Examine the success of any titan of industry,

whether it be Carnegie and his mountains of

steel, or Rockefeller and his sea of oil,

and you will find a coveted green commodity

fueling their industry ...

Money.

And in the late 1800s, one man controlled more

of it than any other;

John Pierpont Morgan.

To understand the vast scope of Pierpont’s

influence, we must first rewind to a time

long before America was an economic powerhouse

with a 21 trillion-dollar GDP.

It’s all too easy to forget that America

was once an emerging market;

one that, not too long ago, was almost entirely

dependent upon British capital.

So, without further ado, let’s explore the

story of how a combination of timing, genius,

and connections made J.P. Morgan the most

powerful man in the history of American finance.

Typically, we begin someone’s life story

at birth, but the story of JP Morgan cannot

be told without mentioning the influential

family that brought him up.

Pierpont’s grandfather, John Pierpont, was

a radical and fiery preacher,

and would introduce his grandson to the power

of forceful speaking —

a skill that would later pay dividends for

the future captain of industry.

But a far more towering and instrumental figure

in Pierpont’s life, was his father;

Junius Spencer Morgan.

Junius was a highly-respected businessman,

in both the American and

European banking industry.

And he largely took it upon himself to shape

his son into his own ‘cool’ and ‘collected’

image; grooming the young boy to inevitably

join the family banking business.

No other man comes close to having the same

kind of impact on Pierpont’s life,

than his beloved father.

Although, their father-son relationship is

probably best described as

“tough love”.

But, we’re getting ahead of ourselves.

John Pierpont Morgan was born into this privileged

life on April 17th, 1837,

with every advantage that could be given to

prepare him for what was to come.

But it wasn’t all sunshine and rainbows

for the young Morgan.

He was a sickly child.

As an infant, he suffered from seizures, and

as he grew

older, was often plagued with rheumatic fever,

scarlet fever, and painful

migraines.

But certainly his most visible medical complication

was his acne rosacea –

which severely inflamed and ruptured the blood

vessels of his nose.

Lacking treatment in the mid-1800s, his condition

progressively worsened;

transforming his nose from “unsightly”

to a disfigured red and purple monstrosity.

Although you certainly wouldn't know that

by looking at most pictures of

JP Morgan, which is the way he wanted it to

be.

According to his great grandson, any time

Morgan commissioned a portrait or

photo of himself, he demanded that his gargantuan

nose be touched-up,
after-the-fact.

Essentially, the 1800s equivalent of photoshop.

Pierpont’s various medical problems required

isolation, turning him into

somewhat of a loner.

Unable to play outside like most of the other

kids, Pierpont stayed inside,

where he spent his time studying and learning

to read financial statements.

In the rare moment that he wasn’t absorbing

information, Pierpont found comfort

in playing the card game, Solitaire — a

pastime that became one of his

life-long pleasures.

Back in the classroom, Pierpont was a natural

leader.

He would often
challenge his teachers, and, using logic,

talk them down from punishing him.

As he went through school, his leadership

skills caught the eye of his seemingly impossible-to-please

father, Junius, who would focus his energies

on helping Pierpont cultivate his promising

potential for the business world.

Influenced by his father’s success, Pierpont

became fascinated with

successful men, and made a habit of collecting

autographs from presidents

and other famous figures.

His fascination with powerful leaders led

him to write a school essay

on Napoleon Bonaparte.

And although his parents tried to introduce

him to American heroes, Pierpont

was solely impressed with Napoleon, and heavily-inspired

by the general’s
insatiable appetite for global power — an
idea that struck a chord with the future

leader.

On October 1st, 1854, Pierpont’s father,

Junius, was made partner at the London-based

financial firm, George Peabody & Company.

Soon after, the Morgan family relocated to

London.

But Pierpont, then just 17, wouldn’t be

staying very long.

Concerned about his son’s mood swings and

hot temper, Junius sought to instill principles

of discipline and responsibility.

Wanting only the best for Pierpont, Junius

sent him to the Institut Sillig,

a Swiss boarding school on Lake Geneva, 600

miles away.

It wouldn’t be his first time far apart

from his family.

