The Waterbury Democrat., 1933-05-25
MAYOR OFFICIALLY APPROVES POPPY SALE
Late President Of . U. On Morgan List
tcontlnued from Pags ll

company's bargain lists. The offer
 was made after MT Coolidge left the White House.
 Capitol Hill was buzzinr today
 with discussion of possible political
 consequences from revelation Of
 one "cut rate" list. made public yesterday.
 Before assuming their present posts, the list disclosed Secretary of Treasury Woodin, Supreme Court Justice Owen J. Roberts ana
 Senator McAdoo, dem, Calif, along
 with scores of other persons, were
 permitted to buy Alleghany Cor poration common stock at $20 a share when 1t was selling on the
 market at more than 50 per cent
 above that figure.
 Another uproar>promises to cen- ter around Norman Fl. Davis, who is in Europe as President Roose- velt's rowing ambassador. Davis IS one of so bank ofiicials who
 borrowed from Morgan, & Go. and
 one of 24 who have not repaid
 repn, Ind. demanded that Davis De Senator Borah, rspn. idaho, fired & broadside at Woodin. declaring the American people, ''are entitled to . secretary of treasury who, like Ceasar's wife. is above suspicion" $. Other senators generally were reluctant to discuss the Woodin transaction, though there was much discussion of its effect on his poli-
 tical future. Several observers privately expressed adverse criti- cism of Davis situation. But few cared openly to challenge the
 Roosevelt administration on the is-
 sue.
 Woodin himself declined to com
 ment, but associates said he felt
 his was legitimate deal. It took
 place more than four years before
 his entrance into the cabinet.
 Revived rumors that woodin
 would resign brought quick denials from the White House. Secretary
 stephen Early said, "There is ab-
 solutely nothing to it."
 Senator McAdoo, a former secre- tary of treasury, is a member of the senate committee conducting
 the Investigation T bought the stock as an in. vestment and paid for it." McAdoo said after his name was revealed. "I was offered the stock and thought it a good investment" He paid $10,000 for 800 shares. Woodin's 1000 cost him $20,0S3,
 the price including about two weeks interest.
 Top price on the stock. was
 $57.50 share. Morgan and Go. disposed of l,250,000 shares to friends for S20 when. 1t was selling | a hAOn con S7at tA @R Ane of bargain stock was February l,
 1929. One of those who purchased | was Charles Francis Adams, who
 a month and four days after the | offer became secretary of navy in
 the Hoover cabinet.
 Other purchasers included New- ton D. Baker. Charles A. Lind
 bergh. General John J. Pershing, former Senator George Wharton Pepper and W. W. Atterbury. The latter two dealt with Drexel and Co, Philadelphia member of the Morgan group.
 "There are no strings to this
 stock so you can sell it whenever you wish," William Ewing, a Mora
 gan partner, wrote Woodin in of- fering him the stock. l Woodin sent his check for $20,- 033 for 1000 shares of stock and
 could have sold out for a $15.000
 profit at the price of $35 then
 quoted on the stock exchange. At top prices reached late that year
 he could have made an even larger
 profit. Now, however, the stock is quoted at $2 1-S.
 .The revelation that Norman Davis is heavily indebted to the House of Morgan sheds some light on the wild statements he Is mak-
 ing in Europe regarding the for eign debt burdens of the American people," Robinson told the United Press.
 "The astonishing revelation that Morgan has mortgage on him makes 1t imperative that he be re- called at once." J. P. Morgan may return to the