J.P. Morgan Essay

Words: 3054
Pages: 13

John Pierpont Morgan is considered one of the founding fathers of the modern United States economy. He was an industrial genius that is accredited with the founding of many companies including General Electric and AT&T. However, Pierpont is looked upon as a saint and demon the same. He received a honorary degree from Harvard university that read: "Public citizen, patron of literature and art, prince among merchants, who by his skill, wisdom and courage, has twice in times of stress repelled a national danger of financial panic." But Robert LaFollette, the Wisconsin progressive, saw him as "a beefy, red-faced thick-necked financial bully, drunk with wealth and power." Despite conflicting opinion on his persona, his influence and …show more content…
Morgan deposed the Erie railroad directors and was more than happy to assist the Ramsey plea. Through legal feuds with Boss Tweed and other characters and holding covert stockholder meetings, Morgan was able to obtain a lease over the company. The state supreme court upheld the lease and ensured ownership over the company to Morgan, Ramsey and the original owners. It was an astonishing victory for Morgan and one that set precedence for his future dealings.

The true beginning of the "Age of Morganization" was his deal with William H. Vanderbilt. The legislature, at the time, began to propose control of railroad management, prevent stock watering, and tax profits. Vanderbilt inherited 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 agreed to combine the Central railroad with the Wabash, St. Louis & Pacific Railroad. When the news broke out about the deal, Morgan was praised as an economic genius and stepped out of his father's shadow. Pierpont also received a seat on the board of the New York Central. Morgan was achieving the influence he desired and had an appropriate venue to express the opinions of the English businessmen he dealt with oversees.

As Morgan enjoyed his position on the board of the New York Central, he used his position to settle a dispute of railroad organization in 1885. New York Central was competing