Newspaper Page Text
2
MORGAN QUIZZED
111 U. 5. MONEY
NW
Financier Tells of Enormous
Bank Deposits at the Second
Day’s Grill by Probers.
Continued from Page One.
stritf (’".'durations that had such de
posits and that he thought he had fur
nished st list of the names.
I'ntermeyer said he had not received
tliis list and the Wall Street magnate
agreed to furnish it.
Morgan also agreed to pr, nil the
figuns of th. deposits of the Morgan,
Drexel w I’lt. firm, of Philadelphia. He
added that this <1 a-s of deposits in his
Paris ami l.ondoti branches w -re in
finitesimal.
.Mr. I’ntermeyer reverted to th. “fi..-
.-al agent agreements" between the wit
ness' firm tirtd a number of other big
. orporntions.
Morgan said that he already had ob
tained .lata on these and stepped up to
the committee laid. and presented
them.
Most of them v. • r*- of :i vernal mi
, t. . ■ ;ttet on< er< ith the
New York Central and the Steel Trust.
I’ntermeyer then reaii into the rec
ord a resolution of th< N*-w York Cen
tral giving Director J. I'. .Morgan full
control of New York Central securi
ties.
Handling Securities
For New York Central.
I 'nterrn.-yer asked if the New York
Central resolution was followed by a
written acceptance Mmgan said that
it was. and add' d it. was a member of
tile finance committe* of the New York
Central. The attorney for the commit
te. then read similar resolutions by the
boards of directors of tile Michigan
Central, Lake Shor. and Michigan.
Southern and the Big Four railroads.
Also a letter from .1. P. Morgan & Co.,
showing that the Morgan house charged
1 1-2 per cent of the par value of all
securities of the New York Central line
except in cases where the securities
had less than six years to run, in which
case Morgan charged one-quarter of
one per cent for each life of the securi
ties.
By Untermeyer: .
Q. Does the New York Central ever
take any further official action?
A. Nothing further.
Morgan admitted, under pressure,
that many million dollars worth of se
curities had been issued by the New
York Central since th" passage of this
resolution, through Morgan & Co.,
without additional sanction of the di
rectors.
Sole Agent for
New Haven Railroad, Too.
I’ntermeyer then read an agreement
submitted by the witness relating t<
the fiscal agreements between tile New
York, New Hawn and Hartford and I
Morgan A- Co. This agreement made
the Morgan firm •'role fiscal agent for
the New Haven." Morgan’s charges
for banking assistance w< re the same
as in the New York Central. A similar
agr.em.nt betw-n tin Boston and
Maine and the Morgan house also was
read into the record. Morgan said lie
could not recall the names of corpora
tions with which his firm had verbal
fiscal agreeim ntf. Th. financier said
that he had Included in the list given i
the committee only the, corporations
"for which we regarded ourselves as
fiscal agents.”
Moigan admitted his firm had been
acting as a "kind of fiscal ugent” for the
Southern railway, but as there was "no
written agreement, strictly speaking."
lie would not designate that as a fiscal
agent. Morgan said he was one of tile
Voting trustees of the Southern rali
v ay, and then interrupted i'ntermeyer
to announe that he had several reports
showing the benefit of voting trustees
... to tlte Heading and Great Northern
roads.
Again stepping to the committee ta
oie, he asked to have these reports read
into the record.
"We will come t.. that. .Mr. Morgan,”
said I’ntermeyer as he motioned to tho
witness to take his seat.
Morgan returned to the witness stand.
“Proper To Tie Up
Railroads to Banks.’’
Q. Do you believe railroads should be
tied up to a private banking house?
A. 1 see no objection to such, a
procedure,
Tli.> witness thought that the voting
trustee agreement controlling the
Whisky and Pine for Colds
S Fine Formula for Old Time Remedy >
Cured Thousands Here Last
Winter.
The increased use of whisky for colds
is causing considerable discussion among
fl c medical fraternity. It is an almost
infallible cure when mixed with certain
other ingredients and taken properly.
