The Waterbury Democrat., 1933-05-25


 Manville securities,
 George Whitney, a Morgan part ner, testified in prepared state- ment that the House of Morgan. Tn connection with other firms, Had offered to the public $6,000,000,000 in securities in the last IA years.
 The figure included more than S2,000, 100000 in securities of for eign governments and foreign cor porations.
 Meanwhile 0 definite result of the Morgan revelations to date came from the house ways and means committee, which voted to report to the house an amendment designed to tighten income tax provisions to insure collections from the wealthy.
 The inquiry. transferred to the more commodious senate caucus chamber to accommodate crowds unable to squeeze or fight their way into the banking committee room, was resumed in an atmos- phere of tenseness which resulted frim yesterdays sensational dis closures.
 Policemen guarding the caucus chamber searched Q number of per- sons entering the room. It was understood they acted upon Tn. structions from the department or justice to avoid any possible effort to injure ]. F. Morgan, the central figure in the inquiry, or any Of ms associates.
 The list of those who were per mitted to purchase Alleghaney Cor poration stock below market quo- tations was revealed yesterday. The favored lists on other securities such as the United Corporation and Standards Brands referred to py Senator McAdoo were expected al- so to be made public.
 Pecora charged today that re- strictions imposed by J. P. Morgan and Company prevented committee nvestigators "from making the kind of Investigation we wanted to make"
 In a clash with the lawyer. John w. Davis, Morgan counsel chal- lenged Pecora's statement.
 George Whitney. Morgan partner, called as the first witness, asked to be allowed to explain some of the transactions touched on yesterday.
 Whitney said that "a sort" of market in Alleghaney stock began February l, when the Guaranty Company offered 500,000 shares at SPA a share. On that day the stock opened at $57, the high of the day, sank to 32 1-2, and closed at $S3. That, he said, was the highest price of the ensuing month.
 After Pecora charged he was tempered by Morgan and Com pany in his investigation, the com mittee called Pecora down by de- ciding he must submit to Morgan and Company specific list or rec, ords desired. Pecora wanted all Morgan letters produced.
 "Well, if MT Pecora can't pro. vide such a list, I suggest that he so inform the committee" said Senator Costigan, democrat. Color. ado, indicating the question would Be reopened if Pecora was unable to say what he wanted.
 Davis said that every facility :. had been afforded Pecora in the way of statistical data. He said three filing case would have had to be brought to the committee room to comply with Pecora's blanket subpoena.
 "The firm of J. P. Morgan was the only firm of private bankers examined which limited us in the time we were permitted to work, we stop our work at six o'clock every day. Other firms permitted us to remain in their offices until midnight.
 For that reason it wasn't pos. sible for us to make the kind or examination we wanted to make"
 The committee counsel said also that several days elapsed before they could get photostatic copies of documents. though the docu- ments were in the office all the time.
 During the. interchange between Davis and Pecora, which was bit- ter at times, senator Glass. demo. crat, Virginia, interposed he did not think "the implication should stand on the record that Morgan and Company may be concealing something desired by the commit tee."
 T think Morgan and Company should be required to furnish them," he added.
 Wnltney, expldluluS tnc aaAe ghaney deal, conceded that when the stock was offered to Morgan clients at $20 a share, it gave them "a substantial profit as there were no strings to the offer.
 In most cases, ke said, there was no knowledge of the market price when the offering was made. Secretary Woodin's case was one of the few exceptions where notice by mail was sent to absent clients after the market had opened. Whitnsy's statement provoked an immediate squabble as to the records which had been produced. Pecora said that the three let- ters he had in his file all were sim liar to the one offering Woodin stock when it was selling at $35. : Whitney said his records showed he had acquired 14,2e0 shares of Aileghaney stock in 1929. He sold S,146 shares that year at an aver age price of s4s share which showed a profit of $229,000 as re- r-x&.A f- kl