The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-26
DOMINATES firms
DOING Big SHARE
OF U. s. BUSINESS
Head OF Stock. Holding Concern
Tells How Banker Or.
gained Company
ACQUIRED SHARES CHEAPLY
Bought Securities For 81, ooo,-
600 Less Than Current
Market Value

WASHINGTON, May 26.-(F)-Testi-
mony that the United Corporation,
whose books are kept in the office Of
j. P. Morgan and Company, holds an
interest in utility operating compan-
les that do large percentage OF the
gas and electric business Of the ma
ton was given Friday to senate inves-
tigators.
After his testimony the investiga-
ton recessed until next Wednesday.
George Howard, president Of the
United-a utilities stock holding con-
cern-testified as to its organization
in which it acquired stock in various
utilities at $4,000, 900 less than mar
ket value from the Morgan banking
partnership and in turn the huge bank
obtained q controlling interest in the
United Corporation. o..
Consulting his records now and
again, the ready witness said the
companies in which his corporation
holds an interest do % per cent OF
the electric and gas business OF the
country, on an output basis.
In the hot and crowded senate
caucus room. he appeared as the third
witness in the investigation into ac-
tivities by the Morgan firm-the plan
being that at the end of Fridays ses-
sion the inquiry will recess until next
Wednesday.
Gives Details of Deal
Submitting readily to questions by
Ferdinand Pecora, the committee
counsel Howard painstakingly told
how three days after the United Cor
poration was formed, it obtained from
Morgan much stock in Mohawk, Hud-
son Power; the United Gas improve
ment company and Public Service OF
New Jersey.
In turn, the United Corporation was
authorized to issue total capital
stock of 100000 shares consisting of
100000 first preferred, 100000 pre-
ference shares and 10000, 900 common.
His words being followed closely by
j. P. Morgan and other Of the Nor
gan partners, Howard told the
crowded room no first preferred had
been issued, but 10000 Of the So pre-
ference stock had been issued and al
SO 800 900 shares of common, all be-
ing taken by Morgan.
The firm also received 7l4,000 OPP
ton warrants emitting it to buy that
$27.50 share.
Each share had one VOTE" Howard
said.
who had control?" Pecora asked.
~. p. Morgan and Company"
Howard returned, while senator's at
the long committee table leaned over
to hear.
Held Common Stock
Howard said the 100000 shares Of
common stock gave control without
the exercise of the option warrants
for common stock.
Pecora asked who the executive Of
ficers of the corporation were and the
witness began looking through num-
Der Of files before replying.
Aren't you familiar with these de-
tails?" Pecora asked In an iritated
voice.
Smiling, Howard replied that he
was since he became president OF the
corporation, but not before.
The committee previously had de-
cided to withhold from publication the
list Of debts owed to the Morgan firm
by partners in the bank.
The decision was made in an execu-
tive session, but no agreement was
reached on the question Of publishing
the partnership articles under which
the great banking house operates.
Meanwhile, J. p. Morgan and
sundry of his partners awaited the
fourth day Of inquiry-in the crowded
and very warm caucus room Of the
senate office building.
A list Of individuals having more
than 100000 on deposit with the Nor
gan firm will be made available to
committee members and the question
of publication decided later.
The senators also determined that
at the close of Fridays session, the
hearing will be recessed until next
Wednesday.
Pecora, Glass In Row
Just before the session closed q
sharp exchange occurred between
Senator Glass and Attorney Pecora.
The Virginian demanded to know the
exact course Of the inquiry and rails
ed question about Pecora's reten-
ton as counsel, saying the records
contained nothing regarding his ap-
pointment.
Pecora retorted with yelled hint
that his resignation could be had for
the asking. Senator Fletcher, Florida,
drew applause by defending the coun-
Sellor Is members OF the committee
pressed around the table to listen to
the controversy.
The committee room was packed
with an interested crowd despite the
oppressive heat.