davidaulloa/AmericanStories huggingface dataset:
The Washington times., 1933-04-21

Departures From Normal
Accumulated excess of temperature
since January 1, 1888, 46S.
Excess of temperature since April !,
1888. so.
Accumulated excess of precipitation
since January /. 1888. 0.99.
Excess of precipitation since April 1,
1888, 2.41.
The Tides
Today-High tides. 5:3S a. m. and
sos p. m. Low tides, IL noon and 1929
p. m.
Tomorrow-High tides, 1928 a. m. and
6:53 p. m. Low tides 1884 a. m. and
I'LL p. m.
The Sun and Moon
The sun rises today 5:24 a. m. and
sets $3.50 p. m.
The sun rises tomorrow 5:2S a. m. and
sets 6:51 p. m.
The moon rises today 1924 a. m. and
sets p. m.
The moon rises tomorrow 3:47 a. m.
and sets 4:03 p. m.
The Washington times., 1933-04-21

of fSuper.Shellwere sold at premium
prices, mostly to high-priced cars.
Now every car can afford it-every
mOtorist enjoy the thrill of premium
performance, without paying extra.
Hair-trigger starting, flashing pick
up, knOckless power.
The Washington times., 1933-04-21
The Weather
Forecast Until 8 p. M. Saturday

NWNIE
District Of Columb umbia-Generally fair
tonight and Saturday; not quite so cool
tonight; moderate northeast winds.
Alphabetically fair tonight and
Saturday; slightly warmer tonight.
Virginia-Cloudy tonight and Saturday.
probably rain in southeast portion to-
night; somewhat warmer in extreme west
portion tonight and in east and central
portions Saturday.
Local Temperatures
The Washington times., 1933-05-24

were on the way here from New
York now.
Morgan said his firm didn't
conduct a very large business ir
exchange" This service was rem
dered mostly for our clients"
do you deal in real estate?"
mo"
"How did you get that mort
gage on the home of Charles
E. Mitchell?"
'It was additional collateral"
Asked his opinion on eXamina-
ton of public banks, Morgan
said.
"The examination of public
banks is a human act. It is
carried out by humans and
they may not be very success
full"
Couzens said:
"There was examination of
member banks of the Federal
Reserve system over a great
many years, and it hasn't pro-
tected all depOsitOrs from
losses"
Morgan observed:
1T hasn't insured the de-
pOsitOr against lOSSes-cer-
tainly."
Couzens agreed.
Pointing out that the Morgan
condition for December 81. 1882
carried $34,836,442 time loans
and $47,869, ,164.93 demand loans
Pecora asked how they were
listed. Morgan replied they were
carried at the value of the col
lateral.
"Is the amount due and un-
paid on the loans greater than
the market value Of the cOllat-
eral tOday?"
ut isl
George Whitney at this time
arose to say some of the loan'
were uncollateralized, but that
reserve fund had been set ur
against them. The reserve fund
The Washington times., 1933-05-24
LOAN EXPLAINED AT SENATE QUIZ OF MORGAN
CREDIT GRANTED To HELP
BANK MEET CRISIS,
SAYS WHITNEY

went that high for an account.
I'm pretty sure it didn't"
Senator Gore CD of Oklahoma
asked Pecora to get list of the
stocks and bonds bought and sold
by Morgan's firm in September,
October, and November of 1929.
This was the period Of the market
crash.
Data Already In Hand
Pecora sal dthe data had been
subpoenaed and was in his posses
sion. He added an analysis is
being prepared" Gore explained:
81 ask, because I've heard sug-
geStions made about the trans
actions of this firm during that
period and I'd like to know the
truth"
Gore also asked for a list of
all securities sold by the firm dur
ing those months of 1929 and re
purchased later" He then asked:
Did the Morgan firm sell
stocks in 1929 to sink the ship?
Of course they might say sold
to get off the sinking ship"
Whitney replied:
"The only deals the firm
entered in 1929 were in connec-
ton with a pool we have al.
ready discussed"
"TO hold prices"
"Oh, no; not to hold prices,
but to create market"
"IS that called StabiliZatiOn?"
"WeI, it tended toward that"
Pecora then read a long list
of statistics asked from the Nor
gan firm.
Morgan came back into the in
quiry when Senator Barkley Cd
of Kentucky asked him whether
he held any seats on the stock ex.
change.
eyes, we have two seats.
They are held in the names
of individuals, because of the
rules of the exchange. We have
never traded on the floor"
'Why do you have them
then"
eve never use them but we
have the advantage of men,
bership on the exchange"
At this point a recess was
taken.
The Washington times., 1933-05-24

