Morgan family explained

Morgan family
Region:New York City, New York
Origin:Llandaff, Wales
Founder:Miles Morgan
Otherfamilies:Adams political family
Cavendish-Bentinck family
Hamilton family
Livingston family
Perry family
House of Harcourt

The Morgan family is an American family and banking dynasty, which became prominent in the U.S. and throughout the world in the late 19th century and early 20th century. Members of the family amassed an immense fortune over the generations, primarily through the work of Junius Spencer (J.S.) Morgan (1813–1890) and John Pierpont (J. P.) Morgan Sr. (1837–1913).

Morgan members dominated the banking industry during their time. J. P. Morgan was the de facto leader of this dynasty, having been the most prominent businessman in America at the turn of the century. He revolutionized numerous industries, including electricity, railroad, and steel. Through his business methods, he was highly successful in asserting his power as one of the most influential businessmen in America. Historians describe the Morgan family along with its web of partners to be part of the large American banking empire known as the House of Morgan.

It is difficult to place an exact beginning and end date on the dynasty. However, many scholars attribute the death of J. P. Morgan to the end of the banking dynasty. In The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance, Ron Chernow chronicles the lives of the Morgans, which he described as "encrusted with legend... ripe with mystery, [and] exposed to such bitter polemics".[1]

History

The Morgan family came to some prominence in Wales during the 17th century. Born in Llandaff, Glamorgan County in 1616, Miles Morgan was the son of lawyer and politician William Morgan, who would be elected a Member of Parliament in 1628. At the age of 20, Miles sailed for America, along with his brothers, John and James, seeking new opportunities in the New World. Arriving in April 1636, he landed in the Massachusetts Bay Colony. Settling in Roxbury and later Springfield, Massachusetts, Miles met Prudence Gilbert, his future wife.[2] Miles was a soldier during the sack of Springfield. He later worked on a farm and lived a comfortable life. He continued living in the city until the age of eighty-three.[3]

One of his sons, Nathaniel, continued the legacy of the Morgan name by becoming a powerful member of his small town. Nathaniel had many professions in his town, including Fence Viewer, hayward, field driver, constable, surveyor, and assessor.[4] He married Hannah Bird on 19 January 1691, daughter of James Bird of Farmington, Connecticut.

Nathaniel's son, Joseph Morgan, was the fifth of seven children. Born on 3 December 1702, Joseph began to learn to weave at a young age. At the age of 21, he became a soldier in the company of Captain Josiah Kellogg of Suffield. Upon his father's death, he inherited part of Chicopee Field. He married Mary Stebbins in 1735 and raised a family on a farm of two hundred acres. Upon his death, he gave much of his property to sons Joseph, Jr., and Titus.

Joseph, Jr. was elected Lieutenant and later Captain of the 8th Company in the 3rd Regiment of the Hampshire County, Massachusetts militia on 26 April 1776. Upon his death, one of his sons, Joseph III, received 112 acres of land.

Joseph III was the first to enter the financial industry, which is what the family is known for today. He left the family business of working on farms behind. In 1812, he joined the Washington Benevolent Society as a private banker.[5] He moved the family to Hartford, which existed as one of the most prominent trade centers in the Connecticut River Valley.[6] In November 1816, he purchased the Hartford Exchange Coffee House, where he acted as an innkeeper. It stood as the focal point of all business affairs and social activities in the area; the idea of meeting new clients and collaborating with other businessmen in these coffee shops and inns allowed for the growth of the industry in America.[7] In July 1825, he bought the Hartford Bank. Joseph III purchased and reorganized the Hartford Fire Insurance Company into the Aetna Fire Insurance Company. (Many of these business deals were conducted at his inn, which acted as a hub for businessmen.) After a fire struck several New York City buildings, which held insurance plans from Aetna, Joseph Morgan III made prompt payments to the companies. New business suddenly poured in, as the insurance company was seen as highly reliable and trustworthy. The partners of the firm and the stockholders made large sums of money in future years.[8] After moving from the farming business to the coffee house business, Joseph III decided it was time to turn to finance. He purchased the City Hotel on Main Street, which he renovated and cleaned up; business at the hotel boomed like never before.[9] He married Sarah Morgan (née Spencer), who was the Director of the Hartford Orphan Asylum. He acted as a director of the firm until his death.Joseph III's son, Junius Spencer (J. S.) Morgan, played a prominent role in the banking industry. From a young age, he showed interest in entering the business field like his father. In 1829, at the age of 15, he worked as an apprentice with a merchant, Alfred Welles, in Boston. Following that, he worked at some firms including:

In 1864, Junius Morgan changed the name of George Peabody and Company to J. S. Morgan and Company. Under his leadership, it became one of the most prominent banking firms in both America and Europe. At the age of 64, J. S. Morgan retired.

