Evening star., 1933-05-24

igantic banking house of that name, as
flying before the Senate Banking Com
Underwood g. Underwood Photo.
Yes, sir" Whitney replied. THAT
was a special occasion"
What brokers do you use?" asked
Fletcher
"Oh. I don't know" Morgan said.
Dozens of them. A recent check showed
the firm used 80 brokerage houses"
Questioning developed that Morgan
and his eldest son held seats on the
Stock Exchange and that other firm
members held seats on the Boston and
Philadelphia Exchanges.
Bought in October, 1929.
Pecora asked if any members ever
had been called on to answer Stock
Exchange QUESTIONABLE.
NO" Whitney replied, because the
questionnaires only go to firms doing
a marginal business and we do not do
a marginal business"
us there any loan to a single bor-
rover in excess of 10 per cent of your
net WORTH" asked Pecora.
Il don't recollect any and I don't
think we have" Whitney said.
Gore said it often had been alleged
that Morgan & Co. in 1929 sold stock
in order to break the market or "scut-
tie a sinking ship"
II think you'll find our only trans
actions as firm in October, 1929, were
on the buying side" Whitney said.
'It was alleged also there was COM
bination to prop or bolster the mar
ket,| Gore said.
There was an effort to create a
hot, sol - 10 II
string to sell could find purchasers,
but there was no attempt to stabilize I"
The committee counsel returned
briefly to income taxes. and was re-
ferred to Leonard Keyes, the Morgan
Office manager, who sat near Morgan.
Whitney, prompted by Keyes, said the
partners of the Morgan firm paid in
come taxes of about $1l 100000 for the
calendar year 1929.
And practically nothing since then,"
commented Pecora.
so 1 heard yesterday" Whitney re-
piled.
Most members of the committee stuck
through the long morning session. but
Fletcher and McAdoo left and Glass
took the chairman's seat beside Pecora
at the head of the table.
Identified Accounts.
Morgan identified list of banks and
trust companies in which his firm has
maintained accounts since 1927 and the
balances of March "a, 1888. IS
The list embraced nearly score Of
active deposits. including the following:
Bankers Trust Co., New York, $2.-
240,563.
Chase National Bank, $1,411, ,799.
Central Hanover Bank g. Trust Co.,
$1,594,116.
Chemical Bank & Trust Co., New
York, $l,1l3,180.
Corn Exchange Bank, ss38,71s.
First National Bank of New York,
81, 2,431 1872.
Guaranty Trust Co., $2,6O9,591.
Irving Trust Co.. 1899, ,495.
National City Bank, $1,265,921.
New York Trust Co., $l.25l ,734.
Manufacturers Trust Co., 1855, 1878.
Grace National Bank, 100000.
First National Bank of Boston,
$1O9,99
National Shawmut Bank of Boston,
$243, sos,
Second National Bank of Boston,
S150,437.
New England Trust Co. of Boston,
S14.840.
Although the biggest Morgan deposit
was the Guaranty Trust Co. account of
81, 500, ,59l, Drexel and Co. Of Philadel
phia was shown to have a deposit of
S8,140,846 in the Philadelphia National
Bank.
Eleven other outstanding Drexel &C
counts were listed as follows:
Continental Illinois National Bank &
Trust Co., OF Chicago. $8,465.
Peoples es-Pittsburgn Trust Co.. $2l 1851.
Mellon National Bank, Pittsburgh
88,064
Union Trust Co., Pittsburgh, $84,054
First National Bank, Philadelphia,
81, 760, ,44l.
Corn Exchange National Bank g.
Trust Co, Philadelphia, $lU8,736.
Fidelity Philadelphia Trust Co..
Girard Trust Co., Philadelphia.
S233, $50.
The Pennsylvania Co., Philadelphia,
S694,7G9.
Integrity Trust Co, s10s7 500.
Federal Reserve Bank of Philadel-
phia, SAT, $50.
Huge Sum on Deposit.
The list showed an account with the
Baltimore Trust Co. (Formerly the Ma
ticnal Union Bank of Maryland) was
closed out February 10. 1882.
Guarantee Trust s Safe Deposit Co.
of Philadelphia was listed, but the
balance given as none"
There was lull while Pecora exam
ined the list of banks.
During it, Barkley chatted with
Morgan, who, apparently, was in an
even better humor than on yesterday.
He laughed heartily several times and
arose and stretched when a luncheon
recess was taken until 2 pm.
The figures showed that Morgan and
Co. had approximately $4,000 900 on
deposit on March %, last, and DreXel
and Co. of Philadelphia, approximately
Sl3,500, 900.
The powerful chief of Morgan g. Co.
| yecterd9y caused a sensation by testi-
| flying he paid no income tax in 1881
| and 1882. His Office manager Leonard
Keyes, broadened this statement to
include all the other partners. Only
! about $4,000 income tax, Keyes said,
was paid by all the firm members to-
gether in 1880. This return and those
Of 1881 and 1882 took in all income,
whether 1t was private or within the
partnership, for the private bank pays
no taxes as a unit
Keyes testified at Morgan's request
sitter the 66-year-old financier had oc-
cupied the stand nearly four hours Re-
peatedly he has answered Il do not
know" to PecOras queries about a
! $21, ,0O0, 600 loss written off his firms
books on January 2. 1881, in addition
| to other deductions which already had
wiped out taxable income.
| 1f, i,ctoforB