he said, however, was for $780,
900, while there was due and un-
paid $5,8O0,0O0 in round figures.
Tells of Mitchell Loan
Whitney then gave the commit
tee a complete history of the Nor
gan loan to Charles E. Mitchell.
Whitney said the Morgan firm
helped Mitchell in an effort to
stabilize the price of National City
Bank stock in the market crash
of October, 1929. Said Whitney:
"The original loan was over
S1O,OOO,OOO. He paid back about
S4,5OO,OOO and the loan now is
about S5,5OO,OOO."
"HOw much collateral was put
up by Mr.. Mitchell?"
"The original loan called for
twice the face value Of the
lOan."
Morgan sat quietly in the wit
ness chair, an interested spec
tator for the. time being.
Whitney explained the Morgan
firm set aside a part of its cap
ital as a reserve against such
loans as Mitchell's. He conceded:
cit reduces the net worth of
our firm"
"HOw much is your reserve?"
"About $18,OOO,OOO."
Then Whitney went into de-
tails about the Mitchell loan.
He explained:
''In the fall of 1929 we all
recall that on the Oath day
of October, the New York
Stock Exchange had a very
serious break in prices. On
that day and the following day,
a stabilizing group of bankers
Joined to make some order out
of the chaos on the Stock Ex-
change. They did not wish to
fix any prices but they wanted
to keep the market going in
order to prevent very serious
disaster.
During those first few days
The Washington times., 1933-05-24

Continental Illinois National
Bank of Chicago, $8,465.25;
Peoples Pittsburgh Trust Co.
$21, ,361 so; Mellon National Bank
of Pittsburgh, $88,064.O8; Union
Trust Co., Pittsburgh, $84,05446;
First National Bank of Phila
delphia, $2,76O,441.87; Philadel-
phia National Bank, $8,140.846.l9;
Corn Exchange National Bank of
Philadelphia, $1O3, 1866; Fideli-
ty Philadelphia Trust Co., $685.
59569; Girard Trust Co., Phila-
delphia, $233,959.16; Pennsyl,
vania Co., Philadelphia, $694,-
1889; Integrity Trust Company,
Philadelphia, $1,087, 500, and Fed
eral Reserve Bank of Philadel-
phia, $47,65O.
The Morgan companies deposits
totaled above $17,000,000 while
the Drexel firm had more than
$13,500,000 on deposit.
Senator Buckley CD of Ohio,
then asked Whitney:
what proportion of the firms
capital did that $12,OOO,OOO loan
represent"
"It was never $4,000, 900. 1t
was never more than a little
above $1O,OOO,O0O. 1t is now
about S6,OOO,OOO. That repre-
sents about 6 per cent"
Glass interrupted again to ask: ::
"Is it contemplated by legis-
latiOn to prohibit banks from
making bad lOans?"
II havne't gone into that"
The room was hot, Morgan got
out a handkerchief and mopped
his dripping brow. He was COM
pletely ignored by the committee
as Whitney answered questions.
Senator Adams CD Of Colo
RADIO asked:
What did you do with the
stock held as cOllateral?"
1--WE still hold it,
'It was National City StOck?"
Eyes. National City Bank
stock"
Pecora then asked what was
the net capital Of the firm when
the $18,000,000 reserve was set
up.
"It was about $4,000, ,OOO."
"You found it necessary to
place $18,OOO,OOO back of the
loans. Don't you think it wise
to prohibit making loans which
might so impair your credit?"
Its not that at all. We
found it good policy to make
all our loans as sound as pos
Sible."
Whitney added that he didn't
see that examination of firms
such as Morgan & Co. by State
The Washington times., 1933-05-24
Davis Sees No
Harm in His
Big Loan

