Daily Kennebec journal., 1914-01-03

The connections between Mr.. Baker
and the Morgan firm and especially
with the late j. P. Morgan, were gen.
orally regarded as being so close that
1t is believed their common decision
regarding withdrawal from interlock-
ing directorates was reached as the re-
suit of concerted action. There was
no evidence that any general agree
ment had been reached among the 9TH
er leading financiers of Wall Street.
Both Kuhn, Loeb G. Co. and James
Speyer &, Co. maintained silence. 1t
was predicted nevertheless by men in
Wall Street who have followed the
trend of events in finance and politics
in the recent times that the days
events were prophetic of the ending
of the system of interlocking direc-
torates which had been bitterly at
tackled for years and lately by mem
bers of the present washington ad-
ministration and by members of Con-
gress who have been fighting what
they termed The Money Trust"
In Wall Street, that part OF Mr..
Morgan's statement in which he spoke
of AN apparent change in public SEN
timent in regard to directorships" was
referred to as a sign of the times. One
International banker who in the past
has served as director in many well
known corporations, had this to say:
There isn't the slightest doubt in
my mind that the announcement made
by j. P. Morgan & Co. is only the fore
that will be made in the near future
nd of
will be wholesome and far-reaching
Only a few days ago the American
Telephone & Telegraph Co. showed
that it was in sympathy with the spirit
of the times by announcing that 1t
would surrender control of the West
ern Union Telegraph Co. and today's
announcement is just another indica-
tion that our big men appreciate that
a Public be pleased policy is better
than the old Public be damned idea.
For 10 years we have had open
antagonism between the public and
men of affairs. Our big men have now
decided to meet the spirit of unrest
on the part of the public by so adjust
ing their affairs as to comply with
public sentiment, and, | believe that
today's announcement and those that
will follow, will be met by the public
IN the right spirit. In brief, the events
of the past few days regarding cor
poration affairs have encouraged me
more than anything that has happen
ed in many years"
J. P. Morgan, Senior, at his DEATH
was director in SO corporations, in
cluding many of the foremost railroad
and industrial companies of the coun-
try-and several of the largest bank
ing institutions, and to these director
ships his son succeeded. His partners
are directors in many more corpora
tions, and the firm, for years the dom
inant banking institution of the Unit
ed States, has been financial spon-
sor for considerable number of them.
In the organization of several, includ-
ing the United States Steel Corpora
ton, the international Harvester Co.,
and the International Mercantile Ma
rine Co. J. P. Morgan & Co. took the
foremost part and 1t was instrumental
in the re- organization of others, not
ably the Erie & Southern Railroads.
George F. Baker is a director in more
corporations than any other one man
Mr.. Baker, who has heretofore ad-
hered to policy of silence as rigidly
as Mr.. Morgan, expressed his views
in his testimony before the congress
sional Pujo committee early last year.
Speaking of the concentration of
money and credit in the hands of a
comparatively few men, he said:
I think it has gone far enough. 1t
might not be dangerous. but still it
has gone about far enough. In good
hands do not see that it would do any
harm. If it got into bad hands it would
be very bad
While Morgan e. Co. are still rep
resented on the boards of many of the
country's great corporations Mr.. Nor
gan's statement that I'VE expect from
time to time to retire from other
boards" was accepted as foreshadow-
ing the ultimate withdrawal of Nor
gan partners from all the great outside
enterprises with which they have long
been connected
Samuel Untermyer. counsel for the
Pujo committee, said he regretted that
the announced list of Withdrawals didn't
include the more important interlocking
VII eStoi dleS III liG ItHdIlCldI UlSIrlCL nelO
by the firm, such as those in the First
National and National City banks
It appears also" he said, that whilst
some of the partners resign from the
board of a given company one or more
remain, which would seem to indicate
that this is more in the nature of a busi-
ness convenience than a surrender to
public sentiment and that nothing very
substantial has as yet been accomplished
in the way of vindieating the principle
for which the advocates of corporate re-
form have been contending. But the
promises held out in the interview is en-
couraging. 1t will doubtless come out
in time
What was interpreted as a sign of will
ingness on Mr.. Bakers part to give up
such connections was the recent sale by
the First Securities Co., controlled by
First National Bank interests of large
block of stock in the Chase National
Bank, one of the largest financial in
stitutions in New York Frank A. Van
derlip, head of the National City Bank,
said some time ago he hoped to retire