When he was only 15, Junius sent Pierpont

to the remote islands of the Azores

to help him recover from rheumatic fever.

Alone, all by himself, he’d spend an entire

year recovering from his illness.

Perhaps this was part of his father’s unique

parenting plan to help “toughen”

Pierpont; helping the boy to become independent.

After school, Pierpont began his career on

Wall Street, aiming to profit from the

lucrative, emerging American market.

With the help of his father, Pierpont secured

a starting position as an unpaid

clerk with a small banking firm in New York.

One of his chief responsibilities was providing

overseas intelligence to his father in London;

sending the latest American economic and political

updates.
For 33 years, Pierpont reserved Tuesday and
Friday evenings to write to his father, who

not only absorbed his son’s lengthy letters,

but cherished them.

With his new position on Wall Street, Pierpont

gained invaluable first-hand

experience in the business world.

But his tireless ambition soon outgrew that

small firm, and in 1861, started his

own company, J Pierpont Morgan & Company.

One of the dividends of working in the banking

industry was Pierpont’s

introduction to New York’s elites, allowing

him to mingle with those of

high-society.

It was at one of these gatherings when one

young woman caught his interest

and deposited a fierce love in his heart;

Amelia Sturges.

Amelia, or Mimi, as she was more commonly

known, came from a banking

family as well, and when Pierpont first met

her, he was mesmerized.

Over the next 3 years, Pierpont and Mimi were

inseparable.

And as his business grew, he used his new

wealth to buy her a ring from

Tiffany’s, planning to propose.

But their lives would soon take a turn for

the worst.

Preparing for a wedding in a few months, Mimi

approached Pierpont that

summer with a lingering cough.

And although Mimi said she was too sick for

a wedding, Pierpont rushed to

marry the woman of his dreams in October of

1861.

By this time, she had become so frail that

Morgan had to carry her down the

stairs to her own wedding.

Hoping that a warmer climate would cure her

cough, Pierpont took his bride on

an extended honeymoon to the Algiers.

Concerned, Morgan hired the best doctors that

money could buy.

But as her condition deteriorated, physicians

confirmed Morgan’s worst fear:

Tuberculosis, a disease almost always a death

sentence in those days.

Sadly, it became evident that no amount of

money could change her fate.

Although J.P. Morgan was as attentive as could

be, Mimi Morgan died on

February 17th, just 4 months after their wedding.

Pierpont was heartbroken, and returned to

New York a shell of who he once was.

Coping with the pain of loss, Morgan threw

himself wholeheartedly into his work.

With long days and strict discipline, the

next two years were consumed with

growing his reputation as a trustworthy American

banker.

It was during this time, however, that America

would go to war … with itself.

North fighting South, the Civil War would

soon reach Morgan when Congress

passed the Conscription Act in March of 1863,

drafting all able-bodied men

between 20 to 45 to enlist in the Union Army.

But John Pierpont Morgan was too far busy

and important to dirty his hands

with something as trivial as war.

Following in the footsteps of other men of

means like Andrew Carnegie and John D. Rockefeller,

Morgan paid $300 to be removed from enlistment

and
instead have a substitute fight in his place.

He would fondly refer to his stand-in as,

“the other Pierpont Morgan”.

But Pierpont wouldn’t sit idle on the sidelines

of battles — the business of war

was too lucrative for such nonsense.

As the battles raged on, Morgan found a way

to profit from the carnage;

trading Union bonds.

He recognized that bond prices seesawed in

value following the news of each battle’s

outcome between the Union and Confederate

Army – the ability to foresee the winner

of a battle meant big profits.

Along with Union bond speculation, Morgan

also found other ways to monetize the war.

In what would later become known as the Hall

Carbine Affair, the 24-year-old

Pierpont was approached with a unique business

proposal from a New York

lawyer named Simon Stevens.

Stevens proposed that Morgan lend him $20,000

at 7 percent interest

to purchase approximately five-thousand antiquated

rifles, called Hall Carbines.

Widely regarded as outdated, yet still serviceable,

Stevens could purchase the rifles from the

Union army at the bargain price of just three-dollars-and-fifty-cents

apiece.

