Evening star., 1933-06-06
SEEK NEW POWERS
TO PROBE TAXES Of
MORGAN PARTNERS
Senators Decide to Drop In
come Phase Temporarily
in Closed Session.
PEC0RA SUPPORTS GLASS
ON PLAN OF PROCEDURE
Investigators Resume Inquiry,
With o. P. Van Sweringen Back
on Witness Stand.
By the Associated Press.

By the Associated Press
Senate investigators Of ]. p. Morgan
q co. set out today to blast any Doubt
OF their authority to examine stock
transactions OF the banks partners af-
fecting their income tax payments.
Keeping the inquiry for the present
on Morgan affiliations with the Van
Sweringen railroad ventures, the Bank
ing Committee voted almost two to one
in two-hour closed session to seek
added power, If necessary, to 20 into
STOCK deals by Thomas S. Lamont, VIII
liam Ewing, Harold Stanley and other
partners.
John w. Davis, as counsel for Nor
gan, had challenged its authority in
the matter.
upon getting decision on rs course
after two hours argument, the investi-
eating group returned to questionius
OF o. P. Van Sweringen on now he and
his brother, NJ. j.. knit together their
wide rail interests-and the part taken
py the Morgan bank.
Full Steam" Demanded
In the Senate, meanwhile, Senator
Robinson, Republican, of Indiana de-
manded that the investigation be push
ed full steam ahead and bring out
all the rottenness in the international
bankers"
Attempts are being made to "ham-
string" it, he said before he was told
about the resolution that had been
adopted by the committee to look into
income tax returns. It would sat-
sly Robinson, Senator Walcott, Re-
publican, of Connecticut said.
Robinson also demanded that Sec
retary OF the Treasury Woodin be in-
peached If he does not resign or is not
removed by the President.
HIS attack was In connection with
Woodin's name being on several Of the
Morgan selected customer lists for bar..
gain purchases OF stock in 1879, before
Woodin was IN public life.
senators AssaiI Indiausn
Senator Connally, Democrat, Of
Texas. upbraided Robinson, declaring he
had never introduced resolution or
TAKEN any action In reference to In
ternational bankers, income tax evasion
or any OF the wrongs The now 30 loudly
denounced"
These took place, he asserted, while
the Republican party was in control
OF the Government. and declared it
remained for the Democrats to make
q "reaf Investigation.
senator Robinson Of Arkansas. the
Democratic leader, also asSailed the
Indianan for raising the question of
the honesty and sincerity" Of members
OF the Banking Committee.
Senator Long, Democrat, Of Louis
lana. urged against any partisan
snarP being "entwined in this investt-
CATION" He said the investigation had
been conducted in very non-partisan
manner"
Crowd Seems ListIess
At the hearing, Van Sweringen again
proved slow witness, pleading for
getfuiness. as he did yesterday He
SAT thumbihg q pencil, apparently
rather bored.
An air OF listlessness apparently per-
vaded the crowded audience, J. P. Nor
gan and his associates included.
The committee resolution to 20 ahead
with other phases Of the inquiry while
q subcommittee drafts a proposal en-
iarg1ng its powers was offered by Sena-
tor Glass, Democrat, Of Virginia, and
chairman Fletcher said 1t was sup
ported by Committee Counsel Pecora.
The resolution expressed the sense
OF the committee that it should in.
quire into stock transactions affecting
the taxing powers of the Government.
Chairman Fletcher would not disclose
the vote by which the resolution was
adopted, but it was reported by ccm.
mittee members to have been IL to 6.
The resolution adopted was. q sub
stitute Tor previous suggestion undis-
closed by Fletcher.
Closely bound by an agreement within
the committee, most committee members
refused to discuss the proceedings.
:, While the committee was In execu-
i've session prior to resumption Of the
open hearing on the Van Swerinren
railroad ventures aided by the Morgan
bank, O. p. Van Sweringen waited
more than an hour in the witness chair
he held all day yesterday.
His brother, M. j. Van Swerinren.
sat near him exchanging pleasantries
at times with Morgan.
Pecora and Davis Argue.
rcCoId anu LAWS argued the tax
issue before committee members, the
former contending in favor of public
examination of the returns and the
later objecting as counsel for Morgan.
In its executive meeting the conn
mittee approved this resolution by
Glass:
1T is the sense Of this COMMITTEES
that 1t should inquire into the business
of buying and selling securities as such
practices may affect the taxing powers
OF the Government: but inasmuch as
the legal right of the committee to pro-
ceed along this line Of inquiry is chal-
lenged, the committee should proceed
Immediately with railroad, public util-
ity and other phases Of the investiga-
tions and the subcommittee charged
with the investigation be directed to
report resolution enlarging the. pow
ers OF the committee as soon as pos
sible, In such manner as may be
deemed necessary to enable 1t to in
quire into the above practices"
The investigators resumed their In
quiry into the Morgan company at 1915
CONTINUED on Page 4, Column j.