Evening Star Newspaper, June 2, 1933, Page 1

Closing N.Y. Markets, Pages 13,14&15 No. 32,539 Entered as second class matter post office, Washington, D. C ~ INGREASED INGONE, RATES ELIMINATED L IN TAX PROPOSAL k. MADE BY HARRISON Mississippian’s Program of | Financing Recovery Bill Would Hit Hard at Private Banking Houses. WORK ON MEASURE BEGUN | BY SENATE COMMITTEE Plan, Estimated to Yield $227,- 000,000 Revenue, Cuts House In- crease in Gas Levy to Half Cent. Finance Chairman Says He Has Not Consulted White House. BY G. GOULD LINCOLN. Elimination of the proposed in- ereases in the normal income tax rates, as carried in the public works - industrial recovery bill passed by the House, was proposed today to the Senate Finance Com- mittee by Chairman Harrison, as that committee got down to work on the bill in executive session. Senator Harrison at the same time presented a tax program of his own, calculated to raise the $220,000,000 needed for financing the - $3,300,000,000 public works program. In this program he proposed to hit hard at private| banking houses, like that of J. p.| Morgan & Co., in order to raise more revenue, denying to them the right to write off security losses in figuring their income taxes. : The Mississippi Senator included in also tax on stock ‘his program a dividends to be collected at-the source. ‘This the House bill pro- The House bill ificreasing by three- fourths of 1 cent per gallon the tax on gasoline, Senator Harrison proposes to Fioen estimates the follow- 470,000,000 80,000,000 It was held to b:hn‘ Plnanmci ré\oo;‘e The chairman of % had” not m}::\uted the ‘White House in regard 10 program nor had he M%sflm“w:t with other members of his com . Senator Harrison said he believed his ram would spread: u:le 'za:h mb:xlil more equitably with regar e - fits received under the industrial recov- ery bill. He insisted his program was personal recommendation to the committee. As head of that committee, however, Senator Harrison has consider- able influernce. Deals With Morgan Hearing. In his formal statement of his plan additional taxes, Senator Ha dealt with the Morgan hearing now g before the Senate Banking ttee. At those hearings it has| been developed that the partners of J. P. Morgan & Co. paid no income taxes in 1931 and 1932 because they were able to write off their losses under the capital issues provision of the income tax law. In his estimate of additional revenue to be raised by his program, Senator placed the “administrative » deeling with the changes the 1aw as it relates to private bankers and partnerships like that of the Mor- gan firm, at $15.000,000 The -normal income tax increases earpied in the House bill, which Sena- n now proposes to eliminate, rate from 4 to 6 per cent on 4,000 of taxable income or any and from 8 to 10 per cent (hese increases bring in ing the nor- cen widely gommen these increases Would be felt heavily by men and Wwomen of moderate means and small Harrison’s Statement. Senator Harrison's own description of bis tax program follows “Certain changes in the taxing pro- wislons of the industrial recovery bill which in my opinion will spread the burden of this tax more equitably with regard to the benefits received under the bill and which, also, will return " (Continued on Page 2, Column 1) BAR VISAS TO GERMANY Austrian Government Retaliates to Action by Berlin. Robot Is Piloting Frank Hawks’ Dash I Across Continent Famous Speed Flyer Only “Passenger at Leisure” % Flight. on Long | By the Associated Press. LOS ANGELES, June 2—Lieut. Comdr. Frank Hawks, flying a robot- | controlled 14-cylinder airplane, took off from the Municipal Airport at 5:51 a.m. (Pacific standard time) today on a non- “stop flight to Floyd Bennett Field, Brook- Iyn, N. Y. He planned to test the automatic pilot and was not necessarily seeking a speed record. The ship left the ground easily in spite of its load of 620 gallons of gaso- line, which attendants at the airport said would approximate two tons in | weight. | The famous fiyer wheeled his ship {once around the field in the face of a gentle breeze and then climbed gradu- ally into the east, tardy by an hour ~ (Continued on Page 2, Column 7.) DEBT MORATORION PLANNED BY REICH 10 PROTECT GOLD Schacht Indicates Holiday