Perhaps the most prominent member of the family was J. P. Morgan (1837–1913), son of J. S. Morgan. He became exposed to his father's business deals at an early age. He worked as an accountant until eventually becoming a partner at Drexel, Morgan & Co. in 1871.[11] By 1885, he began buying out railroads and reorganizing them. Through his business strategies, the term "Morganization" was coined to describe his method of creating monopolies through buying companies, eliminating competition, and cutting costs.[12] [13] By the turn of the century, he became incredibly successful in his business endeavors, controlling most of the major industries in America. During the Panic of 1907, J. Pierpont Morgan bailed out the U.S. government.

The key characteristic of the Morgan banking style, perpetuated by J. P. Morgan, existed where banks "perpetuate an ancient European tradition of wholesale banking, serving governments, large corporations, and rich individuals".[14] The bankers of the pre-1913 Baronial Age were said to have been the "lords of creation", since they catapulted the American economy into an industrial powerhouse of production and power.

J.P. Morgan was also a member of numerous social clubs including the Union League, New York Yacht Club, and Knickerbocker Club.[15] In 1891, he also founded his own club, the Metropolitan Club. Famous members included Cornelius Vanderbilt, Darius Ogden Mills, and more. The club had 1200 resident and 500 non-resident members at its founding.[16] These social clubs were important in establishing relationships among powerful leaders of American society. Modeled after British social clubs,[17] these organizations had people who held a tremendous influence over everyday life, such as bankers, politicians, lawyers, and railroad tycoons.

J. P. Morgan's legacy was continued by his son of the same name, although his son never became as prominent as his father. Born in 1867, John Pierpont Morgan, Jr. attended Harvard University, class of 1889. Also known as "Jack", he entered the banking industry, like his father, becoming a partner at Drexel, Morgan and Company, Bankers and Brokers of New York City in 1892. He helped in the establishment of J.P. Morgan and Company, which was founded in 1894. Yet, his leadership of the House of Morgan ultimately marked the beginning of the Morgan dynasty's decline.

With the passage of the Glass-Steagall Act in 1933,[18] which restricted the merging of investment and commercial banks, came the end of the period of Robber barons and banking dominance.[19] Thus, J. P. Morgan and Company became a commercial bank, and Morgan Stanley an investment bank. Through new legislation, and a growing public resentment against big business, the opportunities for Jack were rare compared to his predecessors. Additionally, Jack suffered from many ailments, such as neuritis, to the point where he had to resign from numerous positions.[20]

The Morgan family are members of the Episcopal Church.[21]

Wealth

By one estimate, J. P. Morgan (1837–1913) is believed to have been the 24th richest American in history,[22] inflation-adjusted. His fortune is believed to have grown to about $57 billion (2024 USD).

According to historians Michael M. Klepper and Robert E. Gunther, Morgan had one of the highest wealth:GNP ratios in American history. In their book, The Wealthy 100: From Benjamin Franklin to Bill Gates,[23] Morgan's wealth:GNP ratio was 328.[24] At the time, his fortune equaled around $119 billion.

Genealogy

William Morgan Branch

Junius Spencer Morgan Branch

Network

Associates

The following is a list of figures closely aligned with or subordinate to the Morgan family.

Businesses

The following is a list of companies in which the Morgan family held a controlling or otherwise significant interest.

