The Washington times., 1933-06-02

OF the brlClSn ana french clCl
zens who bought the stock. Whit
ney insisted:
1--WE have no such records"
"Have you heard that some
Of the allotment you sent your
British office went to British
royalty?"
"Never heard that suggestion
made before"
"Have you heard some Of the
allotment sent to Paris were
distributed among high poll
ticians?"
NEVER HEARD OF 1T
''Never heard that suggestion
made before and 1 am confi-
dent it is not So"
although you haven't at
the present time knowledge of
the specific distribution of the
$4,000 units in Britain and
France, don't you think, in view
of the turmoil and conflict
over the dollar, that it was un-
wise to give Europe any stock
at this time. And in particular
view of the fact that the Nor
gan firm is interested both
here and abrOad"
1T wasn't in 1929. / don't
think that $4,000 units distrib-
uted in 1929 would have any
thing like the effect such a
distribution would have now"
Have you heard that King
Albert of Belgium participated
in any of the allOtments?"
"I've never heard it and 1
don't believe it."
"Out Of the Paris office alIot-
ment, 1 mean."
"NO."
"Have you heard that the
family of King George or King
George himself participated?"
mo"
CROWD ENJOYS LAUGH
"Have you heard that the
dictator of the Italian govern
ment-I never can pronounce
his name-SOmetimeS 1 call
him MussOlini and sometimes
Observation-Disclosures"
The crowd roared at this.
"I've not heard of anything
like that. I'm sure neither
MussOlini nor Mussoloni ever
participated"
$50 far as you know then, no
member of any rOval family
participated?"
you've expanded that ques-
tiOn considerably but Pm sure
not as far as the original alIOt-
ments were concerned. Whether
any of them might have later
bought some of the securities 1
don't know"
At this point Whitney identified
a complete record of all the pools
joint accounts and syndicates il
which the Morgan firm partici
pated in recent years.
Asked About Pool
Pecora asked about the poo
organized by the Morgans ant
leading New York banks in tn,
hectic days of the October, 1929
market crash. Whitney explained
that it was the outgrowth of =:
conference between himself
Thomas w. Lamont and F. D. Bar
ton, all Morgan partners.
Whitney continued:
"The aim was to get some
sort of order out of the
chaos. There was no effort to
support any specific prices or
stocks. To show you how
hectic and hurried it was, we
all sat down and each one
would mention certain stocks
which we thought we're par
ticularly weak"
Whitney said lthe pool bough
1916, 6,109 shares Of stock at thu
time, that is in a period of sev
eral days, for $137,752,705, anc
sold out the account in 1880 fo,
gross profit, exclusive of interest
of $1,067,355.O4. Whitney wen
on:
I'VE never went into the
, pool with any idea but that we
would lose money. At one
time the account was carrying
o $4O,OOO,OOO loss"
He said the pool operation
went on for about three weeks
He added the decision to qui
buying was made on Novem
ber II.
A suspense Account
The pool was termed "su!
pense account" by Whitney. H
agreed with Pecora that the news
papers called the operation
'bankers' pool" and said:
"We did our best to correct
that impression"
Banks participating in the al
count. in addition to. Morgan, Wer
listed by Whitney as the First ST
curities Company, which partic
pated to the extent of 4-25; Chas
Securities Corporation, 4-25; Guar
enty Company of New York, 4-25
National City Company, 4-25
Bankers Company. 4-25, and tn
Guggenheim brothers fDanie