The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-23
r. Q n r I N q e ID
~ G1fo0 page ono.
Morgan DisclOses
Financial Set-Up
OF Big Bank Firm

fortune and his usefulness to the COM
munity in which he works.
Some private bankers, as indeed
is the case in some Of the other pro-
LESSONS, are not as observant Of this
code as they should be; but II, in the
exercise Of his profession, the private
banker disregards this code, which
could never be expressed In legisla-
ton but has a force far greater than
any law, he will scarifice his credit.
Must Justify Confidence
1.-THE banker must at all times 80
conduct himself as to justify the con-
fidence Of his clients in him and thus
preserve it for his successors.
If may be permitted to speak OF
the firm Of which have the honor to
be the senior partner, should state
that at all times the idea Of doing
only first-class business and that In
q first-class way has been before our
minds.
1--WE have never been satisfied with
simply keeping within the law, but
have constantly sought so to act that
we might fully observe the profess
sional code and 50 maintain the cred
it and reputation which has been
handed down to us from our prede-
cessors In the firm.
"Since we have no more power Of
knowing the future than any other
men, we have made many mistakes
(who has not during the past five
years., but our mistakes have been
errors Of judgment and not Of princi-
pie.
Another most important duty of
the private banker is to take special
care that his banking position in re-
gard to his deposits Is at all times
sufficiently strong, knowing as he
does that none Of the aids provided
by the government for Incorporated
banks, such as the federal reserve
system or the Reconstruction Finance
corporation, are at his disposal"
Morgan's appearance was intended to
be pinnacle for the long stock market
investigation by the banking commit
tee. Not for generation has a SEN
ate inquiry exceeded the interest at
tracted or been the subject Of more
elaborate preparation.
Also under Subpoena were O. P. and
M. ]. Sweringen, the noted railroad
operating brothers; John p. Murphy
secretary Of many Of their corpora
tons; Leonard Reyes, general man.
ager Of the Morgan firm and George
H. Howard, president Of the United
Corporation.
The Morgan house Is first Of the big
private banking firms to be studied by
the committee In its broad examina-
ton at the nations financial struc-
ture, but later 1t will go into the oper-
atoms Of two other private banks
Kuhn-Loeb and company and Dillon
Read and company.
The Morgan inquiry ties in'with the
Glass bank reform bill now before
both senate and house, which requires
among many other reforms, that pri-
vate banks drop either their security
or their deposit business.
The senate, meanwhile, was at the
climax Of its first impeachment trial
In 20 years. The defendant, federal
Judge Harold Louderback of Califor-
MIA, was the days witness, to con-
clude the defense case and make way
for the decision on whether he is
guilty Of the improper bankruptcy
practices charged.
Sought by the senate also was final
approval of the securities regulation
bill, major permanent legislation OF
the Roosevelt program so far. which
the house accepted Monday. The plan