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STOCK EXCHANGE PRACTICES
INDEX TO HEARINGS
BEFO RE TH E
COMMITTEE ON BANKING AND CURRENCY
UNITED STATES SENATE
SEVENTY-THIRD CONGRESS
SECOND SESSION
ON
S. Res. 84
(72d Congress)
A R E S O L U T IO N TO IN V E S T IG A T E P R A C T IC E S OF S T O C K
E X C H A N G E S W IT H R E S P E C T TO T H E B U Y IN G A N D
S E L L IN G A N D T H E B O R R O W IN G A N D L E N D IN G
OF L IS T E D S E C U R IT IE S
AND
S. Res. 56 and S. Res. 97
(73d Congress)
R E S O L U T IO N S TO IN V E S T IG A T E T H E . M A T T E R OF B A N K
IN G
O P E R A T IO N S
AND
P R A C T IC E S ,
T R A N S A C T IO N S
R E L A T IN G TO A N Y SA LE, E X C H A N G E , P U R C H A S E ,
A C Q U IS IT IO N , B O R R O W IN G , L E N D IN G , F IN A N C IN G ,
IS SU IN G , D IS T R IB U T IN G , O R O T H E R D IS P O S IT IO N
OF, O R D E A L IN G IN , S E C U R IT IE S O R C R E D IT B Y
A N Y P E R SO N O R F I R M , P A R T N E R S H IP , C O M - *
P A N Y, A S S O C IA T IO N , C O R P O R A T IO N , OR
O T H E R E N T IT Y , W IT H A V IE W TO R E C O M
M E N D IN G N E C E S S A R Y L E G I S L A T I O N ,
U N D E R T H E T A X IN G P O W E R O R
O TH ER FED ER AL POW ERS
Printed for the use o f the Com mittee on Banking and Currency
U N ITED STATES
G OVERNM ENT PR IN T IN G OFFIC E
60CC4
W ASH IN G TON : 1941
C O M M IT T E E O N B A N K IN G A N D C U R R E N C Y
DU N CAN U. F LE T C H E R , Florida, Chairman
P E T E R N O R B E C K , South Dakota
PHILLIPS LEE GOLDSBOROUGH, Maryland
JOHN G. TOW N SEND, Jr ., Delaware
F R E D E R IC K C. W AL C O T T , Connecticut
R O B E R T D. C A R E Y , Wyoming
JAMES COUZENS, Michigan
F R E D E R IC K STE IW E R , Oregon
H A M ILTO N F. KEAN , New Jersey
C A R T E R GLASS, Virginia
R O B E R T F. W AG N E R , New York
A L B E N W. B A R K L E Y , Kentucky
R O B E R T J. B U L K LE Y , Ohio
TH OM AS P. GORE, Oklahoma
E D W A R D P . OOSTIGAN, Colorado
R O B E R T R . R EYN OLDS, North Carolina
JAM ES V. B YR N E S, South Carolina
JOHN H . B A N K H E A D , Alabama
W IL L IA M GIBBS, M cADOO, California
A L V A B . AD A M S, Colorado
Wmj
R. H. Sr.
S u b c o m m itte e o n
L. H ill, Clerk
m a n , Acting Clerk
S to c k E x ch a n g e P r a c tic e s
D U N C A N U . F L E T C H E R , Florida, Chairman
C A R T E R GLASS, Virginia,
A L B E N W . B A R K L E Y , Kentucky >
E D W A R D P. OOSTIGAN, Colorado
▲LVA. B. A D A M S, Colorado
i Alternate, Thomas P. Gore, Oklahoma.
* Alternate, Phillips Lee Goldsborough, Maryland.
n
0
P E T E R NORI3ECK, South Dakota >
JOHN G. TOW N SEN D, Jb „ Delaware
JAMES COUZENS, Michigan
INDEX TO HEARINGS ON STOCK EXCHANGE
PRACTICES
[Page number references to hearings held during the Seventy-second Congress
are preceded by an asterisk (*). Page number references to hearings held dur
ing the Seventv-third Congress do not carry any sym bol. Page number refer
ences to the appendix are preceded b y a number sign (#).]
A
A b b o tt , G a r d n e r :
D irector of Higbee C o_________________________________________________ 8212
Representative o f Van Sweringen interests____________________________ 8903
A b bo tt , H oppin & C o .: Stockbrokers__________________________ 6115-6116, 6127
1537
A bbott T rading C o .: Dillon, Read & Co., stockholder of_______________
A c c o u n ta n t s (see also Audits, auditing, and au ditors):
Akt.iebolaget Industribyran (S w e d is h )..______ ________ _____ _________ *1232
Ernst & Ernst_____________________________________________ l ---------------- *1249
Hopson, H. C _____________ __________ ______________________ __________
2139
Sweden, in: Aktiebolaget Industribyran______________________________ *1232
Acm e M o t io n P ic t u r e P r o j e c t o r C o. (see also Clarke Acm e M otion
Picture Projector C o .):
Cine M achinery Corporation, offer to, for sale of assets_____ 3166, 3170-3171
International Projector Corporation, Acm e M otion Picture Projector
Co., stock taken over b y ___________________________________________
3166
3166
M otion-picture machines, manufactured b y __________________________
A dam s , A lva B. (Senator): Securities Act, alibi, use o f as, suggestion by__ 4123
A dams , C harles F r a n c is :
M organ, H enry S., father-in-law o f -------------------------------------------------- 142, 178
M organ, J. P., & Co. preferred lists of:
M em ber o f ____ _____ _________ _________________ _____ 138, 141, 142,178
M embership in, would n ot interfere with duties as Secretary of
N avy, in opinion o f____________________________________________
178
Secretary of N avy, form er__________________________________________ 142,178
A dams , C harles H .:
Bank o f Hamtramck, name of as proposed director, substituted for
M anning’s in letter to L o r d ..__________________________________ 5033-5034
Reason for, given by Lord-------------------- -------- -------------------------------------- 5034
A dams , F. B .: Air R eduction Co., syndicate, participant in _________________
*325
(See Air R eduction Co., syndicate.)
A ddinsell , H arry M .:
Testim ony o f _____________________________________________________ 3929-3935
Chapin, cable from, away when received--------------------------------------------- 3930
D etroit & Canada Tunnel Co., statement that interest charges on first
mortgage bonds covered at twice rate of—
Correction, none sent_____________________________________________ 3934
N ot defended b y _________________________________________________
3933
W eighted out of proportion____ _____ _______________________ 3933, 3934
A d ler , C oleman & C o .: Adler (Paul) m em ber o f __________________________
6792
A duesr, P a u l ; Specialist on New Y ork Stock Exchange____________________
6780
Adler, Coleman & Co., m em ber o f _______________________ _____________
6792
Testifies (Securities Exchange A ct o f 1934)______________________ 6792-6793,
6795-6796, 6799, 6803, 6811-6824
X
2
INDEX TO HEARINGS ON STOQK EXCHANGE. PRACTICES
A d v e r tis e m e n t (see also Newspapers, p u b licity ):
Page
Associated Gas &■Electric Co., debenture holders, protective com m ittee
of, advertised in New Y ork Tim es____________________________ 1775 et seq.
New Y ork Stock Exchange member, by. (See N ew Y ork Stock
Exchange.)
Private banks not perm itted in New Y ork to hold selves ou t as
depositaries_____________ ____________________________________________
5
United Corporation’ s public announcement o f issue____________ 365 et seq.,
379, 384, 386, 410
United States & Foreign Securities Corporation, stock of, sale o f _ 1587 et seq.
A e tna I nsurance C o . of H a r t f o r d :
Directors o f____________________________________________________________
29
Subsidiaries o f Century Indem nity Co., W orld Fire & Marine Insur
ance C o ----------------------------------------------------------------------------------------29
A ffiliated P roducts , I nc . : Options in stock of, granted by J. R. W illiston & Co. to Charles C. W right----------------------------------------------- 6134-6135, 6158
A f f i l i a t e s (see also Under investm ent affiliates):
Trading and pool operations in capital stock o f parent bank, by.
(See Banks, capital sto^k, trading, and pool operations in, of
parent, b y affiliates.)
A griculture :
Depression:
Effect of, o n ____________________________________________________ _ *1993
Cure for, in remedying conditions of farmers_____________________ *1930
International trade, stimulation of, essential to revival o f prices
in, testifies R ichard W hitney_____________ •__________ ______________ _ *2240
Prices in, lowered because o f rise in rates of railroads, states Senator
B rookhart_________________________________•__________________________ *1993
Prices in, revival of, dependent on stimulation o f international trade,
testifies Bichard W hitney------------- ----------------------*_____________._____ *2240
Railroads, rise in rates of, cause o f lowering o f prices in, states Senator
Brookhart_____________________________________ ____________i : _______ *1993
A h ls tr o m , N ils (Kreuger & T oll C o .):
•'
D irector o f ___ _________________________________________________ ________ *1345
'
President o f-------------------------------------------------------------------------------------------- *1345
A ik e n : V ice president and com ptroller Chase N ational Bank, figures
prepared by, introduced_______________________________ _ 2314-2317, 2319, 2355
“ A
ir
P
ocket^
*
Defined (by Richard W h itn ey)__________________ _____________________
*256
M organ, J. P., & Co., suspense account attem pted to prevent, testifies
George W hitney ^_____________ __________ _______,____________________
*542
A ir R eduction C o .:
Business to reduce air into com ponent parts and sell oxygen, largely to
steel companies----------------------------------------------------------------------------------- *328
Rockefeller (Percy A .), director o f _______ _____________________________ *327
Syndicate con sistin gof Percy A. Rockefeller, F. B. Adams, and m em bers-of Shearson-H&mmill_------------------- :------------------------------- *325-331, 335
Am ount o f m oney involved Apr. 22,1932, approxim ately $600,000,
says Percy A. Rockefeller______________ ____________________ *329-330
Am ount o f shares maximum, 15,000 to 20,000, says Percy A.
R ockefeller__________________________________ ___________________ *329
Name o f syndicate, if any, not recalled b y Percy A R ockefeller. *335
Nothing done b y pool to aid itself in making a profit, says Percy
A. Rockefeller___ ______________________________________________
*327
Purposes to make a profit and to stabilize this inactive stock, says
Percy A. R ock efeller.------------------------------------------------------------ *327-328
Rockefeller’s (Percy A.) intimate knowledge as director did not
actuate syndicate’s trading, says R ockefeller_________________
*381
Shearson-Hammill managers and sole brokers________________ *330-331
Short sales not m ade b y pool, says Percy A. Rockefeller_____ *328-329
Trading since 5 or 6 years before 1932, and continuing at that
?
date, on long side, says Percy A. R ockefeller__________ *325-326, 328
A ktiebolaget I n d u strib yr a n :
Accounting firm in Sweden____________________________________________ r *1232
Akers Folkman Lawrence Co. (See also Folkm an, Joseph.)
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
3
A k tiebolaget I n du strib yr a n — C ontinued
Akers-Folkm an Lawrence C o.:
Pa^e
D irectors and officers 1929-33____________________________________ 8160
Profits turned over to Union Trust Co. as dividends------------------8145
Stock sold to Joseph Folkm an___ ___________________________ 8136-8137
Subscription for rights in stock, certificate o f opposite___________
8678
Travel Agency Bureau_________________________________8121, 8136, 8145
Union Trust Co.:
Group, one o f corporations o f ___________________________8121, 8133
Minutes of annual meeting of former drafted in advance
b y _____________________________________________________ 8259,9182
Rem oval of from nonbanking business, purpose of form a
tion _______________ ___________________________________ 8136,8145
Subsidiary, wholly owned o f ________________ 8121, 8133, 8136, 8145
A labam a P ow er C o.: Com monwealth & Southern Corporation, sub
sidiary o f_______________________________________________________________
853
A lask a D evelopm ent & M in er a l C o.:
D irectors o f__________________^ ------------------------------------------------------------30
K ennecott Copper Corporation, subsidiary o f________________________
30
A la sk a , J u n ea u :
Business is producing gold -------------------------------------------------------------------*343
P ool (1931)________________________________________________________ *261-262
Prices o f stock rose during summer 1931 when other stocks dropping,
whereas at other times stock dropped while others rose________ *342-343
Syndicate consisting of Percy A. Rockefeller, Thom as E. Bragg, and
Bernard E. Smith.
(See Lima Locom otive, syndicate, Alaska,
Juneau.)
A lask a Steam ship C o.:
D irectors o f____________________________________________________________ 30, 31
K ennecott Copper Corporation, subsidiary o f ________________________
30
A lb re c h t , C olonel : First W ayne National Bank, balance in at closing. 5651
A lcohol P oo ls :
American Com mercial A lcohol Corporation. (See American Com
mercial Alcohol Corporation.)
Libbey-O w ens-Ford Glass Co. (See Libbey-Ow ens-Ford Glass Co.)
National Distillers Products Corporation. (See National Distillers
Products Corporation, options granted to Levis; also National
Distillers Products Corporation, pools.)
N ew Y ork Stock Exchange, requested in August 1933 by Pecora to
investigate market activities with respect to alcohol stocks during
M ay, June, July, 1933, reported that there were no manipulative
activities__________________________ 5916-5917, 5979-5980, 6065, 6218-6219
Business Conduct Com m ittee reported “ no deliberate im pro
prieties” _______________________________________________ 5916-5917,
6060-6065, 6090, 6218-6219, 6612-6613, 6617-6618
Stock List Com mittee did not inquire into American Commercial
Alcohol Corporation additional listing M ay, June, 1933______
5980
A ldrich , W in thro p W illiam s (Chase National B a n k ):
Testim ony o f ________________________ 2294, 3779-3780, 3975-3997, 4015-4047
Bank affiliates:
Position on, separation of desirable, conclusion o f -----------------------4028
View on like Glass___________________________________ _____________ 4020
Bankers, tribute to, b y _______________t.------------------------------------------------- 3976
Banking A ct of 1933:
(a) Admiration for o f ______________________ ______________________
4020
D id not intend to create impression w as_____________________
4020
(b) Haphazard legislation______________ *----------------------- 4023, 4029, 4040
(c) Inconsistency between sections 21 and 32 of, opinion of__ 4029-4030,
4031-4032
(d) Provisions of, opinion on __ 4022, 4024-4032, 4040, 4042-4044-4046
(e) Provisions of forbidding securities companies to take de
posits, constitutional according t o _________________________
4030
(f) Section 21 of, assisted in drafting_____________________________ 4032
4
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A ldrich , W inthrop W illiam s (Cha3e N ational Bank)— Continued
p age
Banks:
Blame for orgies o f gambling not properly laid to according t o ____ 3991
Pecora points out error o f position____ l _____________ _____________ 3997
3997
Taken back in part b y ________ '___________________________________
Com mercial stockholders, earning a return for, approved b y ____ 3979
Dealing in shares o f own stock disapproved b y __________________
4120
D eposit guarantees of, statement on o f ______________________ 4114-4118
Interlocking directors of, policy o n _______________________________
4041
Investm ent, bringing ou t issues, should not deal in them for
others, according t o ____________________________________________ 4042
Loans by, inquiry as to purpose of, advisable,»but should not b e .
made m andatory according t o _____________________________ 4128, 4129
Officers:
(a) M ultiple em ploym ent and compensation of, statement
o n ___________________________________________4111-4112,4119
(b) Participation in syndicate by disapproved__________ 4119-4120
Profit and loss statement, current of, against publication of_ 4130, 4132
Secondary reserve o f should be in short term investments
according t o _________________________________________ 4127, 4128, 4129
Securities of, term o f should be lim ited b y statute, suggestion
o f __________________________________________________________4127-4128
Trading accounts by subsidiaries in shares of, disapproved b y . 2856-2857
Trust powers of, statement on _______________________________ 4108-4110
Branch banking, group views on o f _______________________________ 4036-4040
Definition of given b y _____________________________________________ 4041
Views o n ________________________________________________ _________
4040
Practices, regulations of various, suggested b y ______________ 3986-3988
Separation of investm ent from commercial, ad vocated___________ 3985
Statement on b y _____________________________________________ 3977-3981
Statement on o f ______________________________________________ 3975-3992
Unified system of views on cut from original statement o f offered
4035
com m ittee______________________________________________________
Chase N ational Bank:
Chairman, governing board o f________ _____________________
2294
Cuban loan by —
(a) Commission should investigate opinion o f ________._______ 2453
(b) Facts on, testified to b y __________________________________ 2452
(c) M istake to in vestig ate.___________________ ,_________ 2452,2453
(d) Newspaper reports on thought scandalous b y _____ _____
2451
(e) Suppression o f facts on, suggestion o f false, according to _ 2452
Lawyer fo r ________________________________________________________
3780
N ot connected with in 1929______________________________________
3780
Power in equal to W iggin_________________________________________
2284
President o f_______________________________________________________
2294
Clayton Act, m em orandum on history o f sections 8 and 8a prepared b y . 4033
Clearing houses, regulation of, no need for according t o ________________
4043
D eposits— interest on demand, prohibition of under Banking A ct of
' 1933, criticism of, b y ____________ ____ ________________ __________ ___
4045
General Theatre Equipment, Inc., receivership of, conferences concern
ing, w ith _____________________________________________________________ 3834
Investm ent banker, sweeping criticism of not intended b y ___________
3980
Portfolios_______________________________ _______________________________ 4134
Publication of by banks advisable at another tim e___________________
4134
Inadvisable now _____________ _________ __________ 4129, 4132, 4133, 4134
Securities A ct:
Principle of approved b y ______________________________________ _
4122
Liability, apportionm ent of to taken in, underwriting recom
mended b y ____________________________________________ 4124, 4127
Uncertainty engendered by securities, loss from , burden of
should fall on banker not investor, according t o __________ 4122,
4123, 4126, 4130
W iggin pension:
Discussed before meeting w ith _________________________ 2306-2307, 2311
V oted for b y _________________________________________________ 4017-4018
W iggin, tribute b y t o _________________ _________ _____ ________________
2304
A l e x a n d e r , E. R .:
Radio Corporation of Am erica pool (1929), participant in ____________
*470
(See Radio Corporation o f Am erica, Pool.)
