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John Pierpont Morgan - Big Business Report

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John Pierpont Morgan, born in 1837, is a name we still associate with today. Son of a successful financier, he grew up around the financial industry. His grandfather, founder of Aetna's parent company and his father was a banker and partner of the famous money-broker George Peabody. His education consisted of learning French and German as well as a specialized education in math, with focus on accounting and commerce. His first job was working with the banking firm Duncan, Sherman, & Company. Influenced by his father, John Pierpont Morgan was molded into an accomplished banker. In 1871, when his father's business partner George Peabody retired, J.P. became a partner in the firm; soon after J.P.'s company absorbed Drexel & Co. and it became known as Drexel, Morgan and Company. In 1895, the company was reorganized becoming J.P. Morgan & Co, which carried onto be one of the most influential and important banking houses in the world. J. Pierpont Morgan had an eye and a drive for financial and modernization tactics, thus making him one of the most influential banker in history. He had a hand in many investments including the electrical industry, the railroads, the building of financial empires and the government.

J.P. Morgan made a tremendous amount of money when the company was hired to sell off the inheritance of William Henry Vanderbilt, son of railroad tycoon Cornelius Vanderbilt. John Pierpont Morgan was also named as one of the directors of Vanderbilt's fortune giving him an invaluable reputation. J. P. Morgan built his success through successful mergers, investments and spot on business practices as well as key business moves that put him and his companies on the fast track to the future.

Partnering up with Thomas Edison, Morgan became the first person to own an electrified home. Later that year, Thomas Edison also wired Morgan's office building which led to a long term partnership between Thomas Edison and Morgan. J.P. Morgan was the key investor in all Edison's electric projects. In 1892, Morgan was able to arrange a merger between Edison Electric Company and the Thompson Houston Company to official form General Electric generating an enormous amount of profits for his company. General Electric would go on to become one of the largest electrical monopolies in the world.

After the Civil War, Morgan started purchasing injured businesses; especially railroad companies. Purchasing of these railroads; West Shore, Richmond Terminal, the Erie, to name a few, became known as Morganization. Brokering deals between railroads and controlling the boards of these companies leapt him in control and profits were high. By the 1900's, Morgan had owned one sixth of the railroad industry and was able to consolidate the railroad network.

J.P Morgan also helped to aid the US dollar from collapsing by providing $62 million in gold to the United States Government as well as floated $260 in United States Government bonds.

With the railroads needing steel, Morgan invested and formed the US Steel Corporation. However



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