Evening star., 1933-05-25

told that there was an antagoniSm OF
views and interest over this"
"I can safely say" Whitney smiled
chat the firm Of Morgan has never
tried to influence any company to bor-
row money that it didn't need in the
conduct of its business"
The Oklahoma Senator said he had
zone concrete case in mind. that Of
the Marland Oil Co. in 1927.
It was then headed by Representa-
tive Marland, Democrat, of Oklahoma
Gore continued that he had been
informed" that when Marland retired
from the firm in 1929. that 22,000, 900
of the $30,000,000 loan was still on
deposit with the Morgan company"
I'm told" Gore said, that the Mar
land firm never got the rest of the
money but paid interest on it just the
same"
I'm certain the firm got the money"
Whitney smiled. II remember that
there was some difficulty and that
Marland retired from the firm. I'm
sure, however, that when we lend
money we make it available to the bor-
rowers. I believe the record will so
show"
Price Wasn't Fixed.
Pecora suggested during the ques-
tioning of Whitney that in selling
Allegheny Corporation stock to spe-
cial list at $40, the firm lost $8,623, 600
based on current prices.
Whitney dissented. saying the de-
cision to sell at $50 was before the
market price was set. He said he would
not furnish evidence of that, however
You agreed to offer this stock at
| $40 share" Fletcher said. You must
have agreed at sometime to dispose OF
| certain number or you might have
sold twice as many shares"
Pecora asked If there was ever a
partners meeting at which it was de-
cided what individuals were invited to
subscribe.
ITO the best of my knowledge and
belief there was not"
You don't throw dice to determine
it?" asked Fletcher as spectators
laughed.
THE partners converge on list,
Whitney said. I'VE make suggestions
and they are gradually brought together
Probably it starts with a number OF
| memoranda which are thrown into a
list. This may sound vague and casual.
Does it to you?" asked Pecora.
mot a Bit
Morgan was leaning on the back OF
Whitney's chair during this testimony
IF this stock had opened at SIS
would you have expected these men to
carry out their agreement" Gore asked
Eyes, sir. They are the type who
want to fulfill their obligations"
Reading from the list of Standard
Brand purchasers, 'Pecora asked the
identity of John Marshall.
He is now a. partner in Covington
i Burling g. Rublee of this city, under
stand" Whitney said.
Isn't that the firm to which Dean
Acheson belonged?" asked Pecora.
II don't know" Whitney replied.
Acheson recently was confirmed as
Undersecretary of the Treasury.
Paid British Income Tax.
The names of many men high In
| public and business life were put into
| the record yesterday in the presentation
of the list of preferred Morgan Gus
| toners.
Among them were Woodin, McAdoo
| Adams, Owen ]. Roberts, Mutt, Ras-
kob and Newton D. Baker. None OF
them was In public Office, however
at the times they were recorded as
having been sold stock by the Morgan
Co. at preferred prices.
OJlleT QefclOPuiSuC dt yCStCAaoy
| hearing were:
Submission of a list of 60 bank Off
GERS and directors who obtained in
dividual loans form the Morgan firm
during recent years, some Of which have
not been paid off, and some OF which
are undercollateralized.
Testimony that members Of the Nor
gan firm paid q total income tax OF
about $l1 ,000, 600 In 1929. though only
| $4,000 has been paid since, all in 1880
Testimony by Whitney, that some
Morgan partners are indebted to the
! firm. Their names were not disclosed
Disclosure by Whitney that the S.
SOC, 900 loan outstanding to Charles e.
| Mitchell, former chairman Of the Ma
tional City Bank, is undercollateralized,
but is backed by special reserve and
| that $4,000, 900 is set aside to guard
undercol,S terialized loans.
Submission Of long list OF banks
with which the Morgan house and It's
affiliate in Philadelphia, Drexel & Co,
, maintain deposits of more than $780,
100000. mr.
The presentation of the list Of "fa-
vored customes'' who obtained STOCK
from the company at less tnat the
market price threw the investigator
| into an uproar.
No effort was made to maintain order
in the committee room as Whitney
identified a list of people known from
one end of the country to the otner as
| a record Of those to whom Aiiegneny
Corporation stock was sold at $2o az .
time when it was then selling to the
public at from $35 to $37 snare. ~
| is now selling for around 50.
Though the evidence showed Woooin
acquired 1000 shares of the stock IN
| 1929. long before he took office, the dls-
closure Immediately drew statement
from Senator Borah, Republican, OF
| Idaho, that the American people are
entitled to a Secretary OF the treasury
who like Caesars wife should be above
suspicion
Asked If he felt Woodin should re-
sign. the Idaho Senator told neWspapeiI,
men that statement speaks Tor ltseH.
Woodin himself declined to comment.
The list was presented to the CON-
, mittee by Pecora.
McAdoo, who has been attending
most of the sessions, was not preseht
when the list was filed.
The list was in two parts. one snow
| ing those who were sold through MOT,
gan proper, and the other OF those SOLO
| through Drexel g. Co., the Morgan am
| late in Philadelphia. Most OF the latter
were small blocks.
Loans to Bankers.
Though overshadowed by later devel-
opments the list of loans submitted 10
| tine committee by Pecora at the morn
ing session caused stir at the time.
It showed that among go bank direc,
tors and officers who had been EXTENDED
individual loans during recent years py
the House of Morgan were Norman ID.
Davis, John w. Davis and former vice
President Charles G.. Dawes.
Dawes loan was repaid last year ana
John w. Davis in 1880, but the other
was still outstanding, according to the
list identified by Morgan.
Among the other outstanding loans
.,ara thnra 70 NGitchell and Richard