The Washington times., 1933-05-23
1882 DEPOSITS
LISTED At $40
MILLIONS
Company Had $224, 100000
In Government Bonds Dec.
81, He Tells Probers

Eleven Senators Present
AS Morgan took the witness
stand Senators Fletcher CD Of
Florida, chairman; CouzenS (R0
of Michigan, Reynolds CD Of
North Carolina, Barkley CD Of
Kentucky, Costigan CD Of Colo
RADIO, McAdoo (D0 of California,
Adams CDO of Colorado, Byrnes
+(DO of South Carlina, Goldsbor-
ough (RO of Maryland, Townsend
,(R0 of Delaware, and Bulkley
Cd of Ohio we're gathered at the
committee table.
Morgan sat next to Bulkley.
Fletcher administered the oath
to Morgan. The banker said:
II do" in a firm tone.
John w. Davis, his general
counsel, sat directly behind him
ready to interpose objections and
to advise the capitalist on his
rights. Fletcher said:
"Mr. Morgan, do you desire
to make any statement?"
Morgan replied:
"It is our desire, naturally, to
do all we can to help"
Morgan said he had prepared a
statement regarding his own
views on the Duties Of Private
Bankers" and that he preferred
to read it to the committee.
Smiles at Committee
He talked easily, swiftly, and
smiled. His hands were shaking
q little.
Committee room doors, opened
periodically, brought a roar of
chatter from the crowded hall
ways, where hundreds sought
entrance.
Pecora started the questioning
when the great banker conclud-
ed his statement, which was in
the form of a seVen-page printed
folder.
Morgan said he lived at Glen
Cove, L. l., and his business ad-
dress was % Wall st. He ad-
mitted being a private banker"
Morgan said his firm had been
ain existence since 1894" He
first said 1904 but changed it to
1894.
Pecora halted the hearing to
get a printed copy of Morgan's
statement. Belatedly, copies of
it were passed among the COM
mittee Senators.
Morgan said his firm conduct
ed "a general banking business
such as is conducted by a private
banker under the laws of the
State of New York"
DO you do an investment
buSineSS?"
eyes, in a general way"
Pecora'S preliminary questions
built up the great reputation of
the Morgan firm.
"Has the house Of Morgan
consisted of four Departmental"
ooh, no, we added as we
needed them"
"HOw long has the firm been
constituted as it now exiSts?"
Morgan turned to one of his
advisers to get the answer and
said:
"Since January 2, 1882"
Can you give us the names
Of your cOpartners."
Again the banker turned to his
advisers. He read the list from
a huge bound volume of records.
He listed Edward T. Stotesbury,
Charles Steele, Thomas w. La
mont and H. P. Dawson, among
others. He even mentioned
Dwight Morrow, who died two
years ago. Pecora asked:
Are there any written ar.
ticleS of cO-partnerShips? Do
they define the rights of vari-
Gus partners?"
eyes"
Have you a copy of the
articles of cO'partnerShips?"
"NO."
Have any of your associates
here got a cOpy?"
"NO."
"Can any Of these be made
avaiIabIe?"
John w. Davis, Morgan's at
torney interrupted here. He
strenuouSly objected to making
the partnership agreement pub
lie, saying:
81 think Mr.. Chairman, we
shouldn't be required to furnish
that. The partners stand each
for all and all for each. They
are all -eneral partners and all
are bound to the firm"
Pecora said:
81 think the general articles
Of partnership will speak for
themselves"
Davis declared the articles of
partnership" were purely a
private matter" He said "a
new article of partnership" was
added each time a new partner
was taken into the firm. Fletcher
asked:
do these articles set out the
right and interest Of each part
ner?"
Davis replied:
"I've never seen them myself,
but they do not limit liability"
Pecora rejoined:
"The question OF relationship
(cOntiHued on Page 6, Col. -