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The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance

Page 108

by Ron Chernow


  Graf, Lya, 367–68, 369

  Grant, W. T., 618

  Greenberg, Frank, 696

  Greenberg, Maurice, G., 702

  Greene, Belle da Costa, 51, 116–17, 159, 560

  Jack and, 169–70, 171, 173, 265, 266, 473

  Greenhill, Bob, 557, 584, 596–97, 599, 600, 601, 626, 663, 712

  described, 596–97

  as head of M&A Department, 596–97, 599, 600, 601, 627, 628, 631–32, 666, 691, 692, 697

  leveraged buyouts and, 696, 697, 699

  Greenspan, Alan, 700, 703, 716, 718

  Grenfell, Edward C. (Teddy), 99, 105, 119, 145, 165, 182, 215, 246, 264, 391, 459, 519

  British gold standard and, 274–77, 329–34

  China and, 133, 137

  death of, 465

  described, 104, 271, 465–66

  marriage of, 271–72

  Schacht and, 396–97, 398

  World War I and, 186, 187, 196, 197, 198

  Grenfell, Florence Henderson, 271–72

  Grew, Henry Sturgis, 63

  Gridiron Club, 112, 122

  Guaranty Trust, 152–53, 210, 225, 309, 325, 326, 364, 414, 415, 422, 451, 480, 504, 509, 539, 551, 552