A le xa n d e r H amilton I n st it u t e : Prosperity, prognostication o f for 1931- 4306
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
5
Page
A le x a n d e r , J ames S .: Pennroad Corporation, director o f________________
1336
A le x a n d e r , O scar (member of Ira H aupt & C o .)________________________ *686
Kolster R adio Co. pool of 1928, participant in_______‘________________
*555
{See K olster R adio Co., Pool.)
Lion (D avid M .) em ployed to furnish publicity on stock in which
Alexander or Ira H aupt & Co. was interested (see also Lion, D avid
M .)____________________________________________________________
*686-687
Participated in John J. Levenson’ s profits during 1929-30___________
*614
(See “ Trader,” Levenson.)
652
A lfr ed , -----------: Pere M arquette Railroad Co., president o f______________
A lger , F rederick M.
First W ayne National B ank__________________________________________
5635
D eposit in o f---------------------------------------------------------------------------------- 5639
Reduced before closing__________ _____ ______________________
5682
D irector o f ________________________________________________________ 5635
Liability to of, unsatisfactory condition of reported_________ 5635, 5636
A lgiers W inslow & W estern R. R .:
8506
Condition o f ___________________________________ ________ _______________
Enos Coal M ining Co., owned b y _____________________________________
8506
Guardian Trust Co. of Cleveland, loan by, t o ---------------------------- 8505 et seq
A ll A merican C a ble s , I nc .:
D irectors o f---------------------- ----------------------------------------- --------------------------30
International Telephone & Telegraph Co., subsidiary o f _____________
30
A ll -C ontinent C o r poration : F ox ’s (W illiam ) personal trading corpora
tion ______________ ________________________________________________ 984—985, 1098
A lle g h a n y C o r p o r a t io n (see also under M organ & Co., Alleghany Cor
poration; Van Sweringen Affiliates, Alleghany Corporation):
Baltimore & Ohio Railroad Co., railroad interests exchanged with— 567, 588
Bankers for: M organ, J. P., & C o -------------------------------------------------------546
Bonds of:
743
Com petitive bids, sold to J. P. M organ & Co. w ithout----------------Contracted to be bought and sold by J. P. M organ & C o .- 134, 135, 743
M organ, J. P., & Co., sold to, without com petitive bids_________
743
B ook value of securities o f _______________________________________ 748 et seq.
Brokers o f; Paine W ebber & C o . ------ --------------------------------------------------722
Buffalo, Rochester & Pittsburgh Railway Co., stock control of, sold
by, to Baltimore & Ohio Railroad Co. at cost____________________ 567, 588
Capital structure o f_________________________________________________ 164, 701
Cash paid to Vaness Co. for railroad securities_______ 718 et seq., 748 et seq.
Cash paid to Van Sweringens for railroad securities- _ 718 et-seq., 748 et seq.
Chesapeake & Ohio Railroad C o.:
Railroad stocks sold to, b y _______________________________________
589
Stock of, owned b y --------------------------------------------------------- 547, 747 et seq.
Chesapeake Corporation, largest stockholder o f_____________ 698, 747 et seq.
Coal as m ajor com m odity carried by railroads owned b y -------- -----------567
Com m on stock. (See under Alleghany Corporation Stock.)
Com petitive bidding not used in sale of bonds of, to J. P. M organ &
C o___________________________________________________________________
743
Consideration given by, for securities received from Van Swerin
gens_______________________________________________ 718 et seq., 748 et seq.
Contract between J. P. M organ & Co. and Van Sweringens for financing
o f ___________________________________ 133, 134, 150 et seq., 163 et seq., 183
Control b y J. P. M organ & Co. of financial policies of railroads em
bodied in ______________________________ _________________________ 738 et seq.
Control of eastern railroad lines b y ______________________________ 724 et seq.
Control of railroads through stock ownership sought b y _____________
133,
164, 170, 567, 569, 699 et seq.
Cost of securities delivered to, by Van Sweringen group_________ 746 et seq.
Directors o f_________________________________________1____ -------------------706
Van Sweringen associates as_______________________________ 706, 708, 709
Diversity in railroad holdings sought b y __________________ 567, 568, 588, 723
Drexel & Co., preferred lists of, in connection w ith .. 531-533, 822, 823, 835
Erie Railroad Co., securities of, delivered to, by Van Sweringens
through medium of Geneva corporation in exchange for securities of
Alleghany Corporation_____________________________ 747 et seq., 754 et seq.
6
IN D EX TO H EARING S ON STOCK EXCHANGE PRACTICES
A l ie g h a n y C orporation — C ontinued
p a«e
;. Financial policies of railroads em bodied in, controlled by J. P. M organ
& C o----------- ------------------------------------------------------------------------------- 738 et seq.
Financing of—
M organ, J. P., & Co., b y --------------------------------------------------------------131,
133, 134, 135, 150 et seq., 163 et seq., 183, 214, 215, 546
Morgan, J. P., & Co., b y ; activities of George W hitney_________
209
131
Morgan, J. P., not familiar t o ____________________________________
Van Sweringens, b y ___________ 133 et seq., 150 et seq., 163 et seq., 183
First National Bank o f New Y ork, participation of, in financing of__ 745, 746
First Securities Co., participation of, in financing o f -------------------------745, 746
Form ation o f____________ >_____ 131 et seq., 150 et seq., 163 et seq., 170, 183
D ate o f ___________________________ __________ _______ ______________
699
Form ation of—
Letter from Van Sweringens to J. P; M organ & C o ______ 133 et seq.,
i
150 et seq., 163 et seq., 699, 700
M organ, J. P., & Co., b y ^ ______________________ _______ 405, 699 et seq.
General Securities Corporation. (See under Alleghany Corporation,
Stock, com m on, of, General Securities Corporation; Stock of
General Securities Corporation, tax evasion.)
Geneva Corporation, form ation of, for purposes o f tax evasion in
exchange of securities_______ 676, 701, 717 et seq., 747 et seq., 754 et seq.
Purpose of:
Railroads, acquisition of control of, through stock owner
ship_________________ ________ 133, 164, 170, 567, 569, 699 et seq.
Van Sweringens’ plan for unification o f railroads, to carry
ou t________________________ 133, 164, 170, 567 et seq., 699 et seq.
Guaranty Co. o f New Y ork. (See under Alleghany Corporation
Stock, com m on, of, Guaranty C o .; Stock o f Guaranty C o .):
Van Sweringens, part played b y __________ ________________ 133 et seq.,
150 et seq., 163 et seq., 648, 699 et seq.
H igh for securities o f__________________________________________________
546
H olding com pany for railroad' stocks______________________ 405, 649, 699, 722
H olding com pany o f Van Sweringens_____________________________ 1346, 1347
Interstate Com merce Commission approves as constituent part of
one system all o f railroads east o f Mississippi R iver interests in
564
which owned b y ____________ *_______________________________________
Investm ents o f__________________________________ __________ 547, 567 et seq.,
589 et seq., 698, 718 et seq., 721 et seq., 746 et seq., 773 et seq.
Wheeling & Lake Erie Railroad Co., stock o f ________________ 1346,1347
Issue o f securities o f _________________________________ ________________ 420, 743
Joint account o f J. P. M organ & Co. and others, activities of, in
securities o f _____________________________________ , ___ 538 et seq., 545, 546
Letter o f Van Sweringens to J. P. M organ & Co. concerning for
mation o f _________________ 133, 134, 150 et seq., 163 et seq., 699, 700
Listing o f securities of, on N ew Y ork Stock E xchange. 404 et seq., 421 et seq.
L ow for securities o f ___________________________________________________
546
M arket value o f stock o f_________________ 403, 418, 421, 422, 750 et seq.
Missouri Pacific Railroad Co.:
568
Stock control of, acquired b y ________________________________ ..___
Stock of, bought by, for diversity in railroad holdings_____ 722 et seq.
M organ, J. P., & Co. (See also Alleghany Corporation, Stock,
com m on, of, M organ, J. P., & C o.; Stock o f M organ, J. P., &
Co., M organ & C o., Alleghany Corporation.)
Bankers_____________________________ ^____________________________
546
Contract of, to purchase and sell bonds and stock o f . __________ 134, 135,
150 et seq., 163 et seq., 183, 418-420
Control by, o f financial policies o f railroads em bodied in ____ 738 et seq.
Financing project o f_____ _____ ____________,__________ 131, 133 et seq.
150 et seq., 164, 183, 214, 215
Joint account of, trading by, in securities o f ____________ _
538 et seq.,
545, 546
Loans b y , to Van Sweringens to enable purchase o f Missouri
Pacific Railroad Co. securities paid w ith proceeds o f sale of
securities o f_____________________________________________________
743
Option warrants o f Alleghany Corporation given to, b y Van
Sweringens in recognition o f assistance in past transactions___
707
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
7
A lleghany C orporation — C ontinued
M organ, J. P., & C o.— Continued
Pase
Preferred list of (see also under Morgan, J. P., & Co., Preferred
lists):
\
M embers of, bought shares o f stock of Alleghany Corpora
tion at $20 a share, market price being $35 to $37________
144,
155, 156, 182, 214, 215, 403, 418 et seq., 531, 869
Sale to, o f bonds of, without com petitive bids___________________
743
Van Sweringens, sale by, to, of securities of, for $20 a share___ 749 et seq.
“ W hen issued” market for com m on stock of Alleghany Corpora
tion, not interested in, testifies George W h itn ey____________ 136, 404
New Y ork Central Railroad Co., acquisition from, of stock of Wheeling
& Lake Erie R ailroad_______________________________________________
567
N ew Y ork Stock Exchange, listing on, of securities of _ 404 et seq., 421 et seq.
Nickel Plate Railroad Corporation securities delivered to, by Van
Sweringens in exchange for its securities through medium of Geneva
Corporation_______________________________________ 747 et seq., 754 et seq.
Obligation o f Van Sweringens assumed b y _______________________ 747 et seq.
Option warrants o f :
707
Lim ited in time to 15 years from issue_________________ _________ _
Morgan, J. P., & Co., given to, by Van Sweringens in recognition
of assistance in past transactions______________________________
707
Public, not offered to, but all offered to Van Sweringens________
706
Van Sweringens, issued to, at $1 a warrant, entitling holder to
purchase 1 share of com m on stock for $30_______________ 705 et seq.,
714, 716 et seq., 747 et seq.
Organization of, b y Van Sweringens under contract with J. P. M organ
& C o _______________________________ 133, 134, 150 et seq., 163 et seq., 183
Paine, W ebber & Co., as brokers o f____________________________________
722
Pennroad Corporation:
Com petition with, in purchase of railroad stocks____________ 1346, 1347
Form ation of, by Pennsylvania Railroad Co. because of com peti
tion between Pennsylvania Railroad Co. and Alleghany Cor
poration for purchase' o f strategic railroads___ 1246, 1248, 1346, 1347
Pennsylvania Railroad Co., com petition with, for purchase o f strategic
railroads______________________ 1005 et seq., 1246, 1248, 1279, 1346 et seq.
Pere M arquette Railroad Co., stock of, bought b y _________________ 548, 653
Preferred lists of J. P. M organ. (See under M organ, J. P., & Co.,
Preferred lists.)
Preferred stock. (See under Alleghany Corporation, Stock.)
President; Van Sweringen, O. P ___________________________ 563, 564, 725, 749
Purchases and sales o f securities from date of organization to March
31, 1929_______________________________________________ , __________ 773-777
Purpose o f form ation of:
H olding com pany for railroad stocks owned by Van Sweringens
or their, corporations___________ 133, 164, 170, 567, et seq., 699 et seq.
Railroads, acquisition of control of, through stock ownership___
133,
164, 170, 569, 699 et seq.
Van Sweringens’ plan for unification of railroads, to carry ou t___
133,
164, 170, 567 et seq., 699 et seq.
Railroads:
C ontrol of, through stock ownership sought b y ____ _____________
133,
164, 170, 567, 569, 699 et seq.
D iversity in holdings in, sou ght______________________ 567, 568, 588, 723
Eastern: C ontrol of, b y _____________________________________ 724 et seq.
East of Mississippi R iver interests in which owned by Alleghany
Corporation approved b y Interstate Com m erce Commission
as constituent part o f one system ______________________________
567
H olding com pany for stocks o f _______________________ 405, 649, 699, 722
Investm ents in, o f __________________________________________ 567 et seq.,
589 et seq., 718 et seq., 721 et seq., 746 et seq.
Securities of, bought b y _____________________________________ 721 et seq.
Securities of, delivered b y Van Sweringens to, cost o f ______ 746 et seq.
Stock control of, sought b y __________ 133, 164, 170, 567, 569, 699 et seq.
Stocks of, sold to Chesapeake & Ohio Railroad Co. b y __________
589
8
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A lleghany C orporation — C ontinued
Securities of. (See also under Alleghany Corporation, Stock.)
Page
B ook value o f____________________ _____________*_________ _ _ _ 748 et seq.
546
H igh for____________________________________________ ______________
Issue o f ---------------------------------- : _______________ _________________ 420,743
Joint account of J. P. M organ & Co. and investm ent affiliates of
various banks, dealt in by, at time o f stock m arket crash. 538 et seq.,
545, 546
Listing of, on New Y ork Stock Exchange______ 404 et seq., 421 et seq.
L ow fo r ___________________________________ _______________________
546
M organ, J. P., & Co. and investment affiliates o f various banks,
join t account of, dealt in by, at tim e o f stock m arket crash. 538 et seq.,
545, 546
M organ, J. P., & C o., loans by, to Van Sweringens to enable pur
chase o f Missouri Pacific Railroad Co. securities, paym ent of,
with proceeds o f_____________________________ ___________________
743
M organ, J. P., & C o., partners of, owned b y ________________. . . 546, 719
New Y ork Stock Exchange, listed on ___________ 404 et seq., 421 et seq.
Outstand in g_______________________________________________ ^ _ ___
546
Proceeds of, used to pay loans o f J. P. M organ & Co. to Van
Sweringens to enable purchase o f M issouri Pacific Railroad
Co. securities____________________________ ______________________
743
Van Sweringen C o., purchased by, and paid for through loans
from J. P. M organ & C o .......... ..................... ............ ..................... 647, 649
Van Sweringens, issued t o ____________________________________ _ 420, 648
Securities ow ned b y _______________________ 547, 698, 721 et seq., 773 et seq.
Securities, purchases and sales of, by* from date o f organization to
M arch 31, 1929____________________________________ 721 et seq., 773 et seq.
Stock control of eastern railroad lines___________________________ 724 et seq.
Stock control of railroads sought b y _____ 133, 164, 170, 567, 569, 699 et seq.
Stock, com m on, of (see also Alleghany Corporation, Securities, stock
of):
General Securities Corporation, issued to, at $20 a share________
135,
702 et seq., 714, 750 et seq.
