from the vast individual resources of Messrs. Morgan, Baker, and Stillman.

Further, as heretofore shown, the members of this group, through stockholdings, voting trusts, interlocking directorates, and other relations, have become in some cases the absolutely dominant factor, in others the most important single factor, in the control of the following banks and trust companies in the city of New York:

a) Bankers Trust Co., resources.

b) Guaranty Trust Co., resources.. c) Astor Trust Co., resources.

d) National Bank of Commerce, resources.

e) Liberty National Bank, resources.

f) Chase National Bank, resources.

g) Farmers Loan & Trust Co., resources..

in all, 7, with total resources of....

which, added to the known resources of members of the group themselves, makes....

as the aggregate of known banking resources in the city of New York under their control or influence. If there be added also the resources of the Equitable Life Assurance Society controlled through stock ownership of J. P. Morgan..

the amount becomes..

205,000,000

232,000,000

27,000,000

190,000,000

29,000,000

150,000,000

135,000,000

$ 968,000,000

1,600,000,000

504,000,000

$2,104,000,000

Second, as regards the greater transportation systems:

a) Adams Express Co.

b) Anthracite coal carriers.

c) Atchison, Topeka & Santa Fe Railway.

d) Chesapeake & Ohio Railway.

e) Chicago Great Western Railway.

f) Chicago, Milwaukee & St. Paul Railway.

g) Chicago & Northwestern Railway.

h) Chicago, Rock Island & Pacific Railway.

i) Great Northern Railway.

j) International Mercantile Marine Co. (through a voting trust).

k) New York Central Lines.

1) New York, New Haven & Hartford Railroad.

m) Northern Pacific Railway.

n) Southern Railway.

o) Southern Pacific Co.

p) Union Pacific Railroad.

Third, as regards the greater producing and trading corporations:

a) Amalgamated Copper Co.

b) American Can Co.

c) J. I. Case Threshing Machine Co.

d) William Cramp Ship and Engine Building Co. (through a voting

trust).

e) General Electric Co.

f) International Harvester Co.

g) Lackawanna Steel Co.

h) Pullman Co.

i) United States Steel Corporation.

Fourth, as regards the greater public utility corporations:

a) American Telephone and Telegraph Co.

b) Chicago Elevated Railways.

c) Consolidated Gas Co. of New York.

d) Hudson & Manhattan Railroad (large stockholdings).

e) Interborough Rapid Transit Co. of New York (marketing securities). f) Philadelphia Rapid Transit Co.

g) Western Union Telegraph Co.

Summary of directorships held by these members of the group.-It appears that firm members or directors of these institutions together hold:

One hundred and eighteen directorships in 4 banks and 3 trust companies having total resources of $2,679,000,000 and total deposits of $1,983,000,000.

Thirty directorships in 10 insurance companies having total assets of $2,293,000,000.

One hundred and five directorships in 32 transportation systems having a total capitalization of $11,784,000,000 and a total mileage (excluding express companies and steamship lines) of 150,200.

Sixty-three directorships in 24 producing and trading corporations having a total capitalization of $3,339,000,000.

Twenty-five directorships in 12 public utility corporations having a total capitalization of $2,150,000,000.

In all, 341 directorships in 112 corporations having aggregate resources or capitalization of $22,245,000,000.

282. THE HOLDING COMPANY'

In the case of certain systems the so-called holding company takes a prominent part. By holding company is meant a corporation which exists merely for the purpose of holding and dealing in the securities of other corporations.

The Atlantic Coast Line Company was chartered in Connecticut in 1889 for the purpose of consolidating under one ownership the network of southern railways along the Atlantic coast, these railways being amalgamated in 1900 into the Atlantic Coast Line Railroad Company. The Atlantic Coast Line Company, the holding company, on June 30, 1906, owned (including capital stock subscribed for but not fully paid) $25,266,300 out of $50,134,200 of the stock of the Atlantic Coast Line Railroad Company, or a little over 50 per cent. It also owned $11,500,000 of the bonds of the same company. This stock ownership carried with it equities of very great value. This becomes clear when we observe that the Atlantic Coast Line Railroad Company owned on the same date $30,600,000 out of $60,000,000, or 51 per cent of the stock of the Louisville & Nashville Railroad Company. This latter corporation and its controlling railway, the Atlantic Coast Line Railroad Company, were the lessees of the railway properties of the Georgia Railroad and Banking Company; and the Louisville & Nashville Railroad Company, jointly with the Southern Railway Company, owned 88 per cent of the stock of the Chicago, Indianapolis & Louisville Railway Company. The capital stock of the Atlantic Coast Line Company was reduced in May, 1897, from $10,000,000 to $5,000,000 by the issue of certificates of indebtedness in lieu of the shares retired. In 1898 the stock was again restored to the original amount of $10,000,000 by a stock dividend of 100 per cent, representing the accumulated profits. The company had outstanding on June 30, 1906, $10,500,000 of stock (excluding $2,100,ooo of stock subscribed for but not fully paid) and $13,000,000 of certificates of indebtedness. It therefore appears that an ownership of slightly over $5,000,000 of capital stock in this holding company controlled solely and jointly through ownership and lease a railway system of over 11,000 miles in extent, with a capitalization of over $725,000,000.

1 Adapted from Interstate Commerce Commission, Special Report No. 1, “Intercorporate Relationships of Railways in the United States, as of June 30, 1906,” pp. 21-24.

The accompanying diagram will make clear the more important intercorporate relationships of the Atlantic Coast Line System.

Control of or over a corporation means "ability to determine the action" of that corporation. Control has been classified under eight different headings:

a) Right to possess all the property of the corporation except its instrumentalities of organization.

1

Adapted from Interstate Commerce Commission, Special Report No. 1, "Intercorporate Relationships of Railways in the United States, as of June 30, 1906," pp. 15-16.

b) Right to possess all the property of the corporation except its instrumentalities of organization, its money, and its choses in action other than corporate securities.

c) Right to possess such portion of the tangible property of the corporation as is capable of being employed in discharging its specific duties. The principal form of control contemplated under this class, as well as under class (b), is the control effected through lease, class (b) differing from class (c) only in the extent of the property and interests covered by the contract.

d) Right to exercise the major part of the voting power attached to the shares of stock and other securities of the corporation.

e) Right to name the major part of the board of directors of the corporation, whether by virtue of voting trust agreement or by virtue of title to securities or otherwise.

f) Right to foreclose a first lien upon all property of the corpora

tion.

g) Right to foreclose a first lien upon a major part of the property of the corporation.

h) Right to determine the action of the corporation in a specific respect or respects.

This last class is intended to cover any peculiar forms of control not included in the other classes. Under this class would fall control

through advances for construction purposes.

It will be observed that the various forms of control here defined may be classified roughly into ownership and lease.

BI

The American Tobacco Company not only controls the other three principal companies named below, but is itself a great manufacturing concern, and it also directly controls a large number of other subsidiary companies.

The American Snuff Company with its subsidiary companies, is exclusively concerned with the manufacture of snuff.

The American Cigar Company, with its subsidiaries, handles the cigar business of the Combination, including the manufacture of ordinary cigars, cheroots, and stogies in the United States and the manufacture of cigars and cigarettes in Cuba and Porto Rico.

1 Adapted from the Report of the Commissioner of Corporations on the Tobacco Industry, 1909, I, 14-19.