The Morgan financial empire was gradually established by the father of J. P. Morgan, who founded a financial institution in London. In the 1880s, J. P. Morgan officially took control and moved the headquarters to New York. A master of finance and asset restructuring, Morgan oversaw the creation of a steel monopoly that dominated the United States, reorganized the overextended American railway system to restore efficiency, and invested heavily in maritime transport, forming an industry cartel. During times of national crisis, he helped preserve the gold standard.

Through a combination of financial and industrial capital, Morgan built a vast financial empire. In the late 19th century, nearly all major U.S. financing activities were led by Morgan’s consortium. By using equity trusts, Morgan gained unprecedented commercial power in banking. Bankers were no longer limited to providing funds and advice but directly entered corporate leadership. The line between finance and industry blurred, Wall Street became the center of U.S. economic leadership, and Morgan was seen as an emperor atop it all.

Corporate Consolidation King

Morgan created a massive empire including the Bankers Trust Company, Guarantee Trust Company, and First National Bank. The “Morgan Alliance” also included National City Bank and Guaranty National Bank.

The Morgan Alliance, centered on J.P. Morgan & Co., featured a board of directors interconnected with financial institutions, forming a tight-knit “Morgan System” that controlled 33% of U.S. financial capital, valued at nearly $20 billion. It also held $12.5 billion in insurance assets, representing 65% of the U.S. insurance industry. In production, Morgan directors sat on 47 boards of 35 major U.S. companies, including U.S. Steel, General Motors, Continental Oil, and General Electric.

The consortium’s reach extended into communications with holdings in ITT (International Telephone & Telegraph), All America Cables, Postal Telegraph, and AT&T. Other trusts included Anaconda Copper, Westinghouse Electric, and United Metals Carbides.

The Morgan System controlled a total capital of $74 billion—roughly one-quarter of all U.S. corporate capital—with 167 directors at the helm.

Final Years

In his later years, Morgan’s health declined. Advised by doctors to take a vacation, he departed for Cairo on January 7, 1913. Before leaving, he quietly wrote a will: “Bury me in Hartford, hold the funeral at St. George’s Church in New York. No speeches, no mourning; I only wish to quietly hear a solo by the African-American singer Henry Barré.”

During the voyage, his health rapidly deteriorated. On the return journey from Cairo, he was critically ill. His final words were: “Ah, I am climbing the mountain.” Perhaps, metaphorically, he was returning to Olympus. J.P. Morgan died in Rome on March 31, 1913, at age 76. Had he, like Rockefeller, retired to Florida instead of traveling, he might have lived longer.

Morgan’s body was returned to the United States, and Wall Street flew flags at half-mast. A flood of 3,698 telegrams arrived globally—from kings, the pope, art dealers, bankers, and industrialists.

When the public learned that Morgan’s personal fortune amounted to only $60 million (plus equivalent value in art), many were astonished. John D. Rockefeller commented: “This fortune is not even enough to call him rich.” Morgan was not interested in personal wealth accumulation; for him, rationalizing the U.S. economy was far more important.

Morgan Quotations

“Let money do what government and law cannot.”
“Personal credit is property; public honor is collateral.”
“Money cannot buy character.”