Indianapolis Times, Volume 45, Number 18, Indianapolis, Marion County, 1 June 1933 — Page 3

JUNE 1, 1933

QUIZ TO TRACE J. P. MORGAN'S POLITICS PATH Pecora Prepares Powerful Attack on Defense of Cut-in Lists. BY RAY TUCKER Tlmr Special Writer WASHINGTON, June I—Ferdinand Pecora is preparing a powerful attack on the defense of the Morgans’ cut-in lists presented so vigorously by George Whitney, partner in the Wall Street firm. Whitney, a capable financier of only ten years’ experience with the Morgans, has given hours to explaining that the special allocation of stock to politicians and prominent industrialists at bargain rates was not an effort to buy influence or favors. He has insisted that they were straight business transactions in an attempt to underwrite gigantic flotations. Privately and publicly, the young partner, said to be the firm's “coming man,” has begged his hearers to believe this theory. But Pecora and his aids are understood to feel that Whitney “outsmarted” himself several times, and that his explanation needs explanation. Doubt Politics Link Denials Several committee members openly show disbelief in the argument that the ground-floor rates had no connection with the past or future political influence of the men benefited. The case of General John J, Pershing is believed to break down the Whitney argument, which was that the allocations were made to who knew the risks they were taking. and had plenty of funds to take a chance. General Pershing, according to the witness, got to know several partners well during the war. After the war he asked them to look after his investments, “as he did not know' much about business.” This is held to weaken the contention that these “inside” investors fully were aware they were taking a chance. Why “Friends” Took Risks When Whitney first told of these cut-ins, he referred to recipients as “friends.” The letter to John J. Raskob said they wanted him to know “we are thinking of you.” After sensing the bad impression the revelations had made on the public mind, Whitney described the favors as a regular part of the “underwriting game." Now Pecora wants to know why “friends” were subjected to risks. Whitney also said the men rereiving these stocks were supposed to hold them as an investment. They were not handed out, h- insists, so that the beneficiaries could sell immediately, and take a profit. But the letter to Raskob emphasized that “there are no strings to this offer,” meaning the securities could be sold at any time. The same letter took pains to point out that the stock was selling at a much higher figure. Skepticism Is Voiced Senator Robert R. Reynolds (Deni., N. C.) showed great skepticism at the insistence that there was no connection between high finance and high politics in these arrangements. He developed that some recipients were in office at the time, others had been, and it was likely that others would be. He also described the politicians who benefited as “semi-public officials” then exerting great influence in framing party platforms and molding opinion. Whitney made no denial of this, but added that it did not destroy his original contention that “only one (Dwight Morrow, then ambassador to Mexico) was in public office when placed on the list.” Sensational Developments Seen Pecora also drew admissions from Whitney that Morgan’s ownership of large blocks of stock in numerous corporations gave him nominal control. The partner conceded that 20 per cent ownership furnished a “good jumping-off place toward control.” Questioning returns again and i again to these two points—the alleged Morgan control of American economic and political life. With more sensational revelations expected, it is understood Pecora plans to paint a picture of a Morgan financial hegemony still only hinted at.

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•STRANGEST HOUSEHOLD - BREAKS UP

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What has been described as the ] “strangest household in Hollywood” has broken up. . . . Stanley j

M'NUTT WORKING ON INSTITUTON SETUP Governor May Wipe Out Old System, He Hints. Governor Paul V. McNutt will abolish the present system of bipartisan trusteeship for state institutions as part of his governmental reorganization plan. He declared today that he isl studying what he hopes will be a j “more effective and less costly set- | up.” Details of the new' plan have not | been worked out, but under the reorganization law r all trustees will be discharged automatically July 1. | The Governor indicated that he j may reduce membership and retain ] certain of the boards, or consolidate them under penal, benevolent, hospital and other such groupings. Each would function under a single board, rather than the four member board for each separate institution. 50 GARMENTS STOLEN FROM CLEANING FIRM; Branch Store Broken Into by Burglars During Night. Clothing of undetermined value w r as the loot of burglars Wednesday night from a branch of the Sunshine Cleaners, 418 East Twentyfifth street. Early check showed fifty garments missing, according to Lawrence Barrow', R. R. 5, Box 183, but he w'as not able to give an estimate of value. Diamond rings valued at S3OO w'ere stolen from the home of Miss Margaret Buhler. 3702 North Illinois street, apartment 308, by a burglar who opened a service door by breaking the lock. Loot valued at S2OO, including a typew'riter, tw : o w'atches, radio set and clothing was stolen from the home of Frank. Argast, 3642 Park avenue. U. S. ATTORNEY TO MOVE TO WAYNE Offices to Be Tak i from South Bend, Fleming Announces. I!II l nited Press FT. WAYNE. Ind.. June 1.--Offices of the United States attorney for the Northern Indiana district will be moved from South Bend to Ft. Wayne. Announcement of the proposed change came from James Fleming, whose appointment as United States ; attorney for the northern district, is j expected to be confirmed by the sen- j ate soon. Fleming denied reports that the j headquarters of Judge Thomas W. Slick and the United States marshal | would be moved. Both are at South j Bend. i

Adams, singer and pianist, had been living under the same roof with Lillian Kennedy Adams, his first wife, and Aimee Rozelle Adams, his second wife, in the Beverly Hills mansion of Claire Adams, daughter by the first marriage, who w'as a stage and screen star. . . . But after some months all agreed the unusual arrangement wouldn’t work. Claire and her mother, pictured above, now' live alone at Beverly Hills. . . . Adams and his second wife, shown below', have a small apartment.

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THE INDIANAPOLIS TIMES

THIRD PLACE IS GIVEN MOORE IN SPEEDWAY RACE Protest Made in Behalf of Chet Gardner Rejected by A. A. A. Officials. After more than three hours of arguments and rechecking of the timer's tape. A. A. A. officials today confirmed Lou Moore as winner of third place in the 500-mile speedway grind here Tuesday, and Stubby Stubblefield retained fifth. An official protest was launched against Moore by Alden Sampson, \ owner of car No. 21, which Chet Gardner piloted to fourth place. Sampson claimed the extension on Moore's exhaust pipe dropped off late in the race. W. D. Edenburn, chief steward ol the race, and Colonel W. Guy Wail decided the A. A. A. rules provided j a car must have an exhaust pipe extending beyond the driver's seat at the start of the race, but made no provision for disqualification of the car if the extension dropped off during the speed grind. Sampson's protest against the time of Moore’s car was not sustained by the official tape, which gave the smiling Californian's time as 4:55:16.79 and Gardner's as 4:56:29.71. Art Rose protested the time of Stubby Stubblefield, who finished fifth. The check revealed Stubblefield's time as 4:57:43.82, with Rose's car, driven by Dave Evans, exactly one minute behind. Odie Porter, chief timer, and his assistant, Chester Ricker, unreeled the official tape from the start of the race until the finish as the drivers and owners involved in the dispute checked against each other during the arguments. The two official protests forced cancellation of the annual drivers' banquet and awarding of speedway and accessory prizes, scheduled at the Indianapolis Athletic Club Wednesday night , ay inning drivers were to receive their checks at 3 p. m. today at the speedway office.

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