Using Morgan’s loan, Stevens’ plan was

to modernize the rifles, by upgrading their

cartridges; which would improve their range

and accuracy.

After upgrading the weapons at the cost of

only seventy-five cents more per rifle, Stevens

would then flip the guns – selling them

back to the army, and using the proceeds to
repay Morgan’s loan with interest.

The plan worked to a tee.

Following the defeat of the Union army at

the First Battle of Bull Run, the North suddenly

found itself desperate for rifles.

Reluctantly, the army agreed to repurchase

the newly modified weapons at the steep price

tag of $22 each — despite selling these

same guns for just three-dollars-and-fifty-cents

only about a month prior.

Two years later, a Congressional committee

overseeing government contracts

labelled those involved in the Morgan-backed

deal as being:

“Worse than a traitor”.

These types of deals didn’t make Pierpont

popular, however, especially with his

father – for Junius lived by a conservative

and non-speculative business

philosophy; born from his first-hand experience

during the Panic of 1857.

“Slow and sure should be the motto of every

man.”, he preached.

Despite his hectic deal-making schedule, Pierpont

always made the time for religion, and devoutly

attended Saint George’s church in Manhattan.

On one of these Sunday mornings, Pierpont

met Frances Louisa Tracy.

Fanny, as was her nickname, wasn’t immediately

interested in Pierpont,

but over time, Morgan wore her down.

By the end of 1864, the two were an item.

Although he had waited 3 years to marry Mimi,

he waited just a few months to marry Fanny

on May 31st, 1865.

9 months and 10 days later, Fanny gave birth

to Pierpont’s first daughter, Louisa.
Two years later, his first son was born, J.P
Morgan Junior.

At this time in America, wealth and prosperity

was on everyone’s mind.

The end of the Civil war pushed the country

into a multi-decade boom,

later dubbed as the Gilded Age; the Age of

Enterprise.

From 1870 to 1910, America’s population

and per capita income more than doubled, as

robber barons and business tycoons took the

nation by storm.

Names like Carnegie, Rockefeller, and Vanderbilt

were on everyone’s lips,

as entire industries were birthed seemingly

overnight.

But as the country grew, so did its need for

capital.

Backed by the old-world money that Pierpont’s

father was working with back in

London, JP Morgan was perfectly positioned

on Wall Street.

It was the epitome of being in the right place

at the right time.

The only problem was that JP Morgan was finished.

At age 33, with the world ready to beat down

his door, JP Morgan was tired.

It looked like retirement was the only option

for him to cure his weary body.

But his father would have none of it.

Junius had worked too hard in London to cultivate

ties with America to let his son stop now.

If health was the issue, then he would graciously

allow his son some time off, but Pierpont

would not be permitted to leave the banking

business altogether.

Junius Morgan arranged a new partnership for

Pierpont.
One of his contacts with substantial ties
in London was a Philadelphia banker by the

name of Anthony Drexel, a man who was 11 years

Pierpont’s senior —

a conscious decision by Junius to surround

the young Morgan with older and wiser minds.

Drexel’s American firms were already raking-in

three-hundred-and-fifty-thousand a year, and

had established trade

partnerships overseas.

Armed with five million dollars of seed capital

from Junius, Pierpont and Drexel formed a

new venture, creating Drexel, Morgan & Company

in 1871.

As per his father’s wishes, the younger

Morgan agreed to join the partnership, under

one condition:

a desperately needed vacation.

Pierpont wasn’t thrilled at the prospect

of going back into the office: he was exhausted.

In fact, throughout the financier’s life,

he would regularly take vacations for several

months each year, desperately needing to recharge.

He often joked that he could accomplish 12

months of work in just 9 months time.

After returning from a 15-month vacation in

Europe and Africa, JP Morgan purchased a 368-acre

property in Highland Falls on the Hudson River,

north of New York City.

This sprawling estate, known as Cragston,

would be where he escaped the noise of the

city and raised his growing family; the Morgans

added another two daughters in the next couple

of years.

Unsurprisingly, Pierpont cared about excellence

in every area of his life.

He was as precise with his gardens as his

finances.
It was well-known that he cultivated his own
roses and took special care to only select

the best flowers for his stately home.