GENEVA, May "a Q.N.SD.
Norman H. Davis, United States
ambassador-at-large, was attend
ing a session of the general com
mittee of the Disarmament Con
ference this afternoon when In
ternational News Service in
formed him his name was on
the list of commercial bankers
borrowing more than 100000
from J. P. Morgan & Co., as
presented to the Senate investi-
eating committee, Davis re-
piled:
"It seems perfectly natural
for a man to borrow money. Il
see nothing extraordinary about
that, but / am unable to make
a statement at this moment"
The Washington times., 1933-05-24
INTERRUPTIONS HAM PER
PECORA'S QUESTIONING
Of WITNESSES

New York state laws for private
bankers. The chart showed that
the liability of chartered bankers
was limited to the banks capital,
plus stockholders liability while
the liability of private bankers
was unlimited.
"Y0u recall, don't you, the
statement Of a number of cor
pOrati0nS in interstate business
which maintained balances Of
a million dollars in your bank?"
"Yes."
"Now these deposits were
made with your firm without
officers of these corporations
having any knowledge of the
actual worth Of your banking
firm or it's constituent members,
weren't they?"
They've never asked for a
statement"
"YOu recall 1 asked your firm
to let me have a balance sheet
Of your firm?"
"YeS."
"At the outset your firm took
the position, that we were not
entitled to this?"
John w. Davis, Morgan's attor-
ney, interrupted here to deny
this.
He corrected:
Counsel for the Morgan firm
took the position"
Pecora agreed and Morgan said:
II recall that"
Senator Barkley CD of Ken
lucky, asked Morgan what hap
pened when new partner came
into his firm. He inquired:
do new partners put in any
money!"
"NO. They sign the partner
ship agreement to share in the
profits and losses"
Glass told Morgan he was
very fortunate" to get S. Parker
Gilbert as a partner. Morgan
agreed.
Glass added:
He brought to the firm the
knowledge of international af-
fairs possessed possibly by no
other member of the firm"
Morgan said:
That's true. It's the main
reason 1 wanted him."
Pecora asked Morgan whether
his name was ION the outer door,
of the Morgan offices. Morgan
said:
Noon the inner door. Most
of them know the address,"
You don't seem to lose any
prestige by not advertising in
the banking wOrld?"
''It doesn't seem So"
Chairman Fletcher drew Nor,
gan into a discussion of the firm S
banking activities, with particu-
lar reference to deposits.
Pecora today had the same
trouble which halted his line of
questioning so frequently yester.
day. Almost every one of his ques-
tionS would set some Senator off
on anther tangent.
Glass Is Questioned
An hour after the hearing got
under way Pecora had asked
scarcely a dozen questions him
self. Glass insisted on pursuing
theoretical questions on banking
policy demanding involved an
swers. He asked John w. Davis
Morgan's attorney, about the ar
ticles of co-partnership for the
firm, which the committee de-
manded, and Davis said they
The Washington times., 1933-05-24

