The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1943-03-13
Morgan

new tlfm, DaDney, Morgan and Co.
took its place. II was successful
in modest way.
A few years later in 1862, the
youthful John Pierpont was in
volved in a scandal that was in.
yestigated by a Congressional com
mittee. II was alleged that Morgan
financed the purchase OF defective
rifles which later were sold to the
Union army at large profit. The
government refused to pay but
Morgan sued and obtained a IA
vorable verdict.
In the years following the Civil
War. John Pierpont allied himself
with the DreXels of Philadelphia
and this firm with its working
agreement with ]. S. Morgan and
Co. of London held a strategic
place in American finance. The
bankruptcy Of ay Cooke and Co.,
the financiers of the Civil War, left
Drexel and Co. as the logical firm
TO refund the war debt. This
huge operation was accomplished
successfully.
Fought Jay Gould
Then came the years of exciting
battles with Jay Gould and Jim
Fiske for the railroad empire that
was slowly winding its way west
ward and southwestward Morgan
fought bitterly all the way with
whatever means he found available
in that era of rough and ready H.
nancial morals. Soon William II.
Vanderbilt was forced to give him
a dictatorship in a major railroad
and the House of Morgan moved
irresistibly toward the dominating
position in this field it had attain
ed in loan flotation.
In the panic year of 1895. Nor
gan negotiated one Of his greatest
deals, the saving of the United
States Treasury when it was with
in one day of being drained OF all
its gold. With only s40,O00,000 left
in the Treasury because or the
flight of capital abroad, Morgan
went to Washington in an effort to
see President Grover Cleveland
who disliked him. He was met at
the station by a curt message say
ing the President would not see
him.
81 am going to the Arlington Ho-
tel" said Morgan unruffled. Il
shall wait there until the President
is ready to see me-
Cleveland. Called Morgan
Congress failed to find way out
OF the dilemma and Cleveland sent
for Morgan. The financier was
ready. He told the President of
Civil war act empowering the gov
ernmentto buy gold coin with its
bonds or notes. Cleveland accept
ed after setting several conditions
and Morgan took over the task
with the words:
MIR. President, will so guar
antee."
Only a few years later came an
other great triumph-the forma'
ton of the first billion dollar cor
poration. United States Steel. Nor
gan had moved logically into steel
from railroads but his path to
control was blocked by canny An.
drew Carnegie. Rockefeller had
refused to pay slightly more than
5000. 900, 900 for the Carnegie hold
ings. Morgan bought them for
$4,000. 900 when Carnegie indi-
Gated It was a case OF buy or fight.
From then on the House OF Nor
gan spread its activities. There
was one setback when steel drop
ped and the Morgan holding COM
pany. Northwest Securities Co.,
was dissolved in 1904, but the trend
was definitely upward. Morgan
formed the International Mercan-
tile Marine, absorbing several
steamship lines; then Information
al Harvester. a combine OF makers
OF farm machinery.
In. Life Insurance Field
And in the life insurance cycle
which followed he held an inter-
est in New York Life. Guaranty
Life, Mutual Life, and Equitable
Life.
When the elder Morgan died in
1918 this tremendous record was
handicap for his son. But the
sons $500 900, 900 effort for the Al
lies took him out of his father s
shadow. After the war Morgan
floated loans OF more than $1,000
oOO, 900 for a dozen nations includ-
ing Cuba, Chile. Australia. japan.
Germany. France, Switzerland and
Norway.
And after that he extended his
sway IN various industries-copper,
automobiles General Motors)
communication. radio Corp) and
United Corp. the gigantic holding
company which gave 1t a potent
place in the utility field here and
abroad. Montgomery Ward, the
mail order house. Johns-Mansyiile,
M Stand r6