Paper on John Pierport Morgan: Father of Modern United States Economy

John Pierpont Morgan is considered one of the founding fathers of the modern linked States economy. Morgan was a banker, rail line czar, industrialist, financier, philanthropist, yachtsman, and ladies man. The wealth of the Morgan family did not begin with Pierpont but with his grandfather Joseph Morgan. Josephs prime(prenominal) son was Junius Spencer Morgan, also destined for the life of a businessman. In 1864 Junius took everyplace the Peabody corporation and changed the name to J. S. Morgan & Co. John Pierpont Morgan was born on April 17, 1837 in Hartford, Connecticut.The family prospered in Hartford until Junius moved the family to Boston where Morgan began Boston slope High. In 1857, Junius Morgan obstinate to broaden his sons experience by sending him to radical York. The firm of Duncan, Sherman & Co. was the American representation of the George Peabody Company. In less than three years Morgan went from clerk to crush in the federation. In 1860 Morgan left Duncan, Sherman and founded J. P. Morgan and Company to act as an doer for his fathers business.In 1864 Morgan joined up with another former businessman of Duncan, Sherman & Company, Charles Dabney. Charles Dabney and Morgan started their sustain company named Dabney, Morgan & Co. Morgans business continued to grow as he intensively involves his company in more trade and commerce transactions. In 1871 Dabney retired and Anthony J. Drexel became Morgans sunrise(prenominal) senior partner. Drexel was already the go of the Philadelphia investment bank Drexel & and Company. The new company Drexel Morgan & Co. became one of the largest and most successful companies on Wall track.When Junius Morgan died in 1890, J. P. became head of the London house. Anthony Drexel also died in 1893, and Morgan re nonionized the Morgan and Drexel firms two years later. The New York based Drexel Morgan became J. P Morgan & Co. Morgan was an imposing figure on Wall Street and in the financing world but was vi rtually unknown to well-nigh until 1869. That year a war all over lines began including Jay Gould and Jim Fisk, both famous financiers. Gould already had dominant chasten over the Erie line and began to buy up product line in the Albany & Susquehanna Railroad.The board of the railroad was prevented from issuing new logical argument to protect itself and the president of the company, Joseph Ramsey, was suspended. Ramsey and the board of the company fought Gould buy acquiring more sh bes of the company. The board of directors and Ramsey asked Morgan for his financial support. Morgan deposed the Erie railroad directors and was more than happy to assist the Ramsey plea. by legal feuds with Boss Tweed and other characters and holding covert shareowner meetings, Morgan was able to obtain a lease over the company.The state compulsory court upheld the lease and ensured ownership over the company to Morgan, Ramsey and the original owners. The legislature, at the m, began to pro pose control of railroad management, prevent stock watering, and tax profits. William H. Vanderbilt, the legislature, at the time, began to propose control of railroad management, prevent stock watering, and tax profits. Vanderbilt genetic eighty seven percent of the stock of the New York Central Railroad. He made a secret agreement with Morgan to sell 250,000 shares of his stock to English investors.Vanderbilt also agree to combine the Central railroad with the Wabash, St. Louis & Pacific Railroad. When the intelligence agency broke prohibited about the deal, Morgan was praised as an economic genius and stepped out of his fathers shadow. As Morgan enjoyed his position on the board of the New York Central, he utilise his position to settle a dispute of railroad organization in 1885. New York Central was competing with Pennsylvania railroad for control over the air jacket Shore line. The two companies were engaging in rate wars and for control over surrounding lines.A second off spring, the South Pennsylvania line, was built by the Central to compete with the Pennsylvania line. Morgan argued that is was senseless for Vanderbilt and Gould, the two caterpillar treading, to compete over the lines. The two parties agreed and Morgan was once more hai direct as an industrial wizard. Mr. Morgan developed into the nations railroad reorganizer. Morgan was brought in to slash the value of the watered stock, reduce interest place on the bonds, and assess the shareholders for more money.Morgans plans for the Philadelphia and Reading lines were working well until their president A. Archibald McLeod waged was against Pierpont. In 1888, John Pierpont was again called on to reorganize railroads in the east. Morgan was unsympathetic with judicatureal regulation however, he sought to back up en military the