Evening star., 1936-01-07

$49. 100000, also be included. Nye said
statistics obtained by the committee
covered liabilities as well as assets.
When Nye started to speak about the
start of the World War In 1914, Morgan
interrupted to ask permission to read
general statement" in that connec-
ton, Of personal nature"
Copies Given to Press.
There was an indication OF some
objections from committee members,
whereupon Lamont explained the
statement was very personal and
would take but few minutes to read.
Nye allowed Morgan to proceed.
As the financier started to read from
a small printed folder, representa-
tive of the Morgan party gave to the
press a stack of copies of the state
ment.
The statement began with & review
of conditions in 1914 that led to fear
that Germany would bring complete
destruction Of the liberties of the rest
of the world"
When Morgan read 1--WE agreed that
we should do all that was lawful in
our power to help the allies win the
war as soon as possible" Senator Van
denberg of Michigan asked If this
policy we're not in direct conflict with
President Wilson's neutrality procla-
nation OF 1914. Morgan and Lamont
both held this was not the fact.
Favored Neutrality Policy.
I'VE very rigidly adhered to the
neutrality policy" Lamont declared.
Nye interposed a remark that the
statement being read by Morgan
seemed irrelevant, but allowed him to
proceed.
The statement, in part, follows:
las the weeks went on we observed
the difficulties Of the allied govern
ments, desiring to make purchases in
this country, difficulties caused by a
host of irresponsible agents who held
themselves out as agents for various
manufacturers, and the idea occurred
to the late Mr. H. P. Dawson that II
one of us we're to go to England 1t
might be possible to show the British
government an advantage to 1t in
using our services in co-ordinating the
activities of its purchasing depart
ments in this country. Dawson went
to London and after a considerably
prolonged discussion with the govern
ment a contract was drawn up max
ing us the purchasing agents for the
British government on certain terms.
This contract is well known to the
committee, and provided various
things, among others, that it could be
terminated at any time by either
party without advance notice, and
that we should make full disclosure Of
any interest any OF us might have IN
any company with which we MADE
contract. This, and the fact that the
government might buy directly with
out using our services, at its option,
provided a complete answer for the
government to any criticism from out
side that it had bound itself to one
agent and had thereby lost the advan-
tage of many agents.
Approached by France.
In the Spring of 1915 l went over
to London to see that all was working
satisfactorily. While there. M. Rlbut. |
the then minister OF finance oil
France. came on a visit to the gov
ernment. He sent for me and pro-
posed that we should act for the |
French government as well as the
British. This question had been dis
cussed earlier with both the British |
and French governments. but no de-
cision had been come to. On condl- |
ton that the contract with tne /
French government should be exactly !
similar to that with the British. ana
that any changes in the latter should
automatically become part OF the con-
tract with the former, and also tnat
any competition between the govern
ments should be settled by them al
home. so that we might never be put
in the position of favoring either at
the others expense, l agreed.
Fees Roughly s30,ooo.ooo.
THE committee and general pup
lie are acquainted with the facts that
for the British and French govern
ments we ordered about $4,000. .0OooOo
of materials of different sorts, tney
always having full knowledge oil the /
details of the contract and We always
having definite authority to sign each
individual contract as their agent.
For our services during the LIE OF
the contract, we were paid the COM
mission. of roughly per cent, Wnlcn
was stipulated, amounting to approx
imately $4,000, 900.
The agency agreements did not IN
volve any commitment on our part 10
furnish or to find the funds required
to pay for the goods ordered. The al
lied governments sent over immense
sums in gold and securities to meet
their outlays here. When questions o.
obtaining credit arose We were con-
suited and we helped our clients md
the money when We believed 1t could
be done wisely and safely, but at no
time were we committed to any guar
antee that the money would be found
for prompt payment. All questions OF
raising money to pay for materials Or
dered we're taken up singly and from
time to time either by the British and
French governments jointly, as in the
case of the Anglo-French loan OF
October, 1915, or separately, as in the
case of other issues of obligations OF
these governments issued by us in as
sociation with others prior to the emo
of the war In this connection l
might say that subsequent to the |
Anglo-French loan of October. 1915,
there was collateral security for these |
loans.