The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-06-01
POTENTIAL PROFIT
OF $122,50S,O00
ON DEAL IS SHOWN
Morgan Partner Says II All Sc.
curities Had Been Sold
That Would Be Result
RlDIcULEs FIGURE, HOWEVER
Says Figure Is "Surmise OF
What Might Have Been
Done But Wasn't"

Washington, June 1.-(P)-A poten-
tial profit of $l22, 100000 for J. P.
Morgan and Company in 1929 If 1t
had sold securities received by it in
forming the United Corporation, a
utilities stockholding concern, was
outlined Thursday to the senate in
vestigating committee and agreed to
by George Whitney, a partner in the
firm.
This phase Of the inquiry into OPP
erations of the international bank
ing firm was reached after 1t had
been decided on an IL to vote IN
closed session of the committee to
make public the Morgan partnership
agreement, save for names of the
! present partners and the percentages
of their interests.
Ferdinand Pecora, committee coun-
sci now given free rein by the COM
mittee, introduced the potential
profit figure in connection with the
! United Corporation deal. Whitney
said 1t was correct.
He directed ridicule at the figure
as "surmise of what might have
been done but wasn't"
Whitney had testified Wednesday
that If the firm had sold the securi-
ties it turned over to the United Cor
poration, in forming that concern, 1t
would have made a profit Of $751;
100000.
Three Are ver-Ridden
In the committees executive seS-
sion before the hearing resumed,
Senator Couzens Rep., Mich.). Nor
beck (Rep., s. d. and Costigan
(Dem., Colo) wanted to make all Of
the partnership agreement public;
but were over-ridden.
Only few senators were present
for the public hearing, which again
attracted an overflow crowd to the
huge hearing hall.
J. p. Morgan kept in the back
ground, sitting near Chair m n
Fletcher of the committee and smok-
ing cigar slowly. He listened closely.
John w. Davis, Morgan counsel
who had protested making any of the
partnership agreement public, sat
back Of Whitney, passing documents
TO MIN at times.
To Offer New List
This was the immediate objective
of Ferdinand Pecora, counsel of the
investigating committee, as the in
quiry went into its sixth day.
At least one more list of special
clients invited to buy stock from the
Morgan house at bargain prices was
promised by Pecora during the days
hearing. It was already known that
one name on the list is that of Owen
J. Roberts, associate justice of the
supreme court.
Testimony has shown that buyers
on the three lists so far laid before
the committee could have realized
profits of 100000 900 on the basis Of
market prices prevailing soon after
they acquired their stock.
How many did sell has not been
shown, but George Whitney, young
Morgan partner who Is bearing the
brunt of the questioning, told the
committee Wednesday these clients
had been invited to buy the stocks in
order to spread the risk of underwrit-
1AAS WIG A0SAVoS PACSOA1lo0AyS VAeAA oAAS
idea they would hold them.
Draws Hot Fire
This statement drew the Warmest
cross examination to which he has yet
been subjected. The crowd of specta-
tors Uttered as counsel Pecora re-
called that Whitney had made no such
explanation previously, and the Nor
gan partner replied that was be-
cause II wasn't wise enough to ap-
preciate the impression that would be
created In some quarters by these
lists"
when did you first become aware
Of the impression?" Pecora asked.
when I read the newspapers"
Whitney smiled back.
IN view Of your emphasis on the
business aspect of these transactions"
then asked Senator Costigan, Dem..
Colo) why did you write one OF
those invited to subscribe: We want
you to know We are thinking of you. :"
That was John J. Raskob, the FORM
er Democratic national committee
chairman.
I'VE would have to think of him
to get him on the list" Whitney re-
torted quickly.
Pecora attempted to bring out the
difference between sale and an un-
derwriting agreement, and finally
Whitney with q show Of impotence
said:
II have said they were a direct
sale. But what I'm trying to convey
is that they had the effect OF an un-
derW!iting arrangement. We wanted
10 divide cur risk and did divide It. ;"
But EscoSa Hoi!S not lst "a He