The Washington times., 1933-05-23

| "DOes the Federal Reserve
Bank make any examination"
mo"
Morgan said the reports were
sent to the Federal Reserve Bank
because they buy bankers bill:
and they don't like to buy then
unless they know something
about the condition of private
banks"
Pecora asked whether the com
mittee could get access to the
confidential reports to the Fed
eral Reserve Board.
Davis replied these would be
made available today or tomor-
row.
Pecora said he wanted them
to check against the Morgan bal
ance sheet. He asked Morgan
HAS the State of New York
ever made an investigation Of
your private banking System?"
"NO."
} Morgan was almost forgotten
as Glass, Couzens and McAdoc
debated the report made by Nor
gan's firm to Che Federal Reserve
Bank. Said Glass:
"They want to know the
status Of the Morgan Bank be-
fore they buy their banks bill"
Said Couzens:
But the bank has no legal
right to demand the statement"
Glass replied:
Exactly. They examine the
bank instead of the bankers
bill"
Pecora asked Morgan:
care the statements that
have been submitted by your
firm to the Federal Reserve in
the same general form as that
of condition submitted to the
committee"
"The same general form"
care you or your bank part
ners of any corporation doing
any interstate business?"
"Doing an interstate business?
Morgan repeated. He turned tx
his advisers and got anotnel
batch of records.
He said he was director o1
the United States Steel Company
Then he gave a list including the
Pullman Company.
From the same records he gave
the directorships held by his part
ners. They were directors II
steel, coal companies, railroad
insurance companies, hotels, anC
many other industrial concerns
When he read that E. T. Stotes
bury was a director in hte Belle
vue-Stratford Hotel Corporation
Morgan laughed. What amused
him was not apparent to the
committee.
When the banker reached j. s
Morgan's name, Senator Gore
Cd of Oklahoma asked:
''IS he a relative of yOurs?"
Morgan smiled:
eyes, he's my SON."
Morgan apparently grew tirec
reading the long list. His voice
sank and after a while he could
scarcely be heard throughout the
committee room.
The crowd watching outside the
committee room refused to grow
tired. They were yelling just as
vociferously for entrance tive
hours after the hearing started as
when the doors were first opened
The line was just as long, too
Pecora resumed:
"HOw many of J. P. Morgan
and DrexeI partners are also
members of the firm of Morgan,
Grenfell & Co., in LOndOn?"
"All but four down in PhiIa-
delphia (Drexel Company"
Morgan said this interlocking ot
dlrectorships was usually the re-
suit of associate companies want
ing the advice of some of the Nor
gan partners. He said they were
specifically direct tor ships, not
partnerships.
Member of Parliament
He said Grenfell was a direc.
tor of the Bank of England anC
a member of Parliament. He sale
many of the Morgan partners here
and in London were also asso-
ciated with the Paris company
Morgan and Gle.
Pecora asked whether the Nor.
gan reports to the Federal Re.
serve disclosed the liability oi
Morgan partners in other firms
in which they held directorships
specifically referring to the Paris
and London companies.
eyes"
"WhO determines the policy
of Morgan, Grenfell, in Lon
DOM"
"The London partners. But
we keep in very close touch
with them. I worked over
there eight years and know
them WELL"
members of your firm share