MUNITIONS ENQUIRY

Greymouth Evening Star, 17 December 1934, Page 9

MUNITIONS ENQUIRY

THE BANKERS’ PART. [ BY.CABLE—PBESS ASSN.- —COPYBIGHT.] WASHINGTON, December 14. Senator Lye, head of the Senate Arms Investigation Committee, created a sensation in the arms controversy to-day when he declared that he intended to investigate not only the manufacturers of war gear, but those financing them. It is, therefore, expected that he will call the members of the J. P. Morgan firm, and probably Mr Morgan himself. It is recalled that Mr Morgan did considerable financing for the Allied Governments during the war. Observers see that the Senate Committee findings are taking an entirely new line if the bankers are called. To-day’s hearing of the Committee developed several sharp clashes between Mr Pierre Dupont, of the Dupont 1 Armament firm, and the Committee s counsel. The counsel made the charge that his firm made 39,231 per cent, profit from the powder plant project of 1917-18. The counsel also alleged that the U.S. Government built plant at a cost of 84,000,000 dollars, and that the Dupont Company invested but 5,000 dollars, whereas it reaped almost 2,000,000 dollars of profits. Mr Dupont insisted, however, that after taxes and other charges were deducted, the profits were only 281,000 dollars.