The Waterbury Democrat., 1933-05-25

the powerful house or MOrSan, testified that John J. Raskob was permitted to purchase 2.OO0 shares of Alleghany Corporation stock at figure well below the market quo tation and at the time Raskob was chairman of the democratic na- tional committee.
 A letter was introduced in which Roskob thanked Whitpey for "the many courtesies shown me by you and your partners" and expressed the hope that "the future will offer mo an opportunity to reciprocate."
 J R. Mutt, treasurer of the re- publican national committee, also was offered an opportunity to pur- chase stock on a preferred basis.
 Other developments in the in- quiry came thick and fast during the morning session. They in- cluded: Y
 1.-Revelation of four addition. al securities issues in which se- lected list of prominent persons bought at bargain prices we'll be- low the sums demanded of the general public for the same secur- ities. This made total of five such issues-Alleghany Corpora tion, United Corporation. Standard Brands, General Motors and Johns, Manville.
 2.-Revelation by Senator Will liam Gibbs McAdoo, dem, Calif, that, although he profited by $4,- 900 on Alleghany Corporation, he suffered a net loss of $2,565 on purchases of Alleghany. United Corporation and Standrad Brands.
 3.-Revelation by George Whit ney, Morgan partner, that the House of Morgan. in most cases in conjunction with other houses, has offered to the public $6,000,- 100000 in securities since January 1, 1919. TT
 4.-The House Ways and Means committee acted to have the House consider means of tightening in- come tax laws to make sure that wealthy persons could not evade income tax payments through techn.calities.
 5.-Pecora brought out that a bargain allotment to Mrs $. Park CT Gilbert was made at the time her husband was separations agent general in Berlin.
 llS uCW ilSL ol PICltTlcu IMOI gan purchasers were those who dealt in Standard Bearing. Inc.
 The list included the names of Bernard Brauch, Secretary of the Treasury William H. Woodin, Charles A. Lindbergh. Senator Will liam Gibbs McAdoo and R. E.. Mellon.
 Ferdinand Pecora. committee n aS.ty A Whitney, on whose recommenda- tion the name of Calvin Coolidge appeared on the list.
 .''I should assume it was by MT Thomas Cochran, he was a close friend of his,' Whitney replied.
 The stock was offered preferred clients at $32 a share, the price Morgan paid. Today 1t is about $10.
 Standard Brands, Inc, opened at 40 7-S for first trades on the New York stock exchange, on Sept G., 1929, and on Sept 19 sold at 43 7-S.
 Pecora sought to esta blish a con- nection between money favors and political favors. He was supported by Senator Couzens, repn., Mich, who remarked:
 "I hope we can find out wheth- CT Morgan and company is tied up in politics.
 T don't believe they are," snap ped. Senator Goldsborough, repn., Md. Goldsborough previously had protested against making the hear ing a political vaudeville"
 Pecora asked George Whitney, the witness what was conveyed to his mind when Raskob spoke of being able to "reciprocate' the stock offering favor.
 T don't recall that 1t conveyed anything" Whitney answered.
 What position did he hold to reciprocate in return for favors ?'