The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-17
MIGHTY HOUSE
OF MORGAN IS
GRIM, ALOOF
Heir of Elder J. P. Bearing
His Name, Rules With
Iron Hand.
This is the first of six stories on the
House of Morgan. again to be the subject
of a senate inquiry.
BY WILLIS THORNTON,
NEA Service Writer

NEA Service Writer
NEW YORK, April II. Once
again the mysterious and mighty
House of Morgan must stand, as it
stood twenty years ago, before a
congressional inquiry and the judg-
ment of the American people.
Once again we try to lift the lid
and peer into the greatest private
banking institution in the world,
the house that has dominated
American finance for nearly seventy
years. that has become synonymous
with money and the power that goes
with it.
Is this house a financial octopus,
crushing into its greedy embrace all
money, all industry, all the financial
life blood of the nation? Its enc
mics say SO.
Is it an admirable banking inStitu-
ton, rooted in character and trust
Worthiness, conservative anchor in
times of bad banking, reorganizer
and doctor of sick industries? It's
admirers would have you believe So
In Severe Setting
To the tourist strolling through
the narrow canyon of New York's
Wall street, it is a squat, severely
plain building set into the corner of
Broad and Wall streets, directly
across from the sub-treasury and
within a stones throw of the stock
exchange Towering buildings over
hang it on all sides.
The plain, massive door Intel
bears no inscription. Letters COM
ing from that Office bear no legend
but "23 Wall street" In the flnan-
cial section it is known simply as
The Corner"
To the business visitor, the in
terror is equally strange. There is
large room on the main floor
Ranged in rows suggesting a school,
room are the desks Of the twenty
Morgan partners.
Little is seen of the nearly 1000
employees of the firm. Most of them
are in an adjoining building.
At the far end of the room on
the side facing Broad street, be-
hind low glass partition, is the
desk of j. P Morgan. An open
fire burns on the hearth; an oil por-
trait of the elder J. P. Morgan looks
down.
Pace Is Killing
There are conference rooms on
the floor above, but most of the
comforting is done simply by step
ping from one desk to another,
There is seldom so much as a secre-
tary in evidence, and never the
slightest sign of confusion.
Though these Morgan partners
work at a pace that has killed many
Of them prematurely, there is no
sign of activity here beyond that
of any quiet, well-run banking room.
To the student of organization,
the House of Morgan offers an in
teresting problem. Its precise Or
ganization is unknown, for it is
private partnership, unincorporated.
Though in some respects it is the
greatest bank in the world, it is not
a bank at all under New York state
law
No Reports Made
No reports ever are made of the
firms condition; reserves, resources,
and deposits are unknown.
Wall Street generally estimates
a Morgan partnership to be worth
a million a year; to some of the
senior partners five millions. Any
dispute among partners is referred
to Morgan. who settles it.
Any partner may withdraw on
three months notice, and the in
terest then due him is determined
by Morgan, who also can compel re-
tirement of a partner.
The partnerships run for definite
periods, usually about three years,
renewable at expiration Thus the
partners are in a sense merely en-
ployes.
The name j. P. Morgan g. Co.
must be discontinued fifteen years
after a descendant of the elder J. P.
Morgan bearing his name ceases to
be associated with the company. The
firm is a member of the New York
Stock Exchange.
The number of Morgan partners
varies. At present it is twenty as
follows: j. P. Morgan, Edward T.
Stotesbury. Charles Steele, Thomas
W. Lamont, Horatio G. Lloyd,
Thomas Cochran, Junius Spencer
Morgan Jr., son Of j. P. and great
grandson Of Junius. founder Of the
house,. George Whitney, Russell
Cornell Leffingwell, Arthur M An
derson, Francis Dwight Barlow, Will
liam Ewing, Harold Stanley, Henry
Sturgis Morgan, second son of
j. p, Thomas Stilwell Lamont (sOn
of Thomas W., Henry Pomeroy
Davidson (son of Henry P), Thomas
Newhall, Edward Hopkinson Jr.,
Seymour Parker Gilbert and Charles
Denston Dickey.
Each Partner a Specialist
Close connection With the London
AM Paris affiliates of the firm,
Morg. n, Grenfell g. Co., and Nor
gan ct Gle, is assured by member
ships of many of the partners in
those firms.
Each partner is specialist in a
field Of finance. AS such he holds
many directorshipS. But not as
many as you might think. For in
stance, j. P. Morgan, head Of the
house. holds far fewer directorships
than many we'll known Wall street
men.
The only important ones are:
United States Steel Corporation
Pullman Company and Pullman
Corporation, First Security Com
pany IN. ", Aetna Insurance
Company and Discount Corporation
of New York. He is listed as a d.
rector in seven other corporations
but they are all church or philan-
thropic connections.
Even Morgan's personal fortune
is not SO great as you might imagine
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