The Waterbury Democrat., 1933-05-27
House of Morgan
 Powerful Goliath
(continued from Page 1.)

 the story of the United Corpora tion, a Morgan-conceived utilities holding company which controls 22 to 23 per cent of the electrical energy produced in the United States, and 22 per cent of the gas
 The vast Morgan utilities empire starts in the northeastern part or the country and extends west to Michigan and south to Georgia. Approximately 55,272,00o persons are in the territory served by the network of operating companies at the top of which Is United Cor poration, the holdings organization.
 A list of bargain buyers of Uni ted Corporation stock is to be re- vealed next by Pecora. He has dis closed two such lists. The united list would have come out yester- day but for spat with Senator Glass. dem., Va, who sought to halt the lawyers searching in- quiry.
 Other senators insisted that Pe- cora be prmitted to proceed. An executive meeting of the senate committee has been called for to- day. Glass may fight out with his colleagues there his argument that Pecora's performance is a "circus."
 "All we need are peanuts and pink lemonade" Glass continued.
 From the start of the hearings on Tuesday. Glass has protested against Pecora's line of question: ing and against the fact that he was not advised in advance what the investigator was trying to bring out.
 A side-light of railway financing has been revealed by the commit tee in connection with the Alle- gheny Corporation, a holding com pany created with Morgan backing, and super.imposed upon the rail- way system of the spectacular Van Sweringen brothers of Cleveland. More is to come. The Van Swerin- gems are under subpoena.
 But Pecora has turned the in- quiry to public utilities for the time being. The centerpiece of his display is United Corporation. which owns about 100000 shares of stock in a score of operating and subsidiary public utility hold
 Peccra believes the United Cor poration was organized solely in the interest of the financiers who created 1t, Morgan and CO, and the Bonbright Electric Co. affiliate of Bonbright & Co.
 Soon after adjournment yester- day, Pecora left for New York, confident the committee would sustain him through the days of inquiry to come. As he boarded the train at Union Station, the lawyer had parting word.
 The Commonwealth Southern, which is a utility holding company. is part of the United Corporation set-up," he said. ''The executive officers of Commonwealth South ern secently appeared before, congressional committee asking that the Muscle Shoals bill be defeated because it would ruin s4O0, 100000 worth of utilities se- curities.
 Senator Norris and others have been working for IF years to ob- tain government operation of the Muscle Shoals power plant. The utility officials knew this, and they felt government operation would wipe out those securities. And here in 1929, we find these new securi- ties being issued when the Muscle Shoals question was unsettled"
 It is settled now, against the power companies.
 Washington, May 27-(UP)- Charges of leaks" of information revealed by the United Press in connection of J. P. Morgan 6 O., invited attention today to leak in a different direction.
 Secretary of Treasury woodin had knowledge before the Morgan inquiry began that lists of bargain stock buyers, of which he was one, were to be revealed.
 Woodin informed senate demo- cratic leaders that the lists were coming and that he would be on them.
 Investigator Ferdinand Pecora told the United Press neither he nor his staff gave Woodin or any others advance information that the bargain buyers were to be re-
 "Who told Secretary woodin ?" is the latest Capital mystery.
 By WILLIAM F. KERRY
 United Press Stan Correspondent) i. Washington, May 27-UP)- Congressional resentment stirred by the Morgan investibation ap- peared likeyl today to result in senate amendment of the admins tration's business recovery bill to lay new tax burdens on large, ra- ther than moderate, incomes.
 Proposals for sharp increases in the upper brackets of the income tax, coupled with heavier surtaxes, were gaining support.
 The recovery measure, carrying huge public works appropriation and broad powers for the federal control of industrial production and working .conditions, passed the house yesterday after the hard est fight of the present session.
 Despite a closed rule" which prevented any real effort at amendment. opponents of the bill were able to muster vote of 137, but 265 voted for final passage.
 Insurgent leaders of the house considered the vote a moral vic- tory" and predicted the senate would effect wholesale revisions in the $700,000,000 revenue clause. This section, although revising the met loss" income tax provision under which many of the rich es- cape taxes, still bears heavily on the little fellow" Income tax rates on the lower brackets are boosted to provide revenue to H. nance the $3,300,000,000 public works plan. In addition, the pres ent one-centf federal gasoline tax is increased to one and three fourths cents, , All of the nuisance" and ex- cises carried in the 1932 revenue act are extended for an additional year, until July 1, 1885.
 A last minute compromise trans kerred the electric energy tax from consumer to producer.
 The house, at the last minute. plugged one income tax hole. It altered the met loss" section to prevent carryover of losses from one year to another for purposes of income tax reduction.
 Few believe the senate would be content with this comparatively Uild revision.