Guaranty C o.:
Offered b y _______ ________________ _______________ 225, 403, 419, 421
Sale to, by M organ & C o_______________ 136, 155, 214, 215, 419, 421
When issued m arket created by, fo r _________________________
155
High, low, and last sales of, from February 1 to M arch 20
1929_____________________________________________ _____________ 225,226
Stock, com m on, of:
Issue o f ___________________ 136 et seq., 155 et seq., 419 et seq., 702, 714
Last sales of, from February 1 to M arch 20, 1929_____________ 225, 226
L ow of, from February 1 to M arch 20, 1929_________ _________ 225, 226
M ajority of, held by others than members o f preferred list o f J. P.
M organ & C o --------------- ----------------- ------------------------------------ 1—
162
M arket price of, highest p e a k ._________________________ 161, 750 et seq.
M organ, J. P., & C o.:
Guaranty Co. o f N ew Y ork received from , part o f its share of,
under underwriting agreement_______ 136, 155, 214, 215, 419, 421
Issued to, at $20£a share. 135, 183, 418, 420 et seq., 702 et s6q., 714
Preferred lists of, distributed to members of, at cost ($20)
though then selling at $37 on when issued m arket— 137 et seq.,
155 et seq., 182, 214, 215, 403, 418 et seq.
Price paid by, to Van Sweringens for ($20 per share) ___ 749 et seq.
Stock, com m on, o f:
Sale o f:
General Securities Corporation, t o ___*___ ___________________
135
Vaness C o., t o __________________________ _ — ............— ______
135
Van Sweringen Bros., to __________________________________ _ 135, 421
Vaness Co., sale to, o f____________________________________________
135
Van Sweringen Bros.:
M organ (J. P.) & Co. paid to, $20 a share fo r _____ _
749 et seq.
Sale to, § f _ ----------------------------------- ------------------------------------- 135, 421
“ W hen issued” m arket for_________________ - . 136,155, 225, 419, 421, 422
“ W hen issued” market for, created b y Guaranty C o. o f New
Y o rk ......... ............ ................................................................... ...................
155
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
9
A lle g h a n y C o r p o r a t io n — Continued
Pag*
Stock of (see also Alleghany Corporation. Stock, com m on o f; Stock,
preferred):
General Securities Corporation, sold by, in 1929 at profit of
$23,000,000_________________________________ v-------------------- 750 et seq.
Guaranty Co. of New York, sold to public b y ____________ 403, 419, 421
Listed on New Y ork Stock Exchange__________ 404 et seq., 421 et seq.
M arket value o f______________________________________ 403,418,421, 422
M organ, J. P., & C o.:
Contract of, to buy and sell_______ 134, 183, 214, 215, 418, 420, 421
Distributed by, prior to listing on New Y ork Stock Ex
change_____________________________________________________
421
Sold to, at $20 a share market then being $35 to $37_______
710
New Y ork Stock Exchange, listed on ___________ 404 et seq., 421 et seq.
Public, bought b y ________________________________ 403, 419, 421, 531, 699
Subscribed to, at $20 a share_________________________ 403, 418-422, 531
Van Sweringens, issued to, in exchange for 100,000 shares of
Nickel Plate Railroad subject to debt of $1,029,000 and
440,386 shares of Chesapeake Corporation______________ 705,et seq.,
714, 716, et seq.
Van Sweringens, owned b y _______________________________________
648,
699, 705 et seq., 714, 716 et seq., 747 et seq.
“ When [issued” market* on New Y ork Stock Exchange, sold on
404,
419, 421, 422
Stock, preferred, o f: Purchased by M organ (J. P.) & C o _____ 164,419,421
Tax evasion in exchange of securities by means of form ation o f Geneva
Corporation and General Securities Corporation_________ 701, 717 et seq
Vaness C o.:
Cash paid to, for railroad securities____________ 718 et seq., 748 et seq.
718
Sale to, of securities o f ___________________________________________
Van Sweringen, O. P., president______________________________________
706
Van Sweringens (see also under Alleghany Corporation, Stock):
Cash paid to, for railroad securities____________ 718 et seq., 748 et seq.
Cost of railroad securities delivered by, t o __________________ 746 et seq.
706,
Directorships in Alleghaliy Corporation held by associates o f____
708, 709
H olding com pany o f_______________________________________ 1346, 1347
Issue to, of option warrant of, at $1 a warrant entitling holder to
purchase one share of com m on stock for $30_____________ 705 et seq.,
714, 716 et seq., 747 et seq.
M organ & Co. lent money to, to pay fo r ______________________ 648, 649
Nickel Plate Railroad Corporation securities delivered by, to, in
exchange for their securities through medium of Geneva Cor
poration___________________________ __________ 747 et seq., 754 et seq.
Obligations of, assumed b y __________________________________' 747 et seq.
Organization by, under contract with J. P. M organ & C o _______
133,
134, 150 et seq., 163 et seq., 183
Sale by, of securities of, to M organ & Co. for $20 a share___ 749 et seq.
W heeling & Lake Erie Railroad Co.:
Stock of, acquired by, from New Y ork Central Railroad C o_____
567
Stock of, acquired by, prior to acquisition thereof by Pennroad
Corporation_______________________________________________ 1346, 1347
“ When issued” market for stock o f _________ 134, 155, 225, 404, 419, 421, 422
A lle n , F rederic W .:
D irector o f Lee, Higginson & C o ______________________________________ *1150
Lee, Higginson & Co.:
D irector o f________________________________________________________ *1150
Partner o f ________________________________________________________ *1224
A llen , H arry C.: Communication re Securities Exchange A ct of 1934
critical____ _______________________________________________________________ 7412
A lle n , P hilip E.: Chase, Harris, Forbes Corporation em ployed b y ______ 4107
A llied C hemical & D ye C o.:
Capital to considerable percentage invested in securities o f other cor
porations, says William B. Cravath, disapproving_________*368-369, 370
10
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A llied C hemical & D ye C o .— C ontinued
**agre
Financing of, not done b y M organ, J. P., & C o_______________________
546
Joint account of J. P. M organ & Co., and others, activities of, in
securities o f__________________________ ,------------------------------ ------------ 539,546
M organ, J. P,, & Co.:
Financing not done b y ____________________________________________
546
Joint account of, and o f investm ent affiliates o f various banks,
activities of, in securities o f __________________________________ 539, 546
Securities of, dealt in b y joint account o f J. P. M organ & Co., and
investm ent affiliates o f various banks at time o f stock market
crash______________________________________________________________ 539,546
A llied P ow er & L ight C o .:
Com monwealth & Southern Corporation:
Merger w ith ______________________________________________ ________
360
Stock of, acquired by J. P. M organ & Co. through Allied Power
414
& Light C o __________________________________ ___________________
854
Subsidiary o f ____________________ ___ ^_____________________________
Merger of, with Com monwealth & Southern C orporation____________
360
Officers o f ______________________________________________ _______________
360
854
Subsidiary o f Com monwealth & Southern C orporation___ ____________
A llison , D. J.: Suggestion that stocks transferred at forced sale be
transferred in name of nom inee_______ ___________________________ j _ 4997-4998
A llotment C e rtific ate s :
United States & Foreign Securities Corporation. (See under United
States & Foreign Securities Corporation.)
United States & International Securities Corporation. (See under
United States & International Securities Corporation.)
A lly n , E. G.:
Option granted by, to Charles C. W right in Pennsylvania Coal &
Coke Corporation stock ________________________________________ 6119, 6154
6119
Second National Bank o f New Haven, Conn., president o f ___________
A lpen a T rust and S avings B a n k : First National Co. purchase o f
m inority stock interests in ------------------------------ -----------------------------------------5712
A ltschul , F r a n k :
Testim ony o f___ :______ 1328 et seq., 5963 et seq., 6186 et seq., 6286 et seq.
B anker.________________ ________________ _______________________________
1328
Chairman o f New Y ork Stock Exchange com m ittee on stock list- _ 1328, 1333
General Theatres Equipment, Inc., stock exchange listing:
D odge called up concerning__________________________________ 3529, 3531
“ Friendly and helpful” o n ___________________________________ 3529, 3531
International banker_______ .____________ _________ ____________________ *1328
Lazard Freres, m em ber o f _____________________________________________
5963
New Y ork Stock Exchange:
Com mittee on stock list, member and chairman o f______________ *1328,
1333, 5963-5964
Governing committee, m em ber o f__________________________ *1328, 5964
W ages com m ittee, m em ber o f __________ __________ _______________ 5964
Stock Exchange firm, partner o f________ ______________________________ *1328
Testim ony o f ___________________________________________________ *1328 et seq.
American Commercial Alcohol P o o ls .________ 5963 et seq., 6186 et seq.
Attorneys for Kreuger & Toll, reputation of, not considered b y
New Y ork Stock Exchange in connection with listing___ /_____ *1356
Auditors, standardization o f practice of, necessary to prevent
deception o f investors_________________ „________________________ *1358
Audits, independent—
Of companies and subsidiaries desirable___ ________ _________ *1358
Proposed to be extended to entire list on New Y ork Stock
Exchange___ _________________ _____________________ _______ *1358
Collateral security, substitutions of. (See under Altschul, Frank,
Testim ony of. (Substitution o f collateral security.)
Credit o f K reuger____________________________________________ ____ *1355
Investors protected generally even at sacrifice o f interests o f
investors in particular situation b y striking stock from lista o f
N ew Y ork Stock Exchange________________ ______________ *1365, 1366
K elsey-H ayes Wheel Co. join t accou n t_____________ _______ 6286 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
11
A ltschul , F r an k — C ontinued
T estim ony of— Continued
Kreuger & T oll C o.:
Page
Attorneys of, reputation of, not considered b y New Y ork
Stock Exchange in connection with listing________________
1356
Listing of debentures of, probable w ithout collateral security
because of high credit o f com pany____________ ______*1349, 1355
Reputations of com pany and its fiscal agents but not of its at
torneys considered in connection with listing on New York
Stock Exchange___________ __________ ________ *1353, 1354, 1355, 1356
Kreuger, Ivar:
Credit o f _____________________________________________________ *1355
Swindler_____________________________________________________ *1355
Listing on stock exchange:
Applications for, standard form for, am ended_______________ *1351
Influence of Kreuger & T oll experience_________________ *1351
Asset of com pany, deemed by public to be__________________ *1332
Collateral security, provisions for notification of stock ex
change of substitutions of, generally inserted in listing
agreement if debtor corporation has power of substitution. _ *1349
*1350
Earning power, evidence of, as requirement o f . ., . ___________ *1332
Investigation not independently made b y New Y ork Stock
Exchange at time o f _______________________________________ *1332
Investor not assured of value because o f____________________ *1332
N ot obtainable by new enterprise outside of con solid a tion .. *1332
Striking stock from —
Investors, hardship to, caused b y _________________ *1365, 1366
M arketability and value, detracts from _________________ *1365
Power of, as instrument of enforcement o f rulings of
New Y ork Stock Exchange___________________________ *1365
Substitution of collateral security, provisions for notification
of stock exchange of, generally inserted in listing agree
ment if debtor corporation has power o f substitution.___ *1349,
1350
New Y ork Stock Exchange:
*
Devices for enforcing rulings o f________________________ *1364, 1365
Investors protected generally even at sacrifice of interests of
investors in particular situation by striking stocks from
lists__________________________________________________ *1365, 1366
Listing on (see under Altschul, Frank, Testim ony of, Listing,
Stock listing).
Public opinion as m ethod used by, to enforce requirements.. _ *1364,
1365
Securities listed on New Y ork Stock Exchange, none in situation
similar to Kreuger & T oll______________________________________ *1358
Stock exchange (see under Altschul, Frank, Testim ony of, Listing
on stock exchange).
Stock List Com mittee o f New York Stock Exchange:
Aim of, to protect investors______________ ___________________ *1365
Instrument of persuasion to force rulings on listed com panies. *1365
Substitutions of collateral security:
Kreuger & T oll indenture provisions unique; and caused by
necessary flexibility of com pany’s operations believed New
Y ork Stock Exchange_________________________________ ____ *1355
N otification o f New Y ork Stock Exchange:
Kreuger & T oll agreement for, not standard form ________*1349
Provision for, generally inserted in listing agreement if
debtor corporation has power o f substitution____ *1349, 1350
Reliance on foreign com pany for, unsound_________*1351, 1352
Provisions for, in Kreuger & Toll Co. Indenture caused
by necessary flexibility of com pany’s operations be
lieved New Y ork Stock Exchange___________ !_________ *1355
Provisions for, in Kreuger & Toll Co. indenture unique. *1355, 1356
Reliance on foreign com pany to report to stock exchange,
unsound_____________________________________________ *1351, 1352
A malgamation of Swedish lumber and w ood-pulp interests________________ *1203
12
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A merican & F oreign P ow e r C o ., I nc . :
Page
Brokerage holdings of stock in 1929____________________________________
6361
Call loans made b y the com pany indirectly through banks in 1929_____ 6323,
6329-6331, 6361-6362
Am ount outstanding, largest in 1 day, $30,321,000_____ ______ 6329, 6362
Am ount of loans, $57,610,000----------------- ----------------------- 6329, 6330, 6362
Am ount outstanding daily averaged $6,477,729______________ 6329, 6362
6362
Am ount of loans lowest, $100,000__________ ______________________
Num ber of loans, 91________________________ _____________________ _ 6361
Source of funds used was sale of com pany’s securities______________ 6330
Electric Bond & Share Co. is parent of_________ _______________________
6323
Listed on New Y ork Stock Exchange_______________ . _________________
6329
Table of stock prices and short interests, August and September
1931------------------------------------------- . . . ----------------------------- *239,10
Transfers o f com pany’s stock in 1929, number o f__________________ 6329, 6361
A merican B ankers A ssociation : Banking A ct o f 1933, opposition to re
strictive provisions o f - --------------------------------------------------------- 4029, 4033-4034
A merican B rush C o.:
Brush’s (George S.), brother o f M atthew C. Brush, personal trading
com pany-------------------------------------------------------------------------------------------- *472
R adio Corporation of America pool (1929), participant in (see R adio
Corporation o f America p o o l)____________________ ____ __________ *469, 472
A merican C an C o ---------------------- ------------------------------------------------------------------ *880
Call loans made b y the com pany through First National Bank of New
Y ork in 1929____________________________________________________ 6342, 6371
M organ, J. P. & C o .:
Joint account of, trading by, in securities o f ____________ __________
546
546
Stock not held by, in ______________________________________________
Securities of, traded in b y joint account of Morgan, J. P, & C o _________
546
Transfers of com pany’s stock in 1929, number o f_________________ ______ 6371
A merican C ar & F oundry C o .:
Chesapeake & Ohio Railroad Co., equipment of, bought from _______ 626, 627
Morgan, J. P. & Co., depositor w ith_____________ ______________________
143
National Distillers Products Co., invested in stock of (1929)_____ 6250-6251
W oodin, Wm. H., president___________________________________________
143
A merican C ommercial A lcohol C orporation :
Additional issues of stock, M ay and June 1933. (See Pools— Options
b y director and officers to Bragg, post.)|
'
Additional issue o f stock (abandoned) July 19, 1933, (See Pools—
Additional issue of stock (abandoned) July 19, 1933, post.)
American Distilling Co. (see . Pools— Additional issue o f stock
(abandoned) July 19, 1933, p o st)____________________ _______________ 6173
Ames, Stephen M .:
O ptionee__________________________________________________________ 5877
(See Pools— Options by directors and officers to Stephen M .
Ames, post.)
Ames Bros.:
5£58
Optionee-------------------------------------------------------------------------- :___ _
(See Pools— Options by directors and officers to Stephen M.
Ames, post.) t
Atkins, R obert W . : ’
D irector______________________________________________________ 5852,5872
Negotiated options for Prentice & Slepack, brokers to G oodw in ___ 5872
{See Pools— Options b y directors and officers to Goodwin, post.)
Atwood, H. G .: Ex-director____________________________ _______________
5852
Beebee, Charles: Auditor of com pany----- ------------------------------------- 5852,6177
BJiss, Frank E. :
O ptionee---------------------------------- ---------- ------------------------------------ 5858-5861
(See Pools— Options by directors and officers to Frank E. Bliss,
post.)
Board of directors o f com pany nam ed---------------------------- ----------------------5852
Chairman, Russell R. Brow n-------------------------------------------------- 5851-5852
Bragg, Thom as E .:
O ptionee--------------------- -------------- ------------------ --------------------------- 5878,5912
(See Pools— Options by directors and officers to Thom as E.
Bragg, post).
