| Show ? r&J&FW'S 4 L(i J- - lu - n: r :! l&e&plp v 5 ssggfe:i TMmmt - HTjrPST i THE SALT LAKE TRIBUNE :: 11 ?W K D -- SATURDAY MORNING Pi SJ jjf hVfe i j Lh- -- ‘J? ! v fiP' ’‘-- Oja- - MAY” 27 1933 ENAT Control By Banking House of Utilities Corporation Bared United corporation were those of public utility corporations?” "Yes ” "What stock was the United corporation authorized to issue’" "A total capital stock of 13 000 000 hares consisting of 1000000 first d 2 000 000 preference shares and 10 000000 common Howard no first preferred had been issued He said 600 000 of the stock had been is preference sued and also 800 000 share of corn mon all being taken by Morgan tion competent to make luch survey’" “Really there Is not We have no engineers " I’ecora brought out that of the United’s 11 directors three— Harold Stanley George Whitney and Edward Hopkmson— were Morgan partners and two were members of Bonbright and company ‘How many are a quorum of dlrec tors’ ' " ‘ did not think thu committee or the senate should employ counsel at such Morgan Smiles a salary favored adequate com Major Developments During I don't think the counsel pensation As Glass Pecora he’sworkirg for a month I think working for something else'' Into Morgan Bank Firm Inquiry Costigan put in that "I appreciate the efficiency of the counsel Exchange Barbs the investigation to date has think been I I is 3253 I relevant and materia! ” WASHINGTON May"28 (TJ— Outin ioday'a developments forward Morgan inquiry were exchange John W Davis MorgarVmunsel oc The hearing was recessed until casionallv smiled and Howard— still Monday after a dispute between Senin the witness chair— quietly smoked ator Glass (D Va ) and Ferdinand Pecora the committee counsel In a cigaret Iwhich Glass had demanded to know Morgan only a few feet from to what end the questions were Fletcher smiled at both the ng and I’qcora statements From the testimony by George Howard pi esident of United CorporaCelebrate Army tion utilities holding company the learned that utilities In British Queen's Birthday committee which United holds large interests LONDON Mav 2fi bP)— The roval supply about 22 per cent of the counhorse artillery fired a salute of 21 try s electrical power J P Moigan guns In Hyde park today in celebra A Company acquired a controlling tion of the sixty sixth anniversary of interest m United Corporation on its the birth of Queen Mary Ships of fo“U3nin 1929 United Corporation has 11 direthe royal navy were dres ed in flags and flags were flown from all public ctor Howard said and three of these —Harold Stanley George Whitney building — There wa family luncheon for and Edward Hopkmson are Moigan Members Banker Apparently Enjoys Dispute Welcomes Respite From Heat Four" of the Morgan firm sat standing iu their chairs to hear the y'" “How many sto kholders’” "Twenty five per cent” Tile firm also received 714 000 opQuorum Reduced tion Warrants entitling it to buy that number of common stock shares at It had been a majority the w it ness said but the by laws were $27 50 a share Each share had one vote” Howard changed “to make it easier to get a WASHINGTON May 26 (2P- )-J P said “Who had control?” Pecora asked quorum” Morgan aat by today virtually unIs J E Zimmerman on the board noticed while Senator Glass (D Va ) around the table to hear the contro P Morgan 6c Co Howard said By NATHAN KOBF RTSON versy “Where are the books cf your firm of directors of United Corporation?" and the senate banking committee's Associated Prrsa Staff Writer The Morgan party arrived In the kept?" Pecora askpd Howard nodded and said other stern faced counsel Ferdinand Pe WASHINGTON May hearing room shortly nfter the com‘In ’’the office of the Morgan com- directorships and offices in utilities cora clashed oyer Tecora’s conduct over stnate's the tension mittee went into executive session lompanies hold bv Zimmerman were of the Morgan firm inquiry pany said Howard For the moment the senior partMorgan invest'gatlon burst forth In Moigan was dressed In a different 'Have they htui kept there since Mod as in Mohawk Hudson Power suit for the fourth consecutive day United Corporations Public Service of N J United (la ner of the International banking houve organization’" dispute at