Loeb were often compared. Schiff disliked the practice, but since he was
the runner-up to the powerful Morgan after the Northern Pacific episode,
comparisons were inevitable. Some studies have emphasized the similar-
ities between the firms and the respect that each had for the other’s ability
and integrity. Pointing to the transactions in which Kuhn, Loeb and the
Morgans cooperated, they concluded that the two men enjoyed a good re-
lationship. Schiff himself corroborated that opinion when he wrote Cassel,
to whom he could have easily criticized Morgan, on the latter’s death: “He
was an eminent man who always tried to do the right thing, and was free
from arrogance.... He was always very obliging and considerate towards
me, especially since the Northern Pacific affair.”^71
Yet one searches in vain for any hints of real friendship. To be sure,
Schiff flattered Morgan rather shamelessly in private and in public, and he
tried repeatedly not to antagonize him. But the manner in which he de-
ferred to the “Colossus of Wall Street,” over and above the civility required
by the bankers’ code of ethics, reflected awe rather than warmth. Never did
he act as if he was Morgan’s equal. For his part, Morgan didn’t consider
Schiff “an ally without reservation.” Nor was he prepared to concede
equality to a man whom he called “that foreigner.” He had to tolerate
Kuhn, Loeb if only for its access to European investors, but like bankers in
other old, established houses he did not suffer Jews readily. A recent book
suggests that Morgan was forced consciously to suppress a deep-seated
anti-Semitism when he needed Schiff for business purposes. He refused,
however, to cross the business line or to permit Schiff to cross it. In the
manner of those who excluded Jews from their social activities, Morgan
said: “You can do business with anyone, but only sail with a gentleman.”^72
An immigrant and a Jew, despite his wealth, could not make the grade.
Meanwhile, Kuhn, Loeb continued to prosper. Railroads were still the
heart of its business; according to one account, Kuhn, Loeb in 1901 con-
trolled a railroad system of 22,000 miles and stock worth $321 million. But
in the beginning of the century the firm became increasingly involved in
industrial companies like American Beet Sugar, Western Union, and West-
inghouse Electric. Schiff also showed a strong interest in mining enter-
prises, and with Cassel and other contacts in Europe he handled sales of
stock for Guggenheim ventures.^73
Business had expanded beyond expectations, a satisfied Schiff told Cas-
sel in 1903. A building that the firm had erected in 1893 no longer sufficed
and was replaced ten years later by a twenty-two-story edifice at the cor-
ner of William and Pine Streets. The firm may not have enjoyed the im-
pressive sleekness of Morgan’s offices, but it was the first private banking
firm in the city to install its own system of vaults. In a short time “52
24 Jacob H. Schiff