From your druggist get two ounces of
Glycerine ami half an ounce of Globe Pine
Compound < Concentrated Pine). Take
these two ingredients home ano put them j
nto a half pint of good whisky Shake
wall and take one to two tea.spoonfuls i
after cm h meal ami at bedtime. Smaller
doses !■> children according h. age. This
’rtatrnni’ often knocks th** worst cough
vid in a day. But bo sure to gvt onh
toe genuine. ICach half-ounce battle
comes in sealed tin screw-top case P
xour druggist does not have it in stock
■ will quickly x.- it. J’on't experiment
; h cheap u. •♦•ruin mixtures ft is verv
C<- -I druggists say this La- had
h marvelous demand for the past six
Sot? Fppt • r . • * i,m.
wi ic x eev . ,
.’J/*'■*' o'** I #*' ft*’. A epoonful of Cal
m/h*- !. n »t-hb . ,ri\»*s ins ant relief
a ‘ ery drug a*.-re. CVivt.)
3nock Kills Mother
When Told Daughter,
Aged 14,Has Eloped
Stroke of Apoplexy Follows News
That Child Had Run Away
and Married.
• ’'•LIMBI S, GA, D.c 19. -Mrs.
■ llliz. bctli EHi-itt lies dead at li*-r home
jin th • It;, as a result of a stroke of
> xy imlD'-ed by a shock she re
wb.-n sh<- wa informed tl.it her
; lourtr-i-n-y--.;-<>l.l 'laughter, .Miuy
’ I i'•s. ha I doped and married A. M. .
Davis, boi kkr eje r for the Acme Steam .
. nundry in tills city. (
M.s. Elliott had no objection to the ,
you; g man. but had serious objection t
to 1. . foiirti n-v al -old daughter mar- ,
rying and it was this objection that ,
caused the "ouple to leave home to
have tie- o oniony performed. They ;
w. nt to t:. home of a friend to spend
but *•• • called to the bed- ,
|fid< of the dying mother of the run- ,
away bride.
The fum-ral of Mrs. Elliott takes ,
pl.-*--- tomorrow in (,'hattahoochee coun
ty at Harmony church. ,
HEN LAYS 72 EGGS IN
COLD-STORAGE NEST
<
TARRYTOWN, N. Y., Dec. 19.—An
ti' lpating the rise in the price of eggs <
a lien belonging to Gilbert Brown laid
72 In :<n lee house last summer. Brown <
is training his other hens to use the
cold storage nest. I
Southern railway did not affect the in- 1
dependence of its board of directors. :
y. You see no objection, then, to fiscal
agency agreements?
A. I do not. 1
Mmgan admitted that, his firm issued
many millions of dollars of securities
for railroads each year.
Q. Don't you think there should be
tin open market for the sale of these
securities? 1
A. I do not.
y, Ought there not to be a competi- 1
tlon between banking houses?
A. No. sir. I think it to be to the :
benefit of corporations that one bank
ing house should handle all their se- 1
curities.
I’ntermeyer, bristling, insisted that
the financier submit his reasons for his 1
lust statement.
After hesitating for a moment, Mor
gan replied:
"I was going to, but the answer slip
ped out of my head.”
Fast Questioning
Excites Morgan.
Mr. Morgan appeared to be somewhat
excited as Untermeyer fired his ques
tions at him rapidly and his answers
came disconnectedly. The banker said
he did not remember where a reorgan
ization of a company ever caused any
j loss to his banking house. Untermeyer
was trying to show that if ever there
was an error of judgment in marketing
securities the railroad or corporation
stockholders footed the bill.
y. Do you ever remember a case
where you advanced money on default
ing securities and lost by It?
A. I can’t remember any, but there
have been such cases.
I y. Can you give us any other reason
why fiscal control of corporation secu
rltiies is a good thing?
A. Nothing that is pertinent, snapped
the witness.
I’ntermeyer then went into the or
ganization of the steel trust.
Q. Did you determine who should go
on the directorate of the United States
Steel Corporation and who should not?
A. 1 probably said who was to stay
off.
I The committee room was in an up
roar when Mr, Morgan made this an
swer.
Steel Trust Directors
Responsible to Him.
"1 will say," added the banker, when
the laughter had subsided, "that no
body went on the board without my ap
proval. They were all responsible to
me."
Q. Did you fix the prices at which |
tlte subsidiary firms came into the steel
corporation?
A. I approved them.
Q. Who put Mr. Erick on the finance
committee? .
A. 1 did, I suppose.
y Who imide J. P. Morgan & Co. de
pository of the steel trust?