on All Foreign Obliga- tions Next Week. l By the Associated Press. BERLIN, June Schacht, president of the Reichsbank, indicated today that early next week a moratorium would be de- clared on all German foreign debts, both long and short term. At the conclusion of a five-day in- ternational conference with bankers, Dr. Schacht read to newspaper corre- spondents & joint communique, issued by all the delegates. raised, he added: “This puts the decision for further action straight up to the Reichsbank. Our decision, which is irrevocable, is that we will not permit further shrink- age of our gold and devisen (bills of foreign exchange).” ‘This was taken by every one present es an announcement that Germany will declare a moratorium, at least until the decision of the World Economic -Con- ference is made known. discussions, there is general agreement that the free re- serves of gold and foreign currency which are yet at the disposal of the Reichrbank have fallen to such a point that if further reductions occur the ex- ercise by .the Reichsbank of the full functions of a central bank may be impaired, and that it is desirable that these reserves be 'g:ldudly increased, thereby fortifying Reichsbank in its successful endeavors to maintain the stability of German 3 “It was also recognized the de- clining surplus from German foreign trade and services iaakes it necessary to consider the protection and nsion of Germany’s resources in fore! ex- changes.” LABORITES ASSAIL BRITAIN. Take Government to Task for Bowing t0 U. S. on Parley Plans. LONDON, June 2 (#)-+The Labor party attacked Chancellor of the Ex- chequer Neville Chamberlain and the government in the House of Commons today for allowing the World Economic Conference initiative to “go to the United States.” Sir Stafford Cripps, Labor spokesman, demanded: e “Are we only to follow the sugges- tions made by Mr. Roosevelt, who un- doubtedly is & very remarkable man? Is it necessar¥ for him to have & monopoly on initiative for the World Economic Conference? “Hasn't the British government any ideas of their own or are they just prepared to follow along with the sug- gestions Mr. Roosevelt gave Prime Min- ister MacDonald?” Debt Question Brought Up. The Labor attack was launched in the course of a foreign affairs debate in which Mr. Chamberlain had asserted that unless the nations temper their in | prejudices and adopt a give-and-take Sttitude at the Econimic Conference, the world may despair “of emerging in (Continued on Page 2, Column 6.) PAY INCREASE ORDER TO AFFECT 100,000 Five Per Cent Boost by General Motors Expected to Be_ Com- pleted Today. By the Aseociated Press. DETROIT, June 2—Lawrence P. Fisher, vice president of General Motors Corporation and president and general manager of the Cadillac Motor Car Co., ! has announced that a 5 per cent pay | jr., president of General Motors, will |in the various divisions of the company. In the majority of plants controlled by the corporation the wage increases | went into effect , company of- ficials said, whi announcement of the step WL;Z VIENNA, June 2 (#.—The Aus- trian government retaliated against Germany today by refusing to grant visas to Austrians bound for Germany. ‘The German government recently an- mnounced that travelers to Austria would m to pay 1,000 marks ($270) for Even members of the Austrian Par- liament have been refused permission by the Austrian government to eross the border. Dollfuss Flying to Rome. VIENNA, June 2 w.—cmnb:eugr accompa: y of and _Education though New York officials of com- pnn‘;" ouumedwthe general policy of wage increase, final action in each com- pany was left to the individual heads. | P*Hrected by the action sre the Cadillac ! Motor Car Co., Detroit, employing 3,000 workers; the Olds Motor Car Co. | Lansing, Mich., employing 2,000; Cheyv. i rolet Motor Car Co. employing 10,- 000 workers, end the Buick Motor Car Co., employing 8,000, both at Flint, Mich. The Pisher Body Corporation, Detroit, employing between 30,000 and 32,000 workers, probably will act on the increase , President Pisher said. The remainder of the 100,000 workers are scattered over the United States. No estimate of the total increase y roll disbursements was available officials. 