t telegraphed Mr. Thomson.

I decided not to return to the Barings, and although J.S. Morgan & Co.
had been bringing out a great many American securities I subsequently
sold the bonds to them at a reduced price as compared with that agreed
to by the Barings. I thought it best not to go to Morgan & Co. at
first, because I had understood from Colonel Phillips that the bonds
had been unsuccessfully offered by him to their house in America and I
supposed that the Morgans in London might consider themselves
connected with the negotiations through their house in New York. But
in all subsequent negotiations I made it a rule to give the first
offer to Junius S. Morgan, who seldom permitted me to leave his
banking house without taking what I had to offer. If he could not buy
for his own house, he placed me in communication with a friendly house
that did, he taking an interest in the issue. It is a great
satisfaction to reflect that I never negotiated a security which did
not to the end command a premium. Of course in this case I made a
mistake in not returning to the Barings, giving them time and letting
the panic subside, which it soon did. When one party to a bargain
becomes excited, the other should keep cool and patient.

As an incident of my financial operations I remember saying to Mr.
Morgan one day:

"Mr. Morgan, I will give you an idea and help you to carry it forward
if you will give me one quarter of all the money you make by acting
upon it."

He laughingly said: "That seems fair, and as I have the option to act
upon it, or not, certainly we ought to be willing to pay you a quarter
of the profit."

I called attention to the fact that the Allegheny Valley Railway bonds
which I had exchanged for the Philadelphia and Erie bonds bore the
guarantee of the Pennsylvania Railroad Company, and that that great
company was always in need of money for essential extensions. A price
might be offered for these bonds which might tempt the company to sell
them, and that at the moment there appeared to be such a demand for
American securities that no doubt they could be floated. I would write
a prospectus which I thought would float the bonds. After examining
the matter with his usual care he decided that he would act upon my
suggestion.

Mr. Thomson was then in Paris and I ran over there to see him. Knowing
that the Pennsylvania Railroad had need for money I told him that I
had recommended these securities to Mr. Morgan and if