A. 1 guess 1 did, ex-officio.
Q. You thought it a good thing?
A. It turned out to be a good thing;
but it did not look so at first when the
i stock was selling at $8 a share.
Again the room echoed Morgan’s
laughter.
Doesn't Object to
Line of Questions.
Morgan said:
"I did not know whether the steel
corporation had dealt in its.own shares,
but I was of the Impression that it had
not." He knew nothing, he said, of
buying and selling by individuals in
steel stock.
Q. Has your firm been in any such a
syndicate?
A. No.
"I do not mean to delve into your
private business." said Untermeyer.
“If I take any exception to your
question I will tel! you," retorted Mor
gan.
I'nte’tneyer then parsed to Morgan
,v Co's, manner of marketing securities.
; Tlte witness said Ids syndicate opera
tions include purchases in all parts of
the world.
I nteiiTicyer wanted to know what
persons were on the bankers' list for
p : ticipatioli in such syndicate. Mor
g .n said that a separate list was imide
tip for each syndicate and that different
classes of underwriters were sought.
lie said there were a number of banks
In New York that were allow -d to par
ti -ii ate In syndicate allotments, often
Chicago ?c:d ’B istoti banks were ;.ls->
1 • ’ ’ -w num-
HIE ATLANTA GEORGIAN AND NEWS.TIIURSDAY. DECEMBER 19, 1912.
WOODORD FDD
REORGANIZATION
Mayor-Elect Declares Council
Should Curb the Appointive
Power of Clayton.
Maja. Janies G Woodward to-
day declared hlm.-elf in favor of a r. a)
reorganisation of the city construction
department, H- said the : organiza
tion of the department would amount
to nothing if count 11 allowed the reap
pointment of th chit sos construction's
subordinates. s.
Leading members of council already
have planned to refuse to approve the
pf,ointment of some of Clayton's- as
sistants. An ordinance giving council
tile right to approve or disapprove the
appointments win !*• Introduced Mon
day.
William A. Hansel Is the t ngim-er in
charge of sewer and he has announced
that ’he will be appointed assistant
chief of construction.
Nym Hurt Is the engineer in charge
of streets.
Karl W. Brittain Is th- engineer in
charge of sidewalks
William Brldwell is the engineer in
charge of repairs.
There are a number of minor engi
neers.
ber of banks In New York are never
allowed to participate in them'.’
A. Only a few.
y. Is it generally profitable to banks
to participate in these allotments?
A. Very often.
Q. Have you a vast market for your
securities?
A. Very often.
Q. The more people you have selling
a security the worse It is?
A. Yes. The market is very apt to be
dead.
“Are you tired, Mr. Morgan? Would
you like to take a rest?”
“No; go ahead. I am not tired,” an
swered Mr. Morgan.
Q. How many securities do you mar
ket In a year’.’ As much ns a billion
dollars?
A. I think the'figures are very much
overestimated. I can't remember all of
them.
“Not Large Stockholder—
Only a Million Or So.“
Untermeyer wanted to know how
often the National Bank of New York
had joined with Morgan in marketing
securities.
"Oh, you mean George F. Baker’s
bank.” replied the witness. “That has
aided me very substantially.”
Morgan knew of no figures that would
show the extent of the pseudo-partner
ship between the bank and Morgan &
Co.
y. Was not the First National bank
an important factor in underwriting
steel stock'?
A. Yes; I presume so.
Morgan said he was not familiar with
the First Security Company, a concern
run by the First National bank to con
duct stock operations, and added that
he “didn’t know much about the Na
tional City bank's affairs."
Q. Are you not a large stockholder
in the National City bank?
A. Oh, I think not. 1 huve only a
million or so there.
Q. Nor in tlte National Bank of Com
merce?
A. No; I have no very large interest ’
there, either—five million, more or less. |
Untermeyer wanted to know if Mor
gan had bought his stock in these
bunks from life insurance companies.
"I don't know anything about it. I
recall none of tlte details,” replied Mor
gan.
Q. How many members of your firm
are directors in the National Bank of
Commerce?
A, Two, I think.
y. Are they not H. P. Davison and
your son?
Leaves Details
To the Firm.
A. 1 can t remember. I leave those
details to members of my firm—-any
member who happens to have the mat
ter in charge.
