JP Morgan

John Pierpont Morgan was one of the influential bankers in history. Some

people viewed him as a captain of industry, but others viewed him as a robber baron. He was the most powerful banker of his time and helped build a credit bridge between Europe and America.

John Pierpont Morgan was born on April 17, 1837 in Hartford, Connecticut. His parents were Juniet Spencer Morgan and Juliet Pierpont Morgan. John Pierpont’s father was a banker as well. He was a partner of the firm George Peabody & Co. J.P. Morgan was born into a rich family. Morgan went to the University of Göttingen in Germany for two years. Shortly after, in 1857, he entered the world of banking and commerce. He started his own private business in 1871, which later became known as J.P. Morgan and Co. 

After the Civil War, he started buying distressed businesses and railroad companies. Some railroad companies he bought were West Shore, Philadelphia and Reading, Richmond Terminal, the Erie, and the New England railroads. The biggest deal John Pierpont Morgan was involved in was the forming of the U.S. Steel Corporation. It was the first million-dollar corporation in the U.S. It was worth approximately $1.2 billion. John Pierpont Morgan bought some mills from Andrew Carnegie and together with some other steel assets formed the U.S. Steel.

Along with many other businessmen, people considered John Pierpont Morgan as a robber baron. A robber baron is a term for businessmen and bankers who dominated their industries and were very wealthy as a result of unfair business practices.  “I like a little competition.”- J.P. Morgan. By 1900, John Pierpont Morgan controlled 100,000 miles of railroad, which was half the country’s mileage.  John Pierpont Morgan’s U.S. Steel Corporation was considered a monopoly to critics. The Steel Corporation not only attempted to take control of the steel industry, but also tried to control the construction of bridges, ships, railroad cars and rails, wires, and nails. Morgan successfully captured two-thirds of the steel industry, but lost it soon after. 

“During the Civil War, John Pierpont Morgan bought five thousand rifles for $3.50 each from an army arsenal, and sold them to a general in the field for $22 each. The rifles were defective and would shoot off the thumbs of soldiers using them.” Morgan even skipped military service in the Civil War by paying $300 to a substitute like many others such as John D. Rockefeller and Andrew Carnegie. He sold 5000 defective carbines to General Fremont and committed many other frauds.

One of the main reasons people considered John Pierpont Morgan as a robber baron was because of his process know as “Morganization.” In this process, he would take over troubled businesses and reorganize them in order to return them to profitability. Three insurance companies that were “Morganized” had millions of dollars in assets. J.P. Morgan would gain control of many properties though this process. He would use trusts to add costs to operations and reduce the value of original bondholders. J.P. Morgan is reputed to have said: “I owe the public nothing.” 

Other people saw John Pierpont Morgan as a captain of industry. A captain of industry is a businessman who is successful and powerful because of using smart tactics. The term captain of industry is a positive perspective of viewing business people. John Pierpont Morgan treated his workers well. All employees in the bank were given a bequest of a year’s salary upon his death. One thing John Pierpont Morgan was very well known for was bailing out the U.S. Government. In 1893, America was facing an economic downturn because of inflation. That put a burden on the U.S. Treasury’s gold reserve. In 1895, John Pierpont Morgan sold government bonds for gold. He bought $200 million government bonds with gold. John Pierpont Morgan saved the government.

The U.S. economy’s growth was huge during John Pierpont Morgan’s time of power. He was a smart organizer and chose the best associates. He made the most crucial decisions himself.

John Pierpont Morgan was also an art collector. He collected paintings, sculptures, and tapestries. He contributed to museums, including the Metropolitan Museum of Art in New York City. "The Morgan collections represent the most grandiose gesture of noblesse oblige the world has ever known," wrote Aline B. Saarinen in 1957.

John Pierpont Morgan died on March 31^st, 1913 in Rome. At that time, he had an estate worth about $1.2 billion today.

I think John Pierpont Morgan is more of a captain of industry than a robber baron. Even though people say he committed some frauds, maybe it wasn’t his fault. Maybe Morgan didn’t know that the carbines were defective. John Pierpont Morgan became rich by his hard work. He was smart enough to be a good businessman. All business people always have to be a little greedy, or else you can’t do good business. John Pierpont Morgan treated his workers well and financially rescued the government. In my opinion, John Pierpont Morgan was a great captain of industry.