The Washington times., 1933-05-23
(Continued from Paee p

IN important mAbteTs 4nlS
Banking firm has been shown
% receive deposits. / think we
ought to have the articles"
Senator Steiwer RD Of Ore
gon asked:
"To what phase Of this in
vestigatiOn does this infOrma-
tion relate?"
Pecora replied:
"The question Of liability Of
the partners"
Davis again interrupted to in
sist that under the statutes o.
New 1Zork all partners wer'
equally and fully liable for thu
firms actions. Pecora ther
asked:
"WhO prepared the statement
you read into the recOrd?"
Morgan replied:
Il did"
did you prepare it in confer.
ence with your partners?"
II talked with them"
Senator Couzens (RD of Mich
1gan asked whether the Morgan
statement applied to "all private
bankers"
"Tt's my view of the duties
and uses of private bankers"
Pecora asked:
"Ts t....c business Of J. p.
MOr3an deDartmentaliZed?"
"NOt in any formal way"
what subject would be
especially assigned to yOurself?"
"T don't get any assigned to
me. Every act we do, we do
rs q firm. I have very able
partners and I rely on them
more and more"
"YOu don't mean to make us
believe you have retired?"
"Oh, no. I have general
supervision"
Senator carter Glass CD o.
Virginia came in late. Davis moved
to let the Virginian get to chai1
at the head of the table. Sena
tor Reynolds of North Carolina
then took a hand, asking:
"Mr. Morgan, who has charge
Of buying and selling foreign
securitieS?"
Morgan stated:
Thomas w. Lamont can tell
you"
"DO your officers hold regular
meetings for discussion of trans
actions in business and how fire.
Quently?"
"FOr discussion, yes, but the
transaction of busines is
usually done with outsiders"
Every day."
every day except Saturday" a"
"Are any minutes kept?"
''NO."
"The only record kept is of
the names Of the partners at
tending?"
That's ALL"
HAS that always been the
rule?"
always. We decided ut the
first meeting we would keep no
minutes. That was about 20
years ago."
Did your father attend that
meeting?"
"NO; father usually attended,
but he was late coming down
that morning."
"HOw many officers generally
attend?"
maybe IS. 1t depends on
who is in New York"
What is the reason for not
keeping any minutes"
"FOr reasons of convenience"
rs that the only reason why
you don't keep any minutes?"
That's the only reason 1
know Of"
In a corporation, said Morgan
the corporation must keep a rec
ord of records. He added:
But in our organization we
don't have to keep a record"
Morgan eased back in his chair
after the brush with Pecora ovel
the partnerships agreement. HI
used his hands to explain hi
answers, smiled occasionally a
Senators, and attempted to smile
off some of the questions. Pecors
then asked:
care all of the partners of
]. P. Morgan also cO-partners
of the firm known as DrexeI
and Company"
Eyes. As q matter of fact
1t is a firm. The Drexel offices
are at Fifteenth and Chestnut
Streets, Philadelphia"
Pecora asked what members o
the firm resided in Philadelphi;
to ''look actively after the firm
business in that city"
Morgan turned to his aide
and got the list of directors. H
named Stotesbury, Lloyd AM
Dickey.
Morgan said no records wer
kept except Of completed trans
actions.
Morgan said stenographers wer
not allowed at the meeting o
partners.
Carter Glass objected to the lin
Of questioning at this point. H
complained that the exact Location
of the firm of Drexel and Com
pany was of no vital interest II
the committee. Pecora said:
"That was just a general ques-
tion establishing ownership of
the DrexeI firms. Its type Of
business and location"
Reynolds interrupted again
asking:
"Have you any objection to
providing this committee with