U.S. BANK INQUIRY

Hokitika Guardian, 27 May 1933, Page 5

U.S. BANK INQUIRY

VAST BUSINESS ' INTERNATIONAL TRANSACTIONS, (Ur'ted Press Association—By Electrh Telegraph—Copyright.) WASHINGTON, .May 25. At the Senate Commreion inquiry regarding the John Pierpont Morgan Banking Company, one partner, Mr Whitney testified that among tne foreign financial arrangements was. provision for .revolving funds for Governments and banks, the leading item being two hundred million dollars for Great Britain, for which Morgan’s Company received 11,940 dollars, being their share of the' one per cent, commission, and five hundred thousand dollars for arranging the transaction. . The Bank of (Rome revolving fund totalled twentyfive -million dollars, or five m’llions sterling. ; The 'commission }vas 1.) per cent, and Morgaln’s received £ per cent. >for managing -credit. The Bank of Sp’in ‘got fifty-eight million and the 'Yokohama specie bank, got .twentyfive million on terms similar .to those extended-to Britain.

The immense ramifications ~-of the underwritars of the Morgan firm were disclosed by Mr Whitney, He stated since 1919, a total of 6024 million dollars worth of stocks ,and ... bonds had (been floated, 2232 million dollars of which were foreign obligations. It is interesting to note, while of these foreign securities to date, only thirteen per cent, are below Lheir issue price and' there' have been no defaults, the principal ' domestic, issues, namely railway bonds totalling 1845 million dollars showed one-thivd depreciation and seven per cent, of defaults.

Mr Morgan } during the day is-, sued a statement that, under the English law; he had.paid seven thousand pounds sterling in income taxes in 1930, 1931. arid 1932. but also'explaining that if .the English,rates and system had been- tfeo same as.the American rateig ,and system, he would have. .been compelled to . pay much less taxes in America in 1929; ' '. .

MR WOO'D lN ATTACKED. jo J 1 ■ ; Washington, May 2s. Senator Robinson, Repub lican expressed the opinion in the Senat to-day. that “the usefulness of Mr Woodiii as, secretary of the Treasury Lagended,” 'as' the'' result of j the linking of his name witn stockoffering's of thejMorgan firin'.' ' / . INVASION'pFINCOME-TAI. * . : vWASHINGTON;" Hay’' 25:"" '■lnvestigation was o r &®s. e ,4• • the House Ways and Means Committee,' into the gains and provisions, of income tax lawsL.with j, view to 'correcting by a clause to be in* in the,, .public,/ works Industrial •control Bill, c the j,condition which, permitted the M : organ,.C om P.. a l i y W avoid income tax paymgn.t l 5 bipthe - last two years. A. ' appoint* ed to draft the, clause, y ... INCOME-fAX. LEGISLATION (Received this day at 9.50 a.m.) WASHINGTQN,May 26.,, A clause limiting - deductions in respect of capital losses to one year for income tax returns, was approved by the House Ways arid Means Committee to-day.