Evening star., 1933-05-23


committee today that he had
paid no income tax for the
calendar year 1881 and 1882.
BY the Associated Press.
Already deep in the Morgan
secrets, and quarreling itself over
differences dealing with Morgan
income tax returns, the Senate
Committee investigating the in
ternationally known banking
house decided today to ask for
its partnership agreement and the
division of responsibilities and
profits.
In an executive session forced
by dispute between Senators over
questions thrust at j. P. Morgan
about income taxes, this course
was taken.
Counsel for the elderly f1nancier
had objected to furnishing the
information sought; and pro-
tested as well when Mr.. Morgan
had been questioned repeatedly
as to a deduction of over $21 ,00O,-
600 claimed on an income tax re-
turn for the two days OF January
! and 2, 1881.
Defended Firms Business.
Morgan had defended the business
of his firm and replied quietly to many
questions bringing to light the long
deep secrets of the business, which he
said had assets of almost $500, ,000, ,000
But when he testified that he knew
nothing of tax matters which the COM
mittee counsel-Ferdinand Pecora-in-
sisted on asking, dispute replaced peace.
The huge committee room tingled as
the crowd there pressed forward eagerly
to hear every word.
Senator Glass, Democrat, OF Virginia,
reminded the committee counsel that
Morgan had said he knew nothing
about the questions brought up, but
Pecora went on. Senator Couzens, Re-
publican, Of Michigan, Joined in the
argument, and before the audience
knew it the hearing was adjourned so
the committee could argue 1t out IN
closed meeting.
Glass had protested that the Bureau
Of Internal Revenue had fully exam
ined the Morgan returns, intimating
it was not necessary for the committee
70 go INTO IL.
Couzens heatedly observed they had
also examined the reGurns of Charles
Z. Mitchell former chairman Of the Ma
tional City Bank. now on trial for
income tax evasion as result OF pre-
yious testimony before the committee.
Pecora asserted that returns made
by individual members OF the firm had
been accepted without examination by
the income tax agents, referring to q
return made for Mrs. M. w. Newbold
Of Philadelphia.
May Not Be Published.
Despite this dispute, no effort was
made at the executive session following
the public hearing to check the income
tax inquiry.
The committee only voted to ask the
firm for copy of its partnership agree
ment, which John w. Davis, counsel for
the banker, had questioned the commit
tees right to demand. 1t was decided
to ask for the agreement with the un-
derstanding a decision will be made
later whether it will be made public.
Shortly thereafter recess of the ses-
sion was forced.
While willingly answering some ques-
tions, the elderly flnancler, through
Davis, demurred at submitting the
question was put over for future COM
mittee decision as TO procedure.
No Minutes Kept.
Placing the deposits held by j. P.
Morgan & Co. at quarter of billion
dollars, the witness also gave the exact
assets as of December 81, 1882, to the
penny-s424.70 .708, ,095. Sc.
A gasp whirred through the packed
committee room in the Senate Oftlce
Building as he quietly went on. There
are 20 partners, he said, who meet
every weekday except Saturday.
rs there any written record or min
utes?" Pecora asked him.
only the names Of those who at
tended"
There is no record of the delibera-
tions or conclusions?"
None
Morgan said it was decided not to
CONTINUED on Page 4, Column H.