2—Dr. Hjalmar |24 Then, his voice | Wi | increase authorized by Alfred P. Sloan, | | affect 100,000 wage earners employed WASHINGTON, D. C., FRIDAY, JUNE 2, 1933—FORTY-FOUR PAGES. DE WITT TESTIFIES IPRESIDENT ADVISED { ITells Senate Group Refores- tation Director Informed Him of Roosevelt’s Action, ARMY DFFICIALS HELD PRICE WAS EXCESSIVE Quartermaster General Says Fech- ner Told Him Instructions Were Telephoned by Howe. By the Assoctated Press. Maj. Gen. John ‘L. De Witt, quar- termaster general of the Army, today told the Senate Military Committee that Robert Fechner, director of the reiorestation work, advised him that President Roosevelt had instructed Fechner to purchase 200,000 toilet kits from Bevier & Co. of New York for reforestation camp employes. \ Louis Howe, secretary to the Presi- dent, appearing before the committee at his own request yesterday before it formally opened an investigation into the purchase of the kits at prices Army officialy said were excessive, told mem- bers he had advised Fechner that he (Fechner) had authority to buy them if considered desirable. “I advised Mr. Fechner strongly riot to have anything to do with it (pur- chasing the kits),” De Witt sald to committee members, “but first of all to be certain the President was fully lvised. “Mr. Fechner said he had been ordered to do it. Mr. Fechner said had been ordered by the President?” Senator Black, Democrat of Alabama, interrupted De Witt to ask “did he say how he got the order from the Presi- dent?” “He said he had received a telephone message from Mr. Howe" replied De tt. De Witt then described to the com- mittee receipt of a letter from Fechner that ‘said “complying with instructions of the President, Franklin D. Rooseveit,” t‘lé had signed an order for purchasing e kits. This letter, De Witt continued, sald “I am further instructed by direct! Dt make mo further pussnases t to no pur of ‘such supplies and to cancel contracts. ‘The committee, before the Senate ap- the resolution of Senator Carey, Fechner was represented by commit- hemembeuuhnfluwldt‘om!lowe Wmepm but the Presi- dent’s m:.l‘;’u before the !wmmls:’: yesterday a own request, sald was to tell Fechner that he authority to buy the kits if satisfied as to their value and quality. investigate and that Lowery handled the inquiry. officials have told the commit- tee that kits comparable to those or- dered by Fechner at $1.40 could be ‘bought for an average of 85 cents. Committee members, by & moticn yesterday, asked Army officials and Fechner not to pay for any more of the kits bought from the Be Vier Co. until the investigation has been completed. Approximately 50,005 of the kits have been delivered. Fechner, in a letter which Howe pre- sented iy, told the committee he had been all mixed up; that all Howe had done was notify him he had authority to buy the kits if satisfied quality and price were all right. Bought Without Bids. The outfits not only cqst much more than Army ones, but were bought with- out_competitive bids. Howe told committee: members his only part in the purchase was in noti- fying Pechner that the Conservation Corp director had the authority to buy them if satisfied as to their quality and the price. Howe added that he turnea the matter over to Lowery of the Bud- get Bureau for investigation. In the letter from Fechner dated yes- terday, which Howe gave the commit- tee, the conservation director agreed thet this was what Howe had told him and Howe had a letter from Lowery to the effect that the toilet kit supplied by the Army to camp occupants was { inferior to the other. Howe explained that he became mixed up in the matter “some 10 days | ago” when a man whom he did not know called at his office. It developed later, Howe said that the man was R. B. BeVier, head of the company involved. Howe added that BeVier showed two toilet kits, one the regulation kit the ].:xxt-my supplied and the other a special | " “He claimed the special kit could be | supplied at less expense than the Army kit,” Howe sald, adding that the special | kit looked so much better to him that he thought it impossible that it could be sold for less. Asked Lowery for Letter. Because of this feeling, he said, he asked Budget Director Douglas to in- vestigate the matter and Lowery did so. Howe said he subsequently told Fechner {g}e latter had the authority to buy em. Howe said he asked Lowery to send 1 him a letter on the matter, after Fech- {ner had doubted he had authority to | (Continued on Page 2, Column 2.) . JOBS GAIN 35 PER CENT Bay State. SPRINGFIELD, Mass., June 2 (P).