Show I I. I H I 7 I i. i 1 Say Sa Morgan Forced War Wa Ld Loans SENATORS SAY HEAT WAS PUT ON INDUSTRIES Financier Denies He Hel Manipulated Rates of Exchange By United Press WASHINGTON Jan 10 10 Senate enate munitions investigators charged today that J. J P. P Morgan Morgan Mor Mor- gan Co put the heat on American manufacturers in 1915 to buy a sluggish issue of British bonds Tho The charge came while the committee committee com corn sought to show whether the Morgan company which handled huge allied loans and purchases was vas responsible for lor exerting pressure pressure presure pres pres- sure ure on the Wilson Vilson administration in in a connection with a war-time war change in policy to permit loans to Belligerents Morgan sitting forward in the witness chair and leaning far lar over the he table ble that his firm had ad manipulated the foreign exchange exchange ex ex- change hane market as lever a Jever to force forceL a L change in ol cy His deep bass voice rumbled an emphatic declaration rati n that his firm was as not guilty of bringing on n an an anex cx- cx chango hango panic on the foreign ex ex- exchange exchange change hange market in order to exert influence ce on the government He sat glumly silent however when committee members placeda placed in n a the record a memorandum from Secretary of State Robert Lansing to 0 President Woodrow Wilson The document was intended to support a committee contention that the hc war-time war administration placed greater weight on maintenance of I Ian an rn American war boom in exports than han on continuing a policy of neu neu- tram neu I Lamont Lament Hits Back nack The record shows said Senator Bennett tt C. C Clark CD D. D Mo that Mr r. r Lansing and Mr William G. G McAdoo secretary of treasury believed be- be our export interests were superior superior su su- su- su to tOo any consideration of neu neu- neu-I neu Morgan sat silent in his chair said aid nothing But his partners George corge Whitney and Thomas W. W Lament Lamont wrangled with Clark over overcharges overcharges overcharges' charges harges that the bankers brought pressure to bear upon the president to o 0 alter Iter the neutrality policy Youre Ue always coming back to that hat implication and we resent it because it isn't true Lamont Lament said waving his spectacles to emphasize the he point Morgan chimed in to protest against what hat he called c speeches by y committee members linking New ev York bankers with Americas America's entrance into the World warIn warIn warIn war In several speeches by senators there here has b be been n a dir direct ct accusation that hat New Ne hankers cankers brought on the he war That was wa not pot the part Continued on Pace Paie T Two To o Column Three LOAN tOAN FORCING FORGING l LAID TO MORGAN MORGANs ORG N 0 I ti oc i T I s 2 r- r rw w Pa t 1 played An ne of ot U the et things gs r l Ya want wanto t tto to o deny Chairman Gerald P. P Nye Ne s spoke up Nye 1 Sta State Stales VJ View w I was never more convinced than convinced than I I am this morning that it was the commercial activities 1 a as asa a a whole which finally did br break ak down dow our ne neutrality he said If there had been no no credits credi and no loans to finance this thia war machinery machinery ma ma- ma-I ma chinery Nye Nyc continued then our our neutrality policy would have remained re re- re what it was Lamont Lament and Whitney said laid we were acting for our clients and withdrew from the exchange on In Instructions Instructions Instructions In- In from the British government govern govern- ment I IThe the The files fUes of state department dont don't disclose any documents showIng showing showing show show- ing that that was th the case tase Clark rejoined Banker dont Bankers don't dont bring lev leverage rage on government departments department over here said Thomas W. W Lament Lamont Morg Morgan n partner who was active In the wartime wartime wartime war war- time negotiations Do you mean i an that they dont don't do doit doit doit it or that they dont don't admit it 1 asked Chairman Gerald P. P Nye NyeR ye 1 R R. N. N D D. 4 Lamont Lament flushed I 1 meant that they dont don't do It Ithe it It- ithe he replied angrily Investigators also planned further further fur fur- ther inquiry to determine to what extent the United States treasury participated in the Morgan opera opera- Lions Anticipating that phase of the inquiry George Whitney Whitney- a partner in the firm testified th the treasury arranged in F February 1918 to take Up a secured loan advanced by the Morgans to the British government Again In September Sep 1918 the treasury bought up a Morgan British loan taking the security held by bythe bythe the banking firm Whitney said these these loans loans carried interest rat rates s of 5 and 5 5 4 per percent cent and the treasury did not want th them thim m competing with the forthcoming 3 S' S per percent per cent Liberty loans |