  decline of, 237, 292

  merger with J. P. Morgan, 237, 304, 532–36

  Saudi Arabia and, 605–606

  Trust Department, 533, 559, 560

  Guggenheim, Daniel, 190, 289, 291

  Guggenheim, Harry, 291, 292, 445

  Guggenheim family, 147–48, 316, 495, 559

  World War I and, 190, 196, 200

  Guggenheim Foundation for the Promotion of Aeronautics, Daniel, 291, 292

  Giuliani, Rudolph, 713

  Guinness, 672, 676, 679–89

  manipulation of stock of, 682–84, 686

  Gulf Oil, 668

  Gulliver, James, 681, 682

  Gutfreund, John, 584, 585, 624, 700

  H

  Halifax, Lord, 407, 455, 458

  Hall, Alice, 513

  Hall, Perry, 387, 388, 389, 448, 501, 505, 510, 512–13, 515, 516, 553, 587

  described, 512

  as master entertainer, 512, 513

  Hall Carbine Affair, 21–22

  Halsey, Stuart and Company, 416, 502–503, 504, 623

  Hambrecht and Quist, 666

  Hambro, Charles E. A., 460

  Hambro, Eric, 97, 170, 264, 304

  Hambro, Olaf, 523, 524, 525–26

  Hambros Bank, 519, 524, 574, 575, 576, 577

  Hamburg-Amerika Steamship Line, 101

  Hanna, Mark, 77

  Hanover Bank, 530

  Hapgood, Norman, 179

  Harcourt, Lewis, 95, 525

  Harcourt, Mary Burns, 95, 96, 118

  Harcourt, Lord William, 95, 463, 569–70, 572, 573, 589

  Harding, Warren G., 209, 251, 449

  power of Wall Street and, 225–29, 243, 244

  Harland and Wolff, 101

  Harper’s Weekly, 178–79

  Harriman, Averell, 424

  Harriman, Daisy, 140

  Harriman, Edward H., 89, 121, 134, 598

  Northern Pacific corner and, 88–94

  Harrison, George, 313, 319, 361, 382–83, 397–98

  gold standard and, 330–34

  Hartford, Huntington, 534

  Hartford Insurance Company, 583–84

  Harvard Corporation, 562

  Harvard University, 176, 193, 220, 319, 354, 421, 422, 514, 581, 654

  Business School, 151, 516, 580–81, 597, 632, 633, 664, 690

  Lamont donations to, 479, 480

  Morgan family and, 62, 119, 159, 169, 192, 214, 258, 266

  Harvey, Sir Ernest, 329, 332, 334

  Hathaway, Carl, 561

  Havemeyer, H. O., 173

  Hawley-Smoot Tariff Act, 323, 403

  Hay, John, 132

  Healey, Matthew, 670

  Hearst, William Randolph, 239–40, 294, 382

  Heinz, H. J. (company), 500

  Heinze, F. Augustus, 123

  Hepburn, A. Barton, 43

  Heron Corporation, 683

  Herrick, Myron, 183

  Higginson, Henry Lee, 87

  Hill, James J., 57, 78, 91–92

  Hill, Samuel, 654, 672

  Hilles, Charles O., 370

  Hill-Wood, Sir David Basil, 521

  Hill-Wood, Wilfred William Hill, 460, 521

  Hindenburg, Oskar, 329, 393

  Hinton, Longstreet, 494, 560, 562–67

  Hirohito, Emperor, 551

  Hitachi, 552, 557, 627

  Hitler, Adolf, 208, 250–51, 328, 438, 480

  Mussolini and, 403, 437, 454–56

  Schacht and, 392–94, 398–99, 432, 439, 477, 478; see also Nazis

  Hoare, Govett, 675

  Hoare, Samuel, 402

  Hoch, Jan Ludwig, see Maxwell, Robert

  Hodges, Amory, 125

  Hoffmann-LaRoche, F., 707, 708

  Holden, Sir Edward, 198

  Holding companies, 308–10, 369–70; see also individual companies

  Hombert, M. Octave, 198

  Honduras, 131–32

  Hong Kong, 593, 613, 705

  Hongkong and Shanghai Bank Corporation, 574

  Honnold, William, 350

  Hoover, Herbert, 207, 226, 228, 273, 339, 374, 700

  crash of 1929 and, 314–15, 317, 321

  Depression and, 323, 324, 325, 346–47, 350–55

  feuds with Morgan partners, 349–55

  foreign loans and, 243, 244, 251, 328

  Lamont and, 323, 324, 325, 328–29, 348–53, 443–44

  Morrow and, 297–98, 350

  Roosevelt and, 353–54

  Hopkins, Harry, 380

  Hornsby, Sir Antony, 571–72, 573

  Hostile takeovers, 522, 523–26, 596–603, 627–35, 665–68, 691–93, 702–703, 705–709, 710, 711