— | A 35 per cent increase last month over ! the previous month in the number of Jjobs secured through the State free em- ployment office here was reported to- day. There was also an increase over May of a year ago. | The demand for skilled meh was the | heaviest in many months, the report said, with buflding trades leading. Public works projects in Western Mas- sachusetts are said to have created this demand. Women workers also were in increased demand. i - Musicians Vieing. ELMHURST, 1, June 2 (P)—Or. States tional School Justice School, * m%mmmfiu-wmmxmmvnwm frong Jsscocordst with the Vatican, PURCHASE OF KITS jon | Carolina, in charge of the suppl: ‘Tramme [ SENATE OVERTURNS ROOSEVELT FORGES ON VETERAN RELIEF Suspends Rules to Vote on Trammell Plan for 15 Per Cent Cut Limit. FIRST MAJOR DEFEAT FOR ADMINISTRATION {Byrnes Estimates Amendment ‘Would Increase Soldiers’ Pay- ments $190,000,000. The administration suffered its first major defeat in the Senate to- day wheh an amendment offered by Democratic Leader Robinson to limit the reduction of World War veterans’ compensation to 25 per cent was rejected, 51 to 25. The amendment was a substitute for a motion by Senator Trammell to limit the reductions to 15 per cent. Senator Connally, Democrat of Texas, immediately offered a sub- stitute amendment limiting the re- duction’ of pensions of veterans of all wars to 25 per cent. Overturning the administration forces twice, the Senate today suspend- ed its rules to permit considera- tion of the Trammell amendment to the independent offices bill limiting to 15 per cent any cut in compensation of veterans with service-connected disabilities. The vote suspending the rules was 59 to 21. It was the first major defeat for the | administration in the Senate. | Immediately afterward the sdminis- tration forces suffered a second defeat | on veterans' compensation, originall slated for a 50 per cent reduction, after Senator Robinson of Arkansas, the Democratic leader, offered another amendment to limit the reduction in the compensation for combat-wounded veterans to 25 per cent. This was defeated, 51 to 25, after a sharp debate. Senator Byrnes, Democrat, of South bill, estimated the ell ent would bring an increase of $190,000,000 in veterans’ c ition, niow total- ing ‘i the bil $591,100,00. Substitute Amendment. “ the et Wi be vituaiy ' spea of the s yeterans' com- | economy pensation,” Robinson as- serted in offering his amendment. ‘This amendment was offered as a substitute for the Trammell amendment end s similar motion by Senator Cut- ting of New Mexico. Senator Robinson, Republican, of Indiana previously had moved to increase the Trammel amend. ment from 15 to 25 per cent. The ad: ministration amendment, it was stated, would have brought an increase in vet- erans’ compensation to approximate $40,000,000. 5 . The roll call vote suspending the rules to clear the way for consideration of the Trammell amerdment follows: To suspend the rules: Democrats — Ashhurst, Bachman, Black, Bone, Bulkley, Mrs. Caraway, Connally, Copeland, Costigan, Duffy, Erickson, Fletcher, George, Gore, Loner- gan, Long, McCarran, McGill, McKellar, Neely, Overton, Pope, Reynolds, Russell, Stephens, Thomas of Utah, Trammell, Vn:l:, Nuys, Walsh and Wheeler. Total Republicans—Austin, Barbour, Borah, Capper, Carey, Couzens, Cutting, Dick- inson, Frazier, Goldsborough, Hale, Hat- field, Hebert, Johnson, Kean, Keyes, McNary, Metcalf, Norris, Patterson, Reed, Robinson of Indiana, Schall, Stei- Vandenberg, Walcott ana White. Total—28. Farmer-Labor—Shipstead. Total to suspend the rules—59. Against—Democrats, Bratton, Brown, Bulow, Byrd, Byrnes, Clark, Coolidge, Dieterich, Glass, Harrison, Hayden, Kendrick, King, Lewis, Robinson, Ar- kansas; Sheppard, Thomas, Oklahom: Thompson, Tydings and Wagner, Total, 20. Republicans, Fess, 1. Total against, 21. This being more than the two-thirds majority required to suspend the rules m;de the Trammell amendment order. The movement