(5 of 10)
Morgan's fierce gaze, walrus mustache and bulbous red nose—which he once called "a part of the American business structure"—became known around the world, which he circled on three successive Corsairs, each one bigger than the last. His lofty manners and freewheeling business methods, such as watering the stock of his merged companies, became the target of both cartoonists and politicians. After he put together U.S. Steel, he issued a total of $1.3 billion in securities, also collected $150 million on the deal—though the tangible assets of the firm were only $682 million. When men stood in his way, he was ruthless: he forced the Philadelphia & Reading Railroad into receivership after its president remarked, "I would rather run a peanut stand than be dictated to by J. P. Morgan."
"Up the Hill." Morgan's power grew so great that President Cleveland turned to him for aid during the panic of 1893. When the Government's gold supply dropped to $42 million, Morgan stepped in with a group of friends and partners, raised $65 million in gold to save the Government's credit. During the Wall Street panic of 1907, the Government again needed Morgan's help. He coldly let bank after bank fold up. But when the big Trust Co. of America began to slide, Morgan acted decisively after sending his own men in to check its books. Said he: "This is the place to stop the trouble." He did—by keeping a group of bankers up all night in the white marble library adjoining his mansion on Madison Avenue, forcing them to put up enough money to support the Trust Co. and other weak concerns.
It was this very power that finally triggered a great public clamor against the "money trusts." From Teddy Roosevelt on, the U.S. Government waged a running battle to curb the power of the bankers through antitrust suits, political pressure and the creation of the Federal Reserve System. The U.S. economy had grown so big that control of money and finance could no longer be left in the hands of a few men. Before the Government could do much to curb his power, J. P. Morgan died in Rome in 1913. His last words: "I must go up the hill."
Princes of Privilege. The death of old J.P. marked the end of one-man rule in the House of Morgan. His son J.P. II took over, helped by a brilliant group of Morgan partners. When World War I broke out, the House of Morgan played a key role. It became fiscal agent for the British and French, bought them $3 billion worth of arms and supplies, and headed a syndicate that floated $1.5 billion in bonds in the U.S. to help pay for them.