The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-24
FAMOUS Names ARE
LISTED AS CLIENTS
Of MORGANS BANK
Senator M'Adco and Secretary
Woodin Purchased Stock
From New York Firm
TELLS OF INCOME TAXES
Head Of Giant Firm Paid Levies
to England But None to
United States

to England But None to
United States
Washington, May 24.-(R-A list o!
special clients of j. p Morgan and
Co., including Secretary Woodin and
Senator McAdoo of California, wac
placed in Wednesdays record of the
senate investigation of operations Of
the huge banking firm.
Turning from the testimony by j. P.
Morgan that he had paid income tax
in England in the last two years, al
though paying none in this country,
Ferdinand Pecora, committee counsel,
swept into the latest phase of barring
long buried Morgan secrets.
1naslnuch as Morgan said he could
not remember, the counsel turned to
George Whitney, partner. He quick
" ascertained that In formation Of
the Allegheny Corporation through
contract with the Van SWeringens Of
Cleveland, Morgan agreed to buy $685.
100000 OF bonds for $32,575,000, plus
accrued interest, to form syndicate
for public offering.
While Pecora read the long con-
tract, both Morgan and Whitney
listened closely.
Part of the agreement, made jan
uary %, 1929, gave Morgan and COM
pany the right to purchase l,25O,000
shares Of the Allegheny Corporations
100000 shares of common stock at
$40 share.
Whitney said the company took
over this block of stock on Febru-
airy Is. gz..#
Woodin, McAdoo Mentioned
At this point, the list with Woodin's
and McAdoo's names was produced
It comprised those to whom Morgan
sold Allegheny Corporation stock Feb.
l, 1929, at the purchase price OF $40.
Morgan purchased 1,250000 shares
at that price, for resale.
Woodin was listed for 1000 shares.
McAdoo, a member Of the invest1-
eating committee, was listed at 500.
Described as selected list the
document was almost who's VINO
Of American finance.
Among other names on the list was
Owen D. Young, 1000 shares, Chas.
A. Lindbergh 500, Thomas S. Lamont
Morgan partner-2,500, Thomas w.
Lamont, also Morgan partner. $4,000.
r. B. Mellon, brother OF Andrew
Mellon, 1000, j. P. Morgan 1000, j.
P. Morgan "stock account" It's. LOO.
Henry Morgan, his son, $500; John j.
Raskob, 1000; Julius s. Morgan, Jr.,
another son of j. p, 5000.
Paid $1l,0O0,OOO in 1929
The Morgan partners were shown
in testimony to have paid an Sill ,000.-
600 income tax in this country for
1929, some $4,000 for 1880 and none
since.
Pursuing the matter Pecora inquir-
ed Of Morgan whether he IN the last
two years had paid an income levy to
any foreign nation.
Il think so, in England Morgan
replied.
Which year?"
Each year, Morgan said.
Meanwhile, it developed that the
powerful house ways and means COM
mittee-aroused by the admission OF
Morgan and his partners that they
have not paid income taxes IN the
last two years-is to meet soon in an
attempt to plug up holes" In the in
come tax law.
At the outset of Wednesdays hear
ing Morgan identified list of bank
ers and bank directors who have OBJ
tanned loans from his firm.
It was made public despite objec-
tons to such action Tuesday by John
w. Davis, as counsel for Morgan.
The names on 1t also included:
Charles G. Dawes, Harvey D. Glib
son, Mortimer N. Buckner, c. E. Nit
chell, Seward Prosser, Myron G. Tay-
lor and Richard Whitney, president
of the stock exchange.
Morgan told the committee his firm
takes new partners without requiring
them to furnish new capital.
Another capacity crowd hung onto
his words as the financier underwent
further questioning by Ferdinand Pc
cora-the grim faced committee coun-
sci.
Will Not Retire
In an interview. Morgan denied re-
ports he would retire at the conclus-
ion of the senate investigation.
II have heard nothing about It," he
said.
Thomas w. Lamont, his right-hand
partner, also denied the report.
Morgan was dressed as on the first
day in blue business suit. But this
time he wore q black and white check
ed tie with q stick-pin. He joked
with his aides while waiting for the
hearing to begin.
Amounts loaned were not included
on the list.
The record showed that Dawes and
Taylor had paid off the loans.
Mitchell. former chairman Of the
National City bank now on trial for
income tax evasion, was on the list.
He has disclosed that the loan to him
abs 100000 outstanding, though 1t
was larger at first.
One loan was listed to a joint ac-
count participated in by Harvey D.
Gibson. Mortimer N. Buckner. and
Continued on Page Seven