Evening star., 1933-05-31

Ihet 16C.y
Lamont, son Of partner Of Morgan g.
Co., and a brother of Mr.. Douglas are
members of the board of directors of
this company. Senator Long went so
far as to say that the Phelps-Dodge
Co. was one of the corporations con-
trolled by the House Of Morgan and
that he would prefer to keep Mr..
Woodin as Secretary of the Treasury
rather than substitute Douglas for him
in that office.
So far, none Of the men in public
life whose names have been brought
into the Senate hearings in connection
with the Morgan investigation has re-
tired from Office, notwithstanding the
Senate debate or the demand of Gov.
Clifford Pinchot Of Pennsylvania that
two Pennsylvania judges Immediately
resign because their names were in the
list Of preferred clients Of the Morgan
firm.
Senate Might Object.
One member of the Senate Banking
Committee said today that II 1t were
known that a man has been on the
Morgan list of preferred clients or has
been o heavy borrower from Morgan's
bank. it might be extremely difficult to
get him confirmed by the Senate for
public office.
Just how much effect such q connec-
ton with the House of Morgan or any
other big banking concern will have on
aspirants for public office in the future
remains to be seen. Probably a good
deal of the present antagonism to such
appointees Is due to public clamor and
hysteria.
1t was not many years ago that the
late President Calvin Coolidge prevailed
upon a member of the firm of ]. P. Nor
gan & Co., the late Dwight w. Morrow
to become American Ambassador to Mex
leo, an Office which Mr.. Morrow filled
greatly to the benefit of this country.
Later, Mr.. Morrow was nominated and
elected as Senator from New Jersey
His Morgan connection certainly at that
time was considered no drawback. In
deed, had Mr. Morrow lived he might
have eventually become a candidate for
an even higher office. Many Of his
friends were pressing him for the pres
idency or the vice presidency.
Glass Asks About List.
At the Senate hearing today, which
began following an executive session. OF
! the Banking Committee in which Mr.
Pecora explained what his line of in
vestigation was intended to develop
Senator Carter Glass of Virginia, who
has been at odds over the investigation
| with Mr.. Pecora, entered the room fol-
| lowing the introduction OF the list tc
whom Morgan & Co. offered the United
Corporation stock.
IL kt-n}
list?" asked the Virginia Senator, who
of course, knew that it was not.
Senator Glass was answered that nc
mention Of his name had been made.
We'll" he said, "a good many people
have been induced to believe that II
was"
This statement by Senator Glass was
made with reference to the widespread
suggestion since the hearing began thai
| he has been a defender OF the house
of Morgan.
Apparently Senator Glass was salts
! fed with the report of Mr.. Pecora tc
| the committee this morning as to whal
his line of investigation would be.
Storm Clouds Dispersed.
At any rate, the storm clouds which
hung over the committee when 1t ad-
| journed last Saturday with Senator
class and Mr.. Pecora violently clash
| ing had at least temporarily been dis
persed.
The Morgan hearing in the Senate
Office Building today drew even larger
crowds than it has in the past. The
Banking Committee has moved into the
huge marble caucus room on the third
floor of the Office building. capable OF
holding several hundred spectators as
well as the committee. witnesses and
the representatives Of the press.
Every seat was taken long before the
committee filed in for the hearing
| Standing room was at premium, ano
scores lined the walls. Loudspeakers
/ voices Of the committee counsel and the
| witnesses on the stand to the farthest
! corners of the room.
Mr., Pecora put on the stand as his
| first witness today George H. Howard
president Of United Corporation, and
part OF the time he had on the stand
George Whitney, partner Of the Morgan
firm. The committee counsel drove
ahead In his effort to link the Morgan
firm with the public utilities Of the
country and to prove that 1t was q
dominating influence In the policies OF
the public utilities.
senator GlaSS at one punt dSAcu Mi
Whitney whether any one denied that
J. P. Morgan g. Co. is one Of the most
powerful financial factors in the United
States. Mr.. Whitney admitted his firm
was regarded as such factor.
Senator Couzens asked Mr.. Whitney
whether, If John j. Raskob, then chair
man of the Democratic National Com
mittee, had suggested that Senator
Couzens' name be included In the list
of preferred clients, it would have been
done. Mr.. Whitney merely smiled.
Senator Glass wanted to know why
the Morgan firm had not called on Mr..
Raskob to persuade Senator Glass to
leave out the provisions In his bank re-
form bill to which the Morgan firm OBJ
jects
"RaSkob said he was anxious to re-
ciprocate," said Senator Glass. This
brought a laugh from the committee.