The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-31
DRAW NAME Of
HOOVER INTO
MORGAN QUIZ
Ex-PreSident Is Mentioned
When Former Aid Is
Shown as Pet
W00DIN ON NEW LIST
How Huge Banking Firm
Melted 7 Millions Profit
on One Deal Is Aired.
BY LYLE c. WILSON
United Press STAFF Correspondent

United Press STAFF Correspondent
WASHINGTON, May 81. - The
name of former President Hoover
was drawn today into the senate in
vestigation of J. P. Morgan and
Company when Senator Edward p.
Costigan Dem, Colo inquired if
Edgar Richard, whose name APP
peared on the selected list of United
Corporation stock purchasers, was
he person who is reputed to be
the representative of Ex-President
Hoover
George Whitney, Morgan partner,
who was teStifying at the time re-
piled:
Il don't know enough about him
to know
J. P. Morgan e. Co was shown in
the senate investigation today to
have realized an actual profit of
s7,000,000 and a possible paper profit
OF S46 900 600 on a single securities
issue
The issue was in United Corpora
ton stock and the inquiry revealed
also a list of some 200 preferred
purchasers. This is the third Nor
gan bargain list" that has been
made public.
PecOra Is Upheld
The preferred list contained the
names of many who had been on
two similar lists made public last
week, but in addition carried the
names of Richard, associated with
Mr.. Hoover in the Belgium relief
administration and other war and
post war organizations, and the late
Dwight w. Morrow, former New
Jersey senator and American am
baSsadOr to Mexico.
AS the inquiry entered its second
week the program of Ferdinand
Pecora, committee investigator and
counsel, was upheld in a secret
session of the senate banking and
currency committee. ~
This development assured con-
tinuation of Pecoras questioning,
aimed at ascertaining the profits
methods and political and business
connections of the powerful Morgan
system.
Tells of Big Profits
Whitney, regarded as the "finan-
cial brains" of the House of Nor
gan, testified regarding the financial
operation of United Corporation, a
holding company owning stock in
utilities companies serving half the
population Of the United States.
George H. Howard, president of
United. also testified during the
morning.
The testimony showed that the
Morgan company and the Bonbright
Electric Company obtained a million
option warrants at 81 per warrant.
Pecora developed that during the
spring and summer of 1929, 200,0
warrants were sold for 8,490, 046.
The price varied and the high was
just over SAT per warrant. The &C
tual partial profit. therefore, was
more than 100000 and the paper
profit around $46,OOOOOO.
Similar profits were possible for
the Bonbright Electric Company.
Buy at SIS, Sell at 500
While the issuing houses were in
a position 70 make these quick and
large turnovers, the favored pur-
chasers also were able to make sub
stantial profits
These selected clients bought
united units at SIS each and the
units sold for 500 when trading
opened in Philadelphia
In the United Corporation bar
gain list" were Norman H. Davis,
William H. Woodin and others who
have figured in the previous cita-
ton which grouped favored buyers
of Allegheny Corporation and
Standard Brands stock.
Woodin on Third List
Woodin, now secretary of treas
ury. was on the list for 1000 shares;
William G. McAdoo, now United
States senator from California, was
listed for $50 shares; John j. RaS-
kob, at that time chairman of the
Democratic national committee, was
down for $500 shares.
Others on the list include General
John j. PerShing and Charles A.
Lindbergh, both on previous list,
and j. Henry Roraback, Republican
national committeeman in Connec-
ticut, 1000 shares.
Two former underSecretaries of
state, Robert E. OldS, Republican,
and Frank L. Polk, Democrat, were
listed for 500 shares each.
Charles D. Hilles, Republican ma
tional committeeman OF New York,
was down for 1000 shares; Mrs. S.
Parker Gilbert. wife of Morgan
partner. who formerly was agent
general CT the reparations commits
sion Wae listed for 950 units