for adoption of the Cutting amendment had gained impetus earlier when Senator Byrnes issued a statement accepting the proposal. President’s Revision. Byrnes said the revisions ordéred by President Roosevelt in the cuts an- nounced recentiy by the Veterans' Ad- ministration would provide for the same amount of additional funds as provided by the amendment and therefore he had no objection to it. The independent offices measure car- ries appropriations of $231,730,000 for pensions for veterans of all wars, This a decrease of $361,000,000 under the current funds. A “breakdown” of the total sum tion shows only $64,902,000 has been allotted to the World War combat wounded, s decrease of $156,826,000 under the present funds and necessi- tating an lVe?e of 50 per cent cut in this class. favors the Cutting amendment, the appropria- tions for the combat wounded of the World War still would be $20,000,000 under the recommendations of the Na- tional Economy League, a leader in the campaign to bring about drastic revision in the veterans’ pension sys- tem. Resumes Speech. Senator Trammell, Democrat, of Flor- ida, today resumed his speech on his amendment offered. yesterday limiting Demand for Skilled Labor Rises in | the combatant veterans to a 15 per cent | BY the Associated Press. reduction. He assailed the American Veterans' Association for advocating in a full-page advertisement in a Wash. ington newspaper the “abusive facts t exist, in reducing this class of compensation.” Vineimia, urged {hst veberass whose dis: % veterans ! sbilities are presumed to have occurred (Continued on Page 2, Column 8.) | |GUIDE FOR READERS Page. compiled by the Veterans' Administra- |y o N\ W RN TAXPAYERS ASK REDUCTION IN PROPERTY \Vigorous Demand for Drastic Cut in Valuations Made ASSESSMENTS by Delegation of Citizens Before City Heads. In a dramatic hearing today before the District Commissioners, a dele- Pflon from the Federation of Citizens’ Associations voiced vigorous demands or drastic reduction in properly assessments, and warned of the results of a sold for non-payment of tax. ‘The hearing was in support of Y | tax strike such as occurred in Chicago or an insurmountable list of properties a resoiution adopted recently by the federation calling for a 20 per cent horizontal cut in assessed values, c! that continuation of present valuations would do a great injustice to over- burdened real estate taxpayers generally, and particularly the poor persons who can not and do not protect themselves by appeal and protest. After the sesslon, the Commissioners,, — | indicated they would take no. im- mediate action, but the matter will come up shortly since in the next week or two, the city heads will have to set the new tax rate for the fiscal year beginning July 1. Before that time, the assessor will submit to the Commissioners his final assessments for that year. The delegation drew from Willilam P. | Richards, the assessor, the statement | " (Continued on Page 2, Column 4. UPTURN IN-STOCKS CARRIED FURTHER Heavy Buying Pushes Many| Issues $1 to $3 Higher. Utilities Featured. By the Assaciated Press. NEW YORK, June 2.—Stocks stormed upward in extraordinarly active trading today, piling up many gains of $§1 to more than $3 under the force of fresh buying orders. Turnover to noon approximated 3,- 000,000 shares, or at the rate of 7,500,~ 000 shares for the full five-hour session. The largest volume so far this year was 7,198,964 shares, on April 20. Utilities, which had been lagging be- hind other groups. were taken briskly, though industrials rallfed smartly. Most cocmmodity markets. after a rather slug- gish start, joined the rise in stocks. U. 8. Steel common made a new high for the year above $54 for a net gain of nearly $2. American Telephone crossed $110 and was up $1.50. Allied Chemical jumped almost $3 to $125, while Public Service of New Jersey advanced more than $3 to above $52. General Motors, New York Central, International Tele- phone, North American, U. S. Smelting and Consolidated Gas rose $1 to more | than $2. Radio was very active, reach- ing a new high. Sugar was one of the strongest staples. Wheat improved after early sluggishness, while cotton converted moderate losses into net gains of around 50 cents a bale. News of the day included word that the Federal Reserve credit expansion pre through purchases of United States Government securities had con- tinued in the past week, when the twelve regional ks increased their dings by almost $28000,000, or slightly more than in the previous week. The system's gold ' reserves reached a record high at $3,519,898,000. A rise of $72,000,000 in brokers’ loans attested to the speculative interest in SRR L SRR JOE WEBER AND WIFE HURT IN AUTO CRASH Famous Comedian Seriously In- jured When New York Cab Hits Elevated Pillar. NEW YORK, June 2.