John Pierpont Morgan’s Strife for Control
The end of the 19th century brought the beginning of the rise in business. During this time great power was shifting from the important political leader to the “captains of industry”. John Pierpont Morgan rose on this very opportunity for dominance. As an American financier and industrial organizer he attempted to gain such power and control. Savior of multiple economic crises and creator of the first billion-dollar corporation he acquired this power. John Pierpont Morgan’s real recognition began when he joined a partnership with powerful banker Anthony Drexel. Together they created a powerhouse in international finance. This partnership of Drexel and Morgan in the New York City firm soon became the predominant source of U.S. government financing. Then the company became known as J.P. Morgan and Company in 1895. People began to see Pierpont Morgan as a man of great influence. In 1879 he was given the opportunity to make his mark. William H. Vanderbilt; son of Cornelius Vanderbilt; asked Pierpont Morgan to sell 250 thousand shares of stock in the New York Central Railroad. Such a request would have typically brought chaos to the stock market, but Morgan accepted the challenge and very swiftly sold all of the stocks without even disrupting the market. John Pierpont Morgan then made a brilliant power play by demanding a seat on the New York Central’s board of directors in return for his services. This position gave Pierpont Morgan financial control over the railway. He used this tactic often to gain control, he would serve on the board of all of the companies he was interested in to become more dominant in that company. The financial world began to take serious notice of Pierpont Morgan when he was asked to assist in the clean up of another financial crisis. Two of Americas largest became locked in a financial battle. Their competition created much chaos and collapse of either one of these dominant railroads was highly dangerous to investors who were sponsored by
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