of the panic of 1929, the Ma
tiOnal City Bank stock sold
below its cOntrac. price of
$3.50 a share"
Whitney explained that the Ma
tional City Bank and the Corn
Exchange Bank were planning
a merger, with the National City
Bank stock guaranteed in a
contract at $3.50 a share. He
continued:
"Mr. Mitchell came to us and
expressed concern over the way
his bank stock was acting. He
asked us to help him with q
loan to stabilize the price of the
stock of his bank.
"We thought we'll of his pur-
pose and we agreed to lend him
S12,OOO,OOO, with collateral of
stock from his bank-the stocks
to be valued at $500, about half
of its market value at that time.
1t was then selling at 400.
"Mr. Mitchell drew out So
100000 against his credit with
us. In a week something like
S4,5OO,OOO was paid Off"
Glass here interrupted to ask
"The National City at that
time was regarded as the largest
and strongest commercial bank
in the United States, wasn't
it?"
Whitney replied in the affirma'
tive, and Glass added:
"What I'm trying to develop
is whether the loan was made
to Mitchell, an executive officer
of the bank, so that Morgan
could get control of the Ma
tiOnal City Bankr
Whitney replied:
"Not at all. We did it
solely to assist in a very diff
ficult situation. We wanted to
assist Mr.. Mitchell in an effort
to help him in his important
task"
Pecora queried:
"What made you think it
was Important"
"Mr. Mitchell thought it i'm
pOrtant-we thought we ought
to help him."
"How was that important to
any one but the stockholders of
the two banks-the StOCkhOld-
ers of the National City Bank
and the Corn Exchange Bank?"
"You know stabiliZing the
market was helpful to the
whole country"
Then Pecora returned to
Mitchell's collateral. The loan
said Whitney, is now under
collateralized. Pecora added:
"And two months after the
loan was made, the collateral
was only One-half its value at
the time it was made"
Whitney said:
"If you've checked it, yes I
haven't checked it."
Morgan then turned over to the
committee a list of the firms de
posits on March "a. 1888, in vari
Gus commercial banks.
Among Banks Listed
The list included $2,240, 0,565. 81
in the Bankers Trust Co., New
York city; $1,411,799.79 in the
Chase National Bank. 81 ,594, 1852
in the Central Hanover Bank and
Trust Co., of New York city; ST.,
113,18O.O3 in the Chemical Bank
and Trust Co., of New York city;
$938.719.97 in the Corn Exchange
Bank; $2,431.73234 in the First
National Bank of New York; 81,
609. .591 80 in the Guaranty Trust
Co.; $780, .495.72 in the Irving
Trust Co.; $1.265, ,92174 in the Ma
tional City Bank; $1,251, ,734.65 in
the New York Trust Co., 1855,
1882 in the Manufacturers
Trust Co.: $1OO,OO6.46 in the Grace
National Bank; $1O9, ,993.55 in the
First National Bank of Boston;
43,5O8.O6 in the National Shaw
NUT Bank of Boston; 150,437.71
in the Second National Bank OF
Boston and $14,840 in the New
England Trust Co., of Boston.
Subsidiary's Deposits
Morgan also listed deposits o1
the subsidiary Drexel & Co., or
March "a, 1898. These were:
The Washington times., 1933-05-24
Pecorq S Name
Accents Last
Syllable

Ferdinand Pecora, the Senate
Banking Committees vigorous
counsel, Is of italian extrac-
ton, the son Of an immigrant
father. He has gained wide at
tention as a prosecutor in the
past several years.
His name is pronounced
Pecor-ah, the accent on the
last syllable.
The Washington times., 1933-05-24

OIllCldB WOlIId ever SCop value
depreciation"
"You don't mean that you
think the law should be
changed 70 prevent examina-
tiOn?"
"NO. We have no objection
TO examination. But 1t won't
Obviate the necessity of setting
up reserve funds"
Senator McAdoo CD of Cali
fornia, entered the discussion
here, saying:
"Tt seems TO me that your
firm was even going further
than necessary in setting up
this liberal reserve against the
loans. What l am getting at
is that you were literally pro-
tecting the loans and keeping
them sound"
Pecora took another tact here
Are any members of the
firm indebted to the firm?"
I'D like to check with the
books"
Wouldn't you know without
checking?"
"T'd rather check
Don't you know whether
any partners are indebted to
the firm?"
I'D rather check with the
books"
But you knOw?"
II don't keep the books"
Il didn't ask the unit. Do
any of the partners owe the
firm money!"
"The answer is yes"
"HOw many"
I'D have to check that with
the books"
Senator Bulkley asked:
rs the Indebtedness of the
partners colIateralized?"
I'D rather not say"
'Is a statement of the finan.
cial condition of the partners
required by the firm?"
"Well, the firm knows the
general condition of the part
nerS."
Pecora then resumed the ques
"Are the indebtednesses of
the partners included in the
statement of loans on the cOndi-
tiOn statement given the COM
mittee?"
"They are not"
"WOuld you object to our
auditors examining your books
to break down the balance
sheet given us?"
"That is being done now"
"WhO is doing that?"
''Price- -WaterhOuse, auditors"
when was that work start
ed?"
''SOme time ago."
1T was started after the firm
members received SubpOenas to
appear here, wasn't it?"
Before that"
"HOw many auditors are en-
gaged in that work now?"
"I don't know.
Senator Glass put in a sar
castle remark here, saying:
"Are the auditors white or
bIack?"
White" said Whitney gravely
He added that a great many
were engaged in thi!
work, and that he could deter
mine the exact number during
the lunch recess by telephone
Pecora asked:
''Who made up this balance
sheet given the committee?
Was it an outside accounting
company"
"NO, our own men,"
when is the audit now un-
der way by Price-Waterhouse
to be cOmpleted?"
Whitney could set no specific
date for this, but said he would
inquire.
do you know whether any
of the loans made to an in
dividual or single account by
your firm were in excess of 10
per cent of the net worth of
the capital Of the concern"
"I'm sure not to any indi-
vidual. / don't think it ever
The Washington times., 1933-05-24
CONTINUED From Page p

