Evening star., 1933-06-02
MORGAN &CO.MADE|
PROFIT IN CRASH
Whitney Describes How
/ Bankers Sought to Halt
/ Fall of Prices.
CONTINUED From First page1


pool under supervision of Thomas w
Lamont, Morgan partner. =.
Chairman Fletcher and Morgan, SIT
ting back of him, were both smoking
cigars as usual. ,,,-
Senator Glass, Democrat, OF Vr-
ginia, former critic Of the inquiry was
not on hand. - ~.
hearing included:
directors of corporations to whom per-
sonal loans we're extended from ls2I
IN 1881. inclusive by j. p. Morgan q
80 II named E. w. Marland, now
Representative from Oklahoma; Robert
r. Olds. former State Department Oh
fcial. and Frank w. Stearns, 1rlena oi
The late former President Coo1ose'
among others: ,,,, 81 the
bargain price stock oHdeo 70 1n.ttsI, 49,
hy ] p. Morgan g. Co. went 70 6rltSh
ROYALTY and French politicians.
Senator Reynolds, Democrat, OF Nofth
Carolina. asked about disposition OF par
gain price stock allotted TO Morgan
Paris and London Offices. -.
"Have yod heard that the allotment
TO your London Office was dlstrlpuIeo W
members of royalty?"
Il never heard that suggestion De-
fore" Whitney replied; ,,-...,,,to5 =
Have you heard some was dlstrlouVeo
TO politicians, in FTance? ...t
IT never heard 1T and I am confident
Il is not so,p Whitney said smiling,
Questioned further, Whitney said ne ne
had NOT heard that some Of. the SVock
went to King Albert Of Belgium -
whitney turned now and agaln 70
noY,fer with Leonard KeyeS, the Morgan
office manager, who sat near Morgan
Another List Expected.
At one point whitney told the COM
mittee the share Of bargain price stock
allotted by the Morgan house to Jonn
w. Kephart, Pennsylvania Supreme
Court Justice, was paid for by his wiIe'
Gov. Clifford Pinchot, VINO mas oe-
ananded Kephart's resignation, teie- @
Syranhed sPecora yesterday saying lne
Judge denied accepting the STOCK 1oT
which he had been listed.
He questioned Whitney about II az
fhe outset OF the hearing today ana
the Morgan partner said he unoersGooo
Mrs Kephart had paid for the STOCK
list of real insiders among tne
Thousands of selected clients OF j. r.
MORGAN 81 Co is expected to be revealed
in later testimony.
These names we're of person VINO
zvere sold stocks $40 below the price
maid by another list Of men VINO pougIiU
from the Morgans In the manner al
Teady disclosed on previous issues.
The operation involving two separate
lists of customers was distributor OF
:Tolns-Manyille stock in June, lSZi.
Those classed by the investigators as
real insiders obtained 343,75o shares at
l7iL5 the Morgans' purchase price
Others bought $4,000 shares at ot1s.
Among the latter were understood 70 DC
MANY of the prominent men named on
previous lists, Secretary OF the Ate"N
nry Woodin among them,
Asked More Units.
At the outset of today's hearing
Senator Reynolds asked his question
about the $4,000 units Of United Cor
,,orat,on which went to the London
branch of Morgan, Grenfen q 20:
THOSE units were included IN one Oh
the favored customer lists
Whitney said in answer 10 queStiodlS
that the $4,000 units Represented $l'-
S5id YOU aIlot these units to the
London once at their request?" Rey-
uolds asked.
mo" Whitney said. ,..o.,
"Did they request additional units?
Reynolds inquired. - .La
Whitnev said cables read into the
record yesterday showed that the Lon
6on Office asked additional units II tney
eswere available. "A .s
.nada of the units which went to the
Tondon ofice?" the Senator inquired
whitney shook his head and tnen
conferred with Keyes.
Il don't know the disposition ne
whitney quoted from a cable that
Morgan & Co. sent to London saying
eve are reserving" $4,000 units. de
said he thought similar cable was sent
to the Paris house.
Reynolds asked If whitney mao
lnov;ledge of the distribution OF the
London and Paris participation,
"We have not" Whitney said. I'VE
have never endeavored to secure 1t.
After it was denied that some OF the
london shares went to some members
Of ROYALTY and politicians In france
REYNOLDS asked if Whitney would FUR.
Iish the committee the allotment OF
the shares that went to France ana
Certainly" Whitney replied.
Conditions Differed in 1929.
John w. Davis interrupted to COM
Fnertt that the London and Paris
branches might have something to say
an view of the conflict over the dol
Tar the value of the pound and the
general turmoil prevailing" Reynolds
said. do you think it wise to distribute
this stock in European countries IN
view of the fact that Morgan d co. mac
wide investments there and that THESE
countries owed large sums TO the United
Etates?" -. II.
whitney said the stock wasn't dis
tributed to European countries" ano
that conditions in 1929 were quite OIL
ferent than now" -
european countries in '29 were in
debted to the United States to the ex-
tent of $1l 900 900 000," Reynolds SID
Whitney said that was true, but ne
could seen no relation between that ano
the allotment of the 27,5oo units 70 the
London and Paris branch OF Morgan.
REYNOLDS asked the witness If he pc
Iieyed the allotment was detrimental
'to American Welfare.
mo" Whitney replied.
"Have YOU heard that King Albert oil
Belgium participated in the dlstrlnu-
ton of the stock. that went 10 tne
Paris branch?'
mo" Whitney said.
Lave you heard that any OF the
stock went to King George OF England
or members Of his family?"
mo, I'm sure it did not.
Have YOU heard that some OF 1t wen'
to an official of the Italian govern
ment-I am not sure about the pro,
nunciation Of his name. Sometimes
call his 'Muzzoline' and sometimes
sNduzzoloni2'
Whitney laughed and shook his head
Morgan Debtors Listed.
Pecora then put in the list Of or
ficers and directors OF corporation,
with loans from Morgan & Co. Mex
he turned to the special suspense &C
--..-a +nllirn Of I p. Mncoan. & Co