The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-02
MORGAN FIRM
MADE PROFITS
IN 1929 CRASH
Money Kept Rolling In
While Other Fortunes
Were CrumbIing.
Continued From Page One)

rescue party ana Win no tnOugnC
of profit.
Pecora then asked questions about
each of the thirty seven stocks pur-
chased by the syndicate, in an at
tempt to show that Morgan & Co.
was interested financially in most of
the securities bought.
The list was a roster Of big bust
ness, ranging from United States
Steel to Radio Corporation.
Some companies had been financed
by j. P. Morgan, he said. while
others had sold stock and bonds
through the Morgans In only
few cases would Whitney agree that
the House of Morgan actually was
interested financially in any Of the
concerns the syndicate attempted to
help.
For how many foreign govern
ments do you act as fiscal agents?"
asked Chairman Fletcher.
I'VE have such an arrangement
with the Guaranty Trust Company
and the Belgian government, but
with no other foreign governments"
Whitney replied.
The senate investigators will turn
next to the railway empire domi-
mated by the famous partnership.
Hearing to Adjourn
The specific subject will be the
Allegheny Corporation, a holding
company super imposed by the
bankers upon the railroad network
of the Van Sweringen brothers of
Cleveland.
The Van Sweringens attained
financial prominence as real estate
operators in Ohio, and then turned
to romance of railroading.
The Van Swerigen brothers them
selves will be called to testify on
Monday, Ferdinand Pecora, senate
committee counsel, said this morn
ing.
At the close of today's session, the
hearings will be adjourned over the
week END.
New List Public Today
Another bargain list is scheduled
to come today, made up of persons
who we're invited by Morgan & Co.
to subscribe to the securities Of
Johns Manville Corporation, man
of building supplies.
Five lists have been published so
far-two of United Corporation, the
Morgan Public Utilities Holding
Company, and one each for Ale
gheny Corporation, Standard Brands.
a manufactured food holding COM
pany, and Niagara and Hudson, a
power company.
Treasury Secretary William Wod
in has had preferred purchase OPP
portunities for every security listed.
The late Calvin Coolidge bought
Standard Brands.
Reveal Partnership Secrets
Almost equaling these revelations
in interest is the text of the Morgan
partnership agreement which re-
vealed the genial j. P. Morgan as
the car of his firm.
In him is reposed the authority
to settle all disputes among part
nerS, and to order any of them to
withdraw from the firm if he
chooses.
One limitation is imposed upon
the son of the man who founded
the worlds greatest private bank
he can not dissolve the partnership
without agreement of partners rep
resenting a majority interest in the
organization.
1t was not disclosed whether Nor
gan holds the majority interest
himself.
In making public the agreement
the senate committee deleted the
division of profits and the percent
ages by which partners are respon-
sible for losses incurred by J. P.
Morgan 81 Co.
The question has been nAised
whether the agreement actually
represents partnership, or whether
Morgan's dictatorial power makes
him the employer of his associates
with the right to hire and fire, as
the corner groceryman would &C
quire or dispose of a delivery boy.
Attorney-General Homer Cum
mings announced that the justice
department was studying testimony
in the Morgan hearings Ito see if
the facts developed indicate breach
of the law especially in connection
with income taxes Morgan has
paid no income tax since 1929, and
his partners have paid nothing since