(continued From Page y
1927, to December 81, 1881. Nor
gan said:
"That is a complete list, 1 un-
derstand."
Pecora then read the list slow
", asking Morgan to tell him the
bank with which each name was
identified. i@!
Morgan identified the various
men on the list at Pecora's sug-
gestion. The financier said Nor
man H. Davis was director of
the Bank of New York and Trust
Company.
He said Dawes, the former vice
president, was an official of the
Central Bank and Trust Company
Of Chicago.
Samuel w. Rayburn, he said,
was a director of the Guaranty
Trust in 1929. He said Richard
Whitney, president of the New
York Stock Exchange, was a di-
rector in the Corn Exchange
Bank.
Ten Loans Not Repaid
Pecora asked Morgan whether
It was correct that Norman H.
Davis, Richard Whitney, c. E.
Mitchell and seven others had
not repaid their loans. Morgan
@Rid:
"That conforms to my list.
] have no knowledge of it,"
'sWhen was the Norman HI.
Davis loan made?"
"The list doesn't say"
The question was not answered
at the time.
Said Fletcher:
"The special subcommittee
which has been working for
two years on bank legislation
RefOrm, hasn't done anything
get"
This seemed to infuriate Glass.
He pounded the table to shout:
1--WE haven't been idle one
Wninu&e-nOt one minute"
Fletcher also pounded the table,
bat neither Senator could be
heard in the uproar that followed.
The row halted when the two ell
derly Senators stopped for breath
and Senator Byrnes Cd of South
Carolina humorously asked:
'"What was the question:"
Pecora then asked Morgan why
his banking clients enjoyed more
confidential nature than the rela-
tiOns between a chartered com
mercial bank and its customers. y
Said Morgan:
"Chiefly to the fact that we
have no board Of directors or
officers hired to look out for
stockholders because we have no
stockholders and we can do al
most anything"
"One function of banks is
that of accepting deposits and
making IOans?"
"Yes."
'"YOur bank exercises both Of
those functions doesn't it?"
81 think So"
"What makes the functions
OF your bank more confidential
than those of other banks?"
''Tt has always been held that
eur interests with our clients
were peculiarly personal and
confidential"
Morgan put in the record a
chart, showing the differences
between Federal and State laws
affecting chartered hanks and the
The Omaha guide., 1933-03-18
GIRL RESERVE SPRING CONFER
ENCE HELD IN OMAHA

More than one hundred and forty
girls, representing towns in Nebras-
ka and Iowa, attended the Girl Res
erve Spring Conference, held in Om-
aha, March 10, II, and II. There
were sixteen colored girls in attend
ance. including four from Council
Bluffs, four from Clarinda and eight
from North Side Branch. Mrs. Alice
Wilson was director for music for the
Conference, accompanied by Miss
Vera Chandler. Amelia Thomas was
a group discussion leader and Lor-
raine Fletcher presided at the Sun
day morning meeting. Girls from
North Side Branch attending the
Conference were Vonceil Anderson,
Margaret Blair, Helen Wilkes, Mary
Alice Willis, Lorraine Fletcher, Paul
inc Hardin, Thelma Lee and Amelia
Thomas.
The Omaha guide., 1933-03-18
METCALFE- FOR-MAYOR CLUB
HOLDS MEETING

