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A parallel exists between the Pujo investigation of 20 years ago and the Senate's current investigation of stock markets and bankers. Though it had no direct connection with the Federal Reserve Act, the "Money Trust" inquiry helped to build up popular sentiment which led to the later passage of that fundamental law. The Senate committee's current disclosures are counted on by President Roosevelt, who personally turns startling evidence on & off for the best public effect, to do the same thing for his banking reform program. Lawyer Untermyer was back in Washington to help draft an Exchange Licensing Act for which he had been working ever since the Pujo investigation.
Last week the possibility developed of Mr. Untermyer's again examining another John Pierpont Morgan on a Congressional witness stand. The Senate committee, now tracking down private bankers preparatory to making public spectacles of them, pondered the idea of making Mr. Untermyer its advisory counsel. Its regular counsel, Ferdinand Pecora, was dispatched to the House of Morgan with a set of questions. Some were answered but on questions relative to capitalization John William Davis, Morgan attorney, raised technical objections as to the Senate's jurisdiction. Mr. Pecora sped back to Washington where the committee promptly prepared a resolution whereunder the Senate would grant it unquestionable power. Mr. Morgan & partners were advised to stand by for a hurry-up call to the Capitol.