The Waterbury Democrat., 1933-05-23
Morgan Was asked.

ot6tcHlcuts MOT6dW was dSkeu. "I should like, Mir Chairman"
 Morgan replied. ''It is our desire to help the committee as much as we can and I have made up a short statement regarding the uses of private banks.
 T will read it." And he did. Morgan read his statement, a defense of private banks, in a firm voice, his big hands clutching the pamphlet. A gold ring flashed on the little finger of his right hand. The committee room was so noisy that Senator Byrnes, democrat, s. C., interrupted to demand order. Tapping his hand on the table, he said there's no use holding this hearing unless we can tell what is going on."
 "Mr Morgan Pecora asked, twill you state generally the nature of the business conducted by J. F. Morgan and Company" "A general banking business such as is conducted in New York by a private banker" Morgan replied.
 "We take deposits, buy and sell
 exchange, deal in securities. In
 short we do a general banking business.
 "A general banking and invest ment business?" Pecora asked. "The investment business is not
 the largest part of the business, !"
 Morgan replied.
 "How many members compose
 the firm?"
 Twenty, I believe.' Are there any written articles
 of co-partnership? Pecora asked. "Ah, yes" Morgan replied. "Have you a copy of the arti- cles of o-partnership Pecora
 "No," Morgan replied.
 "Has any of your partners a copy of the articles?" Pecora asked.
 "No." Morgan replied. "Can you furnish copy of the articles to the committee?" John W. Davis, committee coun- sel Jumped up with an objection,
 contending that the articles are purely private matter" Morgan said the firm had been constituted as it now exists since
 January 9, 1892. Davis, in answer to the inquiry about articles of co-partnership explained the partners are all fequally bound in the company, and
 he did not regard the articles as public matter. Under the laws of New York state, the articles are merely 8 private matter, he said. 1T have never seen the articles myself" Davis said. The. Morgan secret obtained from the witness was that the ag- gregate deposit of J. P. Morgan and company. and Drexel and com pany of Philadelphia, had com
 bined deposits "of about" $250,- 000,000.
 Morgan gave the information after Davis objected to Pecora's ef- fort to obtain the articles of part nership binding the firm. Assets of J. P. Morgan and com pany shrank almost 50 per cent cember 31, 1892. Assets on the prior date were $7o2,909,403.69 and
 on December 31, 1892, the figure was $424,708,095.56. Pecora then turned to the state
 ment he had prepared. Morgan said he had prepared it himself but that it met with the approval of his partners. Senator CouZens then asked if the statement represented the feel ing of all private bankers.
 "I don't know" the banker said.
 "We can only speak for our
 selves. I can't say whether 1t does
 Or does not"
 Morgan explained that work of
 the firm was apportioned among its
 members according to their special
 qualifications.
 Tn answer to Pecora he added
 that he took no particular phase
 of the work himself but was turn ing it over more and more to his associates while he attended to general supervision. Asked by Senator Gore, dem.
 Okla, who handled the Notation of
 foreign securities. Morgan an- swered:
 eve all take hand in that more
 or less"
 He added that Thomas W. Lamont was probably more famil- jar with this work than the others. Are any minutes kept of your
 meetings and discussions?" asked Pecora.
 "No," Morgan answered. Morgan explained the only rec
 ord kept was the names of those who attended. That always has been the rule, he said. The list of partners was as fol- lows: J. P. Morgan. E. T. Stotes-
 bury, Charles Steele. Thomas W. Lamont. Horatio G. Lloyd. Thomas Cochran, Julius s. Morgan. George Whitney, Russell c. Leff1ngwell. Francis D. Barlow, Arthur M. An derson, William Ewing, Harold Stanley, H. s. Morgan, Thomas S.
 Lamont. H. P. Davison. Thomas Newhall, Edward Hopkinson, Jr,