Evening star., 1933-05-31

weren't you derelict not to have him
! come to me?"
I'm afraid we just didn't think Of
it." Whitney said, as he and all his
| associates smiled.
you must have been poor business
men," Glass said. Il don't see how you
made your money"
ITO what Republican friend of mine
did you refer?" Couzens demanded of
Glass.
Well, there are so few Republicans
now and they've dropped so far out of
Virginian returned.
When he was identified as Joseph
r. Mutt, Couzens said:
Il want 1t to go on record that he's
no friend of mine"
Whitney several times objected to
terming the lists Of clients as pre-
, ferred." Pecora asked how he would
/ designate them.
We've never attempted to define
them" Whitney said. They are lots
of people we know who are competent
financially and mentally to undertake
the risk"
You call them selected lists?"
Many Of these people were at the
suggestion of others" Whitney said.
Subscribed Below Market.
"On all occasions when they were
invited to subscribe at the cost price
wasn't it below the market?" Pecora
asked.
There were no public offerings at
the time the subscriptions were made
With the possible exception Of Johns
! Mapville the public market was not
existing at the time the securities we're
offered" was Whitney's position.
Pecora asked about the letter intro
duced citing the market price of Ale
ghany Corporation.
But they were only two letters out
of some 200 subscribers" Whitney said.
I'm the great majority no market ex-
isted
"At the time of the formation of
these lists there existed no market on
which sensible business man would
look with any assurance whatever"
Pecora cited sales of United on the
Philadelphia Exchange January 81.
1929, at $99 and counter trading in
New York on January l6 at $92 to $94.
But we made the offers from jan
uary 9 to IA, which still was two days
earlier than any record of sales you
were able to find" Whitney said.
Knew Stock Would Be Listed.
Senator Barkley, Democrat, of Ken
lucky, said it was "one thing" to
finance a portion OF the stock and an
other to manipulate the exchange so
the public would come in and use that
as an inducement to sell what you had
distributed"
I'VE knew in a general way the stock
ha 1tcfad UJhjtVou cold afpttf
1 can say definitely that J. P. Morgan
& Co. had nothing to do with creating
a market for the stock"
Barkley said lot of people would go
into the market just because a stock
was being handled by Morgan g. Co.,
and asked: Was it bought and sold by
you to put the price up ond DOWN."
I'VE knew generally of the listings Of
the stock, but as to the creation of any
market-the answer is definitely No, Il"
Whitney said.
Couzens asked if S. Parker Gilbert
was a partner when his wife was sold
stock at cost.
NO" Whitney replied
In 1929 he was agent general Of
reparations. He had had an account
with us for many years.
Employs No Statesmen.
Does your company have a corps
OF 'high-pressure statesmen, such as II
was developed the National City Bank
had?" Glass asked.
~. p Morgan & Co. has no sales
men and has never employed any high
pressure salesmanship." Whitney re-
piled
You pick your own chents?"
"YeS, sir"
with some degree of human nature
you pick people with money to invest
and who won't throw their holdings
Immediately on the market and de-
moralize it?" Glass asked.
Exactly So"
I'm not asking as counsel Of Nor
gan g. Co." Glass commented, though
If you get rid of John w. Davis I
might try to qualify as lawyer"
No Limit on Pecora.
The decision for Pecora to outline
the course Of his questions was agreed
to by the committee yesterday at the
request Of Senator Glass.
Chairman Fletcher announced after
yesterdays meeting that the purpose
Of the report was in no way aimed at
restricting or limiting Pecora's work.
There was no dissension within the
committee. Fletcher said, and the agree
ment to Glass request was unanimous.
Senator Glass asked that the COM
mittee hold meeting and ask Mr.. Pc
cora to appear and outline what evi-
dence he proposes to offer and the sub
jects to be considered at the inquiry"
Fletcher said.
"It simply means that Senator Glass
wants to know the line of inquiry and
where 1t leads 1t doesn't mean the
committee will limit what the counsel
does. That Is not involved"
Pecora will be without the support of
Senator Couzens through most of the
remainder of the inquiry, as the Mich
igan Senator plans to leave Washing
ton Friday or Saturday for Detroit,
preparatory to sailing for London as a
delegate to the World Economic Con-
ference
Couzens said that neither j. c. Hack
EFT nor the unnamed administration Of
fetal whom he said was attacking Pc
cora had yet submitted to him proof
of their charges.
The Michigan Senator has charged
that the attacks are part Of subtle
campaign" to discredit Pecora.
aackett, in a letter received by Glass
yesterday, severely criticized Couzens'
attitude in the inquiry.
Meanwhile. COuZenS made pubic q
letter from Frank c. Cunniffe of New
York, who said he was secretary to the
late Francis W. Bird, chairman Of the
Progressive party during Theodore
Roosevelt's campaign, warmly defend
ing Pecora and lauding his character.
Letter Defends Counsel.
The letter, one of many Senators on
the committee have received supporting
Pecora said:
81 was amazed to read in today's
papers your statement that Counsel
Pecora was designated as a bad egg
by an administration Official and that
you were in receipt Of other letters at
tacking Mr. .Pecora.
II was secretary for the late Fran
els w. Bird, chairman Of the Progress
siye party during the campaign Of the