  conflicts of interest and, 628–31, 667, 706, 707–709

  debt resulting from, 693

  insider trading and, 632–35, 685, 712–13

  Morgan Grenfell and, 524–26, 570–79, 671, 676–89, 714

  Morgan Guaranty and, 571, 705–709; see also Leveraged buyouts

  Houghton, Alanson, 251–52

  Houghton, James R., 709

  House, Colonel, 181, 206, 209

  House Banking and Currency Committee, 150, 561

  Houston Industries, 624

  Hovey, Carl, 99, 139–40

  Howe and Mather, 18, 19

  Hughes, Charles Evans, 110, 128, 201

  foreign loans and, 226, 227, 232, 236, 239, 240, 248, 249

  Hugo, Victor, 14

  Hull, Cordell, 394, 398, 402, 403, 440

  Hunt brothers, 643, 716

  Huntrods, Guy, 643, 644, 646

  Hutchins, Robert, 428

  I

  IBM, 417, 517, 534, 587, 626, 627, 654

  Ibn Saud, 605

  Icahn, Carl, 692

  Ickes, Harold, 373, 391, 418, 440, 441, 448

  Illinois Bell Telephone, 390

  Imperial Chemical Industries, 523

  Imperial Tobacco, 570

  Inco, see International Nickel

  Income taxes, 347, 380

  Morgan partners and, 366, 375, 410–11

  Industrial Bank of Japan, 557

  Inflation, 208, 211, 302, 347, 491, 498, 585

  gold standard and, 72–73, 357–58

  hyperinflation and, 247, 248–49, 393–94

  New Deal and, 380, 381

  Inouye, Junnosuke, 233–34, 235, 337–41, 344, 405

  assassination of, 342, 343

  Insider trading, 305–307, 562–67, 628, 630–31, 632–35, 685–86, 712–13

  Institutional investors, 584–85, 587, 602, 626, 699

  Insull, Samuel, 502

  Interest Equalization Tax, 544

  Interest rates, 538, 540, 541, 592, 618

  British gold standard and, 274–75

  Depression era, 321, 323–24, 384, 419

  during the pr
e-crash 1920s, 302, 313–15

  market-based, 490–91, 495

  International Committee of Bankers on Mexico (ICBM), 238, 239, 297

  International Harvester, 109, 130, 148, 149, 180, 625–26, 657

  International Mercantile Marine, 100–103, 145–47

  International Monetary Fund, 486, 489, 518, 570, 644

  Latin American debt and, 638–39, 641, 643, 644, 645, 646

  Middle East and, 606, 608

  International Nickel (Inco), 520, 562, 596, 598–99, 600–601

  International Paper, 669

  International Telephone and Telegraph (ITT), 308, 583–84

  Interstate Commerce Commission (ICC), 56, 177, 178, 417, 508

  Interstate Commerce Railway Association, 57

  Inukai, Tsuyoshi, 343–44

  Invergordon mutiny, 334

  Investment banking, 385, 503–504, 513, 517, 595, 598, 627, 691

  separation of commercial banking from, 353–54, 362–63, 374–91

  Investment trusts, 308–10

  Iran, 490, 613, 615

  Irving Trust, 703, 708

  Isaac, William, 659, 660

  Ismay, J. Bruce, 101, 103, 146

  Isolationism, 382, 488

  during World War I, 185–86, 192, 202

  after World War I, 208–10, 227, 243, 294, 296, 328

  before World War II, 399–401, 439, 442–47, 455, 461–64, 467–68

  Israel, 530, 609–10, 613, 615

  Arab boycott of, 609–10, 615, 617, 618, 706

  Italy, 325, 479, 480, 517, 518, 521, 545–46, 549, 552

  loan to, 277–86, 479; see also Mussolini, Benito

  Italy-America Society, 278, 284, 479

  Iwasaki, Baron and Baroness, 233

  J

  Jackson, Andrew, 12

  Jackson, Robert H., 418, 419, 420, 441

  Japan, 195, 231, 466, 486, 489, 550–58, 619, 624, 644, 690, 695, 705, 717

  Arabs and, 614

  assassinations in, 342–44

  bombing of Shanghai, 341–42, 437

  confusion over Morgan name in, 551, 589, 591

  earthquake of 1923, 234–36

  invasion of China, 337–45, 437

  Lamont and, 232–37, 336–45, 480, 481

  opening of Morgan branches in, 551–59

  zaibatsu, 551, 557

  Japanese Exclusion Act, 236

  Jay, Dean, 454

  Jazz Age, 243, 257, 259–62, 315–16

  Jefferson Smurfit, 694

  Jekyll Island Club, 129–30

  Jewish bankers, 30, 36, 48, 84, 88–90, 248, 258, 393, 424, 522, 581, 584, 612, 613, 615

