Evening star., 1933-06-02
TEXT OF MORGAN'S
/. PARTNERSHIP PACT
Great Powers Are Vested
in Head of Banking
Concern.
By the Associated Press.

By the Associated Press.
The text of the Morgan partnership
agreement reads as follows:
This agreement made the sist day
OF March, 1915, between John Pierpont
Morgan and others, witnesseth:
That the parties hereto have this day
formed partnership Tor the transac-
tion of a general foreign and domestic
banking business in the cities OF New
York and Philadelphia, upon the fol-
lowing terms and conditions:
First. The business shall be conduct
ed in New York under the firm name
of ~ P. Morgan & Co." and in Phila-
delphia under the firm name OF
~Drexel g. Co.." and shall commence
On the 1st day of April, 1916.
Second. The capital of the partner
ship shall be as follows:
Third. The net profits and losses
ehall be divided and borne as follows F:
This section was not given completely
Ia conformity with earlier decision by
the Senate Banking Committee).
Fourth. Interest at the rate of per
cent per annum shall be allowed or
charged on all partners accounts, in
kluding capital and undivided profits.
WIUEkdn OCCAcAUAA lAAdAs
Fifth. No transaction shall be made
which shall be objected to by any mem
Der of the partnership.
Sixth In case of difference or dis
butte between members of the partner
ship, the same shall be submitted to
the decision Of Mr.. John Pierpont Nor
Ran, which shall be final
Seventh. The partnership may be
dissolved at any time by Mr.. John Pier
pont Morgan, subject to the liquida-
hon thereof; provided that partners
representing a majority in interest in
the profits of the partnership shall con-
Bent to such dissolution.
Eighth. Any partner may withdraw
FROM the partnership upon giving three
months written notice of his intention
% do so. In that event, the remaining
partners may continue the business and
8he shares Of the profits or losses Of
the Withdrawing partner or partners
Ehau be divided thereafter among the
Fematning partners. or otherwise dis
posed of, according to the decision of
DIR. John Pierpont Morgan, who shall
ok the valuation of the assets, determine
what portion of the assets, If any, shall
be appropriated as an Offset to liabilities
and also be the judge of the amount
due such withdrawing partner or part
iaerS on account of capital, undivided
profits and credit balances. The amount
30 due may be fixed by Mr.. Morgan as
of three months, after the receipt of
such notice or as of the 31st of Decem-
Der next ensuing after the receipt of
such notice, and the interest of such
withdrawing partner or partners shall
continue at the risk of the business until
ehe date as adopted. The determination
OF Mr.. Morgan as to the dates for fix
ing the amount due such withdrawing
partner or partners shall be communi-
eated in writing to him or them within
30 days after receipt OF such notice of
withdrawal The amount so fixed shall
be paid to such Withdrawing partner or
partners within three months after the
Hate as Of which the value of his or
bheir interest shall have been fixed, ex-
Eept in the event that liquidation of
the partnership shall have been entered
upon prior to such date, in which event,
end notwithstanding the foregoing pro-
visions, the interest of such withdraw
ing partner or partners shall abide the
results of liquidation and shall be pay
able only as the liquidation proceeds.
When Mr.. Morgan shall fix the amount
ns due any Withdrawing partner,
schedule shall be furnished showing the
valuations at which the various assets
pf the partnership were appraised, and
what portion Of the assets, II any, have
been appropriated as an ofiset to liabili-
tiess Any withdrawing partner, If re-
Huired, shall take his pro rata share of
the assets not so appropriated to an ex-
tent covering the amount SO due him.
May Compel Withdrawal.
Ninth. It Is further agreed that Mr..
Morgan may, at any time. compel any
partner at once to withdraw and retire
from the partnership, upon giving him
written notice to that effect, and in that
event. the amount due such retiring
partner shall be forthwith fixed by Mr.
Morgan, and thenceforth the interest Of
such partner shall be dealt with In the
same manner as above provided for in
The case Of voluntary withdrawal by
such partner.
Tenth. In case Of the death of any
partner other than Mr.. Morgan, If,
within thirty days after such partners
death, such of the surviving partners as
shall represent majority in interest in
The profits Of the partnership exclusive
of the interest Of such deceased partner
therein) shall give to the persons named
in his will as executors, or to his ad-
uinistrators or other legal representa-
tives, written notice that they desire
an extension of the partnership for a
period specified in such notice not ex-
ceeding three years after the death Of
such deceased partner, then and In
that event the partnership shall con-
tinue for the period not exceeding three
years so indicated by them, and the
capital and interests hereunder Of such
deceased partner and his estate and his
and its responsibility and interests in
the business as continued shall con-
tinue during such period Of extension.
The interest Of such deceased partner in
the partnership shall be ascertained
and dealt with in the same manner as
is hereinbefore in article eight provided
Tor in the case Of voluntary with
drawal, and the date Of the death OF
such partner, or In the event that no
dce Of extension Of the partnership
shall have been given as hereinbefore
In this article provided, then the date
Of expiration Of the extended period
specified in such notice, shall stand IN
the place Of the date adopted for ter
pnination Of his interest as required by