The Waterbury Democrat., 1933-05-26

Brands, Inc, Startieo thS ihfSSS. < gating committee yesterday. 90 did the fact that J. F. Morgan, Wno paid no income tax In the Uniteo States in I930-S1-32, was a heavy contributor to the British exchequer under the English inland tax law. Morgan testified he paid about r. GOO pounds ($34,000 at normal ex- change) income tax in Great Brl- tain in each of those years.
 Spurred by the Morgan tax dis- closures. the house ways and means committee moved to amend me pending tax bill to-day to plug up some of the leaks by which veal thy men escape income levies.
 Washington, is alert for more big names on the bargain stock lists. The investigation has taken a po- litical twist. Ferdinand Pecora, senate committee counsel, by re- heated questions has brought out | the political connections and 1n- fluence of many of those whom ] Morgan & Co, let in on the ground 1 floor" His persistence in this direction brought protest from Senator l Goldsborough, repn, Md, agalnst "political vaudeville" But the line of inquiry continued, with Sem ator Couzens, repn, Mich, oe1enu- Z ing Pecora.
 Along with Woodin on both lists { so far revealed, is Senator Me- sAdoo. dem, Cal. McAdoo "scooped" Pecora by announcing he also was on one of the three lists still to be disclosed. McAdoo said he had never been a client of the Morgan bank. but got his stock because he was a friend of one of the part ners.
 Charles Francis Adams of Bos- ion was revealed to have written Morgan & Co that he believed he could buy bargain stock offered by the firm without the transaction affecting his ''position"-the sec- retarysfip of the navy under President Hoover which he as- sumed a month later. Adams is the father-in-law of one of the E Morgan partners.
 ss The two lists of favorites already published are those who bought Alleghany corporation common at about 15 points under the market and those, including MT Coolidge, who subscribed to Standard Brands in June 1929, at 32. The stock was issued Sept z, 1929, and sold on the exchange that day at 40 7-S, rising three points more in the next three days.
 MT Coolidge, who had retired from the White House in March, 1929, was allotted 5000 shares. They would have cost. $96,000. At AZ their sale would have netted the former president a profit Of X 43O. OOO. less commissions,
 The lists to come are understood 10 be of favored purchasers of shares of United Corporation. hns-Manville, manufacturer of building materials and General Mo- George Whitney, Morgan part ner. who testified Wednesday that he made profit of more than < 320O, 900 on the sale of Allegheny {. Evaporation stock purchased below the market quotation. yesterday laid he made a profit of $900,OO0 m an .'inside deap' in Johns-Man- Nille stock.
 |s Still another list comes up to-day for secret committee consideration Jt names all individuals who have { deposited with J. F. Morgan & Co, 2 41OO. 900 or more. Also in secret 8ES6lOI LH9 COl4lilAStCO WAAA taSSA&~ whether to make public the articles bf ,partnership by which the Mor- fan partners are bound. It stip- Hates the share of profit and loss If each member of the partner ohip. & Pecora wants that information s made public. John w. Davis, Mor- &au counsel, has been granted per mission to appear before the. com 7nittee to state the case for secrecy.
 Pecora and Davis have another nrgument which may bloom to-day. me swarthy investigator has been irving for two days to wiring from
 whitney the names of partners
 v1lo are indebted to the Morgan zIr1n---that Is those who have in ef- rect loaned money to themselves with the permission of their CO.,
 Davis and Whitney appear es-
 ecialIy anxious to prevent publi- cation of that information. and the Morgan counsel appealed to the oomnnittee for a ruling. He got cant solAee from Chairman Fletch- <r who remarked:
 T am inclined to believe you had 6etetr prepare the information"
 Morgan 6 Go, simultaneously in 1928, favored John }. Raskob, then Chairman of the democratic na- ' Honas committee, and John R | <utf. treasurer of the republican
 Rational committee, with ground
 |oor's Alleghany corporation stock
 1I0fments, Pecora has brought out.
 CnsIrob wrote that he "hoped to
 tcIprocate" for the favor.
 ~Dld you expect them to recip- <<ocafe ?s asked Senator Couzens. zepn. Mich. with respect to all {Hos< On the fayorites' list.
 con. no. said Whitney.
 He was asked why Morgan & Go.