Evening star., 1933-05-22
BANK REFORM SEEN
!. IN MORGAN PROBE
Pecora Predicts ''Important
Legislation" to Result
From Inquiry.
NJ the Associated Press.

By the Associated Press.
Ferdinand Pecora, counsel for the
Senate Banking Committee, predicted
In an interview today that the investi-
cation of J. P. Morgan g. Co, OPEN
ing tomorrow, would result in much
important legislation" to reform bank
ing laws.
Pecora was engaged with his staff in
going over the evidence to be presented
to the Senate committee tomorrow,
much of which has been gathered in
preliminary investigation in New York
While he would net discuss the nature
of the testimony to be adduced, he said
1t would probably suggest the wisdom
Of segregating commercial and invest
rnent banking" such as is now pro-
posed in the pending Glass bank re-
form bill
The evidence, Pecora added, would
Tend support" to the provision in that
bill designed to prevent private bankers
from accepting deposits and at the
same time underwriting securities"
The committee counsel planned to
confer during the day with Chairman
Fletcher of the Banking Committee to
make final arrangements for the open
ing of the inquiry.
Two additional trunk loads of evil
drnce will arrive late this afternoon,
Pecora said. to be added to the mass
Of documents already accumulated.
1t was learned that the Morgan firm
has engaged large quarters in a local
hotel for its personnel and records
which are being brought for the in
vestigation The firm was reported to
Nlm kyiy 10 he i%o1 arol
tfunkloads of records which have been
subpoenaed or may be needed during
the inquiry.
j. P. Morgan himself, long regarded
by the public as Gibralter of Ameri-
can finance, will be called to the stand
at the outset of the penetrating inVes-
tigation of his business affairs
"A staff of nearly half a hundred in
vestigators, headed by Pecora, was
assigned today to a final scrutiny of the
data on which Morgan will be ques-
toned. They have been working over
the Morgan books for weeks.
Morgan's appearance will mark the
first time a head of the huge private
banking firm has appeared before such
group since his father testified
generation ago in the famous Pujo
money trust" inquiry.
Fecora and Chairman Fletcher have
lined up dozen or more of the best
known members of the Morgan firm,
all under subpoena to testify after their
chief. They, too, will be questioned
upon material marshalled by the more
than two score attorneys, accountants
and investigators who have had access
to the ]. P. Morgan g. Co. books. Word
at the Senate is that preparations have
been the most elaborate since the Tea
pot Dome investigation.
. 1t appeared probable that details Of
the Morgan operations would be laid
bare for the first time. Little is known
by the public of the activities of this
international banking house, which is
private institution, and does not have
to publish even its capital set-up.
The Morgan inquiry will be the first
Investigation involving the operations
of Wall Street conducted under Demo-
cratic management, as the Republicans
were in power throughout the previous
Investigations.
While the Morgan hearings are in
progress, Pecora's staff will stay in New
York preparing for the next two in
Quiries, into Kuhn. Loeb 81 Co. and Dill
Ion, Read g. Co., both big private bank
ing houses.
They are scheduled to come before
the committee early in June, with two
weeks allowed for completion of the
Morgan case.