The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-31
PROFITS
AND FAMOUS NAMES
MINGLED AT PROBE
Third List of Persons Let in on
Ground Floor BY Nor
gan Published

Washington, May 31.-P)-New
tales of fabulous profits and famous
persons favored we're unwound on re-
sumption Wednesday of the senate in
vestigation of j. P. Morgan and COM
pany.
The investigation recessed for lunch
shortly after Senator Glass Dem
Vao exhibited threatening letters he
had received.
Upon presentation of a third list
of persons allowed by the wealthy
house to make inside bargain purchas-
es of stock, George Whitney, part
ner OF the bank-defended the prac-
tice as one Ito distribute the risk" OF
underwriting.
Names of celebrities. old and new
were contained on this latest, the
third such compilation, this one deal
ing with sale of over 100000 units OF
United Corporation stock to almos,
300 persons at some $7,OO0,O 900 below
the market prices.
Included again were William H
Woodin, now secretary Of the treas.
ury, Senator William G. McAdoo
General John j. Pershing, Norman
H. Davis, John w. Davis, John j.
Raskob and Charles A. Lindberg.
New Name Mentioned
A new name was that of Ed1ar
Rickard, New York mining engineer.
rs this Mr.. Richard the one who
is reputed to be representative of
ex-president Hoover?" asked Senator
Costigan dem. Colo0
Il don't know" Whitney replied.
He conferred with associates, but did
not amplify his answer.
The witness said he did not know
Rickard and never had business rela-
tons with him.
AS to the lists OF persons selected
for sales of stocks Whitney said Gre
alton of these was on the theory of
distributing risks that we didn't con-
slider proper for us to carry as q bank
ing house."
The investigators were told that J..
p. Morgan and Company had obtain
ed option warrants from the United
Corporation, utility stock holding
organization which it dominates, be-
lore there was a law authorizing the
Issuance of such options.
Ferdinand Pecora, the insistent
questioner as counsel for the commit
tee, made the assertion while George
Howard was testifying as president OF
United Corporation.
Hall Is Crowded
Again the roony hearing hall was
overlooking with some hundreds Of
spectators, as the testimony slowly
proceeded to divulge operations of the
great Morgan banking house.
Its chieftain, j. p. Morgan, clad In
a business suit Of blue, sat silently by
as Pecora declared that the law in
DelaWare-where the corporation was
Notwithstanding issuance OF op-
ton warrants without time limit. was
not enacted until March 1929, which
he said was about two monts after
Morgan obtained such warrants.
Howard said he had legal advice
that the warrants were within the
law, however.
The witness said he had acquired
100000 shares Of common stock and
100000 in option warrants, which en-
titled him to exercise an option to
purchase 100000 additional shares OF
common stock for 100000.
In closed meeting, before the hear
ing, the banking committee had ac-
cepted without challenge Pecora's
outline of the questioning he propos-
ed.
Senator Glass Dem., Va, who had
insisted on knowing In advance what
the examination was to be all about,
said he was satisfied and had obtain
ed the information wanted.