John Pierpont Morgan

John Pierpont Morgan, the son of a successful financier, was born on 17th April, 1837. Educated in Boston and Germany, he trained as an accountant at the New York banking firm of Duncan, Sherman and Company. In 1867, Morgan transferred to his father’s banking company and ten years later became a partner in Drexel, Morgan and Company. This was reorganized as J. P. Morgan and Company in 1895, making it one of the most important banking houses in the world.

In 1891 Morgan arranged the merger of Edison General Electric and Thompson-Houson Electric Company to form General Electric, which then became the country’s main electrical-equipment manufacturing company. After financing the creation of the Federal Steel Company he joined with Henry Frick to merge it with Carnegie Steel Company to form the United States Steel Corporation.

Morgan had good links with the London financial world and was able to arrange the capital for growing industrial corporations in the United States with money from British bankers. This enabled Morgan to become a member of the board of directors in several of these companies including most of the major railroad companies. By 1902 Morgan controlled over 5,000 miles (8,000 km) of American railroads.

In his final years, Morgan concentrated on gaining control of various banks and insurance companies. This in turn gave him influence over most of the nation’s main corporations. Some muckraking journalists began to criticize the enormous power that Morgan now had. John Pierpont Morgan died on 31st March, 1913.