Evening star., 1933-06-01
JUSTICE ROBERTS,
v. v. ATTERBURY
ON MORGAN LIST
Of SELECT CLIENTS.
Fourth Roster of Favored
Purchasers Also Includes
Two Justices of PennsY-
vania Supreme Bench.
HUGE POTENTIAL PROFIT
ADMITTED BY WHITNEY.
United Corporation Figure for 1929
Is Outlined to Senate Committee
d. by Counsel Pecora in Examina-
tion of Utilities Stockhohing
Concern.
HUGE POTENTIAL PROFiT
ADMITTED BY WHITNEY
By the Associated Press.

By the Associated Press.
A new list of selected clients Of
]. P. Morgan & Co. was placed be-
fore Senate investigators today
and it included the names of
Owen j. Roberts, now associate JUS
tice of the Supreme Court, and
w. w. Atterbury, president CT the
Pennsylvania Railroad.
The transaction involved took
place before Roberts was, ap-
pointed to the court.
The latest list, the fourth pre-
sented, was of persons sold $4,000
units of stock in the United Cor
poration-Morgan utilities stock
holding company-in January,
1929, at $75 each, although the
price almost at once on the public
market was 500.
This list dealt with clients who
purchased through Drexel & Co.,
Morgan affiliate, and included
Pennsylvania State SUI RENE
Court Justices John w. Kephart
and William o. Shaffer.
Gov. Clifford Pinchot has de-
manded their resignation for
being on a previous list.
Former Senator Pepper, Repub-
lican, of Pennsylvania, also was
on the list. 81
Yesterday a list was presented of
those who dealt directly through the
Morgan firm.
Atterbury was listed today for $500
units and Roberts for 100.
The total units sold to those on the
list was in an amount making total
possible paper profits Of Tliearly
Morgan Listens Closely.
With J. P. Morgan closely following
the testimony, the new list was placed
in the record suddenly by Ferdinand
Pecora, committee counsel. just after q
Morgan witness had given theA crowd
a thrill by testifying partners In the
4llLu Ra4Q tOId4 tilCOlilC bdACS III 4oG
to 1929, inclusive, Of S51 ,538, ,000.f
This figure was given by leonard
Keyes, soft-spoken office manager of
the firm, at the suggestion Of john w.
Davis, Morgan counsel.
In answer to Senator Glass, Demo-
crat, of Virginia, Keyes said the 20
partners of the house of Morgan paid,
including both State and Federal levies,
income taxes amounting to $5,108, 701
for 1927, $6,172 .693 for 1928 and $l0,-
800 ,876 for 1929.
It had been previously testified they
paid none for 1881 and 1882.
Evidence also was presented that the
United Corporation used an accounting
system under which some of its gains
could be distributed as "a return of
capital" and not as "a taxable divi-
dend"
Pecora introduced q memorandum
explaining the accounting system used
by United Corporation on its option
warrants.
Money received from exercise of the
warrants was credited to paid in sur
plus"
Admits Big Paper Profits.
George Whitney, Morgan partner, was
on the stand at the time-he earlier
having acknowledged to Pecora that
potential profit of $l22 100000 was
available to the Morgan house If in 1929
it had sold securities received by it in
forming the United Corporation.
This phase of the inquiry into opera
tions Of the international banking firm
was reached after it had been decided
In closed session of the committee to
make public the Morgan partnership
agreement, save for names of the pres
ent partners and the percentages of
their interests
Pecora introduced the potential profit
figure in connection with the United
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