MORGANS' HIGH FINANCE

Evening Post, Volume CXV, Issue 123, 27 May 1933, Page 13

MORGANS' HIGH FINANCE

INTERNATIONAL DEALS

EVIDENCE AT INQUIEY

United Tress Association—By Elccttlfl TeUcrapu—Copyrl«bL . . . WASHINGTON, May 25. Vast financial transactions undertaken by the firm of J. P. Morgan figured in today's evidence before the Senate Committee investigating the1 . affairs ot" the bank. Mr. George Whitney, a partner in tho firm, revealed the extensive operations of some of the bank's international transactions. Mr, Whitney testified that among the bank's foreign financial arrangements was the provision of revolving funds for Governments and banks, the leading'item being 200,000,000 dollars 1 for Great Britain, for which Morgans .received 11,940 dollars, their share of 1 per cent, commission, and 500,000 dollars for arranging the transaction. The Bank of Rome revolving fund ; totalled 25,000,000 dollars, and ■ £5,000,000 with commission at li per cent. The Morgans received i per ; cent, for managing the credit. The Bank of Spain got 58,000,000 dollars, and the Yokohama Specie Bank 25,000,000 dollars on terms similar to those of Britain. WORLD-WIDE OPERATIONS. The immense ramifications of the underwriting activities of the firm were disclosed by Mr. Whitney. Since 1919, 6024 million dollars of stocks and bonds were floated, 2232 millions of which : wero foreign obligations, while of foreign securities to date- only 13 per cent. . were below the issue price and no fle- . faults occurred, the principal domestic . issues, namely, railway bonds, totalling ■ 1845 million, showed one-third depreeia- ; tion and 7 per cent, defaults. Mr. Morgan during the day issued a i statement that, under the English law, ihe had paid '£7000 in income taxes .in 1930, 1931, and 1932. He explained i that if the American rates and system ■ had been the same as the English. he would have been compelled to pay much less taxes in. America in 1929.