| Show Morgan Case Cau Causes es Senate Publicity Act I I Justice Department Starts Starts' In InI Inquiry Inquiry In- In I of Revelations as Hearing Closes By LLE YLE C. C WILSON United Press Staff Start Correspondent WASHINGTON June lO 10 Examination na nation on of ot in income me tax records of J.P. J.P. J.P. J. J P. P Morgan Co partners pa passed ed today today to to- day from the senate st sto stock k market committee to the department of ot jus jus- jus tice fice Senate investigation ot of the house of ot Morgan came to a smashing finale yesterday in revel revelation tIon of the manner man man- ner ncr in irs wh which ch wealthy individuals may legally offset their income by bys s sales les of depreciated securities Soon after the inquiry closed the senate voted to require publication of ot future income tax returns This will reveal to the public the full facts about the tax returns of ot the Morgan Morgan Mor Mor- gan partners and everybody else eIse Senator La Follette R. R Wis sponsored the provision which was incorporated in the national recovery recovery ery bill bIlI He de lar d. d it will do I Imore more than anything else to cl close se the loopholes through which such men menas menas menas as J. J P. P Morgan escape tax pay pay- ments The s senate inquiry has recessed J. J J.P. P. P Morgan his partners and his aides have returned to New York But the senate investigators are not nol through with the famous bankers The senate committee probably will meet today to decide whether to resume the Investigation in ten days or await cool autumn weather 1 OBSERVES HEARING DEARING A representative of ot the Justice de de- nt was was l cst U fM spectator during the thc last day as s Pecora Pecora Pe Pe- cora questioned Thomas S. S Lamont Lament William Ewing Swing and d Harold Stanley about their personal stock Ch Chairman irman Fletcher of at the com committee said a transcript of at the test testimony mony was being furnished the department de de- de- de Just as the hearing Bearing was ending Pecora opened a possible new line of income tax inquiry in questioning Thomas W. W Lament the Lamont-the the elder part partner ner of the firm by that name name about about stock transactions transactions' In 1930 Lamont made in tran transactions actions Continued on P Pate Palle e Two Morgan Morga Case Causes Senate Publicity Act c Continued From Pare Pace on One ing lag 1788 1786 shares share of ot United States State Steel of ot which he was a director H He lost on shares of Simms SImm Petroleum Lamont Lament could not recall recal either transaction I 1 could forget about a personal persona transactions of that kind in a week he said The banker promised to submit later to Pecora Peora all al details of ot his hi stock stoc transactions He stoutly stouty insisted he had made no short hort sales ANOTHER LIST Another of the famous preferred stock sock lists came out In In the final ial ses ses- ses slon sIon showing that William H. H J WoodIn Wood Wood- In now secretary of ot treasury hadnot hadnot had hadnot not been forgotten on ay any of the five bargain lists list disclosed discoed Norman Norma an H H. Davis Davi and John Joh J. J Raskob also alo were named on the new list lit which WM was o of persons who bought Johns corporation common from Morgan Co at considerably under its it market market mar mar- ket price Pecora is i seeking from Morgan Co a breakdown of the financial statement prepared by Price Waterhouse Waterhouse Water Water- house Co certified public ac ac- ac The report report compiled by statisticians hurried Into Mor Morgans Morgan's ans an's office when it became evident that the senate investigation would take place was put in the record by John W W. w Davis the Morgan Mor Mor gan lawyer Pecora wants ant to know the he detailed figures behind each of the major sums set ct down by the ac ac- ac countant This Ti is an unreasonable request said Davis Davis Morgan left lef the inquisition smiling As A the hearing ended the big man hauled from his pocket a prepared statement in which he made formal peace with the committee On his way vay to io the th train he even made friends with wih the photographers photographer They Tey have been annoying and joke jok- lag ing ng Morgan for tor three weeks explaining explain explain- ing ng always as they let off of flashlight bulbs in his face that the te bulbs were made by the General Electric company com corn pany and that tat therefore Morgan himself himself him him- self sel got a profit on each one used Morgans Morgan's final statement reiterated ed that although h the te partners paid no income tax tx In i 32 31 1930 they had paid since 1917 We trust these facts will wi now now be clearly understood he said because bo be o cause at first blush there can be b no doubt that tat many persons persons failing to t realize that during prosperous times we paid heavy taxes on our profits felt elt it to be unjust that during the thelast te last ast three years we have paid no Income Income In In- come taxes again tailing falling faUng to realize that hat our our losses losses had more than wiped out our taxable income He took the te opportunity to criticise crt cise the boom bom time federal reserve board oard remarking It uI is true that the failure of the te then federal re reserve reserve re- re re serve sere board to take the necessary measures to control the inflation In time ime encouraged the speculative frenz frenzy renzy which carried the market quotations out of or bounds bound so that they were verc too high in 1929 and too t low later ater Senate Committee May Delay Inquiry WASHINGTON June 10 The IP-The The senate banking committee today day turned over to a subcommittee the decision whether to proceed during the he summer I with the investigation of private bankers or defer deer it until ut fall fal Chairman Fletcher said the subcommittee subcommittee would meet Tuesday with wih Ferdina d Pecora counsel to survey the he situation and decide when to open the he inquiry into operations of Kuhn Loeb x eb Co and Dillon Dion Read Co Fletcher announced the te appointment of Senators Goldsborough Goldborough R. R R Md and R. R R Ore as temporary members of the subcommittee in charge of the inquiry in i place of Senators Senators Senators' Sena Sena- tors' tors ors Couzens R. R Mich and Norbeck Norbeck Nor Nor- beck R R. S. S D. D Couzens is i on his hi way to London Londono to o attend the economic conference and Norbeck has ha been be J in E ill health lh |