And just like pruning his plants on the weekend,

he was careful to avoid weeds that threatened

to sprout in his business.

Back at his office on 23 Wall Street, he demanded

that women only be allowed in the building

once a year, on New Year’s Day, when the

markets were closed.

His partner had a female secretary who had

to be stationed across the street, so as not

to distract the busy businessman.

That level of focus led to unheard of success

in the banking business.

While the country’s median annual income

was just five-hundred-dollars a year, Morgan

was regularly making over five-hundred-thousand

a year.

But it was more than his financial genius

that made him so successful;

it was also his intimidating image, which

was only exacerbated by his bulbous and deformed

nose.

His fierce gaze was described as like staring

into the light of an oncoming train.

He towered over men, standing an impressive

six-foot-two, a full 8 inches over the average

man’s height at the time.

Morgan used his daunting appearance to bend

his opponents to his will, especially those

in the railroad industry.

Unlike most businesses with relatively low

barriers to entry, starting a railroad could

cost anywhere from seventeen to thirty-five

million dollars.

Fortunately for Drexel, Morgan & Company,

there were just a handful of banks that could
finance projects of such magnitude.

But despite the high startup costs, the railroad

industry had overexpanded;

with several companies offering lines that

competed with one another, all trying to service

Americas’ never-ending growth.

During this time, it was common for one person

to control the interests of an entire industry.

Carnegie was forging more steel than all of

Great Britain.

Rockefeller was refining as much as 90% of

America’s oil.

But the rails, on the other hand, were quite

the opposite.

Whereas other industries were largely monopolized,

many railroad owners

dealt with cut-throat competitors.

It wasn’t uncommon to have multiple companies

lay rail lines along the same route to compete

with one another, driving down margins.

But whereas others saw over-expansion, Morgan

saw opportunity.

Instead of passively owning stock in railroad

companies, Morgan would play an active role

in the corporate management of rails he invested

in.

By taking a position in a company, and joining

its board of directors, Morgan could reshuffle

the company’s leadership and then direct

the company the way he saw fit.

The practice grew so popular that it later

became known as “Morganization”, although

today, we know it as activist investing.

It was said that, despite serving as a director

on many boards, the true

chairman was always wherever Pierpont sat.

On one rare occasion, when a railroad president

challenged his leadership,

JP Morgan responded:

“Never forget, your railroads belong to

my clients.”

Over time, Pierpont gained an unparalleled

reputation as an honest and

forthright dealmaker.

And at a time when government regulatory agencies

didn’t exist, he was known as “the sheriff”

in the Wild West of trains.

Having Morgan on your board was a deterrent;

one that would cause

corporate raiders and robber barons to think

twice about attempting a hostile

takeover.

Brokering larger and larger deals, Morgan

perfected the art of consolidation, as his

growing reputation helped to attract even

more business for his firm.

So when two railroad giants threatened to

take down the rail industry and crash the

entire American economy, it’s no surprise

that Morgan’s power was called into action.

But the scale of this deal required Pierpont

to set the stage in a way that had never been

tried before … the stakes could not have

been higher.

If you’ve ever heard the phrase “work

hard, play hard”, it was lived out with

JP Morgan.

Although he spent long hours in the office,

he exercised just as much effort in his leisure

time.

In 1882, JP Morgan joined the New York Yacht

Club, and purchased a 185 foot iron yacht,

which he called the Corsair.

He often used the vessel to commute to and

from work in the city, so that he wouldn’t

be tied down by the rail schedule.

In luxurious fashion, Pierpont also hosted

extravagant parties, as he cruised up and

down the Hudson.

Although the Corsair was mainly used for pleasure,

its staterooms would serve as the eccentric

boardroom for Morgan’s next meeting.

Two of the largest railroads in the country,

The Pennsylvania and The New York Central,

were battling each other at every turn, with

their margins growing thinner by the day.

But what these companies didn’t realize

was how their territorial wars were affecting

the American economy.

British investors, who had sunk $1.5 billion

into the industry, nervously watched as the

railroads edged ever closer to bankruptcy.

Before long, the British were quickly pulling

money out of US rail stocks, at the concerning

rate of $25 million a year.

