The Washington times., 1933-05-22
BAN SEEN SURE
WHEN SECRETS
ARE KNOWN
Finance King Will Take Stand
Tomorrow; Rockefeller
Seen Entering Inquiry


Pecora, special counsel for the
Senate Banking and Currency
Committee. told international
News Service today.
Pecora said the Morgan investi-
cation would reveal facts justify
ing Congress in divorcing COM
mercial from investment banking
and separating banks from all
business affiliates.
He also indicated the inquiry |
would develop evidence to justify
q Federal ban on private banking |
by prohibiting private bankers
from taking deposits so long as
they fail to undergo Federal or
State supervision.
Wiggin to Testify
Pecora revealed that Albert H.
Wiggin. president of Chase Ma
tional Bank. had been subpoeaned
to appear before the committee
July IA. The subpoena was
served on ,Wiggin at his New
York offices Saturday morning,
Just before he sailed for Ger
many. It was said Wiggin ex-
poets to return to this country
by July l.
The Chase National Bank, of
which John D. Rockefeller, jr.,
has great interests, will be drawn
into the Senate inquiry when
the committee takes up banks
and their affiliates. Just recently,
Winthrop w. Aldrich. chairman
of the board of Chase National
Bank, announced that bank was
divorcing all business affiliateS
called to discuss their experience
with the affiliate problem.
Touching on the appearance
of j. Pierpont Morgan as wit
ness tomorrow. Pecora told Inter
national New Service.
"We expect to derive much
information concerning the
practices and customs prevalent
in the private banking field,
which should be Of interest to
the entire public, including the
segment of it called Wall
Street."
LEGISLATION FORESEEN
Its my belief that as a re-
suit of this inquiry into private
banking practices that most i'm
pOrtant legislation will be en-
acted by Congress"
"DO you think the fact de-
velOped at this inquiry will justi-
fy Congress in ordering separa-
EiOp of commercial from invest
ment banking?"
do you feel you'll develop
facts iuStifying divorce Of
banks from all business affili-
ateS?"
eyes, indeed"
"And a ban too on private
bankers accepting deposits. with
out being subject to regulation
and supervisiOn?"
"I think it will"
MORGAN FIRST WITNESS
Pecora said Morgan would be
the first witness tomorrow, adding:
"The program thereafter as
to witnesses and as to other
developments, will depend
largely upon Mr.. MOrgan's
testimony"
The banking reforms. mentioned
by Pecora, have been included in
the latest Glass-Steagall banking
bill, now pending at both ends of
the Capitol. The provision for
divorcing commercial from invest
ment banking and banks from
their business affiliates were writ
ten into the bill by Senator Carter
Glass CD of Virginia, former
Secretary of the Treasury. and
Representative Steagall CD of
Alabama. chairman of the House
Banking and Currency Committee.
These provisions were. said to have
the Presidents approval.
Separation of commercial and
investment banking has been ad-
vocated for some time by Rookie
feller. It was Endorsed by Aldrich
in a public statement and was
reported to have won the support
of President Roosevelt.
War RumOrs Spread
AS a result of these develop
ments, rumors spread of finan-
cial war between the Rockefeller
and Morgan groups for control
of the commercial banking world.
The proposed Federal ban. it was
pointed out, would force the Nor
gan firm to choose between pri-
vate banking and investment
banking. If it relinquished it's
private banking business, the
Chase National Bank-dominate
by Rockefeller-would become the
banking king.
Mr.. Morgan will be questioned
about his firms activities in float
foreign securities in the CONNER
cial banking world and in the New
York Stock Exchange. 1t will
mark the second time in 20 years
that a Morgan has been interro-
gated by committee of Con-
greSs.
Seven Senators on Jury"
When j. Pierpont Morgan takes
the witness stand tomorrow he will
follow in the footsteps of his
father. J. P. Morgan. the elder,
who appeared before the Pupo
House committee which investigat-
ed the money trust"
seven veteran Senators will
serve as judge and jury at the
(Contirued on Page II, Col. 81