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PHONE LEXINGTON 2-5780 NOVELTY M c K E N D R I C H R « I M P O R T E E UTO S A CODES D C O N V E R & T E C O . R S BROADWAY N E W COMMERCI X B E L L DECORATIONS Y O R E USED: CABLE J A D AL-BENTLEY'S UNIVERSAL ADDRESS: R 1 C K E N N E W YORK September 30, 1941 Mariner S# E c c l e s Chairman o f the Board o f Federal Reserve System Washington, D* C# Governors Dear S i r : I have read with much i n t e r e s t the r e p o r t in the morning papers o f your o p p o s i t i o n to the plan suggested by Mr. Morgenth.au> o f l i m i t i n g p r o f i t s o f Corporations to 6% and f e e l that you are to be complimented on the stand you have taken. I f e e l that the plan suggested by Mr. Morgenthau would work g r e a t hardship on thousands of people who have t h e i r l i v e s savings invested in s e c u r i t i e s of d i f f e r e n t companies, who in the years o f d e p r e s s i o n were compelled to cut t h e i r dividends or suspend them e n t i r e l y f o r a w h i l e , and now that business has improved and the companies have an o p p o r t u n i t y t o make up f o r some o f t h e i r l o s s e s and the s t o c k h o l d e r s perhaps get a bonus, i t seems most unreasonable and unwise to even suggest such a plan as Mr. Morgenthau has s e t b e f o r e the p u b l i c . The very suggestion o f i t upsets the minds of the p u b l i c , causes them to d i s p o s e of some o f t h e i r h o l d i n g s and c r e a t e s cahos in general* Why men in p u b l i c o f f i c e w i l l suggest such unreasonable things i s beyond c o n c e p t i o n , and in my o p i n i o n shows a lack of the sound judgment our p u b l i c o f f i c i a l s should h a v e . T h e r e f o r I take t h i s opportunity of thanking you and complimenting you on the stand you have taken. James McKendrick JMcK:g October 3, 1941. Mr, James McKendrick, McKendrick, Bell & Company! 1170 Broadway, New York, New York. Dear Mr. McKendrick: This is to thank you for your letter of feepteaber 30 regarding my testimony on the price control bill.while I have not had an opportunity to discuss the matter with Secretary Morgenthau and would not venture to \ speak for him, i t i s my impression that his suggestion was mis- » 1 ) construed and that he was speaking <fiSrEtra~"~ge^ in which I heartily concur, that Corporate profits should be held down to a minimum in this emergency or that, generally speaking, Government tax policy should be so designed as to recapture a substantial part of the sums expended for defense purposes. I certainly would not wish to take the position that restraint should be exercised by or be put upon labor, agriculture and other groups unless similar limitations are put upon business profits. Accordingly, from the outset I nave contended that business, i t s e l f , should take the lead because it has the niost at stake and the most to defend in advocating rigid limitation of defense profits - of course, on a reasonable and equitable basis. I appreciate having your comments. Sincerely yours, M. S. Eccles, Chairman. ET cm
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