  Bank of the United States and, 326–27

  European, 433

  at Morgan Grenfell, 677

  at Morgan Guaranty, 605, 656, 665

  at Morgan Stanley, 581

  World War I and, 195–200, 205, 215–17

  John Paul I, Pope, 634

  Johns-Manville, 422, 629, 630, 631

  Johnson, Derek, 574, 576

  Johnson, F. Ross, 711

  Johnson, Hiram W., 401

  Johnson, Hugh, 441

  Johnson, Louis, 441

  Johnson, Lyndon B., 542, 544, 545, 571

  Johnson Act, 401, 402

  Johnstone, Yerger, 596, 599, 629, 705

  Jones, Allen Northey, 514, 595

  Jordan, 613, 615

  Josephson, Matthew, 47, 325

  J. P. Morgan companies, see under Morgan and Company, J. P. Morgan and Company, Inc., J. P. Morgan Securities, J. P.

  J. S. Morgan and Company, see Morgan and Company, J. S.

  Junk bonds, 666, 676, 692, 693, 694, 697, 702, 710, 712

  Justice Department, U.S., 309, 427–28, 506–507

  lawsuit against Club of Seventeen, 502–506, 517

  K

  Kabayama, Count Aisuke, 343, 556

  Kahn, Otto, 114, 215, 237, 258, 282, 307

  Keene, James, R., 85

  Kellogg, Frank, 281, 292, 436

  Kennan, George F., 488

  Kennecott Copper, 147–48, 190, 289, 422, 495, 534, 561, 598, 629

  Kennedy, John F., 536–37, 543–44

  Kennedy, Joseph P., 212, 259, 264, 307, 312, 455, 536, 537

  New Deal and, 379, 390

  as U.S. ambassador, 264, 439–40

  Kennedy, Robert, 536

  Keyes, Leonhard A., 66

  Keynes, John Maynard, 77, 208, 272, 381, 461, 489

  British gold standard and, 274, 276–77, 334

  Keynes, Lydia Lopokova, 272, 276

  Khashoggi, Adnan, 610–12

  Khruschev, Nikita, 542

  Kidder, Peabody, 153, 156, 305, 325, 326, 422, 502, 601, 702

  Kienbock, Dr., 247, 433

  Kindersley, Lord, 523, 525

  King, Edward, 127

  Kipling, Rudyard, 97, 263

  Kirby, Allen P., 415, 507

  Kircher, Donald, 548

  Kissinger, Henry, 557

  Kitchener, Lord, 188

  Kleinwort Benson, 674

  Knickerbocker Trust, 123–24

  Knight, Harry F., 291

  Knox, Philander C., 106, 131, 135

  Kohlberg Kravis Roberts, 694, 695

  Köhler, Heinrich, 252

  Korean War, 490

  Kraftmeier, Edward, 196

  Krupp von Bohlen, Gustav, 392–93, 478

  Kravis, Henry, 677, 711, 712

  Kuhn, Loeb & Co., 68, 131, 132, 137, 156, 225, 375, 385, 412, 416, 503, 507, 584, 624, 625, 633

  Gentleman Banker’s Code and, 197, 258, 305

  Japanese loan and, 235–36

  Northern Pacific corner and, 88–92

  World War I and, 185, 195–200, 215–16, 236

  Kuwait, 617, 669

  Kwantung army, 338–43

  L

  La Farge, Grant, 262

  La Follette, Robert, 128, 191

  Lamont, Corliss, 220, 238, 280, 295

  politics of, 277–78, 403

  Lamont, Daniel, 74

  Lamont, Florence, 233, 260–62, 348–49, 556

  Lamont, Thomas W., 15, 68, 123, 127, 138, 143, 168, 169, 268, 309, 469, 477, 485, 487, 489, 506, 513, 528, 551, 559, 638, 644