today s hearing In the wake this one being gray of much lighter ' “Yes Improvement company Philadelphia was just another spectator Like the of disclosure that the wealthy bank hue than the Electric company United Engineers rest he leaned forward to hear bet“Who signs the checks?" previous ones of cor Members the United staff Tecora's controlled house Ing dragged Since the last annual meeting— In and Constructors and Niagara Find ter — a of trunkful or in stock utilities Power son papers holding poration Morgan was Bitting near the witFebruary of this year— they have been In answer lo Pecora Howard raid ness George Howard president of Son Joins Elder Morian ganizatlon — which In turn is affiliated signed by myself and Mr Ferguson he with companies doing 22 per cent of Junius S held In as New York the United corporation treasurer’ Howard said and was 30 guests directorships partners Morgan son of Morgan the electric and gas output business United Corporation United Gas Im- acro-- s the table from Glass When He The committee decided at an execusoon took a seat bv his father both under commented that the books were cf the nation the supervision of Leonard provement Pubyc Service of New Jer- the latter let loose the feeling he The railroads of this country scored tive session that names of Morgan A new material resembling celluA few minutes later the lnvestlga in laughing humor Mohawk Hudson haa sey Power Niagara shown almost alnce the moment an almost 100 per cent safety record partners indebted to the firm would loid is made from wood pulp It is With newspapers and straw hats Keyes office manager for Morgan & Hudson Power tion recessed until next Monday and said that prior to the FebruFrontier company Morgan took the stand Tuesday morn- In 1932 only one passenger - Senator Carter Glass of Virginia being used by many spectators In fu Co having not be made public No decision was highly resistant to water and in testa Lawrence St Securities ary meeting Keyes signed the clucks company ing the banker raised his evebrows lost hls life In a tram accident last reached however on whether to put has proven much stronger than cellufumed over the tactics of Ferdinand tile attempts to cool their brows at for the Electric InBond and New looked Share vear and York United a look of about with Corporation into the recoid the articles of co loid Pecora the vigorous New York attor the healing scene J P Morgan ad Power and Light Atlas corporation quiry Nsmes Officials his dark blue tie and pearl ney who as counsel for the inquiry Justed Commonwealth and Southern Colum he Glass’ flerv Apparently enjoyed In answer to the earlier has had J P Morgan and one of his stickpin as memben of the senatorial' question bia Gas and Flectrlc and Cential demand to “know what this Is all New under committee enteied the room after Its he said that the executive officers of Hudson Gas and Flectric partners George Whitney about" and his request for on exexamination In the past hour session to resume the examina the corporation at the time of its for"How much cash did the United planation from fecora of “where you stringent mation were George Roberts presithree days and today drewr further tion for its are going ” corporation receive in Testimony of Morgan witnesses has dent a Mr Ewing vice president and capital stock when itexchange evidence of Morgan activities from was He smiled at this formed?" George Howard president of the shown that severalto members of the Kcves treasurer Ppoora asked And he amiled too at Pecora's firm are Indebted it “Where is your office?" United corporation Howard said he had already told of vigorous reply after reading the sen-- 1 The tart Virginian demanded to When Ferdinand Pecora asked for “In Wilmington Del" Howard re- $700 000 from Morgan and From company ate resolution which directed the in- the excitement of the crowded audi- the names yesterday John W Davis plied adding there was an uffue at Howard later testified that on the vestigation into Morgan's firm and ence to know the exact course of the Morgan counsel quickly objected and 80 Park place Newark N J also S2 granted Morgan for purchase other banking houses for a decision by the commit “In whivse office is the business of options of