The Waterbury Democrat., 1936-01-10

leather witness chair, Morgan re- piled to the Investigators efforts Go show that the company withdrew from the exchange m August, 1915, md subsequently, informed the thea secretary 6f the treasury, William q. McAd0o of the "scriouBness" of the situation.
 AS q result, investigators said, McAdoo and Secretary Of State Robert Lansing induced President Wilson to permit the extension Of credits to belligerent nations.
 "ItB quite clear" Morgan said oimphatlcally, that there is an idea in the minds Of the committed thnt we brought on the exchange panic in order to bring influence on the government.
 q want to deny in the most clear manner ! can that such q thing was ever thought of"
 'Tt's one of the, discredible things" he continued. "Its foreign to our history and foreign t0 our traditions.
 That's all. Thank you, sirs."
 Loss Of American Lives
 Sen. Bennett c. Clark remarked that the loss of American lives ap- parcntly in the s. &. Arabic sinking two Americans were among the passcngerg--had improved the bust ness position of the Morgan firm which was broadly,
 Morgan spilttcred indignantly.
 "f don't mean to imply" Clark put in hastily, that you approved the loss Of American lives just for business rensOhB."
 The Arabic WAS sunk by n Ger man submarine on August 10, l0lb. Didn't that make it easier for you to float these loansp" Clark asked.
 "ginking Of the Arabic increased the already strong sympathy Tor the Allies" Morgan replied.
 Increased Sympathy
 Later he repeated:
 Tt increased sympathy for the Allies and made the background better for Issuing loans"
 Morgan and Thomas w. Lamont senior Morgan partner, both denied that at the time of the Arabic sink ing they thought t would pull the United States into the war
 We didn't think about that, Morgan said.
 Didn't you agree with BecFetnr; Lansing that America was getting close to War?"
 We didn't know what Lansing was thinking about" replied Mor- gan and Lamont. speaking almost in unison.
 McAdOO'g Advice
 McAdoo was shown to have ad- vlsed MT. Wilson on August 2i 1915, that the nations prosperity would be increased If we can ex- tend reasonable credits to our cus- toner's" Robert Lansing. wh. had succeeded Bryan as secretary oi state. also recommended listing oi the mo loan" restrictions.
 Meanwhile, the pound continued t0 slump in value, Finally, on Aug 20, the president addressed thi' memorandum to Lansing.
 My opinion in this matter, com. pendiously stated, is that we should s6y that parties would take no ac' ton either for or against such Lfansacti0n'. but that this should be orally conveyed. SD far as w are concerned, and not put in writ ing"
 Morgan officials eUTphaticall, denied any attempt to Jimmy" ths exchange in order tO force the ad' minIslraLIon to permit extension Ol huge credits abroad. Their with drawal from the market, they said was necessary because there wer' no funds available for stablIlzinl operations.
 Had Co De e
 we blooming well had 70 do it, said i. F. Morgan, p0rtly, 6S-year old head Of the firm.
 ssrhe whole neutrality policy q the nation was changed by liblnl the exchange aa a lever." Clark aald
 Bankers don't bring leverage 0l government departments over here, naid TIiasna1 ", Lamont, M0FHnl partner who Was active iil the NaF time negotiations,