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
13
A merican C ommercial A lcohol C orporation — C ontinued
Brown, Russell R . :
Page
Chairman of board of directors________________________________ _
5851
P ool participant and optionor (see Pools, p o s t)_______ __________ 5859,
5870-5872, 5878, 5887, 5919, 5951, 6035-6037, 6042, 6046, 6065,
6190-6191, 6208-6209, 6212-6215.
Salary as chairman of board for 1933 was fixed at $21,000
in M ay 1933, but in D ecem ber 1933 fixed (and to relate back)
at $50,000___________________________________________ 5960, 6027-6029
Trading for individual account in the com pany’ s stock ............ ...... 6068
Brown, T. F., cashier__________________________________________________ 6177
Buck, W alter E., director_____________________________________________
5852
Business of the com pany______________________________________________
5854
Capdevielle (C. C .) :
D um m y for Russell R. Brown in N oxon, Inc., transaction (see
pools— Options by directors and officers to Thom as E. Bragg,
p ost)_______ ___________ 5930-5931, 5940, 5941, 5942, 6030-6033, 6068
D um m y for Philip Publicker, M. M . Ewing, W . J. Butler and
H. S. Butler and participant in pool and syndicate managed by
Thom as E. Bragg (see Pools— 'Options by directors and officers
to Thom as E. B rag g)________ 5942-5943, 6035-6037, 6043, 6045, 6047
D um m y for K nox B. Phagan (Russell R. Brow n’s dum m y) in
American Distilling Co.-Sid Klein Corporation transaction
(see Pools— Additional issue of stock (abandoned) July 19,
6177
1933, p o s t)_____________________________________________________
Capital structure of com pany:
At incorporation_____________________________________________ 5852-5853
April 1931______________________________ _____________________ 5853-5854
Additional issues made M ay, June, July, 1933___________________
5854
Chadbourne, Humphrey W .:
5852
D irector______________________________________ ____________________
P ool managed by Thom as E. Bragg, participant (concealed) in
(see Pools— Options by directors and officers to Bragg, p o s t)___ 6951,
6037, 6046
5852
C olby, G uy I., director, vice president and treasurer_________________
Cutten, Ruloff E., pool maintained by, and options obtained by (see
Pools— Options by directors and officers to Cutten, p o s t)__________ 58585884, 6609-6611
Executive officers o f com pany__________________ ______________________
5852
Financial statements, 1931-33________________________ 5989-5992, 5997-6000
Financial position o f corporation, M arch -M a y 1933______ _ 5920-5923, 5934
Foster, Warren W ., director________________________________ 5852, 5955-5958
G oodwin:
O ptionee_____________________ __________________________ 5858,5872,5873
(See Pools— Options by directors and officers to Goodwin, post.)
Grimm, Richard H .:
D irector and president_______________________________________ 5852, 5861
P ool participant and optionor (see Pools, p o s t)---------------------------- 5861,
5870-5872, 5878, 5887, 5919, 6208-6209, 6212-6215
Salary as officer was fixed at $22,500 for 1933 in M ay 1933, but
was subject to adjustm ent not yet made early in 1934_________ 5960,
6028-6029
Kesseler, J. M ., director_______________________________________________ 5852
Kies, William S.:
Chairman o f executive com m ittee and director________ 5852, 5860-5861
P ool participant and optionor (see Pools, p o s t)__________________ 5860,
5878, 5887, 5892-5894, 5904-5907, 5919, 5951, 5953, 6036,
6037-6038, 6046, 6208-6209.
Salary as chairman o f executive com m ittee was $6,000 in 1933____ 6029,
6218
Klein, Sid. (See Pools— Additional issue of stock (abandoned)
July 19, 1933, post.)
Listed on New Y ork Stock Exchange_________________________________
5861
Listing of additional issues of May-June 1933. (See Pools— Options
by directors and officers to Thomas E. Bragg.)
Maister, Dr. Hanns. (See Pools— Options b y directors and officers
to Thomas E. Bragg, post.)
14
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A m erican C om mercial A lcohol C orporation — C ontinued
Pag*
Maister Laboratories, Inc. (See Pools— Options b y directors and
officers to Thom as E. Bragg, post.)
M anipulation of prices simpler to accom plish because stock closely
held_________ ___________________________________ . . . 5898-5899, 5910-5912
M arket letters b y E. F. H utton & C o ------------------- ----------------------- 589&-5904
M ayer, S. M ., director-------------------------------------------------------------------------- 5852
M cM icken, James A. S., director---------------------------------------------------------- 5852
5852
Michell, J. M ., director------------------------------------------------------------------------Noxon, Inc. (See Pools— Options by directors and officers to Thomas
E. Bragg, post.)
Options by directors and officers. (See Pools, post.)
Options by directors and officers resulted in pools continually in
operation from February 1932 to July 24, 1933, says Russell R .
B row n_______________________________________________________________
6069
Options by directors and officers— none outstanding February 16,
1934, says Russell R. B row n-------------------------------------------------------------- 6069
Organization o f com pany_________________________________________ 5851-5852
Page, Cecil, director and secretary------------------- ------------------------------------ 5852,
5943, 5949, 5955-5958, 6031, 6181-6183, 6190-6191, 6208-6211
Paine, Edward S., director__________________________________ 5852, 5955-5958
Phagan, K nox B .:
D um m y for Russell R . Brown in M aister Laboratories, Inc.,
transaction (see Pools— Options by directors and officers to
Thom as E. Bragg, p o s t)____________ __________ 5926-5930, 5941, 5942
D um m y for Russell R. Brown and Richard H. Grim m and par
ticipant in p ool and syndicate managed by Thom as E. Bragg
(see Pools— Options by directors and officers to Bragg, p o s t)___ 59425943, 6035-6036, 6042-6043, 6045, 6046, 6068
Du^nmy for Russell R . Brown in American Distilling Co.-Sid
Klein Corporation, transactions (see Pools— Additional issue
of stock (abandoned) July 19, 1933, p o s t)___________ 6176-6178, 6180
Pond, R obert L., director------------------------ --------------------------------------------- 5852
P ool accounts continually in operation under options furnished by
directors and officers from February 1932 to July 24, 1933, says
Russell R . Brown____________________________________________________ 6069
Pools— Options by directors and officers, February 1932-July 24, 1933:
Loan o f stock to optionees part of agreement for options to
Frank E. Bliss, G oodwin and Stephen M . A m es__________ 5882-5884
Inserted at behest o f optionees, says Russell R. Brow n___ 5882-5883
Short selling contem plated*_____________________________ 5882-5884
Profits for optionees (Frank E. Bliss, Goodwin, and Stephen M .
Ames) lay in trading against options, says Russell R . B row n . _ 5882
Purpose of optionors in granting options to Frank E. Bliss,
Goodwin, and Stephen M . Ames was to stabilize the market,
says Russell R . B ro tv n .____________________________ ____________
5881
5882
Optionors hoped optionees would not call, says Brow n_____
Specific need o f stabilization not pointed out b y Russell R .
B row n_____ _____________________ _____________________ 5881-5882
Stockholders were not inform ed o f the options to Frank E. Bliss,
Goodwin, Stephen M . Ames, and R uloff E. C utten_______ 5893-5894
Pools— Options by directors and officers to Frank E. Bliss, February
1932-M arch 1932_____________________________ 5858-5869, 5872, 5883-5884
Agreements for options______________________________________ 5859-5861
Written b y Russell R. B row n______________'____________ ____
5872
Am ount of shares optioned b y Russell R . Brown was 9,000 com
pared to 22,000 or 24,000 then owned b y B row n. ___________
5866
Board o f directors were not inform ed o f options, except inform ally
in conversation, says Russell R. Brow n________________________
5863
Brown (Russell R .), optionor, bought stock at higher price to
replace those optioned when Bliss surprised by calling all the
optioned stock, says Russell R . B row n____ ___ ____________ 5868-5869'
Called options despite his (Bliss’) knowledge o f optionors’ desire
not to have them called___________ ________________________ 5868-5869
Cause of grant of options was instability of stock, says Russell R .
B row n___ _______________________________________________________
5865
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
15
A merican C ommercial A lcohol C orporation — C ontinued
P ools— O ptions b y directors and officers to Frank E. Bliss— Con.
p age
Grimm (Richard H .), optionor, bought stock to replace those
called on op tion ________________________________________________ 5869
Initiative probably came from officers’ side, says Russell R .
B row n__________________________________________________________
5862
Instability of the stock prom pted grant of options, says Russell
R . Brow n_______________________________________________________ 5865
Kies (W illiam S.), optionor, bought stock to replace those called
on option _______________________________________________________
5869
Loan of stock to optionee part of the agreement____________ 5883-5884
Short selling contem plated____________ ______________________
5884
Prices of options--------------------------------------------------------------------- ,,5859-5863
Publicker (Philip), optionor, bought stock to replace those called
on option_______________________________________ _______________
5869
Purchases and sales were made by Bliss during period of his
options_________________________________________________________
5869
Purpose of options to stabilize market in this stock, says Russell
R . Brow n__________________________________________________ 5862-5868
Stability would result from knowledge on the floor that repu
table exchange member had stock, says Russell R . Brown_ 5668
Purpose not necessarily to create activity in trading, says Russell
R . B row n___________________________________________ 5863-5864, 5866
Purpose not to have options called, says Russell R . Brow n______ 5862,
5863, 5866-5867
Quotations of stock just prior to grant of options________________ 5863
5869
Short sales were made by Bliss before options were called_______
Stability was accomplished during period of these options, except
that it cost him money, says Russell R. Brow n________________ 5869
Stock was owned personally by the directors and officers who
granted the options____________________________________________
5863
Pools— Options by directors and officers to Goodwin, June-August
1932 (through Prentice & Slepack)_______________________ 5858, 5872-5873
Agreements for options______________________________________ 5870-5871
W ritten by Prentice & Slepack______________________________
5872
Atkins (R obert W .), director of the com pany and member of
Prentice & Slepack, negotiated for Prentice & Slepack______
5872
Calling of options or not, not recalled by Russell R. B row n. _ 5875, 5877
Goodwin not known at time b y optionors_____________________ 1 . 5873
Initiative taken by G oodw in________________________________ 5871, 5873
Loan of stock to optionee part of agreement_____________________
5883
Inserted at behest o f optionee, says Russell R . Brow n______
5883
Short selling contem plated___________________________________ 5883
Prentice & Slepack acted for Goodwin, taking option in own
nam e______________________________________________________ 5872-5873
Reason unknown, says Russell R. Brown____________________ 5874
Profit m otive activated optionee_____________ _____________________
5875
Purpose assumedly to stabilize market, says Russell R . B row n. _ 5872,
5874
Goodwin had little interest to stabilize m arket_____________
5875
Purpose not to have options called, says Russell R . Brow n____ 5875
Pools— Options by directors and officers to Stephen M . Ames, A u gustSeptember, 1932_____________________________________________________ 5877
Agreements for options______________________________________ 5878-5879
W ritten by Russell R . B row n _____ __________________________
5880
Ames was member of Ames Brothers_____________________________ 5877
Option ran to Stephen M. Am es_____________________________ 5877
Calling of options not effected____________________________________ 5881
Initiative taken by Russell R. Brown, optionor, says B row n____
5879
Loan o f stock to optionee, part of agreement________________ 5882-5883
Inserted at behest of optionee, says Russell R. B row n. _ 5882-5883
Short selling contem plated______________________________ 5882-5883
Prentice & Slepack, addressee_____________________________________
5880
Prentice & Slepack to execute market orders_____________________ 5880
Purpose not to have options called_______________________________
5881
60604— 46
16
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A m erican C ommercial A lcohol C orporation — Continued
Pw
Pools— Options b y directors and officers to Stephen M . Am es— Con.
^Purpose to stabilize market, says Russell R . B r o w n .____________
5879
Can point to no specific instability, says Russell R . Brown__ 5880
Stock prices gradually increasing_______________________ 5879-5880
Reason for choice o f Ames b y optionors was because outstanding
on the Street, says Russell R . Brow n__________________________
5881
W right (Charles C .), specialist, participant in join t account oper
ating under these options to Am es__________ ‘_________________
6107
Pools— Options by directors and officers to Ruloff E. Cutten, Sep
tem ber 1932 to M ay 1933____________________ 5858, 5884-5887, 6609-6611
Agreements w ith _______________________________________ 5884-5887, 5889
v Written by Russell R . B row n________________________________
5887
Ames (Stephen M .), present at first discussion o f options______ 5896
A m ount of shares optioned totaled 65,000____________________ ___
5888
Brokerage commissions to Cutten ________ _____ __________________ 5906
Calling of part of stock by optionee____________________ 5891, 5897, 6068
Coleman (S. C .), statistician, studied com pany for Cutten prior
to latter’ s acceptance o f options, says Russell R . Brown, and
Ruloff E. C u tten__________________ 5887-5888, 5895, 5900, 5910-5912
Coleman (S. C .), reported stock speculative and could be estab
lished at higher levels__________________________________________
5898
Cutten merely nominal optionee_____________________________ 5904, 5910
Cutten form ed group o f optionees___________________________ 5904-5907
Cutten form ed syndicate for options but retained no interest. 5904-5907
Cutten unaware o f previous options, says C utten________________
5896
Cutten was satisfactory to the optionors, who were always
searching for someone who would be interested in the com pany
and be willing to maintain a stable market, says Russell R .
B row n________ ___________________________________ ______________ 5876
Discussion prior to op tion _____________________________ _____ 5895-5896
Initiative taken by optionors, says Russell R . Brow n____________ 5887—
5888, 5891-5892, 5895
Loan o f stock to optionee part o f the agreement_______ !_________
5891
Included at optionee’s insistence_______________ _____________ 5891
Short selling contem plated__________________ ________________
5891
M arket letters of E. F. H utton & C o________________________ 5899-5904
Options did not belong to Cutten but to group form ed b y h im . 5904-5907
'Optionors were Russell R. Brown, Richard H, Grimm, William S.
Kies, and Philip Publicker, though only Brown appears as
party to the agreement___________ ____ _____________________ 5887-5893
Prices o f stock in options were in the main above the market
prices at the time o f entry into agreements___ 5890-5891, 5896-5897
Purpose o f Cutten to accom plish price rise, says C utten_________ 5897
Purpose t o stabilize market, says Russell R . B row n _________ 5889, 5911
Specific need pf stability could not be shown b y Russell R.
B r o w n .._______ ______________________________________ 5889,5911
Purpose not to have options called, says Russell R . B row n . _ 5887, 5910
Optionee made no such agreement_____ ________________ 5887, 6068
Part o f options were called_______________________ 5891, 5897, 6068
Recom m endation o f American Com mercial Alcohol Corporation
stock b y Cutten’s firm, E. F. H utton & Co., to its customers
b y market letters_______ __________________________________ 5899-5904
Stock closely held b y directors and officers. ___ 5898-5899,5910-5912
Study of com pany made b y Cutten before taking options, say
Russell R. Brown and C utten___________ 5876, 5887-5888, 5895-5896
Trading account maintained b y Cutten:
Brokerage commissions to Cutten____________________ _______ 5906
Churning activities_____ ________________________________ 5908-5909
Directors and officers participated. _________ , 5889, 5892-5894, 5904
Optionors b y agreement share in profits and are absolved
from losses_________________________________________________
5889
Reason for provision was that optionors had taken losses
on previous options and felt that if there was to be any
money made in Cutten’s sponsorship, they should par
ticipate in it, says Russell R . Brow n____________ 5889-5892
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
17.
A m erican C ommercial A lcohol C orporation — C ontinued
I’ase
Pools— Options by directors and officers to Ruloff E. Cutten— Con.
Participants (Ames, Adrienne (wife o f Stephen M. A m es); Brown,
Russel R .; Cutten & Co., L td .; Edgerton, Augusta; First Chrold
Corporation; Grimm, Richard H .; Kies, William S.; M itchell,
Hutchins & C o .; Publicker, P hilip)___________ 5892-5894, 5904-5907
Participants other than R. H. Grimm, W . S. Kies, P. Publicker,
and Cutten not known b y him, says Russell R. Brow n_______
5894
Participants were all connected with market operators__________ 5907
Profits were received from this trading account b y the officers and
directors___________________________________________________ 5894, 5897
Purchases were made to support the market on a scale down and
sales were made on a scale up, says Cutten___________________
5897
Smith (Lym an B.) was broker who handled trades______________
5907
Wright (Charles C .), specialist, was given only limited orders, says
Cutten__________________________________________________________ 5907
Pools— Options by directors and officers to Thomas E. Bragg, M ay 2,
1933, to August 1933_____________________________________ 5912, 5947, 6612
Additional issues of stock M ay, June 1933, whereby directors and
officers obtained 25,000 shares of issue through Maister Labor
atories, Inc., and N oxon, Inc., transactions (see Post) and de
livered same to Bragg, optionee, who form ed pool wherein they
participated; and remainder o f which issues offered to stock
holders by virtue of their preemptive rights, were underwritten
by syndicate in which directors and officers participated___ 5924-5963
Authorization by—
Directors of issue of 51,293 shares, which included 10,000
exchanged for Maister Laboratories, Inc. stock, oc
curred M ay 31, 1933_________________ 5945, 5947, 5954-5963
Directors of issue of 15,000 shares exchange for Noxon,
Inc. stock, occurred June 15, 1933_____ 5945, 5947, 5954-5963
D irectors’ minutes______________________________________ 5947-5963
Investigations of legal problems re exchange o f American
Commercial A lcohol Corporation newly issued stock for
stock of Maister Laboratories, Inc., and N oxon, Inc., were
made by Cecil Page, director and secretary, Edward S.