This was particularly dangerous, considering

railroad companies consisted of over two-thirds

of America’s publicly traded companies at

the time.

If the two railroads collapsed, the domino

effect could have a catastrophic impact on

the infant American economy.

JP Morgan devised a daring plan that required

agreements on both sides of the tracks, but

neither rail president looked ready to concede.

So Morgan invited both of them to come aboard

the Corsair, where they sailed the Hudson

river, debating the details of Morgan’s

ambitious proposal.

In his typical unconventional and controlling

style, Morgan refused to dock until both parties
agreed to his terms – effectively holding
the railroad presidents hostage.

In the end, they wearily agreed to stay out

of each other’s territories.

This landmark victory became known as the

Corsair Pact.

For Morgan’s help in brokering the transaction,

he was generously rewarded with a $100,000

commission, along with a million-dollar profit

on his rail bonds.

A few years later on April 8th, 1890, Morgan’s

father, Junius, tragically passed away in

a carriage accident.

And while his father’s death was awful news,

it wasn’t entirely negative,

as Pierpont inherited the lion’s share of

his fortune, totaling 15 million dollars.

Although painful for Pierpont, it was also,

perhaps, liberating.

With his father gone, Morgan was now free

to invest and spend how he wanted, finally

enabling him to step-out from his father’s

overcasting shadow.

Overnight, JP Morgan’s wealth more than

doubled.

His first order of business was to immediately

purchase an even bigger yacht, which he very

creatively named the Corsair II.

When asked about the cost of building such

a mega-yacht, legend has it that the banker

answered;

“If you have to ask, you can’t afford

it.”

Few prices in life were too high for JP Morgan.

The opulent new Corsair II spared no expense;

boasting real fireplaces,

unique fine china, oak panelling, full-size

tubs, and central heating.
The yacht would cost him $100,000 a year in
maintenance alone.

Despite the steep price, Morgan considered

it well worth the investment, allowing for

a true escape from the office and the bombardment

of telegrams.

And although Morgan had plenty of cash to

keep himself afloat, the market would soon

poke holes in his business.

Enter The Gold Panic of 1893.

At the time, the U.S. dollar was tied to the

gold standard; which allowed for anyone to

convert their paper money into physical gold.

Because notes like the twenty or hundred-dollar

bill were essentially thought of as “vouchers”

for gold, the government always kept a minimum

reserve of one-hundred-million dollars worth

of gold coin and bullion.

It wasn’t a legal mandate, but keeping it

above that line meant the public still trusted

the government.

But in February of 1893, the government’s

reserves plunged well below the hundred-million

mark, as European investors exchanged their

U.S. currency for the precious metal.

The run on gold sparked widespread panic,

as people began to ask themselves;

“If the U.S. government ran out of gold,

would paper money really be worth anything?”

And as the country’s reserves drained-out

in a steady flow, banks and businesses began

to fold around the country, seemingly in unison.

With millions now unemployed, major corporations

turned to the same institutions that helped

them in the first place: the bankers of Wall

Street.

But the bankers had their hands full, especially

JP Morgan.

His darling industry, the rails, were collapsing

— with 192 lines declaring bankruptcy in

one year alone.

Eventually, a third of all train tracks in

America would be shuttered, impacting the

entire economy from coast-to-coast.

The people of the time would call this period

“The Great Depression”,

a name that wouldn’t be redefined until

1929.

Soon, JP Morgan would once again prove why

he was known as “The American Napoleon”,

as he turned his mighty will to the problem

at hand.

His reputation as a great consolidator would

prove him to be the right man for the job.

Intuitively, he knew that merging the railroads

was their only chance at survival, a move

which left many wondering if the banker held

too much power over this great American industry.

But when railroads came to him for help, he

would refuse — unless, he was given full

control.

This wasn’t the time for waiting around

— as all great businessmen know,

this was a time for decisive action.

After taking control of a rail line, Morgan

used his financial wizardry to strengthen

the company’s balance sheet; refinancing

its debt and issuing new shares to raise more

capital, among other strategies in his financial

playbook.

Over time, Morgan slowly pulled the brakes

on the out-of-control railroad industry.