Non-profit organizations & philanthropy

See also

Select bibliography

Notes and References

  1. Book: Chernow . Ron . The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance . 1990 . Atlantic Monthly Press . New York . 0-87113-338-5 . xi .
  2. Book: Starr. Frank Farnsworth. The Miles Morgan Family of Springfield, Massachusetts . Internet Archive. 1904. Hartford, Conn. .
  3. Book: Hoyt . Edin P. Jr. . 1966 . The House of Morgan . registration . Dodd, Mead and Company . New York.
  4. Book: Starr. Frank Farnsworth. The Miles Morgan Family of Springfield, Massachusetts. 1904. Hartford, Conn. .
  5. Book: Hoyt . Edin P. Jr. . 1966 . The House of Morgan . registration . Dodd, Mead and Company . New York . 24.
  6. Book: Corey. Lewis. The House of Morgan: A Social Biography of the Masters of Money. registration. 1930. G. H. Watt. New York. 23.
  7. Book: Hoyt . Edin P. Jr. . 1966 . The House of Morgan . registration . Dodd, Mead and Company . New York . 27.
  8. Book: Hoyt . Edin P. Jr. . 1966 . The House of Morgan . registration . Dodd, Mead and Company . New York . 37.
  9. Book: Hoyt . Edin P. Jr. . 1966 . The House of Morgan . registration . Dodd, Mead and Company . New York . 32.
  10. Book: Chernow. Ron. The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance. 1990 . Atlantic Monthly Press. New York. 0-87113-338-5. 19.
  11. Web site: J.P. Morgan. American Experience: People & Events.
  12. Web site: Morganization. Investopedia. 7 October 2014.
  13. Web site: JP Morgan. History: Biographies. 7 October 2014.
  14. Book: Chernow. Ron. The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance. 1990 . Atlantic Monthly Press. New York. 0-87113-338-5. xiii.
  15. Book: Biographical Directory of the State of New York, 1900. Google Books. New York City. 323. 1900.
  16. News: The Metropolitan Club. The New York Times. 8 March 1891. .
  17. Book: Pak. Susie J.. Gentlemen Bankers. Google Books. Harvard University Press. 6 November 2014. 1 June 2013. 978-0-674-07559-7.
  18. Book: Chernow. Ron. The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance. 1990 . Atlantic Monthly Press. New York. 0-87113-338-5. xii.
  19. Web site: Maues. Julia. Banking Act of 1933. Federal Reserve History. 2 November 2014.
  20. Book: Hoyt . Edin P. Jr. . 1966 . The House of Morgan . registration . Dodd, Mead and Company . New York . 388–389.
  21. Book: W. Williams, Peter. Religion, Art, and Money: Episcopalians and American Culture from the Civil War to the Great Depression. 2016. 978-1-4696-2698-7. 176. University of North Carolina Press. The names of fashionable families who were already Episcopalian, like the Morgans, or those, like the Fricks, who now became so, goes on interminably: Aldrich, Astor, Biddle, Booth, Brown, Du Pont, Firestone, Ford, Gardner, Mellon, Morgan, Procter, the Vanderbilt, Whitney. Episcopalian branches of the Baptist Rockefellers and Jewish Guggenheims even appeared on these family trees..
  22. Web site: The Wealthiest Americans Ever. The New York Times: Business. 7 October 2014.
  23. Book: The Wealthy 100: From Benjamin Franklin to Bill Gates. 0-8065-1800-6. Klepper. Michael M.. Gunther. Robert E.. 1996. Carol Publishing .
  24. Web site: Roth. J. D.. The Wealthy 100: A Ranking of the Richest Americans, Past and Present. 14 October 2008 . Get Rich Slowly. 7 October 2014. https://web.archive.org/web/20141011013125/http://www.getrichslowly.org/blog/2006/07/29/the-wealthy-100-a-ranking-of-the-richest-americans-past-and-present/. 11 October 2014.
  25. https://www.nytimes.com/1998/12/17/classified/paid-notice-deaths-page-jane-n.html New York Times death notice
  26. https://www.nytimes.com/1942/01/27/archives/jane-nichols-wed-to-walter___-page-2d-granddaughter-of-j-p-morgan.html New York Times wedding announcement
  27. https://www.nytimes.com/1999/01/18/business/walter-h-page-83-chairman-of-j-p-morgan-in-the-1970-s.html New York Times obituary
