The Washington times., 1933-05-27
DEBTS REMAIN
SECRET, ALSO
AGREEMENT
Sen. CouzenS Sees No Reason
Why Firms Inside Affairs
Should Be Published
By WILLIAM X. HUTCHINSON


By WILLIAM X. HUTCHINSON
While the vast financial remi-
fications of ]. P. Morgan's deal
ings with the public will be ex-
posed in the Senate'S investiga-
ton OF his banking firm, the in
nermoSt secrets of the Morgan
organization itself will be
shielded, it appears.
Senator CouzenS (R.) of Michi-
gan, q member of the Senate
Banking Committee, said today
that the closely guarded articles
Of partnership would not be made
public, nor will the names Of
the Morgan partners who ARE
indebted to the firm.
Less Than Six in Debt
How many of these partners
are so indebted Couzens declined
to say, other than there were
''less than six"
There are 20 members Of the
firm, including -. P" himself.
CouzenS said:
81 see no reason why the in
debtedneSs should be made a
part of the record. On the
basis of the data submitted to
the committee, / would say it
is not Of especial public in
tereSt."
Morgan, long regarded as an
emperor Of international finance,
today emerged from the Senate
banking inquiry as a ruler OF
utility and railroad empires,
second to none in the land.
This development was over
shadowed by revelation of his
methods in holding the friend
ship Of political and business
leaders by offerings Of choice
securities at cut-rate prices.
The favored client" lis :,
which included former President
Calvin Coolidge, party leaders,
and great executives, attracted
public attention, but the interest
Of Congress was centered on his
control of utilities and railroads.
Quiz Resumes Wednesday
Future developments at the in
Qairy, when it is resumed next
Wednesday, will reveal his tre-
mendous holdings in the automo-
bile business, in building ma
terials, and in trade-marked -ood-
Stuffs.
From a dictator Of interna-
tional finance lie will grow into
a dictator of American industry.
The Senate inquiry has but
brushed the surface Of Morgan'S
enormous interests.
It required a study Of the
record to reveal how he achieved
eminence in the utility and rail-
road worlds.
This power, strange the
name of Morgan, was won by
financing holding on4panieS, a
swift manipulation Of stocks and
bonds, and by gradually expand
ing his growing empires through
purchase Of securities.
Morgan, the mighty, built up
his railroad empire through the
Allegheny Corporation, holding
company.
Into it went the stocks and
bonds of a half dozen railroads.
Van Sweringens Swallowed
It swallowed the famous Van
Sweringen interests until those
important brothers appeared as
mere managers for the House of
Morgan.
A long list Of political, banking
and business leaders were ''let in
ON the ground floor" of this cor
poration through one of the Nor
gan favored client" lists.
His power in the utility world
came through the United Cor
poration.
It began as a holding corpora
tion for $55,560,0OO Of stocks in
the Mohawk Power, United Gas
Improvement and Public Service
(of N. j. Corporation in 1929.
In three years time, it owned
$500, 100000 of stocks and con-
trolled a dozen great utility cor
porations in IL different States.
Now it serves 55,272,000 persons
and % per cent of the nations
total consumption Of electricity
and naturai gas.
Scattered Beneficence
Thus Morgan, the international
financier, became a utility en-
peror. On the way up to this
throne, he scattered beneficence,
too. There was a favored eli
ent" list Of United Corporation
stock. It will be published when
the hearing resumes Wednesday.
TIM AI,intOrS Hunt