Pugilists go into training before fights, and wise bankers go into training (of mind and memory) before being haled before an inquisitive committee of Congress. Last week Kuhn, Loeb partners were brushing up for an ordeal before the Senate Banking and Currency Committee, brushing up, packing their records and their clothes for an extended stay in Washington.
Only a few Kuhn, Loeb partners were, however, able to brush up their memories. For the first noteworthy fact about Kuhn, Loeb today is that of its eleven partners only two were members of the firm prior to 1928: Felix Warburg, elected 1896, now active only in an advisory capacity, whose chief concern today is with the long tier of filing cabinets containing the desiers of his numberless charities which stand behind his desk in the K. L. office; Otto Kahn, elected 1897, diplomat of the firm, whose numerous public and private appearances, not to mention ill health, have in recent years reduced his time on the job.
In one respect therefore the Senate can question only the shadow cast by the banking house founded by two solid commission merchants from Cincinnati, Abraham Kuhn and Solomon Loeb—the house reared to greatness by great Jacob Schiff who died in 1920.
But the old house survives in something more than name for it has always been a family firm. The House of Morgan until, very recent times selected practically all its partners from outside its family. Kuhn, Loeb pursued just the reverse policy. Felix Warburg was son-in-law of Jacob Schiff. Otto Kahn was son-in-law of the late Abraham Wolff (one of the early partners). Since 1931 Felix Warburg's wisecracking Son Frederick, Otto Kahn's twice-married Son Gilbert, have been members of the firm. And Jacob Schiff's Grandson John, only 26 years old, became a partner, succeeding soon afterward to the large interest in the firm held by his father, the late Mortimer. Another partner is Lewis Lichtenstein Strauss (pronounced Straws) son-in-law of Jerome J. Hanauer who was one of the pillars of the firm till he retired last January.
These young men, still in their twenties and early thirties, can do little to carry on the continuity of the firm's experience. Today that continuity rests more upon non-family members. One of them is Sir William Wiseman (loth scion of a Baronetcy founded in 1628) who came to the U. S. as chief of the British Military Intelligence during the War, became intimate with Col. House, served as British adviser at Versailles. He has been with K. L. since 1921 although only made a partner four years ago. Another is George Wallace Bovenizer (a partner since 1929) the affable head of K. L.'s bond business, whose personal popularity has brought the firm much business.* Still another is Benjamin Buttenwieser, manager of the firm's syndicate department, with the firm since 1918 but made a partner only since 1932. On these non-family members the brunt of the investigation is expected to fall.