The Indianapolis times., 1929-09-16
MORGAN & CO.
FORMS GIANT
UTILITY TRUST
Huge Combine Is Built Up
Through Mergers in
East, Southeast.
GREATEST IN HISTORY
New Consultations to Be
Effected Soon, Report
in Washington.
GREATEST IN HISTORY
BY RUTH FINNEY,
Times staff COrreSpondent


Morgan 81 Co. today dominates the
greatest alliance of power COM
panies ever to exist.
Through consultations and alli-
ences, the company has, for all
practical purposes, won control of
the public utility business through
put the east and southeast. This
has been accomplished within the
last few months. Attention is called
bo it today by announcement that
q new power system in northern
New York just has been acquired,
and another is to be acquired soon.
Further mergers are rumored.
However, through interlocking di-
srectorates and through interconnec-
tion of semi-independent power sys-
Items, such a unified organization
: ,Rlready has been brought together
THAT there remains only to strength
en- it in minor ways.
The Central Morgan Company is
Niagara Hudson Power Corporation,
"a s4j0,000,000 organization recently
formed by merging three of the
strongest power groups in the north
east, the Northeastern Power Cor
poration, the Buffalo, Niagara 81
Eastern Power Corporation, and the
fMohawk Hudson Power Corpora
tion.
Another Corporation Bought
;; This merged organization just
has purchased the Frontier Cor
poration, more than doubling its
potential horsepower. 1t has an
nounced it will purchase the St
lawrence Securities Compauy.
which controls five large operating
companies in the same territory.
; These have been controlled by the
aluminium Company, General Elec-
tric and Du Pont interests.
. United Corporation and Electric
Bond and Share, the two biggest
holding company groups in the pow
or field, are allied closely with Mag
ara Hudson Power Corporation.
Morgan has large interest in both
Of these groups and they own inter
sSts in his.
United and Electric Bond and
Share together control 81 per cent
Of all power produced in this coun-
try.
~ United has large holdings in one
Of the companies originally merged
by Morgan, the Mohawk Hudson
Power Corporation.
Owen Young Is Director
Owen D. Young. chairman of the
General Electric Company, is di-
rector in one of the companies.
Through these two groups, the
Morgan influence extends into
Pennsylvania, New Jersey, and far
into the south.
United has large holdings in the
Public Service Company of New
Jersey, and United Gas Improve
ment, of which one of the directors
is a director of Niagara Hudson
Power corporation.
1t also has large holdings in Co
hmbia Gas and Electric Company
and Allied Power and Light Com
pany. Through United Gas I'M
provement. it gains control of the
proposed Conowingo development in
Pennsylvania and Maryland.
Largely through the Electric Bond
& Share, the Morgan interests tied
in with Commonwealth and South
ern corporation, newly merged, to
control a large part Of the utility
business in the s6u>sS. 1t includes
Southeastern Power sad Light Com
pany, of which the Alabama Power
Company is one subsidiary, and
Penn-O Ohio Edison Company.
Reaches Into South
The electric bond and share has
subsidiaries in North Carolina, also
making the chain of interlocked
companies continuous down the At
.lantic seaboard. 1t reaches out into
the northwest, west and southwest,
but its greatest resources are maSSed
in the east.
In addition to these other afhlia-
tions, the lines of the Morgan group
connect with those of the New
England Power Association the
most powerful consolidation in the
New England states, and it is ru-
mored a controlling interest in this
will be purchased.
There also is discussion of posi-
BILE interconnection with the lines
of the New York Edison and Brook
lyn Edison companies.
Compared with this great inter-
connecting super power system, its
nearest in size. the insult group, is
a pygmy. According to latest figures
the insult companies control 10.4 per
cent of the country's power output
Its resources are concentrated in the
middle west and it is the strongest
in that field.