Imperial Valley press., 1933-05-27
CAPITAL EXPECTING SHAKEUP AS
RESULT Of MORGAN REVELATION
Of Last Four Days Involving
Noted Leaders Of Country May Cause Up
heaval In National Political Circles.

, company which controls % to %
per cent of the electrical energy
produced in the United States, and
% per cent of the gas properties.
This vast Morgan utilities en-
pire starts in the northeastern part
of the country and extends west to
Michigan and south to Georgia.
Approximately 55,272,000 persons
are in the territory served by the
network of operating companies at
the top of which is United Corpor-
alton, the holding corporation.
A list of bargain buyers OF Unit
ed Corporation stock is to be re-
vealed next by Pecora. He had dis
closed two such lists. The United
list would have come out yester-
day but for a spat with Senator
Glass (Dem) Virginia, who sought
to halt the lawyers IS searching in
quiry.
Other senators insisted that Pc
cora be permitted to proceed. An
executive meeting Of the senate
committee has been called for to-
day. Glass may fight out with his
colleagues there his argument that
Pecora S performance is "cir-
cuS'.
"All we need are peanuts and
pink lemonade,' Glass complained.
From the start of the hearings on
Tuesday. Glass has protested
against Pecora IS line of question
ing and against the fact that he
was not advised in advance what
the investigator was trying to
bring out.
Insists On Dignity
"I am not careful of the house
of Morgan Glass shouted, sex
cept that I am careful for the dig
nifty and orderly procedure Of this
this committee, I do not intend to
see any injustice done to the house
of Morgan or any other house,
whether it be of large consequence
or of little consequence, or of no
consequence. That is my. attitude
and it is the attitude / intend to
maintain to the end of these hear
ing.'
A sidelight of railway financing
has been revealed by the commit
tee in connection with the Allie
gheny Corporation, holding COM
pany created with Morgan back
ing, and imposed upon the
railway system of the spectacular
Van Sweringen brothers of Cleve-
land. More is to come. The Van
Sweringens are under subpoena.
But Pecora has turned the in
qury to public utilities for the time
being. The center piece of his
display is United Corporation,
which owns about 100000 shares
of stock in a score of operating and
subsidiary public utility holding
companies.
Pecora believes the United Cor
poration was organized solely in
the interest of the financiers who
created it-Morgan and Co. and the
Bonbright Electric Co., affiliate of
Bonbright 81 Co.
Soon after adjournment yester-
day, Pecora left for New York, con-
fident the committee would sus-
tain him through the days of in
quiry to come. AS he boarded the
train the lawyer had parting
word.
"The Commonwealth Southern,
which is a utility holding company,
is part of the United Corporation
set-up,' he said. "The executive
officers of Commonwealth South
ern recently appeared before
congressional committee asking that
the Muscle Shoals bill be defeated
because it would ruin $400, 100000
worth of utilities securities.
"Senator Norris and others have
been working for IL years to OBJ
tain government operation of the
Muscle Shoals power plant. The
utility officials knew this, and they
felt government operation would
wipe out those securities. And here
in 1929 we find these new securities
being issued when the Muscle
Shoals question still was unset
tled.'
1t is settled now, against the
power companies.