Paine, director, and Hersey Egginton, o f Larkin, Rathbone
& Perry, counsel to the com pany____________ ________ 5955-5957
M aister Laboratories, Inc. transaction, whereby 10,000 shares
of American Commercial Alcohol Corporation newly issued
stock was exchanged for Maister Laboratories stock.
Assets of the Maister Corporation consisted solely of
contract for Dr. Hanns Maister’s secret process for
manufacture of vitamin products plus K nox B.
Phagan’s promissory note for $180,000 given for the
total stock o f the Maister Corporation________________ 59275930, 5936-5939, 5941, 5958-5959
Maister, Dr. Hanns—
Was employee of American Commercial Alcohol
Corporation____________________________ 5928, 5937
Was officer of Maister Laboratories, In c ______
5939
Had not received any royalties up to date of
hearings, February 1934________________ 5929, 5937
Value of assets stated to be $300,000 in American
Commercial Alcohol Corporation application to
New York Stock Exchange for listing additional
shares_______________________________________ 5968-5969
Vitamin products not put out commercially to date
of hearings, February 1934. 5929, 5939, 5941, 5958-5959
Work of Dr. Hanns Maister, to date of hearings,
February 1934, was confined to feeding of white
rats in tests of secret vitamin process______ 5937-5938
Authorized b y directors o f American Commercial A lco
hol Corporation M ay 31, at same meeting as some
41,000 shares, subsequently subscribed for fully by
American Commercial Alcohol .Corporation's record
stockholders__________________________ 5947-5949, 5954-5963
18
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
(
A m e r i c a n C o m m e r c i a l A l c o h o l C o r p o r a t i o n — C ontinued
Page
P ools— O ptions b y directors and officers t o T h om as E. Bragg— C on .
Additional issues o f stock M ay, June 1933, etc.— Continued
M aister Laboratories, In c.— Continued
Authorized b y directors, etc.— Continued
Options by directors and officers of Am erican C om
mercial A lcohol Corporation for 25,000 shares of
that com pany were granted to Bragg on M ay
2 — .................... ................. .................................... 5912,5947
Verbal com m itm ents for the exchange had, how
ever, been made to Russell R . Brow n’ s dum m y,
K nox B. Phagan (organizer and sole stockholder
of the M aister Corporation) b y Brow n on behalf
of American Com mercial A lcohol Corporation
and informally approved by the directors early
in M ay, says B row n _______________________ 5926-5930,
\
5936, 5947-5949, 5952, 5954^5963
Incorporation date o f Maister Laboratories, Inc., M ay 8,
1932___________________________________________________
5940
Officers o f the Maister Corporation were persons con
nected with American Com mercial Alcohol Corpora
tion ___ _______________________________________________
5939
Organization o f Maister Laboratories, In c ________ 5926-5928,
5929-5930, 5936
Phagan (K nox B .), certified public accountant.—
Sometimes em ployed by Russell R . Brown, was
dum m y for Brown in the M aister Laboratories,
Inc., transaction________________ 5926-5930, 5941-5942
D um m y for Russell R . Brown, was organizer and
sole stockholder o f Maister Laboratories, Inc.,
giving promissory note for $180,000 as sole con
sideration_____________________________ 5926-5931, 5936
Exchanged his Maister stock for the 10,000 shares o f
newly issued American Com mercial Alcohol Cor
poration stock, which Russell R . Brown liquidated
under the option to Thomps E. Bragg at $18 per
share__________________________________ 5930-5938, 5950
Stock o f Maister Laboratories, Inc., was ultim ately fully
ow ned b y American Commercial Alcohol Corpora
t i o n . . . _______ ____ _____________________________ 5938,5941
Transaction’s purpose was to aid American Com mercial
A lcohol Corporation in obtaining $450,000 additional
w orking capital, says Russell R. B row n_________ 5925-5930,
5934, 5939-5943, 6066-6067
Stockholders o f record o f American Com mercial Alcohol
Corporation subscribed to some 41,000 shares o f
American Commercial Alcohol Corporation at $20
authorized at sam e'm eeting as those exchanged for
Maister Laboratories, Inc., stock ____ 5947-5949, 5962-5963
Noxon, Inc., transaction whereby 15,000 shares o f American
Commercial A lcohol Corporation newly issued stock was
exchanged for N oxon, Inc. stock:
Assets o f N oxon, Inc. consisted solely o f physical assets
obtained from N oxon Chemical Products, Inc., at
$80,000 and licenses to a secret process for agricultural
spray, etc. plus C. C. Capdevielle’s promissory note for
$270,000 for total stock o f N oxon, In c __________ 5931-5933,
5941, 5945-5946, 5972, 6029-6033
Balance sheet, “ pro form a,” o f N oxon, Inc., as o f M ay 8,
1933, appearing in American Commercial Alcohol
Corporation minute b o o k __________________ 6022, 6029-6Q3Q
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
19
A m e r i c a n C o m m e r c i a l A l c o h o l C o r p o r a t i o n — Continued
P ools— O ptions b y directors and officers to Thom as E. Bragg— C on.
Additional issues o f stock M ay, June 1933, etc.— Continued
N oxon, Inc., transaction, etc.— Continued
Balance sheet, “ pro form a,” o f Noxon, Inc., as o f June
27, 1933_________________ 5972-5976, 6001, 6014, 6018, 6072
W rite-up o f intangible assets o f N oxon, Inc., from
$30,000 to $380,000______________________________ 6029-6033
Autnorized by directors o f American Commercial Al
cohol Corporation, June 15, subsequent to authoriza
tion o f issue of some 41,000 shares subscribed for fully
bv American Commercial A lcohol Corporation’s record
stockholders___________________ 5945, 5947-5949 5954-5963
Options by directors and officers o f American Com
mercial A lcohol Corporation for 25,000 shares of
that com pany were granted to Bragg on M ay
2____________________________________________ 5912, 5947
Verbal commitments for the exchange had, how
ever, been made to Russell R . Brow n’s dummy,
C. C. Capdevielle (organizer and large stock
holder o f Noxon, In c.), by Brown on behalf o f
American Commercial A lcohol Corporation and
informally approved by the directors early in
M ay, says B row n___________________________ 5930-5932^
5940, 5947-5949, 5952, 5954-5963, 6032-6033
Capdevielle (C. C .) :
D um m y for Russell R . Brown, was organizer and
large stockholder of Noxon, Inc., giving prom is
sory note for $270,000 as consideration for the
s t o c k .___ 5930-5932, 5940, 5941-5942, 6030-6033, 6068
D irectors o f American Commercial A lcohol Cor
poration knew Capdevielle was Brow n’s du m m y. 6033
Exchanged his Noxon, Inc., stock for the 15,000
shares o f newly issued American Commercial
A lcohol Corporation stock, which Russell R .
Brown liquidated under the option to Thomas
E. Bragg at $18 per share. 5932-5933, 5940-5941, 5950
Capital structure at incorporation_________________ 5940, 6032
Incorporation date o f N oxon, Inc., June 19, 1933. _ 5940, 6032
Officers o f N oxon, Inc., were persons connected with
American Commercial A lcohol C orporation__________
5943
Organization o f Noxon, In c______ 5930-5932, 5940, 6029-6033
Stock o f N oxon, Inc., was ultimately 65 percent .owned
by American Commercial Alcohol Corporation______
5941
Transaction’s purpose was to aid American Commercial
Alcohol Corporation in obtaining $450,000 additional
working capital, says Russell R . B row n______________ 5926,
5927, 5930-5935, 5939-5943, 6066-6067
Stockholders o f record o f American Commercial
A lcohol Corporation subscribed to some 41,000
shares o f American Commercial Alcohol Cor
poration at $20, authorized prior to those ex
changed for N oxon, In c__ 5945. 5947-5949, 5962-5963
Preemptive right o f American Commercial Alcohol Corpora
tion stockholders evaded_____________________________ 5924-5963
Prices: 25,000 shares received by Thomas E. Bragg, at $18;
41,000 shares subscribed for by record stockholders at $20;
market price, M ay 31, 1933, was $3 0-3 3______________ 5949-5950
Purpose o f issues was to relieve corporation’s financial posi
tion, says Russell R . Brow n__________________________ 5919-5925
20
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A m e r i c a n C o m m e r c i a l A l c o h o l C o r p o r a t i o n — Continued
Pagm
Pools— Options b y directors and officers to Thomas E. Bragg— Con.
Additional issues o f stock, M ay, June 1933, etc.— (jfontinued
Sale o f new issue to existing stockholders o f American C om
mercial Alcohol Corporation was not possible in early part
o f M ay because underwriting could not be procured, says
Russell R. B row n_________________________ 5924-5925, 5935-5936
D irector’s authorization o f issuance o f shares exchanged
shares for Maister Laboratories, Inc., and N oxon, Inc.,
occurred at same date as and partly subsequent to the
authorization o f shares offered to stockholders o f
record________________________________ 5947-5949, 5954r-5963
Verbal com m itm ents had, however, been made to his
dummies, holders o f the Maister Laboratories, Inc.,
and N oxon, Inc., shares, by Russell R. Brown on be
half o f American Commercial A lcohol Corporation
and inform ally approved by the directors early in
M ay, thus precluding offer o f all shares to record
stockholders, says B row n_____ 5947-5949, 5952, 5954-5963
Situation changed in 30 days, record stockholders sub
scribing to 40,949 shares at $20 early in June, says
B r o w n ._____ _____________________________________ 5947-5949
Underwriting procured June 1933 for the 40,949'shares. 5935
Stock listing o f both additional issues was granted b y New
Y ork Stock Exchange______________________________________ 5965
Application filed to list 51,293 shares, June 2, 1933 (in
cluded were the 10,000 shares transferred to K nox B.
Phagan)____________________
5943-5944, 5964, 5987-5995
Application filed to list 15,000 shares June 27, 1933, the
shares exchanged for N oxon, Inc., stock ______________ 5944,
5965, 5995-6003
Letter o f July 1, 1933, from Guy I. C olby o f Am eri
can Com mercial Alcohol Corporation to com m it
tee on stock list, New Y ork Stock Exchange____ 5946—
5947, 5975
Independent investigation o f applications not made b y
stock list com m ittee. ____________________________ 5966-5976,
6020-6022, 6024-6026, 6701-6702
(See also Stock list com m ittee not pu t on notice by
applications, says Frank Altschul, post.)
Policy to rely on good faith o f actions o f directors
and the opinion o f reputable counsel, says Frank
Altschul_________________________ 6025-6026, 6701-6702
Lesson to be derived is that in connection with additional
application for the acquisition o f ownership o f stock
o f another corporation, balance sheet and incom e ac
count o f vendor corporation should be incorporated in
application, says Frank Altschul___________ 5981, 6024r-6026
Listing would have been refused had stock list com m it
tee possessed knowledge o f the facts brought out b y
Russell R . Brow n’s testim ony at these Senate hearings,
says Frank Altschul_______ ___________________________
6008
Listing would have been refused had stock list com m it
tee possessed knowledge o f the evasion o f stockholders’
preem ptive right brought out b y Russell R. Brow n’ s
5965
testim ony, says Altschul (F ran k )___________ __________
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
21
C o m m e r c i a l A l c o h o l C o r p o r a t i o n — Continued
Pools— Options b y directors and officers to Thom as E. Bragg— Con.
Page
Additional issues of stock, M ay, June 1933— 'Continued
Stock listing of both additional issues was granted b y New
Y ork Stock Exchange— Continued
Page (Cecil), secretary, prepared applications__________ 5943,
5949, 6031
Procedure follow ed by committee on stock list____ 5964^6976,
6U08-6010, 6012-6026
Questionnaire filled out bv treasurer of com pany, June 2,
1933__ _______________ 1 - - - ________________ 5983, 6004-6005
In correct____________ ____ : _________________________ 5983
Stock list com m ittee acted solely on applications and
report subm itted by its examiners, says Frank
Altschul_____ 5970-5976, 6017-6018, 6020-6022, 6024-6026
Stock list com m ittee not put on notice by applications,
says Frank Altschul:
Formal financial statements o f N oxon, Inc. for stock
of which American Commercial Alcohol Corpora
tion stock was to be exchanged, stated not to be
available______________________________ 5972, 6014-6015
Letter from treasurer of American Commercial
Alcohol Corporation to stock list committee
giving reasons w hy financial statements of
predecessor corporation were not avail
able__________________ 5946-5947, 5974-5975, 6017
Pro forma balance sheet of N oxon, Inc. avail
able__________ ________ 5972-5974, 5981, 6007-6027
Pro form a balance sheet o f N oxon, Inc., not
brought to Com m ittee’s notice b y mistake,
would have put committee on n otice-- 5973-5975,
5981, 6007-6008, 6012, 6018-6019, 6020-6027
Pro forma balance sheet of N oxon, Inc., part of
application but only in final proof, which was
not seen by either stock list com m ittee or
governing committee, says Frank Altschul... 6001,
6008-6010, 6012-6027
Stockholders of American Commercial A lcohol Corporation
were entirely uninformed about Maister Laboratories, Inc.,
and N oxon, Inc. transactions because o f use o f proxies,
uninformative notice of meeting, and resultant m atter-ofform stockholders’ meetings__________________________ 6206-6215
Proxies for special meeting o f American Commercial
Alcohol Corporation stockholders which ratified the
additional issues of stock M ay, June, July, 1933 were
designated by Russell R. Brown who appointed him
self, Richard H. Grimm, William S. Kies, and Philip
Publicker, all directors and officers, and Cecil Page,
director and secretary, was substituted as proxy by
all the appointed proxies and sole attending representa
tive of stockholders at the meeting______________ 6208-6211
Stockholders’ letter, sent out to stockholders in connec
tion with notice of special meeting, was prepared by
Russell R . Brown and Richard H. G iim m ______ 6212-6215
Agreement with B ragg_________________________ _____________ 5912-5913
Board o f Directors informally informed o f option M ay 2,
1933_____________________________________________________ 5960,5961
Financial position Of corporation M arch-M ay, 1933____ 5920-5923, 5934
Option partially fulfilled with 10,000 shares obtained by Russell
R . Brown through Maister Laboratories, Inc., transaction,
an te___________________________ _________________________________ 5930
A m e r ic a n
22
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A merican C ommercial A lcohol C orporation — Continued
Page
Pools— Options b y directors and officers to Thom as E . Bragg— Con.
Option partially fulfilled w ith 15,000 shares obtained b y Russell
R. Brown through N oxon, Inc., transaction, an te_________ ______ 5932
Optionors were directors and officers, not the corporation _________ 59195920, 5923-5925
Pool and syndicate managed b y B ragg_________________ ____ 5951, 6087
Agreement for p o o l______________________________________ 6043-6045
Agreement between the com pany and Bragg and participants
in syndicate underwriting additional issue to stockholders
of record b y virtue o f their preem ptive right M ay-June
1933__________ _____ ______________________ 5951, 5953, 603&-6035
Benefit would accrue to corporation b y reason o f under
writing syndicate because would assure com plete sub
scription to the stock offering, says Russell R. B row n . _ 6042-6043
T w o o f the three underwriters were dummies, viz, K nox
B. Phagan and C. C. Capdevielle________________ 6042-6043
Bragg gave check representing syndicate profits to J. K .
Whanger (see Whanger, J. K .) ________ . . . 6047-6057, 6059-6060
Commissions to syndicate for underwriting am ounted to
5 percent, approxim ately $40,000______________________ 6039, 6042
Benefit to corporation from underwriting lay in assur
ance o f com plete subscription, says Russell R.
