Who John Pierpont Morgan is
John Pierpont Morgan was a famous American entrepreneur who contributed greatly to the financial well-being of the United States and helped it survive the Great Depression.
John was born in Connecticut in 1837 into a family of hereditary bankers. So it’s not surprising that from an early age, the boy learned the secrets of the financial world, and from an early age showed an active interest in the field. Morgan’s career began in his father’s bank, but after a while he opened his own firm. John was not squeamish about speculation and used his status and money to his advantage. He was suspected of fraudulent schemes several times, and the entrepreneur simply paid off his military service.
In 1863, Morgan and his partner conducted a speculative transaction, buying a large batch of gold, which was immediately reflected in the value of the metal on the exchange. The profit from such an enterprise amounted to 160 thousand dollars, but the fraud was disclosed, and the businessmen paid a huge fine.
After this situation and his father’s control, John switched to other activities. He bought up companies that were on the verge of bankruptcy, and merged them into a syndicate. In doing so, the businessman achieved an increase in profits with a rather harsh approach, including cutting wages and increasing working hours.Morgan became a powerful man and controlled the railroad industry. In 1895 he gave the U.S. government a loan of $100 million, which saved the economy in hard times.
John was one of the first businessmen to understand the enormous possibilities of electricity. In 1878, together with inventor Thomas Edison, he created the Edison General Electric Company. Morgan’s share of investments amounted to $83 million, and the company grew rapidly.
However, in 1880, Nikola Tesla presented his alternating current technology, which made it possible to obtain electricity much cheaper than Edison’s. A legal battle and confrontation between the two inventors began. In turn, Morgan acted in the other direction – he was hindering the business of George Westinghouse, who was an investor in Tesla. John’s machinations and speculation schemes practically bankrupted Nikola’s patron. As a result, Tesla’s patents went to Morgan, who bought a stake in the joint company with Edison and renamed it General Electric.
John Morgan’s children were also famous people. His grandson became the founder of the major investment firm Morgan Stanley, which later became part of the financial holding company J.P. Morgan & Co.