letter explains the famous "Ac-
cunt No. g. as one in which the New
Haven company deposited S. 10000 from
lime TO time, which was used to reim-
purse Morgan e Co. for advances il
mad made to the Millbrook Company.
No member of the Morgan firm, the
ietter states. had any interest in the
Millbrook Company or in any of the
securities OF property purchased by the
concern nor in any of the enterprises or
properties which In any way became a
part of the New York, Westchester d
Doston line.
This is the road which the Interstate
commerce Commission said had been
bought by the New Haven for about
100000, which was, the commission
said, SlZ,O01,0e0 in excess of its value
The letter TO Mr.. Elliott was sent in
response to his communications asking
FOR detailed statement OF the financial
transa ctions between the New Haven
and Morgan g. Co. lor the last twenty
ears. and for informItion relative to
the iUans of 81. E55 .0l1 to Oakleish
Fhorne and the MillbrOok CompaiIy.
Morgan & Co, in its letter to Mr FL
he New Haven generally disposed Of
rs securities by selling them outright,
sometimes TO the Morgan firm and
sometimes TO others, the purchasers
Jsking the risk Of loss CT profit there
On. In one loan Of SIS, l65.767 Morgan S
%. according to the letter. sustained
loss of SIS, ,360.I4
The letters adequately explain them
selves, saio representative OF J. T.
Morgan d Co last night. "ano for tha
"eason we nave prepared 10 explanatory
or otheT formal etate'lent TO accom-
psny them.
our letter 10 Howard Elliott shows
nat in twenty years J. f. Morgan &,
% took part in The sale OF 1893 go OCo
Of securities OF the New Haven conn
panies and made net profit of S35OGOO
on the transactions. II shows. also.
that neither the firm l.ur its partners
were interested in the properties ac-
qulred by the New Haven