The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-05-25
OF INTEREST TO WOMEN & \

loans from the Morgan private
bank were Norman II. DAVIS no"
President RooSevelt's representa-
tive in disarmament affairs
abroad; Charles G. Dawes wee
president under Calvin Coohdge
and former president of the Re
construction Finance corporation;
John w. Davis, Morgan counsel
and 1924 Democratic presidential
candidate; Myron C. Taylor,
chairman of the board. u. 5. steel
corporation; Richard whitney,
| brother of George Whitney, presl-
dent of the New York stock eX-
change. ,..t
Further, it was shown during
the day that Morgan and company
maintains deposits of $1TOOO,QQO
in "a other banks, largely in New
York, while Drexel and company,
the Morgan and company, Phlla-
delphia branch, has deposits IN Ia
banks. ;.
Morgan shared the limelight
yesterday with Whitney, who
seems to be the 67-year-old finan-
cier's main reliance in matters
concerning the far-reaching bust
ness Of the big banking house.
The close relation between the
house of Morgan and the stock
market was revealed yesterday, as
another skein in the huge finan-
cial web that Pecora is seeking to
weave for the enlightenment Of
congress and the American people.
Morgan has a seat on the New
York stock exchange, which the
tall financicr smilingly said he
never used. So has his son. The
firm deals through 80 different
brokerage and bond houses. 1t
falso holds a membership on the
Boston stock exchange. two on the
Philadelphia exchange, one on the
Philadelphia bOurse, and one on
the Philadelphia commercial ex-
change. &C.,.
| How it operates on occasion to
Iassist its friends" was clearly
shown in the Allegheny corpora
ton transaction. This corporation,
a holding company for the Van
ISweringcn railroads, issued $500
1000 shares of common stock on
February /, 1929, of which Nor
gan and company bought 1850
loco shares at 500 a share. Nor
gan, himself, took 175,000 shares.
iOthcr partners bought some, and
the rest was distributed to the
"fricnds." Il
A summary of the revelations
i'm the second day Of the senate
committee inquiry into the OPP
erations of j. p. Morgan and COM
,pany, included:
]. A cabinet officer, former
member Of the cabinet, national
heroes and leading industrialists
were on selected list allowed to
purchase securities issued by j. T.
Morgan and company, below cost.
2. The Morgan firm threw mil
lions of dollars into the money
markets of New York ina dcsper-
ate effort to relieve the situation
caused by the 1929 stock market
crash. .a..
a. Senator Carter Glass. Demo-
crat, Virginia, declared that ii
the comptroller Of the currency
HAD enforced banking laws in the
winter of 1912 half Of the ma
tional banks in the country would
have been forced to close.
5. The Morgan and company
banking business is greater than
its business in marketing or han
ding securities.
G. Morgan declared federal or
state supervision of private banks
lis unnecessary. He inferred he
secs nothing wrong with the bank
ling situation as it developed prior
to 1929. .,..-... .-
7. Evidence submitted by the
Elder J. P. Morgan in the White
House investigation in 1912 was
the only public statement made
regarding Morgan affairs until
the present inquiry. ..,n.... ...
8. Persons desiring to deposit
money in Morgan and company
must bring proper references, re-
gardless of the amount they de-
sire to deposit. ,-. .... 90
9. Morgan testified he paid in
come taxes in England where he
/ owns an estate in the years Of
1881 and 1882 when he paid no
tax to the American government.