  as Anglophile, 430–32

  Lady Astor and, 261, 361–62, 407, 419, 427, 436–37, 479

  Austria and, 433–35, 437

  Brandeis and, 179–80

  British gold standard and, 332–36

  British-Nazi loan repayment agreements and, 396–98, 433–35, 439, 464–65

  as chairman of J. P. Morgan, 478, 479

  China and, 230–32

  clash with Jack, 334–36

  crash of 1929 and, 306, 312, 314–19, 321

  death and estate of, 480–81

  Depression and, 323, 324, 325, 334–45, 347, 348–49

  described, 144–45, 207, 219–21, 260–62, 278, 284, 407, 480–81

  Ford and, 221–22

  Germany and, 247–52, 310–12, 396–98, 400

  government-banker ties and, 226–29

  Hoover and, 323, 324, 325, 328–29, 334, 348–53, 443–44

  Italy and, 277–86, 402–407, 454–59, 479

  Japan and, 232–37, 336–45, 466, 480, 481, 555, 556

  Mexico and, 238–43, 297–99

  as Morgan partner, 144–45, 166, 167, 219–21, 243, 257, 469

  Morgan Stanley and, 385–88

  Morrow and, 287, 289, 293, 297–99

  Mussolini and, 277–86, 308, 341, 343, 402–407, 437, 454–58, 479, 481

  New Deal and, 380–81, 417–20

  Pecora hearings and, 357, 360–63, 372, 373–74

  politics and, 497, 498, 610

  postwar period and, 206–209, 221

  public relations and, 280–86, 317, 337–45, 361, 373–74, 376, 403–407

  Pujo Committee and, 151, 153, 158

  relationship banking and, 285, 336–37, 341

  taxes and, 410–11

  Whitney embezzlement and, 424–28
, 436

  Willkie and, 448, 449

  World War I and, 186, 188, 192, 401

  World War II and, 437–39, 442–44, 453, 463–67

  Young and, 416

  Lamont, Tommy S., 261, 326, 366, 433, 534

  Texas Gulf Sulphur and, 562–67

  Land, Edwin H., 400

  Lang, Dr. Cosmo, 322, 348

  Langoni, Carlos, 641, 642, 644, 646

  Lansing, Robert, 186, 197–98, 230, 401

  Lateran Treaty, 285

  Latin America, 237–43, 292–93, 354, 459, 466–67, 487, 568, 613, 636–52, 660, 717

  Brazilian debt, 640–41, 642–47, 716

  flight capital, 649, 651

  recycling of Arab petrodollar deposits as loans to, 637–38

  repackaging of debt, 304, 356, 375

  Law, Bonar, 202

  Law, George, 570

  Lawrence, C. J., 714–15

  Lawrence, T. E., 521

  Lawrence, Bishop William, 51, 122

  Lawson, Nigel, 687–88

  Lazard Brothers, 89, 196, 304, 523–24, 525, 686

  Lazard Frères, 442, 502, 512, 583, 588, 590, 601, 612, 616, 620, 694

  Leach, Ralph, 538–40, 591

  League of Nations, 206–209, 247, 279, 288, 359, 373, 402, 489

  Japanese invasion of China and, 340, 341, 344

  Ledyard, Lewis Cass, 423

  Lee, Fred, 712–13

  Lee, Higginson, 156

  Lee, Ivy, 283, 291

  Leffingwell, Russell C., 120, 168, 203, 236, 252, 407, 471, 475, 495, 499, 518, 521, 551, 559, 560

  as adviser on international financial problems, 486–87, 488, 605, 638

  as chairman of J. P. Morgan, 480, 485–91, 560

  crash of 1929 and, 312–13, 314

  Depression and, 321–22, 326–27, 347–48, 376–77, 419

  described, 485

  German debt and, 397, 398

  gold standard and, 274, 276, 358

  Japanese invasion of Manchuria and, 341, 342, 437

  as Morgan partner, 243, 246, 251, 257

  New Deal and, 379, 381, 383, 385

  Roosevelt and, 354–55, 356, 359, 362, 386, 461–62

  World War II and, 438, 443, 447, 451, 461–62, 465–68

  Lehman, Herbert H., 326, 356–57

  Lehman, Philip, 199

  Lehman Brothers, 89, 258, 375, 385, 502, 624, 625, 633, 665

  Lehman Brothers Kuhn Loeb, 633, 634, 691

  Leigh-Pemberton, Robin, 671, 687, 688

  Leith-Ross, Sir Frederick, 433

  Lend-Lease, 461–64

  Lenin, 210

  Leo XIII, Pope, 285

  Leopold, King, 79

  Leveraged buyouts (LBOs), 669, 693–99, 711, 717

  conflicts of interest and, 698; see also Hostile takeovers

  Levine, Dennis, 712

  Lewis, John L., 420, 467

 

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