B row n---------- --------------------------------------------------------- 6042-6043
“ Purely nom inal” and fair, says Russell R. B row n . _ 6042-6043
T w o o f the three underwriters were dummies, viz, K nox
B. Phagan and C. C. Capdevielle________________ 6042-6043
Dates o f pool and syndicate approxim ately coincided_________ 6043
Dates o f operation o f pool, M ay 2 to July 31,1933------------------ 60676069, 6087-6088, 6146-6150
Directors and officers were aware of'Russell R . Brow n’s secret •
interest in underwriting syndicate bu t did not criticize it,
says Russell R . B row n________________________________ 6040, 6041
Discretionary orders given b y the p o o l---------------------------6102-6105
Events leading to form ation o f syndicate___ 5953, 6039, 6041-6042
Gam bled afterwards instead o f simply conducting “ market
operations,” says Charles C. W right-------------------------- 6148-6150
Influence o f pool on stock prices. _________ 6068-6069, 6087-6088
Initiation of underwriting syndicate idea traceable to Russell
6041
R. Brown and Thom as E. Bragg__________________________
Lim ited orders given b y p ool____________ ____________________
6091
M anager’s powers were wholly discretionary and uncontrolled- 6066
Participants designated in pool agreements (Bowen, J. W .;
Bragg, Thom as E .; Brennon, J. C .; Capdevielle, C. C.
Conway, Carle C .; Kauffman, J. L .; Phagan, K . B.
Y oung, L .)____________________________________________ 6043,6045
Participants designated in syndicate agreements with
American Com mercial Alcohol Corporation (Bragg,
Thom as E .; Capdevielle, C. C .; Phagan, K . B .) _____ 6035,6043
Participants_________ 5942-5943, 5953, 6035-6039, 6043, 6045, 6046
Bowen, John W ____________________________________ 5953, 6038
Bragg, Thom as E _________________ 5953, 6035, 6038, 6043, 6045
Brown, H. S ________________________________________ 5953, 6037
Brown, Russell R ______________ _ 5951, 5953, 6036, 6037, 6046
Butter, W . J ____ _________________ _______________ _ 5953, 6037
Capdevielle, C. C ______*___________________________ 5942-5943,
5953, 6035, 6036-6037, 6043, 6045, 6046
Chadbourne, H um phrey W ____________ 5951, 5953, 6037, 6046
Conway, Carle C ______________________ 5953, 6038, 6043, 6045
Ewing, M . M . . .................. ................................................ 5953,6037
Grimm, Richard H _____________________ 5951, 5953, 6036, 6046
Kies, William S _________________________ 5951, 5963, 6037, 6046
Manning, L. B ______________________________ _ 6037-6038, 6046
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
23
A m erican C ommercial A lcohol C orporation— Continued
**age
Pools— Options by directors and officers to Thomas E . Bragg— Con.
Pool and syndicate managed by Bragg— Continued
Participants— Continued
Phagan, K . B ___ 5942-5943, 5953, 6035, 6030, 6043,6045, 6046
Pubficker, Philip............ ................. 5951, 5953, 6036-6037, 6046
Young, L. C .............. - .......... ....................... 5953, 6038, 6043, 6045
Pool agreement__________________________________________ 6043-6045
Profits of pool and underwriting syndicate combined were
$210,000, says Russell R . Brown--------------------------------- 5950-5951,
5952, 6042. 6047,6066
Purpose of pool “ to operate the market” and to bring ‘‘into
American Commercial Alcohol Corporation the cash from
the sale of the securities covered there/’ says Russell R.
Brown_______________________________________________ 6066-6067
Purpose of syndicate to underwrite additional issue to stock
holders of record by virtue of their preemptive right M ayJune 1933_______________________________________ 5951, 5953,6033
Shares handled amounted to 65,000, says Russell R. Brown__ 5951
Smith (Bernard E .), broker, maintained account for Bragg in
W . E . Hutton & C o .— _________ _______________ _
6058-6065.
6067,6070-6071, 6089, 6148-6150, 6611-6614
Source of stock used in pool account was Brown, Grimm,
Publicker, Phagan, and Capdevielle_________________
6067-6068
Stock price on market was 33 at time stockholders were
offered subscription at 20_____________________________ 6039, 6042
Stock prices steadily rose from lower 20’s in May 3, 1933,
date of first trading by pool, to high of 89% on July 18,
1933__________________ ___________________________________
6068
Stock prices carried up by rise in all the “ whisky” stocks,
says Charles C. Wright_______ 6087, 6091, 6104-6105, 6146-6147
Stock price fluctuation violent July 18, 1933, dropping 30
to 40 points and down to 29 on July 21 _ _ 5916, 6065, 6088-6089
Stock price break July 18, 1933, caused by absence of buying
orders------------------------ -------------------------------- 6096-6097, 6098-6099
Stock prices, February 1932 to February 1934:
High, July 17, 1933________________________________ 5876, 6065
5876-5877, 6065, 6088-6089, 6096
Break, July 18, 1933_____
Low, July 21, 1933______________ _________ - ________ 5877,6065
5876
February 1934__________________________________________
Stockholders, as a body, not informed of Russell R. Brown’s
and other directors’ and officers’ secret interests in under
writing syndicate_____________________________________ 6040-6041
Underwriting might better have been handled differ
ently, says Russell R* Brown____ ________________ 6041-6042
Subscription to all but 700 shares of offering by stockholders
of record, exercising preemptive right_____________________
6040
Brown (Russell R .) subscribed; other directors and offi
cers presumably subscribed, says Russell R . Brown. _ 6040
Succeeded beyond participants’ expectation, says Charles C.
Wright_______________________ ___________________ 6087,6146-6150
Trading by the pool__________________ 6090-6091, 6093, 6102-6104
Discretionary orders_______________________________ 6102-6105
Limited orders__________________________________________
6091
W . E. Hutton & Co., assumedly acted as brokers, says
Russell R. Brown_______ 5951-5952, 6058-6065, 6067, 6612-6614.
W . E . Hutton & Co. sent orders for pool account to Charles
C. Wright____ _____ _ _______________ ________ _
6090-6091, 6611
Whanger (J. K .) not participant, says Whanger____________
6047
Whanger (J. K .) given Thomas E . Bragg’s check represent
ing syndicate profits (see Whanger, J. K .)___________ 6047-6057,
6059-6060
Wright (Charles C .), specialist, executed orders_____________ 6069,
6087-6088, 6090-6091, 6102-6103, 614&-6150, 6611
24
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A m erican C om mercial A lcohol C orporation — C ontinued
Pools— Additional issue o f stock (abandoned) July 19, 1933:
P&ga
Abandonm ent of issue never form ally made to date of hearings
(February 21, 1934)______________ _______ 6183, 6186, 6201, 6217-6218
Acquisition of assets was stated to be purpose of issue (without
further elaboration), original plan was to issue 10,000 shares of
American Commercial Alcohol Corporation to K nox P. Phagan,
dum m y for Russell R. Brown, in return for entire stock of
American Distilling Co., which Phagan had acquired in con
sideration of his promissory note for $465,000-___________ 6172-6186,
6188, 6195-6196, 6198-6199
Am erican Distilling Co. (originally named Spirits Corpora
tion) :
American Commercial A lcohol Corporation, b y changed <
plan, substituted for Phagan and acquired entire
stock o f American Distilling Co., in return for
w hich it was to pay Phagan’s promissory note for
$465,000_____________________________ _ . . _ . 6184, 6186, 6192
Assets, August 8, 1933, consisted solely o f K nox B.
Phagan’s note for $465,000 given in return for its
entire capital sto ck ___ ._________ ,___________ 6177-6178, 6184
American Com mercial Alcohol Corporation’s B oard of
Directors set value at $465,000____________ 6176, 6177-6180
Acquisition of assets:
American Distilling Co., assets, August 8, 1933:
Lease o f plant obtained from ' American Com mercial
Alcohol C o r p o r a t i o n ----------------- -----------------------6184-6186
Sid Klein Corporation acquisition w ould add to value of
American Distilling Co., says Russell R . Brow n__ 6178-6180
Balance ’sheet, O ctober 31, 1933—__________ 6184, 6196, 6200-6220
Business was to step into American Com mercial A lcohol
Corporation’s place and conduct its beverage business and
commercial alcoh ol___ __________ _______________ 6180, 6185-6186
• D irectors were men connected with American Com m ercial
Alcohol Corporation— Beebe, T. F. Brown, and C. C.
6177
Capdevielle, dum m y for K nox B. Phagan_________________
Nam e changed from Spirits Corporation, August 11, 1933
6173, 6175
Organized §s late as July 29, 1933 (com pared to applica- *
tion for additional listing o f American Com mercial
Alcohol Corporation, dated July 19, 1933), b y Am er
ican Com mercial Alcohol Corporation or Sid Klein
to acquire Sid Klein Corporation_____ 6173-6175, 6176, 6192
K entucky distillery was also to be acquired___ _______________ 6173,
6182, 6189, 6191-6194, 6196-6197, 6199
Sid Klein Corporation was to be acquired b y American
Distilling Co. w ider the original plan_____ ____________ 6173-6174,
6178-6180, 6192
Assets, August 8, 1933, consisted of contract o f em
ploym ent for Sid K lein’s services________________ 6178-6180
Sid Klein was “ probably one o f the outstanding
figures in the beverage liquor business,” having
been previously connected with the K entucky
Alcohol Corporation and the United States In
dustrial Alcohol Corporation, says Russell R.
B row n_______________________________________ 6179-6181
Business is selling o f alcoholic beverages___________
6180
Capital stock o f _ _ _ _ _______ ________________ _______ 6181
Directors and officers at organization were W illiam
A. Bandler, Strawbridge Foster, Sid Klein,
6177
Rose C. M arkey, and Jesse E. Priest____________
Organized b y Sid Klein, as late as August 3, 1933
(com pared to application for additional listing
o f American Com mercial Alcohol Corporation
. dated July 19, 1933)__________________ ______6173-6176
Stock mainly held b y American Com mercial Al
cohol Corporation at date o f hearings_______6176, 6181
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
25
A mhrican C ommercial A lcohol C orporation— Continued
F ools— Additional issue of stock (abandoned)— Continued
Directors’ minutes____ 1 --------------------------------------- 6173-6174, 6176-6176
Issuance never consummated, improved business situation during
lawyers’ delay making issue unnecessary, says Russell R .
Brown__________ . . . . . ....................... 6172, 6183, 6186, 6201, 6217-6218
Parallel to Maister Laboratories, Inc. and Noxon, Inc., trans
actions (see Pools— Options by directors and officers to Thomas
E . Bragg, ante)------------------- ------------------------- ------------ ---------6180-6181
Preemptive right of stockholders, evasion of, contemplated- _ 6171-6186
Stock listing was applied for to New York Stock Exchange on
application dated July 19, 1933_________ 5983, 6171-6173, 6181-6182
Abandonment of issue never formally made to date of
hearings (February 21, 1934)......... ._ 6183, 6186, 6201, 6217-6218
Governing committee approved listing, July 26, 1933----------- 6172,
6187, 6197, 6201
Independent investigation of application not made by stock
List Committee (see also Stock list committee not put on
notice by application, says Frank Altschul, post)..............- 6194
Investigations into facts and documents should and will be
made by New York Stofek Exchange as result of informa
tion obtained at Senate hearings, says Frank Altschul. 6205-6206
Issuance never consummated, because improved business
situation during lawyers’ delay made issue unnecessary,
says Russell R. Brown________ 6172, 6183, 6186, 6201, 6217-6218
Listing withheld pending Senate hearings________________•___ 5983
Opinion of counsel filed by corporation qualified approval
by the phrase “ in the absence of fraud” . . 6172, 6187-6188, 6201
Page (Cecil) prepared application filed with New York
Stock Exchange________________________________ 6172,6181-6183
Procedure of New York Stock Exchange stock list and
governing committee----------- ---------- ----------------------------- 6186-6206
Purpose of issue stated to be to purchase assets, without
elaboration____________ _______ 6172-6173,6181,6188, 6198-6199
Securities Act of 1933 registration contemplated____________ 6174,
6183-6184, 6188, 6190-6191, 6199, 6216-6217
Stock (10,000 shares) was to be issued to Knox B. Phagan in
return for the entire stock of American Distilling Co.
which Phagan had acquired for his $465,000 note and
which had a contract with Sid Klein to acquire the entire
preferred stock and one-half the common stock of Sid
Klein Corporation for $200,000__________ 6173-6186, 6195-6196
Stock list committee recommended listing July 24, 1933,
subject to receipt of additional information concerning
assets for which stock was to be exchanged_______________ 6172,
6187-6188, 6197-6099, 6200
Stock List Committee not put on notice by application, says
Frank Altschul_________________________________ ______6187-6188
Balance sheet of American Distilling Co. (for stock of
which 10,000 shares of American Commercial Alcohol
Corporation was to be exchanged) submitted by sup
plemental statement contained asset item of $465,000
notes receivable, which was equivalent to entire value
set upon assets of American Distilling Co. by Ameri
can Commercial Alcohol Corporation directors_______ 6184,
6196, 6200-6202
Inconsistency between purpose of issue stated to exam
iner and that in application._______________ ____ 6201-6202
Opinion of counsel filed by corporation contained quali
fication “in the absence of fraud” ____ 6172, 6187-6188, 6201
Purpose of issue stated to be purchase of assets, with
out elaboration.................... 6172-6173,6181,6188,6198-6199
Pools— Options by directors and officers— no options outstanding
February 16, 1934, says Russell R . Brown_________________________
6069
Preemptive rights of stockholders restricted by charter____ 5854,5934-5535
Discretion with directors________ ____________________________ 5854-5855
26
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A merican C ommercial A lcohol C orporation — C ontinued
Preem ptive right o f stockholders evaded b y directors through Maister
Laboratories, Inc., and N oxon, Inc., transactions._ 5924-5963, 6171-6186
Preem ptive right o f stockholders evasion contem plated by directors
through American Distilling Co., Sid K lein Corp. transaction. 6171-6186
Prentice & Slepack, brokers for Stephen M . Ames, optionee o f Am eri
can Com mercial Alcohol Corporation stock (see Pools— Options b y
5880
directors and officers to Ames, an te.)_______________________________
Optionee (as broker for Goodwin) (see Pools— Options b y di
rectors and officers to G oodwin, an te)----------------------------- 5858h5869
Price fluctuations, February 1932 through February 1934______ _ 5876-5877
Proxies____________________________________________________________ 6206-6216
Publicker, Philip, director, ex-chairm an__________________________ 5852, 5860
Pool participant and optionor (see pools, an te)_____________ 5860, 5878,
5887, 5919, 5951, 6036-6037, 6046, 6067-6068, 6208
Hunk, Marshall H ., director_______________________________ __________
5852
Salaries o f officers, tentative and final______________________ 5960, 6027-6029
Shares, over m ajority in amount, held or controlled by directors and
officers________________________________________ 5898-5899, 5910-5912, 5935
Short selling in___________ ________________ _______________________ 5882-5884
Sid Klein Corporation. (See Pools— Additional issue of stock (aban
doned) July 19, 1933, ante.)
*
Specialist— Charles C. W right________________________ 5881, 5907, 6074, 6079
Trading for own account. (See W right, Charles C.)
Spirits Corporation. (See Pools— Additional issue o f stock .(aban
doned) July 19, 1933, ante.)
Stock closely held b y directors and officers, making m anipulation
easy_________________________________________________ 5898-5899, 5910-5912
Stock prices February 1932— February 1934. _ 5949-5950, 5876-5877, 6065,
6088-6089, 6096
Stock prices steadily increased from date o f first option granted by
directors and officers, until July 18, 1933_________ 5879-5880, 6068-6069
Stock prices rose steadily from lower 20’s on M ay 3, 1933, date of
first trades b y pool managed b y Thomas E. Bragg to high o f 89 7/8
on July 18, 1933, date of break_________________ _________ 6068, 6146-6150
Stock prices carried up 1933 b y rise in all the “ whisky” stocks, says
Charles C. W right______________________ 6087, 6091, 6104-6105, 6146-6147
Stock price fluctuation violent July 18, 1933, dropping 30 to 40 points
and down to 29 on July 21_________________________ 5916, 6065, 6088-6089
Investigation, at Pecora’s request, by New Y ork Stock Exchange
revealed nothing appearing wrong to Stock E xchange___ 5916-5917,
6060-6065, 6090, 6218-6219, 6612-6613, 6617-6618
Stock prices— break on July 18, 1933, due to absence o f buying
orders_______________________________________________ 6095-6096,6097-6098
United States Industrial Alcohol Corporation, firm of which Russell R.