Q. Don’t you look after these things?
A. Not to any extent. They take care
of themselves. We have too much to
do to look aftet all these tilings.
Morgan remarked that he spent four
or five months abroad each year, and
members of his firm looked out for his
interests. He said he knew nothing
about the voting trusts by which the
Bankers Trust Company and the Guar
anty Trust Company were controlled.
He said he had nothing to do with es
tablishing them.
Untermeyer then took up the ques
tion of Daniel G. Held's affiliations with
Morgan & Co. at the time the Bankers
Trust Company was formed.
Asked if Held was a member of va
rious other boards. Morgan insisted that
he could not recall, because "he had
paid no attention to such minor de
tails."
Untermeyer then went into the num
ber of voting trusts held by members
of .1. P. Morgan Ji Co. Morgan said
he recalled only four -Erie, Northern
Pacific. Reading and Iffiernationul I
Mercantile Marine. He admitted that
he had not named them all, and said
those were the only ones lie could
recall at the time.
*' Reorganizers
Protect Stockholders.”
He had no recollection of a voting
trusteeship held by his firm in Balti
more and Ohio stock, nor of the reor
ganization of the Cincinnati, Hamilton
and Dayton railroad, although lie was
named as one of the voting trustees, ac
cording to a letter read by Untermeyer.
y. Did not your % reorganize
iTamp x- Sons"
A. I don't renieuib'-t
Morgan said that the :m 17. r the
titmneial paternulfsin of the men who
CAPTAIN GENERAL OF
SUFFRAGETTE HIKERS
I
'■- 5 ' ;
\W&\ , I <
I fps i
A/
MISS ROSALIE JONES.
When 101) siifTiffio-i ttes started on their ’nareh last week from
New York city for Albany, she was a high private. On the same
d;iy she was made commanding officer—first general, high
any or all.
reorganized corporations was because
the stockholders refused to take the
proper unoimt of interest.
"We < x. rcise our powers and protec'
the stockholders.” ,said th* financier.
"Protect them against what . ' in
quired Untermeyer.
"Oh. against anything.”
Morgan asked Untermeyer to read
into the record a report of the advan
tages to the Reading railroad of voting .
trusteeship: Untermeyer complied witli
this request. The report told of many
increases in Reading earnings since tiie
trustees tbok charge.
Q. How much did the price of coal
increase in that time?
A. I do not know.
“No Danger in
Duplicating Directors.’’
Morgan said he saw no danger in the
duplication of directors in banks, as is
done in New York, and Untermeyer
called his attention to the number of
banks in which his firm had director
ships.
"Don t you think it is bad public pol- I
icy for directors to know all the busi-|
ness of other institutions?" asked the |
counsel for the committee.
"But they don't know all about the
books of their own institutions," said
Morgan.
"Thon they are figureheads?"
"The officers of tile banks run them. ,
not the directors.”
"Don't you think there should be com- '
petition between banks?”
"I believe co-operation would be bet- '
ter.”
"Don't you want any competition?"
“Oh. 1 wouldn't mind a little.”
• At this point Mo; gm asked permis
sion to make a statement. The request
granted, the financier leaned forward
over the committee table and. empha
sizing his words \fith vigorous raps of
his knuckles, declared:
"it is iniposslbh- to have complete
concentration of money. That is the
one thing in which you can't have a
trust. If you had all the money in |
Christendom you would not have con- *
trol. No ope man can control all the '
money , all tin banks, or all the credits." ;
Counsel Lindabury objected to some '
of Untermeyer's questions at this point. I
and Chairman l“ujo called him to order, i
“No on - j i,■or ; '
th.ng like that.' rvit'-r.itco Morgan, m |
'itswer to further questions. “It is an
absolute impossibility.”
Q. Do you think competition between
banks in N- w York b tter than a con
centration of control?
A. 1 think a competitive condition
would be lietti r.
Q. You know, of course, that every
big thing is run by one man?
A, No, sir.
Goldfish
Just the thing for a child’s Christmas present. Children are always
interested in and amused by a globe of goldfish. Our Christinas stock
of goldfish is especially fine tlltss year, the color and markings being
exceptionally good. 10, 15, 25 cents each, according to size.
