Voice of Morgan

Last fortnight's news that Niagara-Hudson Power Corp. (J. P. Morgan & Co.) had acquired Frontier Power Corp. (Mellon interests) set Governor Franklin D. Roosevelt of New York agog (TIME, Sept. 23). The news meant that 80% of New York State would now be served by one hydro-electric company. While the headlines of Governor Roosevelt's announcement that waterpower must be saved for the public from the Power Trust were still streaming across the front pages of newspapers, reporters received a novel invitation. They were invited to assemble within the precincts of No. 23 Wall Street, the House of Morgan.

Eagerly they went, wondering whether the House of Morgan was about to issue a counterblast against Governor Roosevelt or had decided to backtrack from the blast of adverse publicity. Neither appeared to be the case. They were received in a most easy manner by Morgan Partners Thomas W. Lamont and Harold Stanley. Mr. Lament, always popular with newsmen, issued the statement:

"Neither J. P. Morgan & Company, nor, so far as they know, any of the companies in which they have any interest, direct or indirect, have taken any position for or against public or private ownership of the St. Lawrence River water power or the matter of its development.

"In our opinion these are matters for the determination of the Government of the United States and the Government of the State of New York and by the Canadian authorities.

"Insofar as we have any opinion in the matter, it is our belief that, in speaking generally, these power companies are abstaining and should continue to abstain from intervention in the decision of this question and should loyally cooperate in the decision of the public authorities when that decision has been arrived at."

Next morning the name of Morgan was again headlined, but, figuratively speaking, the headlines were in a different colored ink. Governor Roosevelt about to retire to Warm Springs, Ga., for a three weeks' rest, exclaimed:

"That's fine! It looks as though they are coming our way and will be willing to talk business."

More extraordinary, the announcement that J. P. Morgan & Co. so far as it knew had taken no position -- that "speaking generally" its power companies were believed to be abstaining from intervening in the question of public ownership -won the approval of Lawyer Samuel Untermeyer of Manhattan; Mr. Untermeyer, famed orchid-wearing epicure, son of a "Virginia planter who served in the Confederate Army" (his paragraph in Who's Who) is not a man ordinarily to be found aligned with the House of Morgan and the power companies. Now 71, he has been an active lawyer for more than 50 years, possessor of a large fortune (one copper consolidation which he effected brought $775,000 in lawyer fees). A persistent advocate of public control of pub lic utilities he has long fought on New York City's side of its subway fight and in 1926 he was Alfred Emanuel Smith's ad viser in blocking a private Power deal very similar to the one now effected by the House of Morgan. At present he is investigating for Governor Roosevelt in stances wherein municipalities are sup posed to have paid politicians too dearly for park and building sites.

Last week he joyfully ejaculated:

"The announcement is strictly in line with the broad, enlightened and public-spirited policy of the Morgan firm in dealing with the questions in which the people are concerned. The fact that current is being delivered to household consumers by the Province of Ontario on the Canadian side of the river at 2 -c- per kilowatt hour and at 8 -c- on the American side tells its own story.

"If Mr. Lamont is sincere in his statement, and I have no doubt of the sincerity of anything he says, this merger, that has been so feared and dreaded, may prove the most fortunate development in all the years of the struggle between the State and selfish private interests. . . ."

"It is almost too good to be true-so good that we must not relax our vigilance. . . ."