The Waterbury Democrat., 1933-06-01

ing on the bench, participated in another of Morgan's bargain stock sales, in addition to one previously disclosed.
 Ferdinand Pecora, senate bank ing committee, counsel, intends to- day to conclude his inquiry into the Morgan firms part in creation of United Corporation, public utilities holding company from whose securities the bankers at one time had Q paper profit of $6S,- 100000. They did not take the whole profit, however. They re- alized a $7,000,o00 profit in sale of poration, obtained by them for $1 After United Corporation, Pecora will turn to the Allegheny Corpora ton, railroad holding company backed by Morgan for the Van Sweringen Brothers of Cleve- land. Both corporations provided securities for bargain stock offers. The senate banking committee in charge of the investigation was summoned to secret session at 9:30 a. m., to decide whether to make public the partnership agreements under which Morgan & Go, and Drexel & Go, of Philadelphia op- crate.
 Another bargain stock list-Drex- els selection of United Corpora tion buyers, is to be revealed to- l day. Roberts, who also bought Allegheny Corporation stocks, is on 1t. For $75, United buyers got units" which were first quoted for public sale at $99.
 Senator Costigan, dem, Colo, startled the hearing room yester- ] day by saying that Edgar Rickard, one of the United Corporation pur- chasers, was "reputed to be" Q rep resentative of former President Hoover From Palo Alto, Cal, came quick disclaimer of knowledge of the transaction and Rickard in New York renounced mention of MT Hoover's name as Outrageous" The allotment to Rickard was small 400 units.
 Two-perhaps three-more lists are to be made public to supple ment the three already revealed. So far, among bargain buyers of AL Brands and of United Corporation, appeared names of men occupying high political office or who sub sequently attained such rank. William H. Woodin, now secre- tary, of the treasury, is on every list revealed to date. Charles Francis Adams bought after being selected as secretary of the navy in the Hoover cabinet but before taking the oath.
 Two Pennsylvania judges are on the list. Two members of the sen- ate Investigating committee have been named. Senator McAdoo, dem Calf, Is on all three lists published before his election. Senator Keane, so far but bought the securities repn, N. J., had been elected to the senate some months before his investment firm, Kean & Taylor, was put on the bargain United Cor poration list selected by Morgan & Go.
 | George Whitney, Morgan partner testified yesterday that no persons holding public office were included among the favorites of his firm. But he was challenged by Senators Reynolds, dem, N. C., and in 8 cross of questions identified the late Dwight w. Morrow as United States ambassador to Mexico and John J. Pershing as general of the armies of the United States--his salary was fixed by congress al $25,000 a year--at a time when they received Morgan favors.
 Speaking, perhaps, for the Mor- gan partners, Whitney told the committee he had been amazed by the construction placed upon the q 1iafa hxrf fha xHtttHItA Ia |, n ot, l they were not drawn with any idea of obligating anyone to Morgan & leo.
 From time to time during the I Investigating Whitney, had disl cussed with Ferdinand Pecora rea- sons for making the bargain offers. Whitney does not call them bar gains, and objects to reference to "preferred lists" "Selected lists'' is the name used by the Morgan partners. I.sa
 Pecora went at Whitney rather savagely on the question of Under writing" after the witness had said 1t was common underwriting prac- tice to put stock out as Morgan & Go did. Referring to the lists, Pe- cora remarked that trustees of Phil lips Exeter academy, and of An- dover academy-two eastern pre- paratory. schools of considerable social prominence-were included in the United Corporation list. Pe- cora wanted to know whether Nor gan & Co had expected these trus- tees to join in the risk of an un- derwriting venture.
 Whitney was uncertain about those specific allotments. But he insisted the securities were offered to men of large means who could afford any risk involved. He ex- plafned General Pershing had be- come friendly during the war with Morgan partners and had asked them to Took out" for his invest ments. Thus the commander of the A. B, F. got on the bargain lists.