Evening star., 1933-05-23

gan said. "You see lived over there
and worked over there for eight years,
SO I know those men. There's not
much room for misunderstanding"
"You are liable for their losses?"
II suppose so. The same Is true Of
Drexel & Co. and ourselves"
Morgan said in reply to questions
that the balance sheet given the COM
mittee listed market values of securi-
ties, not purchase values.
was a statement Of your financial
condition made up for the calendar year
1902 Pecora asked.
There wasn't one" Morgan replied.
As the question Of the "lcss" came
up, Glass interposed again to say that
Morgan had said he knew nothing
about this"
Does the witness have some knowl-
edge Of revaluation of securities on
January 2, 1892" asked Pecora
II have no knowledge" Morgan re-
piled: IT don't know"
Were the assets of the firm valued at
the end Of 1880 at market price or at
cost?"
They were not valued as of that
date"
SuppOses He Signed.
WAS there write-off of securities
at the end of the calendar year 1902"
Il don't know" Morgan said, his
voice rising
who signed the 1880 tax return?"
II have no doubt I did"
Did you sign for January and
January ~"
Il don't know. I don't know"
Didn't examiners 60 over them?"
asked Glass.
Yes" Morgan said
Il believe 1881 now Is being ex-
amined."
They also examined Charles E.
Mitchell" put in Couzens.
That Is an implication" Glass In
terjected
IT don't mean any implication" Cou-
zens said, but don't want to curtail
this examination"
THE witness has answered mo- over
and over!" Glass shouted, pounding the
table II want to know the direction Of
this examination. AS q member Of this
committee have the right to ask ques-
tionS and make observations, and in
tend to exercise that right"
so do l." CouZenS said quietly.
"You might as well indict me-" Glass
persisted. Il don't know any more
about my income tax than the man in
the moon. I guess I'm guilty"
I'm not implying any guilt. but
don't see why this witness should be
treated differently from any other just
because he's Mr.. Morgan" Couzens said.
Glass Protests Questioning.
Pecora had asked if the Morgan firm
filed an income tax statement for the
part of the calendar year from Janu-
ary to June 80 and separate return
from July to December 81.
II dent know anything about the
income tax personally" Morgan replied.
You stated balance sheet was not
taken as Of the end of the calendar year
1880 because a new partner came In on
January 2. 1881" Pecora said.
Yes" Morgan said.
do you know your firm made q re-
turn for the two-day period between
January l and January 2, 1892"
Probably, but don't know It," Nor
gan replied.
Pecora then was told by Morgan that
he did not know that his firm had made
a deduction of $21, ,07l 900 on a return
covering the January l and period of
1891.
This line of questioning was then
protested by Davis and Senator Glass
Ignoring this, Pecora asked:
Did the firm do business for January
l and January which resulted in con-
siderable losses?"
There was no loss at that time, but
the loss was taken then" Morgan re-
piled.
Have you no knowledge Of this mat
ter?" Pecora resumed
Glass again interposed to object TO
the "badgering of this witness" >"
Il have no desire to badger" Pecora
answered. II think I have right to de-
velop information"