United stock the Inquiry He raised questions about asked A brisk burst of applause came at set for the price tee was He the upheld corporation done?” asked Pecora million Pecora's retention as counsel while a a piece was the conclusion of Pecora's statement “All the meetings are held at 80 to allow units at dollar Shortly atter II o'clock the Inquiry Dress-U- p silence fell on the huge hearing hall -E purrhnse of the stock (com Morgan whispered to one of the men with was resumed Howard Park George place Newark " Pecora returned In kind drawing 327 50 for near him mon) United on of “How much staff do you have president corporation applause with a veiled hint that his the Less a month later Howard The row simmered down and the stand there?” Senator Couzens (It Mich J said thethan resignation could be had if the com stock aold for from $18 30 tension relaxed to be followed bv adto the the of front asked Sitting right mittee asked to $58 50 The massive banker journment elder Morgan Howard said he was "An assistant secretary " Discloses Morgan Control arose showing clearly that he was Buya Stock at Discount ‘He does all the business’" president of the United corporation a lull had come in the nroceed-ing- s Undpr the transaction January 11 glad Through Howard he had developed and of the New York United corpora “Of course we have discussions In OPEN A STYLED MANY WEEKS that had kept him in the that the United corporation received tion a subsidiary New Yoik but the business Is done 1929 Morgan got the 1000 000 options of a crowded fiom Morgan storkj in various utili atmosphere Pecora brought out that the United at the directors' meetings ui Newaik" and 400 000 shares of common Block ties concerns In the '29 boom days at corporation was organized January said Howard for 310 000 000 allocating $22 50 to room for four hours CHARGE TO PAY 12 000000 In answer to a question he said he Joss than their market 7 1929 under the laws of Delaware "In whose office would these dls the common stock and $1 to the op was glad to get away from “Washingvalue and that the banking house and that he became president Febru- cussions be held?” Pecora wanted to tions had In consideration obtained V dom- ary 26 1929 The atock opened January 23 at ton heat" for a little while but that know A middle aged man with gray thin inance over affairs of the United cor"In my office peilwps In Mr Wldt $09 together with an option for each he was “coming back" Morgan laid aside dark business hair Howard testified in a sharp nev's " hare poration It was likewise disclosed by his clear voire Senator Glass again challenged the suits today for a conservative light"You mean in Mr (George) Whit Krlates Slock Deal nev’s office in J P Morgan & Co ?" counsel of the inquiry asking if any weight gray and his vest was left at questioning of Howard that through a Morgan United deal the banking of the transactions were a violation the hotel “Yes" Howard said that about “January 1 Newsmen during the last four days firm was given option on million 1929 his corporation acquired from of law “Where Is your office?” j have found him ready with comment shares of United corporation at one “At 15 Broad street" "No" Howard replied & Co 350 957 shares of com“DEXTLR-STYIED- " Morgan nrw this time be suit let your dollar each at a time when It could mon stock in Mohawk Hudson Pow“It adjoins J P Morgan & Co ?" The Glass challenge brought an on the weather and quick to respond and every ault you buy from now on to have been sold within a month to the er 62 360 of "Yes” stock and otjier committee row in which Sena anvquestions whether or not he gave will have the same label Buy on small payment preference jc information tune of 329000000 profit or at some 124 440 in option warrants tor Couzens asked a for from Entries Kept by Keyes ruling He nodded today and agreed that at only 30 more than was paid for each opChairman Fletcher In addition United corporation got Howard testified that Keyes kept his Washington experience was ‘ New tion The chairman 130 563 shares of common stock from held Pecora was " the United corporation books and thsl With the Glass Pecora clash which out Instructions of the quite new In United Gas Improvement carrying he did not know “who