And for his efforts, Drexel, Morgan and Company

was rewarded with a secure hold on all future

business with major rail lines, not to mention

some very handsome commissions.

Out of this 20-month financial feat, JP Morgan

walked out with more than just money, he also

gained new notoriety and fame.

His increasingly impressive reputation took

him farther than he had gone before, eventually

landing him in front of the highest office

in the land.

Although Pierpont was able to halt the railroad

catastrophe, America’s Treasury was still

in crisis mode.

Gold was the foundation of the entire US economy.

And that foundation was quickly crumbling.

In response, JP Morgan came up with a plan

to restore America’s gold reserves, which

he sent directly to President Grover Cleveland.

Confident that his plan would work, Morgan

retreated to his library to play solitaire,

waiting for the eventual “Yes” from the

President.

Within an hour, the reply came back ...

“No.”

President Cleveland instead opted to do what

the government had always done in the past;

sell bonds to the American public.

But Pierpont knew that issuing bonds would

take too long, when the government would default

on its debts within 3 weeks.

Without delay, JP Morgan rushed from New York

to Washington,

determined to meet with the President, a man

he considered his equal.

If the President was the king of the land,

then Morgan was unquestionably the emperor

of finance.

At first, the President denied seeing him,

to which Pierpont replied with an intense,

intimidating tone:

“I have come down to Washington to see the

President – and I’m going to stay here

until I see him.”

By this time, the situation was growing worse

by the hour, as the government was running

the serious risk of going bankrupt – leaking

$2 million a day from its gold reserves and

showing no signs of slowing.

The morning after his arrival, Morgan was

ushered-in to see the President and his several

cabinet members.

But the President and his men were not inclined

to listen to the Wall Street banker.

Luckily for Morgan, the treasurer received

a call in that meeting that their reserves

had dropped to $9 million.

Pierpont saw his opportunity and jumped.

He told the men in the room that he personally

knew of a draft for $12 million that, if presented

that day, would wipe out the US government

by 3 o’clock that afternoon.

Realizing their dire situation, President

Cleveland turned and asked:

“Have you anything to suggest, Mr. Morgan?”

Morgan offered a syndicate of U.S. and European

investors who could work together to invest

gold back into the government’s coffers.

Using an outdated loophole from an earlier

Civil-War law, Morgan demonstrated how the

Treasury could buy gold from Morgan’s private

syndicate, building-up their dwindling reserves

and plugging the leak.

More importantly, the loophole enabled the

President’s administration to bypass Congress,
a convenient way for Cleveland to make an
immediate decision.

In spite of the negative publicity of the

White House working with Wall Street, Cleveland

signed the contract with Morgan’s syndicate.

Within 22 minutes in New York City, and 2

hours in London, the private sale of the government’s

gold-bonds were completely sold.

Disaster now averted, Pierpont had successfully

bailed out the United States government – rescuing

the country from the brink of collapse and

restoring faith in the American economy.

But his motivations were not entirely altruistic,

as he pocketed a hefty commission for his

services in facilitating the transaction – raising

questions as to whether Morgan’s behavior

resembled more a profiteer than a patriot.

With this amount of influence, many were concerned

whether one man like Morgan should hold so

much power.

There’s no clearer example of this than

when JP Morgan was approached by Andrew Carnegie

in 1901.

Carnegie Steel was at its peak, netting $40

million a year, but Andrew Carnegie was ready

to retire from the business world.

So he wrote on a scrap of paper the amount

he’d be willing to sell his business for,

and had it delivered to Morgan’s office.

Taking just one glance at the $480 million-dollar

price tag, JP Morgan agreed on the spot, marking

the largest business transaction in history,

as well as minting Carnegie as the richest

man in the world at the time.

Later, when celebrating the deal, Carnegie

remarked that he should’ve asked for an

extra hundred million dollars.

“If you had, I would’ve paid it.”, replied
Morgan.

Using Carnegie Steel, Morgan formed the United

States Steel Corporation and continued his

consolidation-spree, effectively controlling

60 to 70 percent of the country’s total

production.

