Evening star., 1933-05-24
FUNDS ADVANCED
TO c. f. MITCHELL
Partner Denies Effort to
Gain Control of.National
City Institution,
PREFERRED LIST AWAITED
John W. Davis, Norman H. Davis,
Dawes and Whitney Among
Customers.
PREFERRED LIST AWAITED

J p. Morgan testified today to
the Senate Investigating Committee
that although he paid no income
taxes in this country in 1881 ana
1882, he did pay such tax in Eng
land.
A list of special Morgan clients,
including Secretary OF the treasury
woodin and Senator McAdoo, tnen
was placed in the Record.
BY the Associated Press.
Senate Investigations again dug
deeply into the Morgan banking
secrets today, developing ooJec-
tions from J. P. Morgan to having
his private firm under regulation
applied to commercial banks, OBJ
tanning names of bank officials to
whom Morgan money has been
loaned and finding out where
more of that money was deposited.
Again sensation seeking jam
of spectators had its fill OF what 1t
sought, when Morgan Identified
recipients of loans from his f1rm
to include his counSel-John w.
Davis, former presidential noml-
nee; Ambassador Norman H. Da-
Wis, now representing the Presi-
dent abroad; former Vice PreSi-
dent Charles G. Dawes, and others
whose names are alike well known.
List Put in Record.
The list was placed in the record at
the demand of Ferdinand Pecora, COM
mittee counsel, who said it might aid IN
considering the truth OF charges OF MOI
gan power and influence over banking
and industrial concerns.
Amounts of the loans were not given.
Some. including the one to John w.
Davis, have been paid OF.
George Whitney, tall, handsome Nor
gan partner, disclosed details OF one OF
the loans, and advance OF about $10,-
900 900 to Charles E. Mitchell, former
chairman of the National City Bank. He
said it was now olIateraiized,
but guarded by reserve set up against
1t Of more than s30oo000.
The loan to Mitchell was said by
Whitney to have been made to aid the
National City head in maintaining the
parity of his bank stock with the stock
of the Corn Exchange Bank, with which
@ merger was contemplated.
First standing. and then sitting be-
side Morgan, Whitney said the firm
had sl8.000,o00 in reserves set aside
against "undercollateralized" loans.
Some Morgan partners are indebted
to the firm, he said, without mention
ing names.
At ease despite shower Of questions
from Pecora and committee members,
Morgan said he did not know the cir
eumstances OF the loans.
Await Preferred List.
He told the committee new members
were sometimes admitted to the nrm
without advancing capital.
Questioned by Senator Glass. Demo-
crat, of Virginia, Whitney denied the
loan to Mitchell was an effort to gain
control of his huge bank
One thrill awaited by the croWo,
which failed to materialize, was the ilst
of special customers invited 10 partlCl-
pate in Morgan issues at oeloW tne
market price. 1t was expected al Ihe
afternoon session.
This list was reported to INCLUDE
many nationally famous figures, but
committee aides kept it under close
guard prior to its introduction.
The f1nancier laughed and loked Win
members of the committee as he tes-
tilted, but throughout the crowded and
warm committee room there was oll-
ferent atmosphere of suspense.
Every seat around the big commit
tee table was again occupied and
Senators followed the testimony closely.
Special police were posted about the
room.
There was some friction because Oh
the questions of Pecora. He inquired:
why do you think your relations
with your customers are more. conf
dental than the relations of COM
mercial banks with their depositors?'
Morgan hesitated. He began a sen,
again. -, ..,,.,
Mr.. Pecora," he finally said, I'm
not accustomed to this type of ques-
tioning. That is why l have a little
difficulty in replying.
Senator Glass, Democrat of Virginia,
broke in to ask:
IF the New York State authorities
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