made entries" senate let the room momentarily In an up- Morgan in Serabout Public 59000 company In those He said he now was out of roar Chairman Fletcher of the com- vice As the controversy became warmer (Couzens) who always likes to dg of New Jersey and also 700000 "the legal business ” mittee defended the peraistent coun- in cash Glass insisted the committee should me has challenged my rights " ‘Is the Hudson Power Niagara “This line of examinstion Into the sel snd the Florid senator also drew be told where the Inquiry was going In return he said th United corGet FREE Lingerie Hosiery House Dress a subsidiary of United”' Peactivities operations snd securities applause from the throng that await- poration gave 800 000 shares of its company He declared the committee minutes Srarfa Sweaters Pajama or Millinery of the United corporation" Pecora ed every word of the testimony de- preferred stock 800 000 of Us common cora asked no showed record of Pecora’s employ“I would say rather that the United ment said "comes under that language of Men' Straw Hats Sweaters Shlrta Ties spite the oppressive heat of the day and 714 200 In option warrants etc Underwear has a investment in Niagara" Members of the crowd pressed In leading up to the options deal the senate resolution which directs “What did you get this stock from Howardlarge aaid of Howard had told Pecora of $700 0U0 an Investigation Into the ‘issuance Morgan for?" Pecora asked “A majority?" ' Howard replied that it was acquired being obtained from Morgan as cah ferlng and selling of securities "No" "It already is shown tiiat this Unit m exchange for United capital stock at about M2 000 000 less than Its mar "Do you control Niagara’” Notlcc-F- or ed corporation Issued hundreds of ket value “I don't think we control these com when the latter corporation was millions of securities to the Investing formed Howard answered Pecora' ques” Barbers Attention! er anyone He added "an additional $10 000 000 public Th public size and area of tions eagerly as though he were anx- panics that wants a alee rash Income “You call control a majority ownermake it Important m cash came from the Morgan com- the operations I have a Barker and Beauty shop ious to explain the whole traneactlon ship?" but he confined his answers entuely “That Is legal control You at SSS 0 IT4TR that la aror-ailpany and $10 000 000 from Bonbrght enough to warrant the attention of this committee might Electric It has been shown SSI 5 to (IM per week to the questions corporation ” we a Influence " ao wa hare been open hardly "What did they get In return for iOOO 000 option warrants entitling the1 “What was the market value of the say"You (iave great that a recognize to holder buv common stock at $25 50 months The ahop should stock you received’" majority may this $20 000 000?" Pecora had Inquired a share were sold to J P Morgan A exercise a control’" make a ateadr (am Toq can “It wasn't worth the paper H was "My conreption of the United Is that 0 ( ASH Harry Morgan Received Share bay It foe 31 each Co at Harry eoma eat Will frab thli printed on In 1929" Interjected Glass we do not want to control’" ’Morgan and company got an addi“Already it has been ahown that a tDem Va) quick “There Is no sharp division of opin- tional 400 000 shares of common stock few davs after this Issue prices of the Howard gave the aggregate market ion In the management of these com- and 1000 0(10 in option warrants" common stock on the exchange were Hair Cat 11a — hay IBs value at 355 566 644 panies’" asked Barkley (D Ky ) Howard said “Bonbright got the nearly double 327 50 These securities “Is United ' the hold corporation Good Room In Rear f IS per Mo Everything la harmonious " same thing were Issued at terms certainty agsinst Ing company!" asked Pecora Howard divulged that companies In These opUon warrants entitled the Interests of the corporation to the “Yes” which the United has an Interest do them to purchase 1 000 000 ahares of benefit of a small group of inv estors " “These securities received bv th 22 per cent of the nation' gas and common atock at anv time In the Glass Persistent electric business on an output basis future at A price of $27 50 a share" "Couldn't you have made this and Pecora placed