—Joe Weber, 65-year-old comedian of the famous team of “Weber and Fields,” and his wife, Lillian, were seriously injured to- day when their taxicab ran into a steel pillar. ‘Weber and his wife were taken to Mount Sinai Hospital, w] doctors comedian suffered internal in- BANWILL BE ASKED Roosevelt Promises Mora- torium When Congress Acts on Mortgage Bill. By the Associated Press. President Roosevelt advised Repre- | sentative Hartley, Republican, of New | Jersey, today he would call for a mora- torfum on home mortgage foreclosures as soon a§ the home loan mortgage bill is approved by Congress. The measure has passed the House and Is now awaiting Senate action. In a letter to Hartley, the President sald he would take the same steps toward stopping foreclosures on small homes that he did to check foreclosures on farms immeidately after the passage of the farm mortgage bill. “The moment the bill comes to me for signature, I shall make a public appeal to mortgagees not to foreclose until the machinery can be put into 9pgration” the President's letter sald. lea seems oMy plea geems ¢ working well in PUBLIC DEBT RISES T0 $21,835,385,981 $2,798,000,000 Increase Shown Last Year—Income Taxes Continue Decline. By the Associated Press. The national public debt increased !during May to $21,835385,981, com- pared with $21,441,209,176 at the end of April and $19,036,916,646 on May 31 a year ago. The $2,798,000,000 increase last year brought the total debt closest to the highest point it has been in half a decade. On August 31, 1919, the debt reached its highest point, $26,596,701,648—and compared with a debt of $1,282,044,346 on March 31, 1917, On May 31, the Government had a deficit for the 11 months of the 1933 fiscal year of $1,684,232,719. During the period, it had collected from all sources $1,793,267,654 and had spent $3,477,- 50%_%74. i e collections totaled slightly more than in the same period. of l&ytyur when they amounted to $1,770,269,398 e Rl i f X a ago, W 2 it had a of $2,684,950,446, * Government’s HOME FORECLOSURE £ Yesterdey’s Circulation, 119,844 UP) Meane Associated Press. ETIN utt T 22 e MITCHELL ADVANCE UNREPORTED TO U, National City Witness De- scribes $666,666 Payment to Banker. By the Associated Press. NEW YORK, June 2.—Frank J. Ma- guire, assistant secretary-treasurer of the National City Co., told a Federal jury today that the company did not report either to the Internal Revenue Department or to the State Income Tax Bureau in Albany payment of $666,- 666.67 on July 1, 1929, from a manage- ment fund to Charles E. Mitchell. under -examination TS e the company and of the National City on of income tax evasion, company now in at the trial, was paid out July 1, 1929, to 11 officers. Questioned by Max D. Steuer, Mitchell's chief counsel, called as a Government witness, identified to- day a statement he sent to Mitchell in January, 1930, to the effect that the company was to Wi :nd to Albany it had ing 1 he said, included Mitchell’s salary and & management fund payment in Jan- uary, 1929. “Did you receive any direction from Mr. Mitohell on how much to report for him?” Steuer asked. “No. sir,” the - witness replied. “I never had a word with Mr. Mitchell re- garding any tax matters.” Minutes of directors’ meetings identi- to the jury in December, , ted a reso- lution stating that the $1,860,000 had been advanced by the company to its officers and was to be repaid by them out of future management fund dis- tributions. Another record read to the jury yes- terday by George Z. Medalie, Federal prosecutor, after it had been identified by Maguire, indicated that last Decem- ber the directors, aftér having relieved one officer of repayment