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MORGAN INQUIRY IN seven firms, named by Whitney counts the First company, the gerous Chase Securities the Guaranty the National City company, the Bankers other genheim Brothers and Morgan are Leading up to story answers ations counasked. related how his brothvice president held president of the York New "come see first" about something to halt price much did you profit. Couzens (Rep., Mich.) bought 1,146,609 Whitney replied, stocks sold out stock for was the profit divided?" Couzens according participaWhitney said. expected and time our The witness objected Pecora's ration word "pool" to describe the transaction. rather of smiled. Morgan by ing Whitney testified he directed Morgan way in the pool under traded supervision Thomas another Wife Paid point Whitney told the comshare bargain price stock allotted the Morgan John Kephart, Pennsylvania supreme court justice, was paid for his wife. Governor Gifford Pinchot, who has Kephart's resignation, Ferdinand commitcounsel, saying the judge denied accepting the stock which he been The 15,000 units of United poration which went the branch Grenfell Whitney represented "Do know what was of the units which went to London office?" Senator Reynolds Whitney shook his Reynolds asked Whitney had knowledge of the distribution of the Paris Whitney said. asked would furnish the the shares that went to France and "Certainly." Whitney replied. John Davis ment that the London and Paris branches might have about view the conflict over the dollar, the value of the pound and the general "do you think to distribute this in European countries of the fact that Morgan Co. had wide there that large to the United States? Things Different Then. Whitney said the stock wasn't tributed and in 1929 were quite "different than now debted the United to the extent of Reynolds Whitney said that was true, but he could see between that and the allotment the to the London and Paris branch Morgan. Reynolds asked the believed was detrimento "American welfare. Whitney replied. you heard that King Albert Belgium participated distribution the stock that went the Paris branch?" Whitney said. No Kings List. "Have you heard that any of the King George England his I'm did you heard that of went an official the Italian am not about the his him and sometimes Whitney laughed and shook his Pecors then turned the suspense account," telling Morgan Co. operations the market Whitney testified there was no mal meeting called but that the emergency the bankers gether was the profit?" Couzens asked. exclusive of Whitney Seeks Special Motives. Pecora "Is to that the pool which your firm oth. through holdings Whitney replied that would be to stocks in which there were most trading that had nothing do with the the added. "They pivotal key stocks. We trying to make asked October and there "violent the cession of Whitney said the There number drops? Peroca asked. very Whitney sought to overcome bid' Anxious for Firm. those come look for the hours times when brokers check margin great deal anxiety Whitney the account's orders buy placed by his brother urer the exchange. "They distributed to the brokers their discretion,' Whitney Pecora asked any Morgan ners in any the participating the companies operations Questioning brought out that Mor partners were the boards the Guaranty Trust and the Bankers' Trust. whose security affiliates that about the time brokers' loans exceeded bulk of this was the of others. explained. Most Dangerous Loans, out of town sources began withdraw their most stances the York banks took the withdrawais. These loans others' were the most danthing didn't large investment ourselves in the market. Many houses did. think today they sure they will do again. "Participants the suspense operassumed big Pecora sir But the belief every person York was that some action not taken the losses would greater than risk "There thought Pecora Pecora had detailed to Whitney the which account traded and asked whether Morgan had interest each He asked same question with regard to other participants the account He named American Smelting Refining, American Telephone egraph, United States Anaconda, Santa Fe. Baltimore Ohio, Bethlehem Steel. Chesapeake corpoColumbia Gas Electric others. Whitney said his firm was connected and these houses did not have one the other with the stocks "The fact that the participants an these 37 was purely the lection stocks used the During count?" Pecora inquired into the Not Word at All. conducting not the descriptive word at Whitney replied. "There no effort made to buy stocks there was no relation nor there any effort buy which there was relation. chosen purely the most effective doing the did the liquidation "Were values maintained at that low The panic was market dropped again after you completed in Pecora asked. some two months Trusted by Nations. been depositaries for quite few Fletcher asked. Whitney time demand posits?" "Both," the witness said. "How many governments are you fiscal agents the exception of in with the Guar. Trust into with the Belgian on day notice. We have not acted on for many Fletcher asked him what responsibility had toward the public they sold publicly. seek the possible puball the Whitney replied. try that the the bonds are issued are lived Feels Law Is Unwise. Pecora asked regarded the bankers from sitting boards railroads they were financing witness replied quickly and briefly. "Then would consider equalunwise for congress enact similar law utilities generally?" "The reason for my answer that banker selling has inite the buy these bonds and does no harm one the bankers are allowed the board the security Recess followed.