Evening star., 1933-05-25

Favors Publicity.
j. P. Morgan & Co., in submitting
testimony through Whitney, went on
record as heartily favoring publicity ''of
the gross profit or commission paid in
respect to all securities offered to the
public, as is proposed by the Legislation"
which Congress Is considering
Meanwhile a letter from Raskob was
introduced. It thanked the company
for kindly remembering me" In selling
him 1000 shares Of Allegheny stock at
$20-much below the price that it was
being sold for on the market.
Senator Couzens. Republican, Of
Michigan, inquired Of Whitney whether
he did not "hope that they would recip-
rocate" when the selected clients were
offered the stock.
mo, sir" whitney replied quickly.
'Really, Senator Couzens, it just isn't
So"
AS to the $6,024, ,444 200 securities sold
to the public by Morgan since 1919,
Whitney said that of these-most of
which were offered In association with
other underwriters-$2,09 ,098, ,953 400 have
been retired.
Reviews Securities Sold.
Public offerings of foreign govern
amounted to $2,232, $4,000
They were offered to the public at an
average price of 9469 and the average
market price on May 81, Whitney said,
was 8107
Morgan sales of railroad bonds during
this period, Whitney added, totaled
$1,845. .639, 800. at an average price OF
e658
The average current market price on
May IL was 1894 and total of sl25,-
079,000 was in default.
The aggregate principal of public
utility bonds, including obligations OF
public utility holding companies. Of
fered to the public, said Whitney, was
I.074,75o, 900. OF these s26s, ,26s 300
have been retired in the main, by con-
version, and by redemption at prices
ranging from los per cent to ITO per
cent or by payment at maturity.
The average price at which these
bonds were offered to the public was
s7.08 per cent. The average current
market price on May IL, 1888, was
$685. None of these bonds, 1t was
stated, is in default in the payment
of principal or interest.
McAdoo Issues Statement.
Industrial company bonds and in
dustrial company preferred stock pub
lie offerings, Whitney placed at s578,-
297.900. OF these 1897 ,046, 700 had beer
retired. There remain outstanding
bonds and preferred stock to an aggre-
gate amount of S181 ,251 200.
OF these, $123, ,208, 900 on May IL were
selling above the public offering price
and s42, ,187 900 were selling within II
points of the public offering price.
Previously, Whitney had testified thai
he personally made a $146,250 profit or
sale of $4,000 shares Of Allegheny stocl
he had been especially allowed to pur.
chase through his firm in 1929 at $2(
o share
J. P. Morgan took the stand just be.
fore the noon recess to explain hi:
testimony of yesterday that he paie
income taxes in England during 1881
and 1882 when he paid nothing in tn,
United States.
He explained that England did no
permit deductions for capital losse.
that were permitted in this country
adding that he had tried to observe tn
laws OF both countries.
Text Of Statement.
The text of his statement follows:
ct was asked yesterday whether
paid any income taxes to any foreigl
government and replied that had pai
income taxes to the British government
May / state that my income tax
the British government is paid upon
statutory basis and is estimated by tn
inland revenue authorities, they basin
their estimates upon the fact that
own property in Great Britain.
IT paid an assessment during 1913