could have been avoided. Schiff’s proposal was endorsed by Morgan and by
several important railroad owners. Far better, they believed, to be regu-
lated by federal legislation than to be subjected to many state legislatures.
The ICC also appeared interested, but Roosevelt, who could not under-
stand why Wall Street regarded him as a “wild-eyed revolutionist,” dis-
missed the suggestion.^69
Second to MorganReorganization of the Union Pacific and a major role in the Hill-Harriman
struggle raised Kuhn, Loeb to the top rank of investment bankers. On Wall
Street, respect for the Jewish firm rose. Since popular periodicals featured
the senior partner of Kuhn, Loeb, the public too learned about Schiff.
Highly laudatory articles told the story of his German backgound, his busi-
ness acumen, and his outstanding successes. The World Magazine saw a
combination of “German carefulness and American enterprise.” An ac-
count in the Philadelphia Press traded accuracy for emphasis when it hailed
Schiff “the new money king,” who had surpassed Morgan and was “captain
of [the] largest financial resources” in New York. Some articles commented
on the behavioral traits and personal life of the banker—his philanthropies,
the way he ran his office, his mode of exercise, and the way he romped with
his grandchildren. The picture emerged of a devoted family man who led a
simple daily life at the same time that he was immersed in all the details of
his firm’s national and international transactions.
Curious readers were also treated to estimates of Schiff’s private for-
tune; figures ranged from $50 million to $100 million. The Wo r l d ranked
him among the twenty richest of New York, the twelve most charitable and
public-spirited, and the three with the greatest financial power. Cosmopoli-
tan predicted that if Morgan ever failed, his mantle would fall on Schiff. To
some Americans the banker doubtless appeared as the immigrant who had
reaped the promise of American life. Others may have bitterly contrasted
their own lack of success with Schiff’s achievements. One poor Jew was
known to have said: “I came to this country in the same year as Jacob Schiff
and look what God gave him—and look what He gave me.”^70
The nature and volume of its work brought Kuhn, Loeb into close
contact with the leading banking houses. Speyer & Company, the only
other major Jewish firm on Wall Street, was usually a rival despite per-
sonal ties with Kuhn, Loeb. The National City Bank, on the other hand,
often aided and cooperated with Kuhn, Loeb. Schiff’s friendship with
James Stillman, the president of the bank, and his seat on the bank’s
board of directors linked him, albeit peripherally, to the Rockefeller inter-
ests. It was with the House of Morgan, however, that Schiff and Kuhn,
The Making of a Leader 23