Men of Wealth (1944) - Ludwig von Mises Institute

J. PIERPONT MORGAN 475
Odd indeed is the claim that when the Congressional committee
was investigating the case it did not call Mr. Morgan as a witness.
The committee was making these investigations in December,
1861. And at that time Mr. Morgan with his young bride was in
Egypt. He left New York, October 7, and did not return until
May of the following year.
As for the Holt-Owen commission, it had completed its investigation
before Morgan returned. But there was no point in calling
him. The commission was not concerned with the division of the
profits between Stevens and Morgan, but with the claim itself. It
held that Stevens had actually paid out $65,228.05 to Eastman for
the guns (the price of the guns plus the cost of rifling plus the
packing and other costs), that Stevens had collected $55,550 of
this sum, and that therefore he was entitled to the difference plus
$1,330.70 brokerage fee which Morgan's office added and still
claimed.
After the decision of the Holt-Owen commission, Morgan's name
does not appear in still further pressing for the $58,000. Another
banking firm appears—Ketchum Sons & Company. This phase of
the transaction remains unexplained. Morris Ketchum was an intimate
friend of Morgan. He had been at one time connected with
Junius Morgan. Moreover, he enjoyed certain relationships with
General Fremont. During all this time Morgan spent a great deal
of time at Ketchum's home. Even the first draft of $55,550 was
cashed by him. That first draft was not enough to cover the sum
that Stevens was to pay Eastman for the rifles. That, doubtless, is
why Morgan, associated with Stevens, made his claim to the Holt-
Owen commission, for they had yet to get their profit. Whatever
Stevens, Morgan, and Ketchum were to get out of this operation
had to come out of that second payment.
What were the relative participations of Stevens, Morgan, and
Ketchum is not clear. It is possible that Morgan, preparing to
marry and leave America, put his interest in the hands of his
friend Ketchum (we will see Morgan associated with Ketchum
again during the war in a gold speculation), but that must be sur-