Brown was ex-president. __________________________ _________________
5852
United States Industrial A lcohol Corporation, Sid K lein's connections
w ith ___________________________________________________ _________ 6179-6180
Volum e o f trading in—
M ay-Ju ly, 1933____________ _________________________________ 6101-6102
July 11-18, 1933_____ ______________________________________ _ 6094-6096
W . E. H utton & Co. were brokers for pool and syndicate managed b y
Thom as E. Bragg (see Pools— Options by directors and officers to
Bragg, an te)________________ 5951-5952, 6058-6065, 6067, 6612-6614, 6881
Walker Distilling Co., plants not owned b y __________________________
5854
W right, Charles C., specialist, Commissions during M ay -Ju ly 1933
totaled $19,850, says W right______________.________________ ____ 6104, 6129
Joint account w ith Stephen M . Ames under options by directors
and officers (1932) (see Pools— Options by directors and officers
6107
to Ames, a n te)__________ _______________________________________
P ool and syndicate managed b y Thomas E. Bragg had orders
executed by W right (see Pools— Options b y directors and
officers to Bragg, an te)___________________ ______________________ 6069,
6087-6088, 6090-6091, 6102-6103, 6146-6150
Short sales_________________ _ _.________________________________ 6099-6100
Specialist_____ ______________________________ 5881, 5907, 6074, 6079, 6094
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
27
A m erican C om m ercial A lcohol C orporation — Continued
W right, Charles C :, specialist— Continued
Traded for own account M ay-July 1933 at time of operation of
pool managed by Thomas E. B ragg-.60 88-60 89 , 6094, 6098-6102, 6104
Profits were $138,000; yet Wright says “ it was a nightmare
to m e” when the stock broke and that he was m urdered-- 6089,
6100, 6101, 6104, 6129, 6147., 6618, 6810, 68 75-6876
A m erican C ouncil of F oreign B ondholders : Winkler, Max, president- *1306
A m erican D istillin g C o . (originally named Spirits Corporation):
American Commercial Alcohol Corporation acquired entire stock of
(see American Commercial Alcohol Corporation; Pools— Additional
issue of stock (abandoned) July 19, 1933)_________ 5854, 6184, 6186, 6192
A m erican E xc h a n g e I r vin g T rust C ompany of N e w Y o r k : Con
solidated Oil Corporation made call loans in 1929 through_________ 6368-6369
A m erican E x pr ess B a n k & T rust C o .:
American Express Co. subscribed to stock of___________________________
2331
2334
Commercial bank from which profits wrongly expected______________
Ecker allotted shares of___________________________________________________ 2333
Equitable Trust Co., merger with_______________________________________
2334
Hargreaves letter concerning organization and merger of written
b y ___________________________________________________________________ 22 86 ,2 33 4
Shares of (a) allotted influential persons by Chase Securities Corpora
tion______________________________________________________________________
2331
A m erican E xpress C o .:
American Express Bank & Trust Co. subscribed to stock of_________
2330
Balance sheet of December 31, 1932____________________________________ „ 3041
Chase National Bank, owner o f____________________________________
4150
Chase Securities Corporation inventory 1932, included—
(a) Value of shares of___________________ :___________ 2401, 2402-2403
(b) Owned 97 percent of stock of______________________________
2390
(c) Securities (1932) of total represented by stock of_______ 2403
(d) Subsidiary of________________________________________________ 2287
Purchase of________________________________________________________________
2371
Stock of, valued at cost in 1932 inventory Chase Securities Corpora
tion_________________________________________________________________ 2402, 2403
A merican -F oreign P o w e r C o .:
Cuba, interests in public utilities in_____________________________________
469
Electric Bond & Share Co., stock owned by, in_________________________
469
Public utilities, interests of, in Cuba_____________ ______________________
469
30
A m erican -F oreign S ecurities C o .: Directors of___________________________
A m erican F o u nder ^ C or po r atio n : Call loans made by the company
through banks to brokers in 1929______________ ______________________ 6346, 6389
A merican H ide & L eath er C o .:
Chase National Bank loan to—
(a) Officials or trustees of, interested in ___________________________
2914
(b) Uncollateralized_________________________________________________
2916
Tinker, E. R ., official interested in____________________________ 2915, 2920
A merican I n stitu te of A cco u n tan ts :
Communication re Securities Exchange Act of 1934______________ 7207-7210
Report of, on value and limitations of corporate accounts and general
principles for preparation of reports to stockholders_________ *1359-1364
A merican I n t er n at io n al C orporation , investment trust:
American International Shipbuilding Corporation, subsidiary of
(1919)________________________ ___________________________________________
*415
Bragg (Thomas E.) connected with company for 10 years prior to
1928__________________________________________________ - _______ ______ *407
Brush (M atthew C.) president of________ ________ ____________ ____________ *289
Loan of stock to short sellers not the practice of this investment trust,
says Matthew C. Brush_______ ___________ _____________________________
*315
Rockefeller (Percy A .), director of (1919)_______________________________
*415
A merican I nter n atio n al Shipbu ilding C orporation :
American International Corporation is parent of (1919)_______________
*415
Bragg (Thomas E .), secretary of (1919)_________________________________ *415
28
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A m erican L ocomotive C o .:
Chesapeake & Ohio Railroad Co., equipment of, bought from ______ 626, 627
Wiggin received compensation f r o m .-_____________ ______________ _ _ ___
2319
A m erican M ac h in e & F ou ndry C o : Options in stock of, granted by
W . R . K . Taylor & Co., to Charles C. Wright, optionee____________ 6142-6143,
6144, 61 6 4 -6 1 6 5
A merican M ed icin al S pirits C o .: National Distillers Products Co.,
acquired stock o f---------------- ----------- ----------- ------------- ------------------------------- —
6248
A m erican N atio n a l C o.:
American National Bank of Nashville, Tenn., affiliate of___;_____ 4187, 4188
Seaboard Air Line Railway Co., syndicate, member of___________
4187
7610-7611
A m erican P o w e r & L ight C o . _______________________ ________ —
A m erican P u l le y C o r po r atio n : Directors o f . ________ ____________________
32
A m erican R adiator & Standard Sa n it a r y C or po r atio n : Directors of__
30
A m erican R olling M il l s : Union Industrial Trust & Savings Bank, de
posit in, b y ---------------- ------------------ -------------------------------------------------------------------5011
A m erican S eat in g C o.: Options in stock of, granted by Louis H . Ingra
ham to Charles C. W right_____________________________________________ 6118, 6154
A m erican S ecur ities I n v e stin g C o r poration : Directors of.........................29, 3 0
A m er ican S hip & C ommerce C o r po r atio n :
Chase National Bank, loan to—
(а) Collateralized___________________________________________ _________ 2 9 1 6
2914
(б ) Officials or trustees of interested in_______________________ ______
Officials of, ihterested in Schmidlapp and D ah l__________________ _______
2 9 16
A merican S m eltin g & R e f in in g C o.:
Morgan, J. P. & C o .:
Joint account of, trading by, in securities o f . . ______________ 546 et seq.
N ot bankers for________________________________________ ________ 546 et seq.
Securities of, traded in, by joint account of Morgan, J. P. & C o . . 546 et seq,
A m erican S t a t e B an k (sec also Peoples W ayne County Bank, American
State B an k ):
Assets, liberal estimate of__________________________________________ _______
5417
Banks, involved in______ :------------------------ --------- ----------------------------------------- 5592
• Chain, banks in_______________________ ________________ ;---------------------------- .4 6 3 0
Citizens Savings Bank of M ount Clemens, stock of, held as collateral
b y . . .................... .........................— .................................................................... 5 5 9 2 -5 5 9 3
Closed__________________________________ ___________________________________
4546
4630
Condition of, letter from Leybum to Comptroller concerning______ ___
Deposit liabilities of assumed by Detroit b a n k s ..._________ 4280, 4515, 4539
Bank troubles in Detroit began with__________________________ 4280, 4539
Detroit clearinghouse asked to take over___ _______ '___________ 5485, 5522
Details of described by Mills------------------------------------------------------------5522
5537
Doubtful item, classified as such by bank examiner____________ _
First National Bank help to, breach of trust according to Leyb u rn .------------------------------------------------- ----------------------------------------------5772
First National Bank, taken over by_______________________ _______ _ 5400
(а) Mistake_____________________________________________________
5400
(б ) Well intentioned______________________________ _______ ______
5400
Guaranty of by First National Bank_____________________ __________ 5764
Guardian Detroit Union Group failure of, heavy loss taken on,
reason for_________________________ _____________ ____________________
4702
Liabilities of, Peoples W ayne County Bank absorbed_____________ 4630
Liquidating committee for_________________ ___________ ___________ 5 5 92
Mortgages, best of, recommendation that First W ayne National
Bank take-over approved-------- --------- ------- ------------------------------------5769
Peoples Wayne County Bank, deposits taken over by, o f___ 5 5 5 5 -5 5 5 6
Liquidation undertaken by, o f_ ._ __________________ 5485, 5522* 5592
Loss to,, from underwriting______________ ______________________
5523
Took over on basis of guaranteeing deposits__________________
5592
Run on----------------------------------------- ------------------------------------------------- 4 2 8 0
A m erican S tate B a n k , Lansing:
Failed................................................. ................................... ...................................5104
First National Co., purchase of minority stock interests i n .___________
5712
A m erican S ugar R e f in in g C o .: Wiggin received compensation from__ 2319
A m erican S uper pow er C o .:
Bonbright & Co., interests of, in______ _________________________________ _
41 4
Commonwealth & Southern Corporation, stockholder o f...................... 414, 85 4
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
29
A m erican Superpo w er C o.— Continued
Page
Letter to, from United Corporation----------------------------------- -------------- 514-516
Public Electric H olding Co. (See also under Public Electric H olding
Co., American Superpower Co.)
Form ation of, by, to avoid paym ent o f taxes in exchanging public
utilities securities for securities of United Corporation___ 517 et seq,
Stock of, acquired from , by United Corporation____________ 513 et seq.
United Gas Im provem ent Co. and Public Service Co. o f N ew Jersey,
holdings in, acquired by, from American Superpower C o _____ 514 et seq.
Stock interests of:
Com m onwealth & Southern Corporation, in___________________ 414, 854
United Corporation, in _________________________________________ 414, 854
Tax Evasion Scheme o f __________________________________________ 517 et seq.
United Corporation:
Public Electric H olding Co., stock of, acquired by, from American
Superpower C o ____________________________________________513 et seq.
Public utilities securities of, turned over to American Superpower
C o ___________________________ __________________________________
450
Stockholder o f __________________________________________________414, 854
A m erican T elephone & T elegraph C o .:
Bear raid attem pted by office partner of Phillips & Solomon, and sale
was not canceled_________________ ____________________________ *35-36, *47
547
Deposits of, with J. P. M otgan & C o ____ ________ ____________________
F ox C o.:
Loan to, from, o f 15,000,000_____________________________________
3709
Loan to, refused by Otterson o f _________ ________ ________________
3696
Plan for paym ent of obligations of, t o _______________________ 3770-3771
Receivership of, demanded b y _____________ ______________________
3771
F ox Theatres, Inc., loan to, by, to purchase Loew ’s Inc., shares___ 3656-3657
Joint account of J. P. M organ & Co., trading by, in securities o f ____
547
Morgan, J. P. & C o.:
Bankers:
Deposits w ith________________________________________________
547
Joint Account of trading by, in securities o f_________________
547
Pool rumored April 1932, and investigated by New Y ork Stock
Exchange____________________________________________________________ *219
Publicity requirements imposed by law have had effect o f reducing
speculative excesses of such as Jay Gould in Western Union, says
William Z. R ipley --------------------- ------------------- -----------*8 7 8 ,88 0-8 82,8 88
Securities of, traded in by join t account of J. P. M organ & C o ______
547
Shareholders as of Mar. 1, 1932, exceeded 640,000____________________ *104
A merican W aterw orks G o.:
Control o f :
M organ, J. P., & Co., b y _________________________________________
395
United Corporation, b y ____________ _____________________________
395
M organ, J. P., & Co., control b y ______________________________________
395
Officers of, not indebted to M organ, J. P., & C o ______________________
395
Stock of, owned by United C orporation. ___________________________ 318, 319
United Corporation:
Control b y _______ ________________________________________________
395
Stock owned by, in ___ _________________________________________ 318, 319
A merican W aterw orks E lectric C o.:
Chase National Bank loan to, uncollateralized________________________ 2916
Options in certificates of, obtained by Charles C. W right__ 6108, 6111-6112
Options in certificates of, granted to Redm ond & C o. by Sanderson
and Porter_________________________ _____ ________________ 6281,6291,6293
•
W rite-up of assets to extent of $51,000,000, says R obt. E. H ealy____
7604
A merican W oolen C o .:
Syndicate:
Chase Securities Corporation, a participant in_______ 2836, 2858,4190
4190
M cCain, participation in, through M urlyn or Shermar__________
A mes , A d r ie n n e :
American Com mercial Alcohol Corporation pool, participant in. (See
American Com mercial Alcohol Corporation, Pools— Options by
directors and officers to Ruloff E. C utten)________________ 5894, 5906-5907
30
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A mes , Stephen M .:
Page
American Com mercial A lcohol Corporation options granted b y direc
tors and officers to Ames. (See American Com mercial A lcoh ol
Corporation, Pools— Options b y directors and officers to A m es)_____
5877
American Com mercial A lcohol Corporation options granted b y direc
tors and officers to R uloff E. Cutten, connections with. (See
American Com mercial Alcohol Corporation, Pools— Options by
directors and officers to C u tten)__________ '_______________ 5896, 5905-5907
American Commercial Alcohol Corporation, Adrienne Ames, Stephen’s
wife, participant in pool arising from options granted by directors
and officers to Ruloff E. Cutten. (See Am erican Com mercial
Alcohol Corporation, Pools— options by directors and officers to
C u tten )___________________________________________________ 5894,5906-5907
Ames Bros., member o f___________________________________________ 5877, 6107
Ames (Stephen E .), wife o f _________________________________ 5894, 5905, 5907
N ew Y ork Stock Exchange m em ber___________________________________
5879
A mes B ros ___________________________________________________________ ____
6881
American Com mercial Alcohol Corporation options granted by direc
tors and officers to Ames Bros. (See Am erican Com m ercial
Alcohol Corporation, Pools— options by directors and officers to
Stephen M . A m es)______________________________________________ 5858, 5877
N ew Y ork Stock Exchange m em ber___________________ __________ 5858, 5879
A m ste r , L e o n : Chicago, R ock Island & Pacific R ailw ay Co., m em ber of
board o f_________________________________________________________________ _ 4183
A naconda C opper M in ing C o .:
(See under National City Co., Anaconda Copper M ining Co.)
Alaska, no minfcs in____________________________ _______________________ *1860
*773,
Andes Copper Co. stock converted into (July 1 to O ctober 1 ,1 9 2 9 )___
774, 778-779, 791-793
Andes C o p p e r1C o.: Anaconda an d.N ation al C ity Co. form ed join t
account in Andes stock (D ecem ber 13 to D ecem ber 31, 1928) to
stabilize market and join t account made profit of $335,042.43-___*800-801
Andes Copper M ining Co. as subsidiary o f _____________ r_______________ *1841
Brokerage holdings o f stock in 1929 and 1933------------- -------------------- 6372-6373
Call loans made by the com pany through banks in 1929_____ 63^2, 6371—6373
Canada, no mines in __________________________________ - ______________ _ *1860
Chile Copper C o.:
Stock converted into (January 23, 1929, to date o f hearings)______ *773,
774, 778-779, 782, 791-793
Stock of, market value of, pegged by join t account o f Anaconda
w ith National C ity Co. and Guggenheim Bros, pending merger
o f Chile Copper Co. w ith A naconda___________________ *1847 et seq.
Subsidiary o f Anaconda Copper M ining C o_______________________ *1848
Copper Exporters, Inc., connected w ith _________________________*1855, 1856
Copper, largest producer of, in United States__________________________ *1860
Cost o f producing copper lower in countries other than United States,
says John D . R y a n ---------------------------------------------------------------------- *807-808
Directors of:
Mitchell, Charles E _______________________________________________ *1840
Ryan, John D ................. ¥_________________ _____ __________________*1853
Fisher (Charles T .) director o f ___________________________ _____________ *776
Funded debt (bonds) o f Anaconda and subsidiaries with exception of
$47,000,000 debt o f subsidiaries, Chile Copper Co. and Butte & ■
Anaconda Railway, was retired mainly by m oney obtained through
offer to its shareholders o f tw o new shares Anaconda for every five
held at a price of $55 per share (Decem ber 1928 to Decem ber
1929)___________________________ ________ - ______________ _________ *793-794
Greene Cananea Copper Co. as subsidiary o f_________________________ *1864
Greene-Cananea Copper Co. stock converted into (July 1 to O ctober 1,
1929)_________________________ *773, 774, 778-779, 782, 785-786, *791-793
Guggenheim Bros, and National C ity Co., joint account with, pegging
by, of m arket value of stock o f Chile Copper Co. pending merger
of latter, with Anaconda_____- _______ _______________________ *1847 et seq.
