Evening star., 1936-01-09
Morgan
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chasing agency ION account Of my
interest in your company"
Four months later BoIbright & Co.
received from its Paris correspondent
a cable warning that Morgan part
ner was "due" in Paris in connection
with negotiations for the purchasing
contract and stating:
Therefore, must clinch our bargain
before partner pulls ace from sleeve" !"
Morgan, laughing with committee
members over the reference to an ace
in the Morgan sleeve, declared:
"I had no ace up my sleeve. didn't
need any. Lloyd George had told me
England and France were going to
have the same purchasing agency"
Cablegram Read Into Record.
Another cablegram read into the
record from British foreign offices,
London, to British Embassy here.
dated December %, 1914, was as fol-
lows:
THE transaction with Morgans is
not to be In any way connected with
questions of finance or credit. 1t is
proposed to make them agents for
all purchasing done by the war Office
and admiralty during the war in the
United States. The whole point Is
that they should act as an exclusive
regular agency, system which would
in our opinion be the best from busi-
ness point of view. You will explain
to Mr.. Morgan that We expect the
firm to act simply as o commercial
agency and that they must not be
drawn into any negotiations of a
political nature with the administra-
ton or use any influence to oppose
action or legislation supposed to be
prejudicial to our interests. Questions
Of this nature should be left to Dip
lomatic treatment exclusively"
The next day came this reply from
Washington:
Your telegram of December %. ]
have seen Mr.. Morgan. In his opin-
ion the arrangements proposed in your
telegram under reply would not in
any way embarrass the administra-
tion, particularly in view Of the fact
that it is definitely understood that
the arrangement is purely CONNER
cial transaction in furtherance Of
trade between the United States and
Great Britain. He fully understands
that the firm Is not expected to use
political influence and that the busi-
ness in hand Is to be carried on on
strictly commercial lines.
LAS long as the above understand
ing is strictly adhered to on both sides
do not think that any objection will
be raised in Congress or by the ad-
ministration.
Gallery" Is Smallest.
The smallest gallery" of the hear
ings turned out this morning for the
third day of questioning to which
Morgan and his associates have been
subjected. The few spectators had
little to reward them for their trip
through the rain-beyond closeup
view of the exclusive head Of the
house of Morgan.
The hearing room today had more
the appearance Of class room than
a Senate committee room, with half q
dozen charts set up on stands to show
exports and imports during the World
War.
One chart showed the huge in
crease in outstanding indebtedness
of the allies in the United States
from 1914 to 1920, including Morgan
loans. Another showed the rise in
American trade with allied countries
during the war years.
Robert w. wohlforth Of the COM
mittee's staff, said the statistics
showed that "a per cent Of all es-
sential war material shipped to the
allies prior to American entry into
the war were handled through J. p
Morgan & Co. as purchasing agent
for the British and French govern
| ments.
The United States exports increased
1889 per cent during that period
wohlforth said.
Dispute Settlement Revealed.
How Lord Asquith, then prime min
lister of Great Britain, and Morgan go'
together in 1915 and settled moment
Gus controversy between the British
government and American rifle manu-
facturers over disputed SIS 1000. .0o(
contracts was explained to the COM
mittee yesterday by Morgan.
Committee members previously hae
sought to show Morgan forced th'
British to compose their differences
with the rife manufacturers iinde,
threat of cutting of Britain's suppl!
Of American money.
THE prime minister and I talked i
over" Morgan recalled 1.-THE Wa
Council was there when we began oul
talk. At first ! couldn't bring them II
| the subject, they discussed things IL
general about the war, but finally th'
prime minister suggested I 60 over II
his house. So we went out the ;hacl
door. ~
"The prime minister mentioned tn
rife controversy and I asked u the!
were ready to settle 1t. He repled: :.
have just issued orders for . settle