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 [who?] 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
Coat of Arms of Miles Morgan
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 January 19, 1691, daughter of James Bird of Farmington, CT.
Nathaniel's son, Joseph Morgan, was the fifth of seven children. Born on December 3, 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 April 26, 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.
Junius Spencer (J. S.) Morgan, Joseph III's son, 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:
Morgan, Ketchum, and Company of New York (1834–1836)
Howe, Mather, and Company; later known as Mather, Morgan, and Company (1836–1851)
J. M. Beebe, Morgan, and Company (1851–1854), Boston's largest mercantile bank at the time[10]
George Peabody and Company (1854–1864)
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 is 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, exists where banks "perpetuate an ancient European tradition of wholesale banking, serving governments, large corporations, and rich individuals".[14] J. Pierpont 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 life marked the decline and fall of the Morgan dynasty. 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] Lastly, The bankers of the pre-1913 Baronial Age are said to have been the "lords of creation", since they catapulted the American economy into an industrial powerhouse of production and power. This unprecedented development became attributed to the Morgan banking style. 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.
John Adams Morgan (b. 1930) m. (1) 1953: Elizabeth Robbins Choate (1933–1998) (div. 1957); m. (2) Tania Goss (div.) m. (3) 1998: Sonja Tremont (b. 1963) (div. 2008)
Doughty, Geoffrey H. (2007). "New York, New Haven & Hartford Railroad (New Haven)". In Middleton, William D.; Smerk, George M.; Diehl, Roberta L. (eds.). Encyclopedia of North American Railroads. Bloomington, IN: Indiana University Press. pp.742–745. ISBN978-0-253-34916-3.
Drury, George H. (2007). "Chicago, Indianapolis & Louisville Railway (Monon Railroad)". In Middleton, William D.; Smerk, George M.; Diehl, Roberta L. (eds.). Encyclopedia of North American Railroads. Bloomington, IN: Indiana University Press. pp.222–223. ISBN978-0-253-34916-3.
Moody, John; Turner, George Kibbe (1911). "Masters of Capital in America, The Seven Men". McClure's Magazine. New York City, NY: S.S. McClure Company. pp.418–428. Retrieved 2024-02-29.
Related Research Articles
John Pierpont Morgan was an American financier and investment banker who dominated corporate finance on Wall Street throughout the Gilded Age and Progressive Era. As the head of the banking firm that ultimately became known as J.P. Morgan and Co., he was a driving personal force behind the wave of industrial consolidations in the United States at the turn of the twentieth century.
George Peabody was an American financier and philanthropist. He is often considered the father of modern philanthropy.
The Rockefeller family is an American industrial, political, and banking family that owns one of the world's largest fortunes. The fortune was made in the American petroleum industry during the late 19th and early 20th centuries by brothers John D. Rockefeller and William A. Rockefeller Jr., primarily through Standard Oil. The family had a long association with, and control of, Chase Manhattan Bank. By 1987, the Rockefellers were considered one of the most powerful families in American history. The Rockefeller family originated in Rhineland in Germany and family members moved to the Americas in the early 18th century, while through Eliza Davison, with family roots in Middlesex County, New Jersey, John D. Rockefeller and William A. Rockefeller Jr. and their descendants are also of Scots-Irish ancestry.
Junius Spencer Morgan I was an American banker and financier, as well as the father of John Pierpont "J.P." Morgan and patriarch to the Morgan banking house.
John Pierpont was an American poet, who was also successively a teacher, lawyer, merchant, and Unitarian minister. His poem The Airs of Palestine made him one of the best-known poets in the U.S. in his day. He was the grandfather of J. P. Morgan.
Kuhn, Loeb & Co. was an American multinational investment bank founded in 1867 by Abraham Kuhn and his brother-in-law Solomon Loeb. Under the leadership of Jacob H. Schiff, Loeb's son-in-law, it grew to be one of the most influential investment banks in the late 19th and early 20th centuries, financing America's expanding railways and growth companies, including Western Union and Westinghouse, and thereby becoming the principal rival of J.P. Morgan & Co.
Anthony Joseph Drexel Sr. was an American banker who played a major role in the rise of modern global finance after the American Civil War. As the dominant partner of Drexel & Co. of Philadelphia, he founded Drexel, Morgan & Co in New York in 1871 with J. P. Morgan as his junior partner. He also founded Drexel University in 1891, with its main campus in Philadelphia, Pennsylvania. In 1892, he was elected to the American Philosophical Society. He was also the first president of the Fairmount Park Art Association, the nation's first private organization dedicated to integrating public art and urban planning.
George Fisher Baker was an American financier and philanthropist. Known as the "Dean of American Banking", he was also known for his taciturnity. Baker made a fortune after the Civil War in railroads and banking, and at his death was estimated to be the third-richest man in the United States, after Henry Ford and John D. Rockefeller.