In doing so, he also created the world’s

first billion-dollar company, U.S. Steel,

then valued at $1.4 billion dollars; equal

to a staggering 7 percent of America’s GDP.

In addition to his iron-grip on the steel

industry, Morgan’s newest venture, Northern

Securities, had bought-up and controlled two

of the largest railroad companies in the nation.

This meant that Morgan owned one-third of

all rail lines, at a time when 60% of America’s

stock market capitalization consisted of railroad

corporations.

People began to whisper and speculate that

Morgan owned the United States.

One of those who believed the whispers was

the President himself;

Theodore Roosevelt.

Previous presidents, like Cleveland and McKinley,

were very much in favour of the mega-corporations

taking over the country — or, at least,

they didn’t seem to mind.

In stark contrast, Roosevelt was anti-monopoly,

and believed that the size of government should

grow with the size of American industry.

Needless to say, Morgan and the president

weren’t off to a great start.

Using the Sherman Anti-Trust Act of 1890,

Roosevelt worked hard to tear down companies

like Northern Securities and U.S. Steel.

At a time when there were no problems with

politicians receiving bribes from big business,
like free rail passes, President Roosevelt
was resolutely against those old-world practices.

Roosevelt saw JP Morgan as part of the problem

with America’s bumpy economy.

The President did not want giant corporations

to go unchecked.

Morgan and his Northern Securities would be

Roosevelt’s example to the whole world.

Without consulting his presidential cabinet,

Roosevelt publicly declared that Northern

Securities was being investigated for illegal

acts under the antitrust law.

And for the second time in his life, Morgan

rushed over to the White House demanding to

see the President.

He claimed that he should have been given

time to fix the problem and warned before

this hasty move.

“That is precisely what we did not want

you to do”, replied Roosevelt.

Eventually, Northern Securities would be broken-up

in 1904 as the Supreme Court overturned Morgan’s

appeal.

JP Morgan resented the government’s intrusion

into big business.

Upon hearing that President Roosevelt was

travelling to go hunting in Africa one year,

Pierpont remarked:

“Good.

I hope the first lion that meets him does

his duty.”

Although the two did not see eye-to-eye, President

Roosevelt, or Teddy, as he was also known,

had to admit that Morgan possessed a talent

for repairing entire economies.

This talent would be tested again in 1907,

when the stock market panicked after the failure
of the United Copper Company, which pulled
down the entire mining industry with it, along

with two brokerage houses, and a bank —

all within one weekend.

As it happened, the stock market panicked

again and a bank-run ensued.

One of the strategies used for slowing the

drain of capital from the nation's banks was

to have the tellers count money slowly, as

customers rushed to withdraw their money;

purposefully dragging-out each encounter with

depositors.

Perhaps this played a role in making the lines

so long in the historic bank-run photos we

know today.

If the public continued pulling money out

at the same time, the ramifications would

be felt for years.

President Roosevelt would need to set his

differences aside, as he knew there was only

one man who could solve this problem: John

Pierpont Morgan.

His administration called for Morgan to step-in,

extending twenty-five million dollars of government

funds to be used at Pierpont’s disposal.

Amidst the crisis, John D. Rockefeller offered

half of his personal fortune to Morgan if

it would help save the country from a depression.

Just like the business conducted on his yacht,

Morgan had to set the stage.

He arranged for heads of the nation’s largest

banks and trusts to meet in his private library

to work together to solve the national crisis.

Morgan reportedly laid out his plans for the

bigger banks and trusts to invest in their

smaller competitors.

He then locked the door and played Solitaire,

while the bankers negotiated amongst themselves.
Reporters anxiously camped outside, waiting
to hear the news.

By early morning, the leaders of the nation’s

largest banks and trusts had come to a resolution,

just like the Corsair Pact so many years before.

Morgan helped organize the capital needed

to bailout the failing banks.

And by the end of the week, another crisis

was averted.

JP Morgan was hailed a hero.

Walking down Wall Street, bystanders cheered.

But this would be the very last time that

one man, especially a Wall Street banker,

held that much influence over an entire country.

And even though Morgan was semi-retired and

well into his mid-70s,

he continued to face opposition for his unparalleled

influence.

