Evening star., 1933-05-26

rsetcnef Oefenos Fec0f9.
It was likewise disclosed by his ques-
tioning Of Howard that through a
Morgan-United deal the banking firm
was given options on q million shares
Of United Corporation at 81 each at a
time when it could have been sold
within month to the tune of a $29,-
100000 profit, or at some $50 more
than was paid for each option.
With the Glass-Pecora clash, which
set the room momentarily in an up
roar, Chairman Fletcher of the COM
mittee defended the persistent counsel,
and the Florida Senator also drew ap-
,, plause from the throng that awaited
every word of the testimony despite the
oppressive heat of the day
Members of the crowd pressed around
the table to watch the controversy.
Glass and Pecora had INDUCED in q
pointed verbal clash over the inquiry
Pecora explained the purpose and
read the resolution authorizing the in
quiry.
I have examined the minutes and
don't find at any time that the en-
ployment of Mr.. Pecora was author
ized," Glass insisted
There is no question of the author
ity in my mind" Senator Costigan put
in.
Il found no record of the employment,
but that is inmaterial,' Glass said Be
cause think the committee is satisfied
with Mr.. Pecora's employment But
the Senator from Michigan (Couzens),
who always likes to dig me, has chaI-
lenged my rights"
After some of the tumult had sub
sided Glass said:
I want to say was opposed to the
Pecora) compensation arrangement.
Il did not think this committee or
the Senate should employ counsel at
such salary. favored adequate
compensation.
II don't think the counsel is working
for $255 a month. I think he's work.
ing for something else"
Senator Costigan put in that II ap-
preciate the efficiency of the counsel.
I think the investigation to date has
been relevant and material"
Under questioning by Pecora Howard
had painstakingly told how three days
after the United Corporation was
formed, it obtained from Morgan much
stock in Mohawk Hudson Power, the
United Gas Improvement Co. and Pub
lie Service OF New Jersey.
In turn, the United Corporation was
authorized to issue a total capital stock
Of 13,000,0 900 shares consisting of 1000
600 first preferred, 100000 preference
shares and 10000 900 common.
His words followed closely by Morgan,
Howard told the crowded room no first
preferred had been issued, but 900. 900
of the So preference stock had been is
sued and also 100000 shares of COM
mon, all being taken by Morgan.
The firm also received 1000 option
warrants emitting it to buy that num-
Der of common stock shares at $27 so
a share.
Each share had one vote" Howard
said.
Who had control?" Pecora asked.
~. P. Morgan & Co." Howard re-
turned, while Senators at the long COM
mittee table leaned over to hear.
Withholds List of Debts.
Howard said the 800 900 shares Of
common stock gave control without the
exercise of the option warrants for
common stock
Pecora asked who the executive off,
GERS of the corporation were, and the
witness began looking through a num-
Der of files before replying.
Aren't you familiar with these de-
tails?" Pecora asked in an irritated
voice
Smiling, Howard replied that he was
ohiSS AAC DSSoAiC PkCoASCl1U VA tAlC So4
poration, but siot before
Before Howard testified, the investi-
eating committee had decided to with
hold the list of debts owed by partners
in the Morgan Co. to the firm.
The decision was reached in an exec
utive session, but no agreement was
reached on the question of publishing
the partnership articles unds-. which the
great banking house operates.
list Of individuals having more than
100000 on deposit with the Morgan
firm win be made available to commit
tee members and the question Of publi-
cation decided later.
Members Of the Senate Committee
said the decision against publication of :
partners Indebtedness was unanimous.
Some criticism was voiced by COM
mittee members at leaks" which have
permitted publication of evidence before
1t was introduced, but no action was
taken.
There was criticism also of leaks"
which permitted publication Of the
names Of Senators who favored and %,
.Soontlnned q RsGH . Gohlna II