BANK INVESTIGATION

Hokitika Guardian, 25 May 1933, Page 5

BANK INVESTIGATION

IN UNITED STATES

FIERPONT MORGAN INQUIRY

(United Press Association—By Electric Telegraph—- Copyright.)

WASHINGTON, May ’23

The inner workings of the wealthy Morgan banking firm were investigated to-day. The largest attendance in the history of the Senate investigations, crowded the huge committee room and overflow' into the corridors. They included Senators,, their wives, anti social leaders. . '■

Mr J. Ih Morgan, the senior partner, wno was the first witness, placed’ the! deposits at 250 million dollars, and the assets at almost 500 million dollars. The spectators gasped a s the quietly revealed for the first time the workings of the firm bearing hi s name. There were twenty partners, he said who meet every week day, except Saturday. They decided not to Keep minutes, when daily meetings were begun twenty years ago. He testified that he did not know h : s firm claimed a loss of 21.071,000 dollars for two days in 1931, in filing its income tax. He defended private banks, and the practice of permittting partners to hold directorates °f institutions b which his 'firm was interested.

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

PRIVATE BANK AN ASSET,

MR MORGAN DEFENDS SYSTEM,

WASHINGTON, M>y 24

Mr J. Pierpont Morgan, in his statement ,a,t the banking affairs inquiry, added: ‘‘l state with out hesitation, that the private banker is a national asset, and not a national danger. We have made many a mistake. Who has not during the past five years v (But our mistakes have 'been error, s of judgment, and not of principle. H 6 revealed that during .1931-1932, .his firm dropped fr0m’703,909 thousand dollars to 424,708 thousand dollars. • The firm has deposits' totalling 250,000,000 dcllaTs.' ' It has a capital of fifty-three million dollars.