Evening star., 1933-04-02
SENATORS PRESS
MOVE To PERMIT
MORGAN INQUIRY.
Banking Committee Advises
Members to Be Ready
for Summons.
By the Associated Press.


The Senate Banking Committee set
out yesterday to remove all possible
legal doubts of its authority to investi-
gate j. P. Morgan g. Co., meanwhile
advising. members Of that huge bank
ing firm to stand by for subpoenas to
testify.
Confronted with an assertion by its
counsel that the Morgan house had
refused to reveal its capital set-up
when questions had been submitted In
the stock market inquiry ordered by
the Senate, the committee recon-
mended that the Senate extend its
power to cover private as well as COM
mercial banking In the investigation.
After the committee counsel, Ferdi-
nand Pecora Of New York, recently
said that authority had been chal-
lenged on behalf Of the Morgan firm,
a statement was issued in New York
by John w. Davis as counsel for j. p.
Morgan and Co. which said:
Il have seen the statements ema-
mating from Washington with reference
to the inquiry by the Senate Banking
and Currency Committee into the
affairs Of j. P. Morgan & Co.
Impression Erroneous.
'The impression given that the firm
Of j. P. Morgan & Co. has refused
to cooperate in the proceedings Of the
committee is entirely erroneous.
Even now the firm Is engaged in
the preparation, under my direction, Of
information along the lines suggested
by Mr.. Pecora several days ago.
There is no disposition to decline
to answer any pertinent inquiries"
Pecora told newspaper men here yes
terday he had notified all members of
the Morgan firm to hold themselves
witness stand. This, he indicated,
would be a month from now.
Pecora drafted yesterdays resolu-
ton with the object Of getting for the
committee all the authority vested in
the Senate by the Constitution to regu-
late interstate commerce, control bank
ing and exercise the power Of taxation.
Questioned by reporters, he said 1t
would be waste Of time" to chal-
lenge the committees power If the
Senate approves the resolution.
Such a challenge, he said, could be
attempted only on a claim that even
the Senate's broadest power did not
cover the field into which the Senate
has turned
Answer Reported Refused.
In acting on the resolution, the COM
mittee had before 1t assertions by Pc
cora that the Morgan Co., through
Davis, had refused to answer one of
% questions propounded by the coun-
sci for the Senate committee.
AS detailed by Pecora, Davis-the
Democratic presidential nominee in
1924-agreed to answer Is Of the ques-
tions, reserved judgment on seven and
declined an answer to one which dealt
with the firms capital structure.
Among the Senators interested, there
seems to be no doubt but that the au-
thority sought will be granted. # and
when that happens, Pecora said he
would return at once to New York
for another conference with Davis.
Pecora told newspaper men he had
advised Davis that all members Of the
firm, numbering nearly score, should
be ready to answer subpoenas, though
he said he did not know yet which
would be called.
He disclosed that, In addition to
conferring with Davis, he had held long
conferences with j. p. Morgan and
Thomas w. Lamont, senior members of
the firm. and probably would consult
with them again.
Inquiry Mapped Out.
Pecora said he had mapped out his
inquiry in broad way, but probably
would not be ready to open hearings
for about month.
The resolution, which probably will
be called up In the Senate tomorrow,
would authorize thorough investiga-
ton Of banking, the issuance Of Sc
cllrities, the conduct Of security. ex-
changes and their members, and all
transactions in securities.
The inquiry would be aimed at the
desirability Of taxing such business or
prohibiting or limiting its use Of the
mails on other facilities Of interstate
commerce or communication.
Another resolution touching on the
banking situation will come up In the
Senate Judiciary Committee tomorrow,
when 1t will consider the Costigan pro-
posal for an investigation of the delay
in prosecution of Joseph w. Hartman,
former chairman Of the Hartman
National Bank q Trust Co, for al.