The Washington times., 1933-05-26
HOWARD TELLS
ABOUT UNITED
CORPORATION
Company Has Grown to Half
BiIIion-DoIIar Company in
3 Years, Quiz Told

The heat was more oppressive
than ever today at the Senate
Banking and Currency Commit
tees investigation of Morgan
banking practices. and for the first
time 81. P" wore cool summer
clothes. He wore no vest under
his light grey coat. The heavy,
oldfashioned watch chain which
he usually wears across his front
was dispensed with.
Morgan arrived quarter Of an
hour before starting time and
chatted with newspapermen at
the long press table.
Committee Room Packed
The committee room as usual
was packed long before the hear
ing began, and a new loud speak
ing apparatus was set up.
An executive session Of the COM
mittee delayed the hearing con-
siderably.
The heat finally became so in
tense that Morgan took advantage
of the committees absence for a
stroll outdoors on balcony of the
room overlooking the court. He
was apparently casually interested
in the architecture of the building.
He stood with his hands folded be-
hind him, his youngest son, Junius
P. Morgan, jr.. standing beside
him.
Whitney, who was the last of
the Morgan group to arrive, also
had left off his vest. He was
turned out in dark gxey suit, and
sat quietly awaiting the start of
the hearing.
Morgan moved his seat as the
committee got under way an hour
and five minutes late.
George H. Howard Called
George Whitney, one of his
partners, had expected to con-
tinue on the stand, but the pro-
gram was changed.
George H. Howard, president Of
the United Corporation, the first
witness, said he became president
of the United Corporation Febru-
ary 26, 1929, and president of the
New York United Corporation, "in
the fall of 1929"
Howard was small, neat look
ing man in blue with a stiff col
lar and blue tie. He appeared
nervous, speaking little jerkily,
and constantly dampening dry
lips.
AS Howard testified, Morgan
moved up alongside Chairman
Fletcher. He kept chatting with
the Florida Senator even while
the chair issued rulings, admit
ting evidence of the House of
Morgan's financial deals in util-
1ty stocks.
81. p" smiled frequently. He
appeared as interested in the pro-
ceedings as any of the flappers in
the audience.
Stock Set-Up Explained
Howard said that United was
originally authorized to issue
100000 shares of capital stock,
divided into 100000 shares of
first preferred, 100000 shares of
So preference stock and 10000, 900
shares of common. This authori-
cation, however, was never fully
taken advantage of.
During the discussion overethe
market value of the stock, Sen
ator Glass CD of Virginia, in
terrupted to ask:
"The stock wasn't worth the
paper it was written on, was
it,"
Howard replied:
ut turned out that way"
The technical details of the
organization were brought out by
Pecora to show how Morgan or
ganized the huge utility corpora
ton. Pecora asked:
Morgan had control Of this
corporation through its 100000
shares Of common stock, with
out even exercising its 714,OOO
optional WarrantS?"
eyes, Sir.'
Fletcher Gets a Cigar
Morgan smoked steadily through |
the Interrogation of Howard. At |
one point, the financier noticed |
that Fletcher's cigar was dead.
He handed the chairman a fresh
cigar and then pulled out a
packet of safety matches. Fletcher
lit his own cigar, and thanked
Morgan. They seemed like two
old cronies.
Pecora tried to bring out that
the United Corporation was
dummy"
where do you transact bust
ness?"
1--WE hold our meetings of
directors in Newark, N. J."
who stays in the office
thcre?"
"A secretary"
Senator Couzens (RO of Michi-
gan, observed:
"Then all your business is
transacted by a secretary in
Newark"
Howard protested that numer-
Gus conferences of directors were
held in j. P. Morgan'S offices.
Records in MOrgan'S Office
He added that all "books of
record" were kept in j. P. Nor
gan's office.
do you personally know, as
president of this corporation,
who makes the entries in the