interstate highway Commerce Act of 1887. After the Panic of 1893, the presidency called on Morgan in one case more to reorganize a large number of leading railroa d systems of the country. Various devices were used to ensure Morgans continued control and that of his associates over the companies. Morgans methods of railroad organization followed a standard pattern with small variations.Third, Morgan and his associates would always sex enormous fees for their services. Morgans reputation most likely grows from his role in the increment of many modern companies. Morgan, through his innate business sense, helped launch some of Americas largest corporations. Morgan was now known throughout the land for reorganizing the railroad system. Morgan was one of the earlier of Thomas Edison. Morgan continued to support the growing company by acquiring many stock shares and facilitating the companys merger with the Thomson-Houston electrical Company.This merger created the General Electric company, one of the most prominent companies in the modern world. Morgan went on to help create the Federal sword Company, the subject Tube Company and the American Bridge Company. One of Morgans most famous business deals was the formation of the United States Steel Corporation in 1901. Morgan collaborated with Elbert Gary and John Gates to consolidate contrasting steel companies to form a supercombination. The U. S Steel Corporation was organized and acquired the outstanding bonds and stocks of the Carnegie Company.The company also bought the preferred stocks of Federal Steel, National Steel, National Tube, American Steel & Wire, American Tin Plate, American Steel Hoop, American Sheet Steel, Lake Superior Consolidated Iron Mines and American Bridge Company. Morgan agreed to reorganize the situation and the two companies Deering Harvester and McCormick Harvesting Machine were structured with three other small companies to create the International Harvester Company. A Boston firm primarily financed the American Telephone and Telegraph Company when they faced a consortium of New York bankers in 1902.The New Yorkers, led by J. P Morgan, broug ht back Theodore Vail as head of the company and funded the company with one hundred million dollars to reorganize the company on a national scale. After 1906, the company was revived and a commanding force it was also principally backed by the house of Morgan. At the time many people believed that Morgan as well as other besotted financiers including Carnegie and Rockefeller were stronger than the government and were not subject to ordinary laws.Morgan was said to have greatly profited from the transaction, although much upheaval was caused when Morgan refused to reveal his profits to a congressional committee. The terror of 1907 had begun with the public in mayhem and the government turning once again to Morgan for his leadership. Morgan pooled together an emergency committee with Rockefeller, Harriman, Frick, Schiff and H. H. Rodgers. This meaning of great financial leaders decided to help deal with the problem and cling money into the government funds.Morgan rejected this ide a however, the group did instruct the secretary of Treasury to perplex substantial government relief funds and organize thousands of banks nationwide to deposit excess money into the relief fund. Pierpont Morgan was a man of many pecuniary gains and along with these gains came speculations and controversy into his financial dealings. The public often questioned the large covert sum of money Morgan made by supporting the Treasury in 1895. This event was only one of many debatable issues that concerned Morgan and his control over the government and the American market.President Roosevelt investigated Morgans large deal with the U. S. Steel Corporation and Tennessee Railroad Company but found that that the means busy were none the less effective, as well as profitable. The culmination of the government and publics suspicion of Morgans activities were the Pujo hearings of 1912. The House Banking and Currency subcommittee headed by representative Arsene Pujo had been trying to confi rm that a money trust ruled over Americas major corporations, railroads, indemnity companies, securities markets, and banks.The attorneys prosecuting Morgan made the pivotal point that eighteen financial institutions effectively controlled a two-thirds majority of the 1912 capital resources, over twenty five billion dollars. The lead attorney questioned J. P. Morgan about his actions in a famous cross-examination. Morgan was questioned on his mantic monopolies, earnings and business practices. The value of Morgans organization of companies and funding is immeasurable, as these companies are some of todays leading corporations. Pierpont built America with more in consciousness than that of personal financial gain.