Christmas Canaries
These songsters are most acceptable as Christinas gifts, and fur
ther, their sweet song every day and hour keeps the giver in remem
brance all through the year. A Hastings guarantee as to singing quali
ties is back of every bird w* sell. Hartz Mountain Canaries. $2.75 each;
St. Andrcasburg Rollers, 85.00 each.
Potted Plants and
Ferns
Always acceptable, giving a touch of color and freshness in table
and house decorations that is almost Indispensable. Separate plants and
ferns, also Combination Pots and Pans tastefully arranged and at as
tonishing+y low prices for this class of plants.
December 24th Delivery
\\ henever desired birds and fish can be purchased and left with us
for delivery the day before Christmas. Out-of-town shipments of birds
and fish should be mads at once.
H. G. Hastings & Co.
1 6 West Mitchell Street
PM G-STDRY
BUM HALL
Fitzhugh Knox Company Will
Build SIOO,OOO Apartments
in West Cain Street.
Fitzhugh Knux, president of the Knox i
! Realty Company in the Candler building,
. bought for the company today from J. 11.
■ Ewing, of Smith & Ewing, the 34x100-
foot lot at 45 West Cain street, and will
t begin in the spring the erection of a six
story SIOO,OOO bachelor apartment house.
The consideration was $13,600, or S4OO a
front foot.
The row apartment will cover nearly
the entire lot. and on account of the com
paratively narrow frontage, will be con
structed after the fashion of Hampton
Court, 803 Peachtree, and the Frank I».
Holland apartments at 58 West Eleventh
street, with loggia at the front and to the
side.* It will be fireproof and one of the
I most modern apartments in the city.
Mr. Knox was tho builder of the Vir- •
, giniaii, at Peachtree and Fifteenth j
I streets; the Carrollton and the Carrollton]
annex, at 20«1i6 Carnegie way; tho Fair
leigh, at 133-135 Spring street, and the
Boscobel, in Inman Park. He will in
corporate in the new structure many at
tractive features of the others.
The Cain street section is considered by
real estate men to be on a boom, with
two automobile buildings going up‘within
1 a block, the Byron Souders ?250,C00 bach
elor hotel starting in March at Harris and
Spring, the Capital < ’ity club, the
Lyric theater and other structures near
I ifr. Mr. Knox’s move emphasizes to a
j degree the Importance of Atlanta as an
i apartment bouse city. Twelve years ago,
; declared a well known real estate man
j today, Atlanta apartments could be
I counted on the lingers of one hand. Now
I they number nearly 100, and are worth
I approximately $5,000,000. The proportion
ate increase, it is asserted, is greater than
in any city in the country. The Howell
apartments at Ponce DeLeon and Peach
tree are being pushed rapidly, and the
Werner on Washington, opposite the
state capito!, is about ready for occu
pancy.
BABY CROSSING SEA
ALONE IS DETAINED
NEW YORK, Dec. 19.—Following the
receipt of a cable from London officials
of the White Star line, Leonora Kobbold,
a child of five years, was detained at the
rooms of the New York Society for the
Prevention of Cruelty to Children. A
. party of tourists was taking Leonora on
| board a London ship when the White
! Str- people took her away. The girl,
; whose homo is in Victoria, British Co
j lumbia, says her mother died two weeks
ago and her father asked the tourists
to take her to her grandfather in Liver
pool.
ST. LOUIS GIRL MAKES
BILLION-DOLLAR DEBUT
ST. LOUIS, Dev. 19.—Miss Lois
Campbell's “billiun-dollar debut” wa
continued today. Last night’s dinner
dance at the St. Louis club was as
elaborate as the reception Tuesday
night at the home of the debutante’s
parents. .Mr. and Mrs. James Campbell,
2 Westmoreland place. Miss Campbell
wore a gown of embroidered pink chif
fon over eharmeuse. Around her neck
was a string of pearls, her father’s gilt.
9 WHITE MEN ARRESTED IN
ROME FOR SELLING LIQUOR
ROME, GA., Dec. 19.—Nine white men
were arrested in Rome during the last
ten days, charged with selling whisky.
Cold wqather anil the approach of Christ
mas has encouraged the violation of tl <
prohibition law. and Chief of Police Ha: -
ris and his men are kept busy invest!