A meeting was held by the North
Side Branch Of the "Metcalfe : for
Mayor club at the home of Mrs. LUG
lille Edwards, at which there were a.
bout 200 in attendance. DR.. Michael
J. Ford, as personal representative Of
the Mayor, spoke of his association
with Mayor Metcalfe over a period Of
40 years, both having arrived in ON
aha about the same time. DR.. Con-
molly, Dick Low, and Rev. Metcalfe
told of the activities in the various
departments Of the Mayor. Joe Ros-
enbloom, Atty. John Adams and Mr..
Coleman, Commander Of the Roose-
welt Post of the American Legion,
paid tribute to the Mayor in acknow-
Lodging his fairness in dealing with
the activities of the people in their
communities. DR.. J. HI. Hutton. who
presided at the meeting, told Of his
40 year acquaintance with the Mayor
and cited the inadvisability Of max
ing a change in the Mayors office
to a man Of untried ability.
The Omaha guide., 1933-03-18
PLEASANT GREEN
DEACON BREAKS UP
CHURCH
WITH RAZOR

At the Sunday night services of the
Pleasant Green Baptist Church on
North oath St., of which Rev. T. W.
Stevenson is pastor, Deacon James
Smith, 31O9 Pinkney St., is alleged to
have slashed Frank Hughes, 2209 N.
18th St., on the neck during an ar
gument over the retention Of Rev.
Stevenson as pastor. AS a result,
the participants were heralded into
police court Wednesday morning.
Deacon Smiths attorney, H. J..
Pinkett, said the matter would be
threshed out Friday night at a meet
ing of the congregation which neither
Smith of Hughes would attend. So
Judge Perry Wheeler gave Smith a
30-day suspended sentence.
The Omaha guide., 1933-03-18
Workers and the Race

The loans to be made on go to 12O day
and to be of such caliber that they can
be rediscounted for cash at the Fed
eral Reserve banks. A National bank
is not permitted to start until they
have sufficient capital to safeguard
their depositors. You will note during
our depression that the majority Of
the failures were private banking
houses.
A Negro bank cannot hope to sue
coed before there are enough substan-
tial merchants and business men in
the community to afford a suitable
field for liquid loans. Let US now
turn to the professional field as a fu-
ture vocation.
The colored doctor has made great
strides in the face of handicaps, that
would discourage the most hardy
white physician.
The only records I could find show
1873 colored hospitals. On last in
spection of 120, the ranking was as
follows: 16-A grade and only z large
enough and sufficiently high in stan
dard for intership; 43 graded B; 80
graded c and 81 graded E. A colored
hospital can never function efficient
ly until the colored population gets
solidly behind the institution with
their financial backing and selects a
board of trustees that will only main
tain the highest grade of professional
efficiency. A patient must be assured
as good or better care than can be
obtained at the best white hospital.
The lack of a colored hospital max
es it extremely difficult for a colored
doctor to give the care that can only
be obtained in a modern equipped
hospital. In Omaha, for instance you
have no hospitals and colored physic-
ians are not eligible for membership
on the white hospital staffs.
This means that a colored physic-
ian cannot operate in a white hospit-
al. This condition will exist until
the force of ace opinion induces some
city hospital to place reputable col
ored physicians on their staff, SO they
can use the facilities of the hospital
for operating on their surgical cases.
CONTINUED next weekly
The Omaha guide., 1933-03-18
MAN WHO LIVED IN A CAVE
ALL WINTER, DIES

Kansas City, Mo.-Henry Jones, go
year old man who had been living in
a cave all during the winter, was tax
en- to General hospital No. 2, Thurs
day, Feb. 90, where he died on the
following Tuesday.
Jones was found by Frank Denany
at Twenty seventh streets and Wyom-
ing avenue suffering with severe ul-
cerations Of the feet caused from K
posture to the weather.
No relatives or friends of the old
mar could be found. His body was in
charge of West, Appleton and Jones.
No funeral service was held. Burial
was at Leeds.