SECRET FINANCE

Gisborne Times, Volume LXXIII, Issue 11953, 25 May 1933, Page 4

SECRET FINANCE

INNER WORKINGS OF MORGAN FIRM TWENTY PARTNER* MEET’ EVERY EAT NO MINUTES KEPT iI'.P.A. by Elec. Tel. Copyright) WASHINGTON, May 23. The inner workings of tho wealthy Morgan banking firm were unravelled to-day by t-lvo Senate committee which is investigating the affairs of That firm. . The largest attendance m the mstory oif Senate investigations crowded the huge committee room and overflowed) into the corridors. They included Senators and their wives and social leaders.

Tire spectators gasped as a witness quietly revealed for the first time the workings of tho firm bearing his name. There were 20 partners, no said, who moot every week day except Saturday. They decided not' to keep minutes when the daily meetings wore begun 20 year's ago. He testified that he did not know that liis firm claimed a loss of ;C4,216,000 for two days in 1921, m filing its income tax return. Ho defended private banks and the practice permitting partners to hold directorates of institutions in which their firm was interested.

Mr Morgan, under questioning, said he did not pay income tax in 1931-32 Ho admitted participation in a substantial share of the firm’s profits but also participated in losses.

WHO HAS NOT MALE MISTAKES? (Received Slav 24, 11 p.ni.) WASHINGTON, May 24. Mr Morgan added :- “I state, without hesitation, that a private hanker is a national asset and not a national danger. Wo made niany mistakes. Who lias hot during tho past five years? But our mistakes have been errors of judgment arid hot of principle.” Ho revealed that, during 1931-32, the firm had dropped from 703,909,000 dollars to 424,708,000 dollars. Tho firm lias deposits totalling 250 million dollars and! a capital of 53 million. Mr Morgan and his partners partially controlled eighteen other banks,