The Waterbury Democrat., 1936-01-07

A quotation from William Jen- ninRs Bryan that money is the worst of all contraband because 1t can buy all other contraband," was read to Morgan and he was asked if he agreed.
 "No, I don't think so," he replied. "Mr. Bryan exaggerated the import ance of money"
 Was Most ScrupulOus
 Morgan and his partner, Thomas w Lamont, insisted that the fi- nancial house was most scrupulous in its dealings with all governments during the war. The 6S-year old Morgan read O long statement out- lining his company's position and pride in aiding the Allies, but the committee accused him of making Q stump speech" and frequently In. terrupted his reading.
 When he ha d finished, the ques. tioning by Chairman Gerald F.. Nye and other members swung quickly to the intricate maze of high finance at the outbreak of the war.
 The 68-year old head of the House of Morgan was called as the first witness in the committees hearing into banking practices in the period leading to the United States el- trance into the world conflict.
 Morgan testified that German insults and injuries" made 1t inc possible for the United States to refrain from entering the World war.
 Chairman Nye Explained
 Chairman Gerald P. Nye, seek ing information as to the causes of America entering the conflict al- most two decades ago, had ex- plained that the committee was pre- pairing for stringent new neutrality laws on which house committee began work today. He sought Nor. gafs views on what drew the United States Into the World war and on how to keep America out of the next foreign war.
 A crowded hearing room watched the famous banker and his partners pose for photographs and then settle themselves for questioning. The committee placed assets of the J. P. Morgan company partnership at $b37, ,o43,0li as of December 3l, l936.
 Morgan told the committee that no Individual or individuals or any class" forced the country into the conflict.
 His statement was e reply to frequent assertions by committee men that the nation joined forces with the Allies because It's private bankers had gotten in 50 deeply" that financial collapse would have followed sudden termination of the war.
 Read Ills Statement
 The grey -haired Morgan read c statement in pamphlet form, de- claring:
 No one could hate war more than [ do and have always done, but even with that hatred I was proud of my country when the president asked congress to declare state of war.
 "As soon as the United States en- tered the war we, against the eX. pressed wish of our clients, moved to withdraw from the purchasing agency as it seemed to use that any further purchases must be handled directly by the various governments, as the United States government had taken over control of oil supplies"
 Nye, who wanted to proceed with the inquiry, interrupted Morgan and declared:
 "When we get through, If there's anything we've left uncovered, you will have ample opportunity to read t."
 "But this is Q personal statement,' Morgan protested.
 Tilt With Committee
 Morgan then engaged in c tilt with committee members who con- tended he was attempting to make c 'stump speech,
 To assertions the nation had to enter the war to protect private bankers, Morgan said:
 "When the U. S. A. came Into the war 1t was not driven into 1t by any individual or individuals or any class. It came in because Germany had made 1t impossible tor the United States to refrain any longer.'
 Nye again interrupted.
 T rail to see why this is in any way responsive to what we wish to find out. However, we will not bubble. So go ahead and read to the finish"
 Morgan flushed. He hesitated then started again, nodding his head sharply to emphasize his points.
 T will object" Sen. Bennett Champ Clark, d., Mo-, remarked sharply Ito the insertion into the record of any more stump speech es."
 "The committee should not ac- cept any more statements in this manner" Nye added. Unfair Statements
 Before Morgan had an opportun- ity to reply. Thomas W. Lamont, enc of his partners who was active in the wartime financing under in- vestigation, interrupted to charge that committeeman had made "un- fair" statements and therefore It was only flair" that Morgan should be permitted to reply.
 Sen. Arthur H. Vandenberg, T., Mich, asked Morgan if his state- ment that i've agreed that we should do all that was lawfully in our power to help the Allies" ran counter to President Wilson's neu- trality position "in thought" as well as in actions.
 We found we could not be iim- partial in such a situation" the 68-year old banker replied.
 We acted only within the law Lamont added. we always wanted the Allies to win. There was no