Evening star., 1933-06-03

Continued From First Page.1
no public indication of law violation.
Specially examined was the firms
partnership agreement, made public this
week by the Senate committee.
It showed that j. p. Morgan. the
senior partner. has dominant power over
the firm, its operations and its makeup.
A new angle of this agreement came
out today when committee members said
that although equal liability was shared
by all members of the firm. the division
of profits is graduated depending upon
the importance and seniority OF the
individual partners.
The detailed ALLEGATION of profits still
Is secret.
May Conclude Tuesday.
The session yesterday ended the
second week of inquiry, and the COM
mittee hopes to conclude by Tuesday
night, turning to scrutiny Of Kuhn,
Loeb g. Co. the following week.
Pecora still has mass of evidence to
present on the Morgan financing in
creation of the Van Sweringen railroad
empire through the Allegheny Corpora
ton.
Also he has q final list Of selected
clients of the firm, which investigators
say shows one group was sold Johns
Manville stock at cost and others had
TO pay little more.
After reading to young Lamont list
of several thousand shares Immediately
after the Junior partner took the stand
yesterday, Pecora suddenly asked:
Did you sell this stock on December
80, 1902"
Before Lamont could reply, Davis was
on his feet, calling the question mot
fair"
Davis and Pecora argued the point
in another one of the several alterca-
tons they have had since the inquiry
began. Finally Chairman Fletcher
ruled the question pertinent and Pecora
repeated his question.
Il have no recollection Of that,
Lamont said
Lamont had been sitting beside Junius
S. Morgan, the son of j. P. Morgan,
when his name was called. He had to
push his way forward to take the oath.
Lists Blocks of Stock.
After he gave his name and address,
stock and asked the Junior partner If
he had sold these at the time specified:
1,500 Continental Oil, 200 Durium
Products, 300 Hall Electric Heating,
237 P. R. Mallory Co., 1000 Shamrock
Oil g. Gas, 500 State Street Invest
ment Co., $50 Investment Corporation
of Philadelphia, and 1000 Simms Pc
troleum.
That is not fair" interrupted Davis,
standing behind Lamont's chair mo
notice was given that the individual
transactions of the partners would be
gone into. I don't believe it enters the
scope of the inquiry"
Il have learned of no fixed procedure
since 1 have been counsel of this COM
mittee," Pecora replied. This COM
mittee or any Senate committee may
ask any question it desires"
Il don't believe any man in this
room could give an accurate reply
about such transactions without pfior
notice. Davis contended.
Wen give him time to inform him.
self" Pecora retorted.
Morgan sat nearby during the inter-
change, hands folded, listening intently.
But if you 60 into the individual
transactions of 20 men we'll be here
until the snow flies" Davis protested.
Il submit it is not fair play. 1t was
fair to give us notice Of the matter
wanted and I submit it was supplied
with thoroughness that could not be
excelled. 1 insist on fair play"
Does the witness say he cannot an
swer,' Pecora demanded, looking past
Davis to Lamont.
This is not an orderly procedure, !"
Davis put in with equal firmness.
HIf the witness can't ancuer 1nt him
say so," Pecora said I'm perfectly
willing to give him an opportunity to
inform himself"
Fletcher interposed Its up to the
chair to rule and told Pecora to pro-
ceed.
Il have no recollection of that" La
mont replied when again asked the
question. Pecora then suggested the
recess so the witness could prepare him
self Ito answer it fully"
Morgan No LongeH Needed.
j. P Morgan was notified yesterday
his presence would not be required fur
ther as witness. In addition to young
Lamont, Ewing and Stanley, the part
ners directed to return were the elder
Lamont, Arthur M Anderson, Harold
Stanley and George Whitney, the
member who has done most of the
| testifying.
In discussing the days of 1929. when
the market headed abruptly for the
depths, Whitney told in matter of
fact manner yesterday how Mogan &
Co. pledged $4,000, 900 as its share in
an operation that bought 1,146, sos
shares in 81 corporation stocks between
October "a and November IL and then
completed lquidation some time the
following March.
The shares were bought for $137,-
752,705 and sold for $l38.820, ,O60,
Whitney said. though there was no
thought of any profit"
"At one time our book loss was S4O,-
900 1000" he added.