Evening star., 1933-05-28
GIGANTIC PROFITS
Barred IN RECORDS
OF MORGANSBANK
Securities Sales Alone Melted
Firm S18,284,9O8 From
1927 to 1881.
MILLIONS WERE MADE
ON OTHER OPERATIONS
Pools in Stocks Among Deals Han
died by Concern-0ther In
formation Given by Files. ~
BY the Associated Press.

BY the Associated Press.
NEW YORK, May 27.-Ferdinand
Pecora, counsel in the Senate Bank
ing Committee inquiry. said tonight
he knew of no one outside the COM
mtttee or within it who would be in
terested in "gagging him.
AS for the statement of Senator
Couzens Republican), Michigan,
that he had heard a subtle cam
paign" was being waged against Pc
cora, the attorney said:
MY record in the district attor-
ney's office is record of IL years,
terminated nearly three and a half
years ago. 1t is an open book and
any one can look into every nook
and Granny Of it who wishes to-"
tCopyright. 1888, by the Associated Press)
Profits of untold millions to the
House Of Morgan through security fo-
tations and syndicate operations were
disclosed yesterday in documents OBJ
tanned from the innermost files of the
banking house by Senate investigators.
They showed the Morgan firm report
ed to the investigators gross profits of
$18, ,284 ,908 from the sale Of securities
alone during the five-year period from
1927 to 1881, inclusive, in addition to
untabulated millions on other opera
tions.
Bare details of stock pool or syndi-
cate operations IN which the Morgan
House participated limited at uncounted
millions Of additional profits, but the
total could only be guessed because of
the form in which it was reported.
Found Additional Profits.
Committee investigators have gone
back of the figures presented by Nor
gan and found additional profits which
will be totaled and submitted later to
the inquiry committee The Morgan
reports showed them only as shares still
held.
A joint account in Proctor & Gamble
Co. common stock from July, 1929, to
June. 1880, in which Morgans profits
were s1,s53,s59, revealed the size of
scme of the operations. A total Of
1876, 800 shares we're bought and sold for
the account.
The period covered by the figures in
cluded two and a half boom" years
and the same number of depression"
years.
Testimony before the committee has
shown that the 20 partners in the firm
paid total income taxes of $11, ,000, 900
in 1929; 5000 in 1880 and none in
1881. But the profits revealed yester-
day were not divided into years.
Operations of Pool.
One of the most interesting docu-
ments was summary Of the operations
of the so-called bankers pool which
went into the market in 1929 shortly
after the collapse. 1t showed the pool,
listed under the name Special Suspense
Account" made a total profit Of ST.
067, 1856, Of which Morgan's share was
S170,776.
AS these disclosures were made yes
terday, Senator CouZens, Republican,
Michigan. member Of the Investigat-
ing Committee, charged subtle cam
paign" was being conducted against
Ferdinand Pecora. the counsel who has
been conducting the inquiry.
CouZenS said charges had been sub
mitted to him designed to "discredit"
the aggressive committee agent, and
that he was calling upon those who
made them to submit their proof, if any.
Pecora was the center of the clash
in the committee Friday when Senator
Glass, Democrat, of Virginia, demanded
to know where he was heading in his
questions.
Other members of the committee said
yesterday, however, they were ready to
back Pecora to the limit. and announced
the inquiry would go on.
Fletcher For Probe.
Chairman Fletcher, in an interview,
said the question of whether single
firm could dominate" American indus
try and finance was matter of public
tion would "go forward
Another member of the committee
said ''all the power of Wall Street
could not stop this investigation now
until all is disclosed that should be-"
While the controversy ragged, Pecora
was in New York. preparing to resume
the inquiry Wednesday.
Another development yesterday was
a statement by members of the COM
mittee that they were informed in ex-
ecutive session Friday that half dozen
of the 20 Morgan partners were indebt-
ed to the firm
The documents about Morgan's oper-
ations disclosed a mass Of information
about the great banking house that had
not previously been developed.
They showed the banking house had
rs security issues over the
dve-year period. amounting to $1,754,-
100000. with total gross profit, before
deduction of overhead. of $l0,182,-
1926.
Operations of Affiliate
The firms afiliate in Philadelphia.
Drexel & Co., which partners in the
firm said was really part of it, man.
aged 43 issues. totaling ssI1,;94000
with profit of s4,426.088.9l.
The parent firm participated In Issues
:otalIng 1881 SOL 800 and 5.646,373
shares of unestimated value, which were
sales were S344,226, ,035 and 318,500
shares, with total profits to the firm of
s2.877 043.
Drexels profits from participating in
ssues managed by other houses were
$4,000
The Morgan files gave much addi- =,
ional informs ton also about the So
,alled selected lists CT clients 10 whom
ale firm sold g. 1t bargain prices.
Two such iist already iave been
made public BY the Investigators, in
.luding the names of many famous
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