By 1912, Morgan was commanded to appear before

the Pujo Committee,

a Senate-led group that was investigating

the extensive financial power held by a small

handful of all-mighty bankers.

And although the group was investigating numerous

banks, it soon became evident that JP Morgan

was the main target in the government’s

crosshairs.

But Pierpont remained adamant that he had

done nothing wrong.

When asked if he chased power, he claimed

that power was never something that he wanted.

Widely covered by the media, Morgan used the

platform to show off his diplomatic superpowers.

“Is not commercial credit primarily based

upon money or property?”

a lawyer on the sub-committee asked.

“No, sir, the first thing is character.”

Morgan cleverly replied.

“Before money or property?” the lawyer

countered.

“Before money or anything else.”

Morgan responded.

Spectators roared with applause.

Ultimately, the committee’s findings revealed

that Morgan single-handedly controlled more

than twenty-two billion dollars of capital

through his 112 corporations and 341 directorships;

effectively equating to more than two-thirds

of the country's GDP.

And although the senators were unable to find

Morgan guilty of any illegal wrongdoings,

the Pujo committee eventually paved the way

for the establishment of the Federal Reserve

and the permanent fixture of income taxes.

Despite being able to help America avoid multiple

economic depressions, Morgan couldn’t seem

to escape his own mental depression.

Pierpont suffered from nervous breakdowns

throughout his career, and grew increasingly

anxious as he grew wealthier, arguably because

he had more to worry about losing: not just

for himself, but for his clients.

Throughout his life, Morgan would confine

himself to his bed, usually several days each

month to recover from his various health complications.

Despite being the toughest banker who ever

lived, Pierpont was thin-skinned.

Worsening his manic-depressive episodes was

the public’s negative personification of

the financier, portraying him as a greedy

businessman.

He certainly didn’t enjoy seeing newspaper

cartoons portraying him as a devilish and
greedy monster.

Now, in his final years, he endured great

personal struggles; dealing with tremendous

criticism, all while trying to cement his

legacy as America’s most successful and

patriotic financier.

By this point, Pierpont lived to excess; draining

massive amounts of sherry and port, while

smoking dozens of cigars a day.

He was said to eat a breakfast so large that

it would kill a horse.

It was certainly no aid to his health when

he learned about the shipwreck of one of his

investments; the Titanic – a vessel which

he owned through his shipping trust.

Interestingly, it was only a last-minute fluke

that he and his multi-million dollar art collection

weren’t on the fateful ship when it went

down on April 14th, 1912.

Perhaps it was all too much for the 75 year-old

titan.

While traveling in Rome, on March 31st, 1913,

Morgan passed away,

shortly after midnight.

His son J.P Morgan Junior, attributed his

death to the Pujo committee – which caused

his father so much distress.

Out of respect, Wall Street not only flew

its flags at half-mast but closed the New

York Stock Exchange until noon.

At the time of his death, his personal net

worth was calculated to be around 80 million

dollars, approximately half of which was in

his art holdings alone.

Andrew Carnegie commented on Morgan’s passing,

upon hearing about his paltry fortune, which

paled in comparison to other titans such as

himself, remarking;
“And to think that he wasn’t even a rich
man.”

Most captains of industry believed he was

far richer than he actually was.

But Morgan’s legacy extends far beyond the

weight of his wallet.

After his passing, many of his paintings were

donated to the Metropolitan Museum of Art,

where they can still be viewed today.

However, art only comprised around 5% of his

various collections.

He also boasted a portfolio of other invaluable

items; such as Napoleon’s watch, Leonardo

da Vinci’s notebooks, and a 5-page letter

from George Washington, among many more countless

treasures.

His personal library was opened to the public

in 1924, and it remains a testament to the

amount of influence that one man can aggregate

in his lifetime.

The principles that we take away from JP Morgan’s

life are, of course, about influence and power.

No matter who met him, everyone could appreciate

Pierpont Morgan’s unrestrained and fierce

honesty.

Even Morgan’s arch rival, President Roosevelt,

couldn’t help but praise the man:

“Mr. Morgan was politically opposed to me,

but whenever I was brought into contact with

him, I was struck not only by his very great

power, but by his sincerity and truthfulness.”