PIERPONT MORGAN

Taranaki Daily News, Volume LV, Issue 275, 12 April 1913, Page 10

PIERPONT MORGAN

COLOSSI'S OF FINANCE.' !.!!''■'•: -TO!;V OF FAMOCs AMERICAN. Mi 1 . ,). I'. Morgan, the linancial colos--iis n? America, who died in Home re-i'-iMit!y, controlled about £100,000,000 directly and indirectly a much larger sum estimated at twenty-two times the amount of the annual revenue of the I'nited States. "His cash fortune may be anything between thirty and fifty 'millions sterling. He owned palatial mansions in London. Xew York, and elsewhere, and when he travelled lie had a private railway train at his command on land and a luxuriously fitted pleasure yacht at sea. For years lie had been a keen collector of art and literary treasures, and perhaps no private * citizen could boast more interesting and valuable possessions of these kinds. A few months ago Mr. Morgan underwent a long examination by the Congressional Commit tee which is inquiring into the existence of the alleged "Money Trust." As one American paper said, Mr. Morgan told the committee what he did and why he did it with a completeness the poor magazine writer could never dig out. "After his testimony," added the same journal, "the country will, we believe, have a finer feeling toward Mr. Morgan. He talked like a statesman. There was in his testimony no touch of the stock gambler, no suggestion of that rat-like cunning that has" marred similar interviews with men who have probably made greater fortunes than he."

"T have known men come into my office," Mr. Morgan told the committee, "and T have given them a cheque for a million dollars when T knew they had not a cent in the world." Credit, he maintained, depended not upon a man's collateral, but upon his character. "The \flrst thing." he declared, "is character, before monev or anything else. Money cannot buv it.'

I. His direct reference to the Money Trust was as follows:—"I would rather. I have combination than competition. I I like a little competition, but T like com- | bination better. T would like to say something right here that I may not have a chance to say again; without [control you'cannot do a thing. Control is the important thing.. Now. you speak of a Money Trust; no man can get control of all the money. The question of control is personal as to money and credit. All the money in Christendom and all the banks in Christendom could not control money. There eo lid be no Money Trust." Even if a man did have the power to sway credit. Mr. Morgan went on to say. he would lose that power the moment he abused it. EARLY DAYS. Heredity plays an important part in life, and it had probably something to do in shaping Mr. Morgan's caieer. He was born in Hartford, Connecticut, on April 17. 1537. His father, Junius Spencer Morgan, was a banker. After being educated at Boston, at Yivay, and at the University of (iottingen, young Morgan entered his father's hanking house in London. Later he was sent to America, where he became cashier, and his father's representative, with the firm of Duncan. ■Sherman, and Co. There he met Mr. Dalmey, the man whom he afterwards selected as partner when he ( went into business for himself. It was in 1860 that they became associated as bankers. ' ;

