The Washington times., 1933-06-09

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Currency Committee how he
lodged income taxes in 1881.
Lamont wore a dark grey sack
suit, no vest, and a dark tie.
AS he took his seat George
Whitney, one of the most active
Morgan partners, and John w
Davis, Morgan attorney, took
seats directly behind him.
Davis put his arm around the
back of Lamont chair, and
Whitney leaned toward the young
looking Morgan partner as he
began to testify.
Davis Explains Stand
Davis called a temporary halt
with objections. Before Ferdinand
Pecora, Senate counsel, asked a
question, Davis announced the
Morgan policy. Davis told of his
objection last week to the queS-
tioning of Lamont on tax matters.
He said:
II made that objection on my
own responsibility. / am an old
fashioned gentleman, who feels
that he who stands for his
rights serves himself and the
public"
Davis explained the Morgan
firm wanted to give the committee
all the evidence it desired. He de-
clared his previous objection
the committee lacked authority
had been reversed by the Senate's
action in extending the inquiry's
authority. He added:
II wish now to announce that
Mr.. Lamont is ready to testify"
Pecora then asked Lamont
whether he had sold long list
Of stocks on December 80, 1881.
Admits Sale Of Stocks
The stocks were $500 shares Of
Continental Oil, 200 Durium Prod
ucts, 300 Hall Electric Heating,
237 P. r. Mallory Co., 1000 Sham
rock oil and gas, 500 State Street
Investment Co., $50 Investment
Corporation of Philadelphia. and
1000 Simms Petroleum.
Did you make the sale of
these SecuritieS?"
81 did"
Lamont then asked permission
to read prepared statement.
Pecora nodded assent.
His Statement
His statement confirmed every
detail of the exclusive story car
ried by International News Service
Wednesday. Lamont said:
"When / went home over last
week end I looked up as
thoroughly as l could in those
two days the transactions which
] had had in those stocks men,
toned last Friday by Mr.. Pc
cora. l ascertained the follow
ing facts:
81 was in 1880 the owner of
those stocks which Mr.. Pecora
specifically referred to. At the
end of that year l had a real
loss in them due to the decline
in values. I sold them as fol
lows:
"(a) Publicly:
"One thousand shares Sham
rock Oil and Gas Company on
December 80, 1880; 1,50O shares
Continental Oil Company on De-
cember 81, 1890; 200 shares
Durium Products Corporation,
preferred, on December 81, 1880;
300 shares Hall Electric Heat
ing Company on December 81,
1880.
"(b) To my wife on Decem-
ber 30, 1880:
Five hundred shares State
Street Investment Corporation,
$50 shares Investment Corpora
tiOn Of Philadelphia, 237 shares
p. r. Mallory and Company,
common, and my beneficial in
terest in 1000 shares of Simms
Petroleum capital stock.
"My wife purchased in, the
market similar amount of the
shares sold publicly.
COMMISSIONS PAID
"She purchased them for cash
and borrowed an equal amount
from me on her demand note,
which, though not specifically
cOllateralled, was well covered
by the shares themselves, plus
her other private estate.
proper transfer stamps were
affixed to each transfer, the
usual commissions were paid to
the brokers where securities
were sold through public sales.
HAD NO UNDERSTANDING
There was no agreement nor
any understanding between us
that ] should at any time later
on repurchase these shares
from her or any of them.
intended the sale to be a COM
plete and final disposal of these
shares End she understood it to
be so. Dividends on these
shares after she bought them
were naturally paid to my wife
for her own private account. 1
was advised that under these
circumstances 1 was fully within
my rights in deducting from