. gating. On? of the men, Harry Wood,
was fined ?500.
;
COAL BEDS DOOMED IN
60 YEARS. SAYS EXPERT
i
PITTSBURG, Dec. 19. —John W. Boi-
■ leau, a noted coal expert, declares that
the Pittsburg coal beds will be exhausted
in fifty or sixty years.
LIO DOR DEWS
IN STATE W
FMLII
U. S. Court Decision Forbid
Intrastate Shipments by the
Georgia Wholesalers.
Continued From Page One
Line Railroad, 215 United States .
51'1. p rw
“In the opinion of the court, jurist .
t*on in this case is base*! on the *itv
of citizenship of the parties aI..F \
Federal question is involved. Th* relic
prayed might be granted by a c.. ur t
equity in the state of Georgia, i-i'i’..;- ...
state or Federal court there, and !.; •
could not be sustained in this com
diversity of citizenship was no allege
> Court Claims Right to Enjoin Nuisance
"The next important question is whethe*’
| or not this court can enjoin the ns: " t „pV
[from committing th*- acts eomi-1- i ; ~.j '
in the state of Georgia. Upon this ques
tkm th** authorities seem at firs' hiu-' i.
tie involved and conflicting. But a .-areful
analysis of cases decided by the Federal
courts fully sustain the propositi,,n tio
where the property injured is within the
jurisdiction of the court, a nuisance , ui ,
be enjoined in another state or ,i;-m
--if the court lias jurisdiction of the offend
ing party.
“This doctrine is clearly agouti
tlte Salter Sea cases. 172 Federal repori.-
' 812, ami 215 United States supreme cos* 1
i reports, t" '. tn these cases the ■
i court of appeals of the Ninth Ire';'-
found it witnin its power t*> .-n’.ii'i''-J
nuisance committed in Me.cleo r*,....
cases, were affirmed by the supreme court
1:15 l’t*it*-*l States 'upreme court r*-,****-*-
it*) 4 .
"In tliis case the nuisan onrnlainr-j
of is located in Ge. rgla, but the ~ -■
injured, namely: the legal business
complainants. Is located in this .
and this court has jurisdiction ■■ ,;, r l
ty complained of as eomniittir.y h. n-.
sani-e."
/• Only Ona
gI.VWII
“Bromo
Quinine 1 ”
S~hat is
Laxaiive
Bromo
Quinine
Used The World Ove* to
Cure a Cold In One Day.
Always remember the lull name. Look tu
■ this signature on every box. ?sc.
<s
silvern ie
basl.
Just received from one of
tile largest silver mamiiae
tuners in the East a lane
assortment of solid silver
pieces. Great variety of iit
latest d- sigi ■. These n
beautiful wedding preset!*'.
1 am offering these at a very
small margin above actual
wholesale co t. Com; eariy
before they are picked over.
M. GREER
“The Upstairs Jeweler.”
2 1-2 Walton Street, cciiitv
Peachtree.
LYRIC 1 H week I
MR. SHEA
WILL PRESENT MAT. T< d'AY 1
A MAN ANO HIS WIFE
WILL PRESENT TONIGHT I
DR. JEKYLL AND MR. HYDE
“Frolics of 19id
—iWi J|»| ~"»>*•***•
THE ATLANTA
ALL THIS WEEK
World's Wonder Pictures
Paul J. Rainey African Hunt
“A Rare Treat.”—Clark How»ll.
PRICES, 25c, 35c, 50c.
in in mi _ '
ATLANTA THEATEIT
SEATS TODAY—SOe to $2.00.
Monday, Toes., Xmas and N‘- :
CHARLES FROHMAN PRESENT
With Ca°?oH A Mc- DQ I I
Comas. Will West, |> K I A ■ '
Ethel Cadman and I.x I* S /» *
Fifty Others.
BRILLIANT SUPPORTING
RDANn *E ,rM Mai. Foda i
_ V AUDI Vine Tonight ■
Gus Edwards’ Song Revueof 1912
With Gus Edwards ana 30 Enterf<iir;e' ~~
i Wm. Ray none-Viola Keene & Cc.:
C.ilion, Al and Fannie Ste
Max Welton Troupe: SNOW <£
p ATHE PICTURES.
■ /VEX! WEEK: “Pinkelsplel's Chrictn '