in the record at “I ea " statement to the aubcommlttee" Glass tlstlc allowing the companies served “Why were thee option warrants Bid "before tha !an area with more than 30000000 of public investiga rights given’ What advantage if any tion’" population was It to United corporation? "How large is your own office “Well” Howard replied “It was “If I wa —to come to Washington staff?" recur asked some advantage to have them— the every time" Pecora began “As one member" GUm Interrupt “A aecretary office boy and Mr option warrants — in the hands of va ed "I wanted to know ao I wouldn't Ferguaon" Howard replied rloui people — to pay that much add! to questions and waite time Pecora had Howard enumerate the tional cash Into WASHABLE the captal structure answers of listening no importance to people COMFOKTABI E corporations in which the United if the company succeeded " ” hoUta atix ks and th ahares held and CLE LRLF bTl LED “If the company succeeded" Tecor of any Intelligence “I submitted a questionnaire to the Couzens also obtained the percentage Interposed "wouldnt th public committee" Tecora said of the total buv?" And They Are Wonder 'Since then I have received no re “What do you mean by large Influ"They m'ght" for Information from anv en ence — I think you said vou had large ful Values Too! "And at the market value’" Fecora quests alor or the committee Influence In many of tFeee concerns asked Consequent as distinguished from complete legal ly I spent my time In New York tonalltf me lb Howard nodded “I did not seek thu assignment control’" Howard was asked aw Tur- - a Assume that United common “I appreciate the honor of being Howard answered that alnce the rail hed $50 on ARfK j th market" Pecora counsel for this committee trra holding company left the operations said “Then the holder! of the cor t I want to assure th senator option “But of Its aubsul lories free in most coses warrant could the iaauarue from reel ala la hare that the compensation j and that It did not hold a controlling of common atockdemand at $27 50 a ahar to of 3255Virginia a month is no liuentive to me amount rf stoik that It was evident them Wa that to th advent of to continue It did not have complete control the corporation’" Here came the tremendous burst Holding ( etnpany “I lalened To" “Tbit would s'! depend" Howard of He laid however ttiat the holding said applauv from a room crowded 'Suppo-the asset real value with iper'ftiors and more after company partii Ipated 111 discussions w $27 50" of polity and that It “naturally was "Well an option holder wouldn't Chairman I leUhec ipok In I'eooraa llstt ned to " avail hmxelf of that privilege If the behalf Is “Your advhf usually followed’" market was below $27 50’ ' asked In leading up to th give and take a toUr 4VY ttylo yon $nt Htp In th$ STAR for rM— there had been comment by Howard Senator Coat'gan ID Colo ) asked I -f- cVIRY $tyl hrr In ill lha iww Prrnra you th that federal trade "In iom rases " eommiBxtnn had Hut on m!l poymrnta mmtorUii colon and “No ” th Urd'ed corpora! on In “Msny pf the compsnle In whlih at anly— llut If the company needed rash" examined lor lte vour corporation g utili'le holds atoik are inquiry Glass ' tt was materially to "Did the bade commission find any know n as Morgan companies are they suggested the advantage f the company to have vlota'ii It n f e not’" Couzrni inqu red Sherman antltru' buvers at $27 50 " art’” Glass eran'ed to know "Yes " Howard agreed "No” from Howard Then followed a discussion about a Obtained More IV errant “I m still In the dirk " Cbu almoit map pur poitng to allow ae tlona In which th United Corporation power Continuing on ttv option warrant shmite i He agiln said t at t1 e trad mm affiliate Ojerate Howard laid he Howard aid ttiat on th fust transac had never Been it and teorge Whit-tie- r tion M irgan & Uo got 714 juo option mission had “taken no artlon" agalrit Morgan partner also aide! lie warrants On a later cash arrange- thla com cm ” (ailed to recognise It pecora Bald It ment Morgan A Co g it J fKMiOoO Rcpert Net Mad came from M ugim A Co and was more option warran's and Ihmbnght Senator Baiktey (D Kv ) mm Electrical taxi rax) company procured there by Ins InvrMlii ttna that "the f rial report of tt e Pei-o- t read a lr'ter Horn M'rgan mented u in United Showing ttie map of n It trad util ties line eommiasii on State with vat mu area of the A Co to Rthe I 'nitrd cm pm all n dated ligaton had been n ade ” whit h It offered to atatee colored I’ecore ked “What January 1929 - rt I 'A think" Cluu taftal reppen entage of the electrb at output In buy 14u() 000 iharea (if common a'oek ronlrihu'e I Irvaiit on the eastern atatri do these United and rxio 0O0 option warrant for $!0 what thu la all'iat out Am 1 knowing OCOIEX) and rmt'ng a milar aates find out or no!’ ' ) e a I ted g nrg to fompenies aupply’" with agreement Howard elaborated that timpani lhmbngtit FSectilial 'I d'n't lee hrwr w can anth Ipate con In which Unl’ed has a what Perm large Interest H piny Mki no o‘hrr expeit to dev cap" 22 21 on ar from to opt J er cent of siq piled Fleti her c in mei ‘el were rants Issued at that time the "tentral station a ' e’nliual When Th very 'ht ('a brought up p pun I’eii room energy in the coun'ry" He aaid tins re leaned ha g In ha r) a r and did not Include U I !e tile Bond end tion of retention of th Counsel w ailed qu etlv cor explained th purpose and read Slinre con pany fleliherdiiurmelnnttatit'a ' On about 22 per cent" he Ithe reai lo'lnrt au'hoiu ng tie In g i it ( ouens ar ie qsi rv said ' I t g’a 1 Ip mrnt ly w 'h 0 r Til roursel drew bmd applause Fecera I 1U reputation (if (I e per a' r fr rn que-- l ‘g 'a" lie Was unable to give the (o( ula from the tes'n‘mi hr a ve led tug I emra an tion aerved tut Prints presents t a ees’nn he would res gu If the run He then t fgan to re J the bo en ' hnlue'at from Moigan an 1 company mUtee wanted rev'ut o ur trr whlih 11 a In BEE OUR FOUNDATION GARMENTS FOR TIIE da oil hi I trniber 20 1922 and I tlasa ! r Queallona ng Authority l( g r i poll qinry the ) potation aerved at B3 2imxi II dw e t W I'h I ar th uUr emphaxUi GIRL WHO LOVES OUTDOOR EP0RT3 "I f examined tie immi'et end dis'tilmle In New Yoik New Jetiry I doi t fml at any time ttiat Hie rni On th to !' I n d rei n a “u mj le'e ( miner Ik ul I sniisv lvanla Delaware pknmrit of Mr I'm i if list It ng jo ar e eu luquii Ohio M i h g in Luitila ( the me After lemtrure Uoilufft 4im tumult o n'r Mb sua'ppi Alabama and ( teor g ia Th li do ty ( is )aj caused tubs ted if th mi ttion 'Have vou had a aurvey made Wl!y in my mim!" e rail (D fm) t e’" too et nr ke ( in ) put In ( hargea Having “( Irrus “ “At s mie tm e ! asked aorneone In I 'unit no cf tht n j “Weielai m i I ( i It nbrigi t act! fompsny to n ake a ment hut Ihtit U i nwiletifcl" u d ml tin n m r ul mi I I d n t know wtisie ii (hl ' fi nvne I O nk th t mu duration tl Gt r i " Howard Open an aai t n1 r n f r If $4 !' h M I p I w r t to ay J w I lo tt e r e V as no gp Arrount Today j hi tt e Un'ej cm r iticnL l it th iMut r ftt-fI r M l ' a1 t n u i i t erit nt) j Audience Applauds Pecora’s Work When He & Co Makes Veiled Hint of Resignation Utilities Stock Deals Revealed lead-Gld- ‘ Nay I ss It 20 men composing the House of Morgan At the time of the formation of United In January 1929 Morgan A Company and Bonbright A Company each took an option entitling them to 1000000 shares each of purchase United common stock at any time in The the futuie for 327 50 a share two firms paid $1 a share for the agieement In February common stock of United was selling on the Philadelphia atock exchange for 58 and later In the year it waa more than 65 on the New York exchange Howard said that the books of United were kept in the New York offices of J P Morgan & Comoanj The exchange which Senator Glass precipitated probably kept another list of Morgan preferred cusMmcrs from going into the public 'ecord Pecora apparently was ready to make the list public when the Virginia senator interrupted partnership which bind the 1 4 Get Your DECORATION DAY Accessories Pi F-R-E- Bring the Coupon to The STAR m DEXTER' semi-tropic- CLOTHES Select Your Decoration Day Suit From This Famous Brand 50 -- It FREE Coupon Good in Any Dept in the Store t i Sale nf 171 Here Arc Good Little t SPORTS DRESSES Use t ' the Coupon TODAY 'T e Nad WONDERFUL DRESSFS trrn (ll 1 nt an 1 11 ' 1 1 $1 to $750 CROSS CORSET SHOP Hast Broadway ’ an 1 t I1 c X (la rord i 1 t ‘ n I -- i ii i - 2 |
