Evening star., 1932-01-02
Figures Given Senate Show
One Firm Made S29, 900, 900
In S5,625, 900, 900 Deal.
TOTAL Is LIKELY TO RUN
AS HIGH AS 5000, 900, 900
Johnson Maintains Institutions
Seek Debt Cancellation to Pro-
tect Their Loans.
BY the Associated Press.

BY the Associated Press.
Figures submitted to the Senate by
leading banking houses indicate profits
running high into the millions have
been made by floating foreign bonds
in the United States since the war.
Tabulations of the deals, untotaled
because of overlapping transactions and
incomplete accounting in some direc-
tions, show one firm alone made more
than $290OO,00O in the sale of $685.
100000 Of such bonds. All banks par
ticipating in disposition Of $1,o7l,-
600, 900 of this total made more than
$37500,0O gross profits. If this rate
held good for the entire amount, some
thing like $2OO,O0O,OOO in profits went
to American banks.
These and other figures we're made
public yesterday by the Senate Finance
Committee in continuance OF the bond
sale investigation launched by Senator
johnson of California as part of his
fight on the administrators foreign
policy.
Called Cancellation Aim.
1t Is his contention that the banking
houses are interested in cancellation Of
the war debts to protect the private
loans and the bonds sold by them to
the public. Some of the prominent
witnesses have told the committee they
believed the private issues should have
priority Of payment over government
obligations.
Next Monday, otto Kahn, New York
financier. will be recalled to the COM
mittee's hearing. After him, the SEN
ators expect to hear Clarence Dillon OF
Dillon, Read Co. and w. w. Aldrich,
president of the Chase National Bank.
The $5,625, 600, 900 figure represents
the issues sales participated in by the
National City Bank through its sub
sidiary, National City Co. Kuhn, Loeb
& Co. made profits of 1924, 1895 on sale
Of si,I58 900 900 of bonds, and J. p.
Morgan & Co. reported sales Of S1,807,-
578,0 900, without giving profits. Thomas
w. Lamont of this firm told the COM
mittee gross profits were not shown on
the books.
The figures given the Senate showed
$815, ,467 900 of bonds gone into default
during the past year. These were all
South American, coming from Brazil,
Chile, Peru, Bolivia, Colombia and
Uruguay.
other Profits Disclosed.
The mass of statistics disclosed also
that banks all over the country which
participated in selling the bonds made
large aggregate profits. Statistics on
this phase of the situation were not
complete, but the National City's figures
showed the total profits for all banks
concerned on issues it originated,
amounting to $1,O71 1855 900, were $751;
0343. Altogether this company par
ticipated in selling $5,625, $4,000 in Sc
curities.
Many of the figures filed by the three
companies overlapped, because they par
ticipated jointly in some Of the issues.
But the three houses originated total
of $685., $4,000 of securities, in addi-
ton to those in which they acted
jointly.
The National City Co. originated
$498, 900 of Cuban and Canadian is
sues at a net profit of S3,487 ,206, and
ST, OIL ,955 900 of other foreign securities
at profit of $13, 1892 SOP.
1t participated in the sale of $685.
295,O0 of additional Canadian and
Cuban issues at profit of $777 1874 and
of $3,26O, ,407 900 other foreign securities
at profit of $11 ,363,5o1.
Kuhn, Loeb Issues Barred.
Kuhn, Loeb g. Co. managed issues
totaling $577,75 O00 with gross profit
of $3,106,811. and participated in others
amounting to $3.50, ,430, 900 at a gross
gain of S1,117,584.
The table of defaults showed that
Brazilian bonds, federal, state and
municipal, to the amount of $363,147, =
800, had been defaulted. The amounts
for other South American countries
were:
Chile, $2S3 3,O16, 500; Peru, $91 ,286 900:
Bolivia, SOL 103, 500; Colombia, $11 $780,
900, and Uruguay, S5,684, 900.
The committee will resume its tnyes-
tigation Monday, with Otto Kahn OF
Kuhn, Loeb & Co. again on the stand.
He will be followed by Clarence Dillon
of Dillon, Read g. Co., and w. w.
Aldrich, president of the Chase Ma
tional Bank.