Evening star., 1933-05-25
The Political Mill.
By C. Could Lincoln.

The political repercussions Of the
Senate Banking Committees investiga-
ton Of the House of Morgan may be
widespread. To be known as a bene-
flciary Of this great private banking
house. with the spotlight turned on that
concern. is an honor from which some
of the politicians, depending upon their
stamina, may shrink. The committee
has brought out the fact that the Nor
gan firm on at least one occasion. and
it is presumed that there have been a
number of such occasions. sold stock
at the price 1t was sold Morgan-much
below the existing market price-to q
selected group of old friends. Most
prominently mentioned in the list is
Secretary Woodin Of the Treasury De-
partment. OF course, the transaction
happened long before Mr.. Woodin be-
came head of the Treasury Department
the fact that in the past Mr.. Woodin
was allowed to purchase a block OF
stock of the Allegheny Corporation
one thousand shares in all. at $40 a
share. when the market price was from
$35 to $37. Is something that may be
held up to public view whenever the
Secretary of the Treasury has to pass
Upon matters affecting the Morgan firm
or any other banking house.
\ II
Mr.. Woodin is by no means the only
man who has been or Is in the public
eye who benefited by this generous ges-
ture of the Morgan firm toward its
friends Senator William Gibbs Nc
Adoo OF California is another who was
permitted to purchase a block of a
thousand shares. The stock went as
high as $50 share. although since the
stock market crash it has tumbled as
low as 81, according to the testimony
of George Whitney. partner of the
Morgan firm. Now Senator McAdoo, at
the time, was not in public Office. He
has been looked upon as a progressive
in politics and scarcely one to accept
favors at the hands of Mr.. Morgan.
The former Secretary of the Navy
Charles Francis Adams, who was draft
ed for that Office by former President
Hoover soon after the private offering
Of the Allegheny stock by the Morgan
firm, was on the list as one of those
who were offered the stock at $40 a
share and who apparently bought It,
Owen j. Roberts, now an associate
justice of the Supreme Court, and for
mer Senator George Wharton Pepper
Of Pennsylvania. not to mention John
J. RaSkob, former chairman of the
Democratic National Committee, are
Yound in the list Of those who had this
opportunity presented to them and who
seized it. Mr. Raskob was then chair
man of the Democratic National Com
mittee. but Mr.. Roberts was not ap-
fod 90 ho
more than year later. He was prac-
ticing lawyer at the time and there was
no reason why he should not accept
this chance to make money if he de-
sired to do SO. Mr. Pepper had been
out of the Senate for several years.
X
The Morgan list Of beneficiaries-
members of which might have made as
much as $4,000 profit on a deal in a
thousand shares Of Allegheny stock and
could have made $4,000 if they had
sold 1t the day they took it over-did
not include men prominent in the pub
lie service of that day. To that ex-
tent the report that J. P. Morgan &
Co. have held the whip hand over men
in public Office has not been borne out
by the publication Of this list, at least
The. Governor of Nebraska, Charles
Bryan, brother of the late William
Jennings Bryan, has finally appointed
Judge William H. Thompson to flll
the vacancy in the Senate caused
by the death of the late Sen
ator Howell. Republican. There were
to come to the Senate himself
and was ready to resign as Governor
and have himself appointed to the
upper house, as did Senator Erickson
OF Montana, who was Governor of that
State when the late Senator Thomas
j. Walsh died. just before he was to
leave the Senate and become Attorney
General in the Roosevelt cabinet. II
Gov. Bryan had any such ideas, ap-
parently he discarded them. He has
been i'll since the elections last Novem-
Der and 1t was doubtful that he would
be in shape to come to Washington
II he did seek to have himself ap-
pointed. Furthermore, the procedure
by which Senator Erickson reached the
Senate has been under attack, and If
another Governor had sought to obtain
a seat In the Senate by the same
method the Senate might have felt
constrained to take some notice of it.
As 1t Is, subcommittee of the Senate
Privileges and Elections Committee has
for weeks been supposed to be investi-
eating the Erickson matter and has
made no report on 'it up to date,
although Senator Hebert of Rhode
Island. a Republican member of the
subcommittee, has prepared a state
ment for the committee showing that
no such course has ever before been
taken by a Governor of State seek
ing to become member Of the Senate.
Mr.. Hebert is understood to feel strong
ly about the matter, and he plans to
make statement in regard to it if the
subcommittee fails to bring in a re-
port.
Judge Thompson has long been a
close friend of Gov. Bryan. He is 79
years old. and presumably is not likely
to undertake to become candidate for
nomination and election to the Senate
when his appointive term expires, year
from next Fall. In that event the field
will be open to Gov. Bryan to make
the race. if he has recovered his health
and SO desires. Many of the friends Of
former Senator Gilbert N. Hitchcock
of Nebraska had hoped that Gov. Bryan
might see fit to name Mr.. Hitchcock to
the Senate vacancy. But Mr.. Hitch
cock has headed one Democratic group
in the State and Mr.. Bryan. another
for a number of years, and Mr.. Hitch
cock himself had no illusions as to what
was going to happen when the Cover
nor got round to making the appoint
ment.
The newly appointed Senator from
Nebraska Is given a clean bill Of health
by Senator George w. Norris. who said:
Judge Thompson is very high-class
citizen" Senator Norris and the late
Senator Howell were friendly, although
Senator Howell. Republican, stood by
his party in the national elections of
1924, 1928 and 1892, while Senator
Norris openly espoused the cause Of Al
Smith in 1928 and President Roosevelt
In 1882. and in 1924. while he did not
come out openly for the late Senator
La Toilette, then candidate on the
ticket, was supposed to SYM
pathize with him. The appointment Of