because of “special services,” wrote the rest of the $1,860,000 off on the books under include payment to the i1 officers of the $1,860,000 but, on ob- jection from Medalie, was not permitted to tell the jury what Forbes had said. TINKHAM DEMANDS RECALL OF DAVIS Massachusetts Republican Charges Ambassador With “Duplicity and Fraud.” . By the Assoclated Press. Representative Tinkham, Republican, of Massachusetts, on the House floor today charged that Norman H. Davis, “American Ambassador-at-large,” had “dealt in duplicity and fraud for his own. benefit” and .demanded his recall as United States representative at Geneva. He recalled that Representative Tread- WAy, Republlgtn, of Massachusetts, in a TWO CENTS. MORGAN & CO.MADE PROFIT ON' SHARES TAKEN T0 SUPPORT CRASHING MARKET Hearing Recessed When Pecora Questions T. S. Lamont on Sales Believed Related to Income Tax. PARTNER IS GIVEN TIME TO PREPARE ANSWERS Whitney Describes How Bankers Worked Together in Effort to Halt Fall of Prices Late in 1929, but Objects to Use of Word “Pool” in Inquiry. By the Associated Press. The Senate investigation of J, P. Morgan & Co. was abruptly re- cessed today until Monday after John W. Davis, counsel for the firm, protested against a question directed at Thomas 8. Lamont, junior partner, apparently relats ing to his income tax return. The protest arose shortly after George Whitney, another Morgan partner, had given the inside story of huge market operations to stem the market fall of late 1929— operations consisting of a seven- member banking pool with $250,- 000,000 to invest that profited the Morgan firm more than $1,000,000. ‘The objection to the questioning of Lamont came when the white- haired Davis, former presidential candidate, lcaped to his feet after Ferdinand Pecora, the committee counsel, called Lamont to the stand and asked him about sales of stock December 30, 1930. Davis Protests. “This is not fair play,”, Davis pro- tested, asserting that Lamont had not Chairman Fletcher finally ruled the question was pertinent. Lamont then said he did not recol~ lect about the sales and he was directed to look them up over the week end. Fletcher for a Monday be- curred. He was the third Morgan partner to be examined. . The question which started the dis-" pute was an inquiry by Pecors to La- mont whether he remembered he sold on December 30, 1930, the follow- blocks of 3 ,000 Shamrock Oil and Gas. 500 State Street Investment Co. 350 Investment Corporation of Phil- -adelphia. 1,000 Simms Petroleum. Pecora Won’t Explain. After the recess was taken Pecors refused to reply to questions from news= paper men whether the question had any connection with the question of in- come taxes. Previous testimony before the com- mittee had disclosed that the 20 Morgan partners paid a total of $48,000 income tax in 1930. Althcugh he was excused as a witnesg today, J. P. Morgan told reporters: “I think I'd like to see the end of this. {zl:knlt‘)l certain, but I think I'm coming He hasn't testified since the first two days of the inquiry. The partrers instructed to return in- cluded Whitney, Thomas W. and Thomas S. Lamont, Arthur W. Ander- son, Harcld Stanley and William Ewing. In regard to the market pool Whitney testified that although loss had been ex- pected, the 1,146,609 shares purchased were sold for $1,067,355 more than the cost, exclusive of interest. Bought 1,146,609 Shares. The massive purchases lasted some three weeks. It ended, as I recall, on November 11,” said Whitney quietly, while ears were strained throughout the large, crowded room to hear. Leading up to his story in answers to Pecora, the witness related how his brother Richard, then vice president and now ident of the New York Stock Ext had “come to see us pri “How much did Couzens, Republican, asked, “We bought 1,146,609 shares, ney replied, “at a cost of $137,752,705. s sold out in 1930 for $138,820,- “How was the profit divided?” Couzens wanted to know. “Among' us according to participa- ,” Whitney said. “We entered this operation without thought of profit. We expectéd to take a loss and at one flm“ our book loss was $40,000,000.” _“Why did you take such a large loss Anaconda Mining Corporation?” of " Whit- “We are rather gunshy of the word, used ," he smiled.