  28. News: Paul C. Pennoyer, 80, Lawyer. Active in Various Fields, Dies . 10 November 2018 . . July 1, 1971 . en.
  29. Web site: VICTORIA PENNOYER . The New York Times. . 17 December 2023 . August 27, 2023.
  30. News: Dr. Pennoyer, a Psychologist, Is Wed To John W. Auchincloss 2d, a Lawyer . 28 May 2020 . . 10 April 1988.
  31. Web site: fr . Junius Spencer Morgan (1867-1932) . . March 3, 2017.
  32. Book: Stoller, Matt . 2020 . Goliath: The 100-Year War Between Monopoly Power and Democracy . New York City, NY . Simon & Schuster . 102 . 978-1-5011-8308-9.
  33. Book: Dombroski, Thomas W. . 2011 . How America Was Financed: The True Story of Northeastern Pennsylvania's Contribution to the Financial and Economic Greatness of the United States of America . Bloomington, IN . iUniverse . 184 . 978-1-4620-1802-4.
  34. Book: Casto, James E. . 2006 . The Chesapeake and Ohio Railway . Arcadia Publishing . 8 . 978-0-7385-4334-5.
  35. Book: Chernow, Ron . 1990 . The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance . New York City, NY . Grove Press . 152 . 0-8021-3829-2.
  36. Book: Davis . Lance E. . Gallman . Robert E. . 2001 . Evolving Financial Markets and International Capital Flows: Britain, the Americas, and Australia, 1865–1914 . Cambridge University Press . 310 . 0-521-55352-0.
  37. News: Two Banks to Be Merged: Plan to Consolidate First And Union National . . May 31, 1900 . 5 . . subscription . .
  38. Book: Chernow, Ron . 2003. The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance . New York City, NY . Grove Press . 224 . 0-8021-3829-2.
  39. News: COMBINATION OF SIX STEAMSHIP COMPANIES; International Corporation to Have a Capital of $120,000,000.. 2 October 1902. The New York Times. 11 February 2020. en-US. 0362-4331.
  40. News: 1927 . MORGAN CO. OBTAINS MANVILLE COMMON; Adds Substantial Interest to Large Block of Preferred Bought in December. STOCK LONG CLOSELY HELD Corporation Head Will Continue as an Officer and Director -No Policy Change . subscription . New York Times .
  41. Book: Treese, Lorett . 2012 . Railroads of Pennsylvania . Mechanicsburg, PA . Stackpole Books . 10 . 978-0-8117-0011-5.
  42. Book: Shannon, David A. . 1977 . Twentieth Century America, Volume I: The Progressive Era . Chicago, IL . Rand McNally College Publishing Company . 73.
  43. 1911 . Merger Would Make Biggest New York Bank . The Commercial West, Volume 19 . Financial Communications . 24 . 2024-03-01.
  44. Book: Geisst, Charles R. . 2004 . Wall Street: A History . Oxford University Press . 141 . 0-19-517060-1.
  45. Book: Johnson, Philip E. . 2014 . The Hampden Railroad: The Greatest Railroad That Never Ran . Lulu Enterprises, Inc. . 2 . 978-1-304-73390-0.
  46. Book: Schafer, Mike . 2000 . More Classic American Railroads . MBI Publishing Company . 103 . 9780760307588.
  47. Morgan Mergers . "But also announced last week was a Morgan-managed merger of Fleischmann Co., Royal Baking Powder Co., and E. W. Gillett, Ltd. ... The merger was arranged by a committee consisting of Morgan-Partner Thomas Cochran, Fleischmann President Joseph C. Wilshire, Board Chairman Max C. Fleischmann, Royal President William Ziegler Jr. Mr. Wilshire will be president of the new company. The directorate will include Morgan-Men William Ewing and Henry P. Davison. The Morgan interest in the merger was accented by the personal friendship long existing between Morgan-Partner Cochran and Major Fleischmann, and by the Morgan ownership of a considerable portion of Fleischmann stock (estimated at 400,000 shares) purchased in 1926." . . 1929 . 2024-02-26 .
  48. Book: Hills, Jill . 2010 . The Struggle for Control of Global Communication: The Formative Century . University of Illinois Press . 139 . 978-0-252-02757-4.

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