Morgan, Grenfell & Co. was a leading London-based investment bank regarded as one of the oldest and once most influential British merchant banks. It had its origins in a merchant banking business commenced by George Peabody. Junius Spencer Morgan became a partner in 1854. After Peabody retired the business was styled J. S. Morgan & Co. In 1910, it was reconstituted as Morgan Grenfell & Co. in recognition of the senior London-based partner, Edward Grenfell, although J. P. Morgan & Co. still held a controlling interest. In the 1930s, it became a commercial bank and the Morgan family relinquished their controlling interest in the business. After a period of retrenchment, it expanded under the management of second Viscount Harcourt in the 1960s. The link with J. P. Morgan & Co. ended completely in the 1980s. The business also became embroiled in the Guinness share-trading fraud at that time. In 1990, Morgan Grenfell was acquired in an agreed deal by its minority shareholder, Deutsche Bank. The use of the Morgan Grenfell name was discontinued by Deutsche Bank in 1999.
J.P. Morgan & Co. is an American financial institution specialized in investment banking, asset management and private banking founded by financier J. P. Morgan in 1871. Through a series of mergers and acquisitions, the company is now a subsidiary of JPMorgan Chase, one of the largest banking institutions in the world. The company has been historically referred to as the "House of Morgan" or simply Morgan. For 146 years, until 2000, J.P. Morgan specialized in commercial banking, before a merger with Chase Manhattan Bank led to the business line spinning off under the Chase brand.
Ronald Chernow is an American writer, journalist, and biographer. He has written bestselling historical non-fiction biographies.
John Pierpont Morgan Jr. was an American banker, finance executive, and philanthropist. He inherited the family fortune and took over the business interests including J.P. Morgan & Co. after his father J. P. Morgan died in 1913.
Henry Sturgis Morgan Sr. was an English born American banker, known for being the co-founder of Morgan Stanley and the president and chairman of the Morgan Library & Museum.
Junius Spencer Morgan II was a banker, art collector and nephew of John Pierpont Morgan, Sr.
Junius Spencer Morgan III was an American banker and a director of the Morgan Guaranty Trust Company.
Mary Ethel Harcourt, Viscountess Harcourt GBE (née Burns; 26 August 1874 – 7 January 1961) was an American-born British aristocrat and philanthropist.
James Hood Wright was an American banker, financier, corporate director, business magnate, and reorganizer of US railroads. He began as a bookkeeper but his management talents led him to becoming a partner in J. P. Morgan's banking firms. He sat on the board of directors for, and reorganized, several railroads. He facilitated investment in Thomas Edison's electrical enterprises and technology. Wright became wealthy in his business operations and was known as a philanthropist in New York City. At the time of his death, interest in his finances set off national media reporting on the size and disposition of his estate.
Doris Mary Thérèse Baring, Baroness Ashburton was an English socialite, part of the "Bright Young Things" of the early 20th century.
Mark Francis Robert Baring, 8th Baron Ashburton, known as the Honourable Mark Baring from 1991 to 2020, is a British businessman and a member of the Baring family.
Jane Norton Grew, known upon her marriage as Mrs. J. P. Morgan Jr., was an American socialite, art collector, and dilettante horticulturalist. Born in Boston to an affluent family, she married J. P. Morgan Jr., son of American financier J. P. Morgan, in 1890 and became prominent in both London and New York society, playing host to royalty including The Duke of Connaught and Strathearn. Grew curated and managed the Morgan library and art collection, and became involved in horticulture on her Long Island estate in Glen Cove.
↑ W. Williams, Peter (2016). Religion, Art, and Money: Episcopalians and American Culture from the Civil War to the Great Depression. University of North Carolina Press. p.176. ISBN978-1-4696-2698-7. 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.
1 2 3 Johnson, Philip E. (2014). The Hampden Railroad: The Greatest Railroad That Never Ran. Lulu Enterprises, Inc. p.2. ISBN978-1-304-73390-0.
↑ Casto, James E. (2006). The Chesapeake and Ohio Railway. Arcadia Publishing. p.8. ISBN978-0-7385-4334-5.
↑ Chernow, Ron (1990). The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance. New York City, NY: Grove Press. p.152. ISBN0-8021-3829-2.
↑ Chernow, Ron (2003). The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance. New York City, NY: Grove Press. p.224. ISBN0-8021-3829-2.
1 2 3 4 Shannon, David A. (1977). Twentieth Century America, Volume I: The Progressive Era. Chicago, IL: Rand McNally College Publishing Company. p.73.
↑ "Morgan Mergers". Time. 1929. Retrieved 2024-02-26. "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."
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