There is nothing in Mr. Morgan's! career in these earlier days which sng- j gests that he had not at that time the j slightest comprehension of what his relations us a banker and a constructive force, cither in the world of railway affairs, or in industrial development, was to be. He looked upon himself then, as in fact he always did until he was forced by imperative pressure to lead in the reorganisation of bankrupt railroads, as a banker pure and simple. A P.TC TKAXS.\CTION T . It \va> in ]!I01 that Mr. Morgan created the United States Steel torpor-' ation by the dotation of a : ■•billion dollar trust."' It was, and remains still, the greatest and most characteristic Morgan enterprise: an enormously complicated I |iieei.- of business in the beginning, of which only the motive for doing it was simple and uncomplicated. The motive was. the elimination of Carnegie from the steel industry. This was the starting point of the whole enormous transaction. The swift and vast success of I he Steel "proposition" will always be' regarded as the greatest of Morgan's achievements. As payment for put ling the deal through the Morgan syndicate received exactly (>4!1.5!)7 -hares of Common stock of the Corporation, and an equal number of Preferred share-. The syndicate's •profit, net., was about iOU per cent on thi' amount of cash actually paid in. In order to make this profit the syndi-! eate had guaranteed the sale of securities amounting to one billion four hundred million dollars: at any time events might have' conspired to swamp them. But fortunately they did not. and the successful carrying' of the matter through added enormously to Mr. Morgan's prestige. •■THE ETNAXCTAL MOXABCH <;F TIT I-: WORLD." Soon afterwards Mr. Morgan was the guest of the Emperor 'William. The "Emperor visited Mr. Morgan on his yacht, the Corsair. In fact the Emperor and Mr. Morgan were in friendly asso•eiation for several days. The Emperor sent the Uoyal car to Kiel, where Mr. Morgan's yacht was anchored, for the purpose of bringing Mr. Morgan to Berlin.. So. also. King Edward met Mr. Morgan on the Continent and afterwards received him as a personal guest at London, making it apparent to all who saw the two men upon this occasion, that the King regarded Mr. Morgan as the financial monarch of the world. What the Emperor thought of Mr. Morgan was apparent from his manner. What Mr. Morgan thought of the Emperor was expressed in his characteristic \ wav. TTe said: 'T have seen the Kaiser and T like him." Mr. Morgan was described as a silent oian. although he sometimes talks a ■.rood deal, either on the subject of his collections of books and pictures, or when he chanced to write the story of some eyent ill his life. Once he visited the Sahara, and the Englishman who acted as guide on the occasion related minutely his impressions of the journey: "I hod been directed to take charge of Mr. Morgan and his party in the special train he had ordered for the six hours' journey across the desert, and at the station he came up to me. and. in a iovial manner, asked me how T did. This introductory 'how do you do?' Were almost the only words he said to me. For thi' rest of the six hours he scarcely j uttered a syllable, .with the exception of two terse questions about the desert." The same authority states Unit an excellent, luncheon was set before him. but all that he took was "an egg and a piece of bread." and as soon as the egg and the bread was finished "he plunged into thought again." TTTS ART PORSESSI'OXS. Discontented Americans have sometimes complained b"cnu-" Mr. Morgan left, so many of hi- art possessions in England. The former <"crc(arv of th" Treasury. Leslie A. Shaw, once asked hi Treasury. Leslie A. Shaw, once asked him point blank win- he did not bring his pictures and miniatures and other beautiful things to America, where the American people could have a look at them. Mr. Morgan said "T can't afford to." "'T knew you were a poor man."

[ said Shaw, "but I didn't realist; you were jas poor as that." "Mr. Shaw.'""returned Morgan, "how much do you suppose the duties on my collections would amount to if I should briny them to New York':" "Perhaps two or" throe hundred thousand." "They would amount to at least six millions." Mr. Morgan, it may be stated, had agents in Antwerp, Vienna, Paris, Brussels, Rome—in fact, in almost every Continental city—whose business it is to purchase any work of art they judge a masterpiece. .VIIJ.UOX-v IS MOMENTS. Mr. Morgan operated blind tmois ::< London ju4 a-; he did in New York. There are :; number of firms in Lnudcin upon whom he could call at a moment's beeo° interested in the problem 0 f When lie sent out a brief request for a few million* of pounds lie could de- ; could depend upon receiving the miop-v I , without delav. ' , ,

Mis manner of granting requests was peculiar to him. In practical matters his iimineis was said to be as decisive and blunt and his speech as laconic as that of a military commander in the midst of an engagement. He was called upon one day by a physician, who had become interested in the problem of how .how to care for poor women who were approaching confinement. To the explanation of the physician Mr. Mor-rau appeared to listen impatiently. Tie asked one or two more brusque questions. Then he said: "ring me your plans for a suitable building and endowment, and T'll provide the'money." It was over in five minutes, and just when the visitor thought he was about to be dismissed with a curt "No," his request for the involving of an expenditure of a million and a lialf dollars was granted. ANOTHER EXAMPLE. Stories of this kind might be multiplied indefinitely. One. more must suffice. Mr. George. W. Perkins, on one occasion, wanted to secure what is known as the Palisades, on the Hudson River near New York, so that ultimately the whole stretch of them might become a public park. His first calf was upon Mr. Morgan. "How much do vou need?" said Mr. Morgan, bluntly, and Mr. Perkins told him. "Well, you go and sec Rockfeller and Stillman and some others. See what they'll give,, then vou can come back to me, and T'll see what I'll do." "Rut Mr, Morgan," Mr. Perkins ventured to say, "T had hoped yon would lead off the subscription list.' and then t it would he easy for me to secure other ] subscriptions in sufficient amount to! raise the sum needed." "Oh. well." said j Mr. Mo.jran. "put me down for the I whole amount." j

Tt may be added that a vear or so ago Mr. Morgan received' the degree of LL.D. from Harvard University, on which occasion President Lowell described him as a "public-spirited citizen, patron of literature and art. prince among merchants, who by his skill, his wisdom, and his courage has twice, in times of stress, repelled a national danger and financial panic."