Joint account o f___________________ _______________ ___ _________ *1847 et seq.
K elley, Cornelius F., president_____ ______________________________ *798, 1853
Location o f mines o f ____________ ________________________________ *1860, 1861
Mines of, location o f _________________________ ___________________*1860, 1861
M itchell, Charles E., director__________________________________________ *1840
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
31
A anconda C opper M ining C o.— Continued
Page
M itchell (Charles E.) director o f______________________________________
*774
M organ, J. P. & C o.:
Joint account of, trading by, in securities o f_____________________
547
Loss by , on securities o f_____________________________________ 539 et seq,
N ot bankers for Anaconda________________________________________
547
National C ity Bank and National C ity Co., relations of, w ith_______
547
National City Bank and National C ity Co. transactions and dealings
with (See National C ity Bank and National C ity Co.)
National C ity Bank and National City Co. interlocking directors
included Percy A. Rockefeller, John D . Ryan, and Charles E.
M itchell_______________________________________________ *774, 775, 776, *791
National C ity Co. and Guggenheim Bros., joint account with, pegging
by, of market value of stock of Chile Copper Co., pending merger of
latter with A naconda________________________________________ *1847 et seq.
National C ity Co. recom mended the stock to customers after price of
copper arbitrarily sent up and stock started slipping. (See Na
tional City C o .)______________:------------------------------------------------------ *424-425
National Distillers Products Co. invested in stock of (1929)______ 6250-6251
Pegging by, of market value of stock of Chile Copper Co. in join t ac
count w ith National City Co. and Guggenheim B ros_________ *1847 et seq.
Pool, small, January to M arch 1929_________________ *757-760, 775-778, 789
A naconda large pool of M arch to M ay 1929 received directly at
distribution 66,000 shares from _____________________________ *759, 762
Dates of operation, from January 7 to M arch 25, 1929__________
*758
Letter, dated January 18, 1929, sent at inception o f p o o l________ *758
M itchell (Charles E.) only knew of pool b y hearsay, says M it
chell____________________________________________- _______ *775-776,777
National C ity Co. conducted selling campaign distributing Ana
conda stock to the public August 6 to October 1, 1929, having
decided on this project June 1929 f stock was extensively ac
quired for this purpose July to September 1929___________ *770-790,
*890-891, *892
R ockefeller (Percy A.) was director o f A naconda and N a
tional City Bank and National C ity C o _______________ *774-776
Pool, small, January to M arch 1929:
O'Hanlan (Joseph F.) investigated pool for Senate com m ittee. *757-758
Participants listed, including Percy A. Rockefeller, Charles T.
Fischer, and James A. Stillman______________ *758, 759, 760, 775-777
Prices rose from 116# to peak of 163%__________________ *759, 777-778
Profits distributed to participants listed_________________ *758, 759, 760
Profits net were $1,225,765.54_________________________________ *758-759
Trading am ounted to 285,100 purchases and 219,100 sales,
66,000 shares being distributed to Anaconda large pool of
M arch to M ay 1929____________________________________________
*759
W . E. H utton & Co., brokers_____________________________________
*758
Pool, large, March to M av 1929------------------------------------------------------------- *338,
345-346, *412-421,423-425, *435-436,748,756-757,759,
*760-767, 775-778, 789, *797-799, *890-891, 892.
Agreement for syndicate, dated M arch 19, 1929______________ *760-762
Am ount stock largest 190,000 shares at approxim ately $170 per
share, says Thom as E. Bragg______ ;_______________________ *412, 416
Anaconda stock, transactions in:
Prices ranged from 162)4 to 166% at beginning o f pool
(M arch 20) to 174% on M arch 22, follow ed by steady drop
to 127% on M ay 16 and drop to 104 tw o weeks after distri
*765
bution b y p o o l___ _________________________________________
Trading com m enced with the 66,000 shares transferred
directly from Anaconda small pool of January to M arch
1929 at a valuation of $10,669,364_____________________ *759, 762
Trading involved 319,060 shares purchased and 287,202
sold, leaving 97,858 in pool and distributed in kin d ___ *762-763
Anaconda was depositor in National City Bank of which Percy A.
Rockefeller was a director_____________________________________
*415
Andes Copper Co., transactions in; trading involved 11,000 shares
purchased and sold _________________________________________ *762-763
60604— 46------ 3
32
INDEX TO HEARINGS ON STOCK EXCHANGE FRACTICEb
A naconda C opper M in in g C o .— Continued
Ppol, large, M arch to M ay 1929— Continued
Pag#
Block, M aloney & Co. received from United M etals Selling Co.
(a subsidiary of Anaconda) and exercised February 1929,
option for 70,000 shares Anaconda and ultim ately these shares
found their w ay into p o o l____________ _______________ _______*797-799
Block, M aloney & Co. received from joint account o f John D.
Ryan, National City Co., Charles Kelley, Daniel Guggenheim,
Harry Guggenheim, and Thornton, and exercised February
1929, option for 50,000 shares Chile Copper Co. (converted
into Anaconda) and ultim ately these shares found their way
into pool __________ _________ ___________ ______________ *789, *797-799
Contributions approxim ately $500,000 b y Thom as E. Bragg’s
wife, $100,000 to $200,000 b y Percy A. Rockefeller, $500,000 by
Bernard E. Smith, etc., says Thom as E. B ragg_______________1 *412
Copper Stocks Syndicate or pool, also known a s ............. *756, 759, 760
Dates of operation from M arch 20 'to M ay 24, 1929_____________ *413,
*417-418, *435, *762
Greene Cananea Copper Co. stock, transactions in; trading in
v olved 8,700 shares purchased and sold_______________ ____ *762-763
K ennecott Copper Co. stock, transactions in; trading involved
11,560 shares purchased ana sold___________________________ *763-763
*346
Long operations only, says Percy A. R ockefeller_________________
Losses am ounted to $6,000,000 to $7,000,000 on a total cost of
$65,065, $532.50____ __________________________________ *762,763-764
Losses resulted, about $400,000 on a $500,000 contribution by
Thom as E. Bragg’s wife and somewhat similar ratios for the
others, says Thom as E. Bragg________ ______________ __________
*413
Managed b y Thom as E. Bragg----------------------------------------- *413, 417, 424
M anipulation not engaged in b y pool, says Thom as E. B ragg___ *416421, 424-425, 436
M itchell (Charles E.) only knew o f p ool b y hearsay, says M itch ell. *775776, 777
N ational C ity Co. conducted selling campaign distributing Ana
conda stock to the public August 6 to O ctober 1, 1929, having
decided on this project June 1929; stock was extensively ac
quired for this purpose July to September 1929__________ *770-790,
*890-891
Rockefeller (Percy A.) was director of Anaconda and N a
tional City Bank and National C ity C o _______________ *774-776
O ’Hanlan (Joseph F .), investigated pool for Senate com m ittee__
*760
*346
Participants not recalled b y Percy A. Rockefeller________________
Participants, 10 or 12 in number, including Thom as E. Bragg,
Percy A. Rockefeller, Bernard E. Smith, M. J. M eehan, John
J. Raskob, W . A. K enny, Fred. J. Fisher and others, say
Thom as E. Bragg and Bernard E. Smith _________ *412-413, 424, 435
Participants through the three firms o f M. J. Meehan & C o.;
Block, M ahoney & C o.; and W . E. H utton & C o.; included
G. P. M aloney, Percy A. Rockefeller, Charles T . Fisher, James
A. Stillman, W . Olwell, D aisy M . Dunn, W . C. Durant, H. D .
K eresey_______________________ ________________ . . . *764-767, 775-777
Prom oted probably by M . J. Meehan and Bernard E. Smith, says
Thom as E. Bragg.......................... ......................................... .. *413-414,415
R askob (John J.) participant in _____ _____ ______________ ________
*748
Specialist was involved in this pool, says Thom as E. B ragg_____
*423
Properties of, location o f ......................................................................... *1860,1861
Rockefeller (Percy A .), director o f _______ _________ ___________________ *774
R yan (John D .), chairman o f _____ ________________________ *774, *791, *1853
R yan (John D .), largest stockholder from 1928 to date o f hearings
(June 4, 1932).............................................. ......................................................
*806
Securities of, traded in b y join t account of J. P. M organ & C o _______ *547
Stock outstanding about 9,000,000 at date o f hearings (June 4, 1932). *806
Stock outstanding was 3,800,000 when peak price o f 175 was reached. *806
Stockholders num bered 100,000 at date of hearings (June 4, 1932)___ *806
Subsidiaries of:
Andes Copper M ining C o ______________ _______ _____________ ______*1843
Chile Copper C o ................................ ..................................... ......................*1848
Green Cananea Copper C o . ........................................................*1854 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
33
A naconda C opper M in in g C o.— Continued
Pa£#
Transfers of com pany’ s stock in 1929, number o f----------------------------------6372
United Metals Selling Co. is subsidiary o f_________ *772, 773, 782, *785, *794
Business to sell all the Anaconda’s metals and act as intermediary
in all Anaconda’s financing_____________________________________
*794
Traded heavily in Anaconda, Andes Copper Co., Chile Copper Co.,
and Greene-Cananea stocks on the market during 1929_____ *794-801
United Metals Selling Co., subsidiary of:
Traded heavily in Anaconda, Andes Copper Co., Chile Copper
Co., and Greene-Cananea stocks on the market during 1929.
Block, M aloney & Co. was given, and exercised February
1929, option for 70,000 shares Anaconda and these shares'
ultimately went into Anaconda large pool of M arch to
M ay 1929___ __________________________________________ *797-799
(See Anaconda, Pool, large, March to M ay 1929.)
Profits amounted to over $1,000,000; turned over to Ana
conda, says John D. R yan _________________________________
*797
Purpose not to aid National City Co. in maintaining market
for the Anaconda stock which it was putting out, says
John D. R y a n __________________________________________ *799-800
Transfer by National City Co. of 25,000 Andes Copper
Co. shares to United Metals and retransfer within a
month (Decem ber 1928 to January 1929) of same
amount at same price explained as due to a mistake,
by John D, R y an __________________________________ *800-801
Purpose of trading in copper stocks was to act as agent for
Anaconda in maintaining price at a position where con
versions into Anaconda could be made at the ratios fixed by
engineering data and by negotiation with the principal
holders of the stocks of the respective companies, says
John D. R yan _______________________________ _________ *794-797
R yan (John D .) president of United Metals, handled these
*795
propositions_______________________________________________
A nderson , A rth ur M .:
Director and president of Foreign Finance C orporation________________
31
D irector o f :
General Steel Castings Corporation_______________________________
31
International Telephone & Telegraph C o _________________________
31
New Y ork, Susquehanna & Western Railroad C o _________________
31
New Y ork Trust C o _______________________________________________
24
Postal Telegraph C o___ ___________________________________________
31
United States Guarantee Corporation_____________________________
31
Western Pacific Railroad Corporation____________________________
31
Foreign Finance Corporation, director and president o f ________________
31
Insull companies, standstill agreement with bank creditors of, agreed
to by New Y ork banks only after appointment of Anderson to
report to them on daily financial condition of Insull com panies_____
1511
M organ, J. P., & C o.:
*
Negotiations of, with Van Sweringens for purchase of bonds of
Chesapeake Corporation handled b y ____________________________
681
Partner o f _______________________________________________ 8, 597, 681, 769
President of Foreign Finance Corporation_____________________________
31
Van Sweringens, negotiations of, w ith__________________________________
769
A n derson , B enjamin M .: Chase National Bank, econom ist o f___________ 2892
A n derson , C. E .: Nussbaum note assumed b y ___________________________
5231
A n derson , C. P. (-See Cuban financing, Anderson, C. P.)
A nderson , J o h n : Chase stock, short sales of Shermar handled b y _______
2978
A n derson , J. C.:
Chase Securities Corporation, vice president o f ____________ _____ 2435, 2444
Acceptances as_______________________________________________ 2435, 2444
Chase stock, letter concerning trading in signed b y _________ 2823, 2824
Shermar Corporation, borrowed from , am ount___________________
2892
W iggin undoubtedly conversed with, concerning Shermar C or
poration participation in joint account o f _____________________ 2439
34
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
\
A n derson , W endell W .:
D etroit & Canada Tunnel C o .:
Page
D irector of, when bought real estate from syndicate in w hich
participant________________________________ ________________ 3970-3971
(a) Prom otor o f______________________________________________
3970
(b) Shared in 35 percent profit o n __________ ^________ _______ 3904
A nderson and G ard in e r , I nc .:
D etroit & Canada Tunnel C o .:
Com m ittee controlling assembling o f real estate for mem ber o f _ _ 3949
Syndicate agreement for purchase o f real estate for, participant
in _______________ - ______________________________________ _
3941,4001
*793
A ndes C opper M in ing C o. (C h ile)______________________________________
Anaconda Copper M ining Co., Andes stock converted into (July 1 to
O ctober 1, 1929)________________________ *773, 774, 778-779, 782, *791-793
Anaconda Copper M ining Co. (See also under Anaconda Copper
M ining C o.; Andes Copper M ining Co.)
Subsidiary o f______________________________________________________ *1841
Copper Stocks Syndicate in (1929). (See Anaconda, Pool, large,
M arch to M ay 1929.)
Joint account of Anaconda Copper M ining Co., and National C ity
Co., in Andes stock (D ecem ber 13 to D ecem ber 31, 1928) to stabi
lize market resulted in profit o f $335,042.43_____________________ *800-801
National City Co. (See also under National C ity C o.; Andes Copper
M ining Co.)
Subsidiary o f Anaconda Copper M ining C o ___________________________ *1841
United Metals Selling Co., subsidiary o f Anaconda Copper M ining
Co., traded in stock o f (1929)_______________________________ ___ *794-801
(See also Anaconda Copper M ining Co., United M etals Selling
Co., trading.)
A n dover A c a d em y : M organ & C o., membership or preferred lists of,
o f trustees o f___________________ i ---------------------------------------------------------- 424, 425
A ndrew s , A. M .:
A. M . Andrews Investm ent Corporation is Andrews’ trading cor
poration __ __________________________________________________________
6140
6140
Budd Manufacturing Co. stock, formerly large holder o f_____________
B udd W heel Co. stock, form erly large holder o f _____ _____ __________
6140
H upm obile stock, form erly largest holder o f __________________________
6140
Sinclair- Consolidated Oil Corporation syndicate (1928)*, participant
in. (See Sinclair Consolidated Oil Corporation, P ool and syndi
ca te)__________________________________________________ 3093,3119,3331
Trans-Lux D aylight Picture Screen Corporation stock, form erly large
holder o f ___________ _________________________________________________
6140
A n gell , M ontgomery B .:
A ttorney______________________________________________ j ________ 817,818^819
Tax expert____________________________________________________________
817
Testim ony o f :
T ax on profits o f short sale by W m . Ewing, as trustee, held by
Board of T ax Appeals, not chargeable against W m . Ewing nor
wife, from whom stocks borrowed and to w hom proceeds o f
sale pledged_______________ _____________________________ ____ 819,820
A nglo -C hilean C onsolidated N itrate C o r po r a tio n :
Guggenheims, control b y ----------------------------------------------------------- _*2301 et seq.
Lautaro Nitrate Corporation, m ajority of stock of, owned by
___*2302
A ppalach ian E lectric P o w er C o .: W rite-up of assets from $72,621,000
to $139,000,000, says R ob t. E. H ealy__________ ______________ 7594, 7595, 7600
A rag on , A. B . : M organ & Co., Paris, Partner o f_______ _________________
34
A rchm ere C or po r a tio n :
Raskob-s (H. S.), wife o f John J. Raskob, personal holding com
pany_______________________________________________________________ **720-1
A rkansas N atio n al G as C o r po r a tio n :
W rite-up of assets am ounted to over $5,000,000, says R obert E.
H ealy------------------------------------------------------- ------------------------------------------ 7606
A rmour & C o .:
Chase National Bank, loan to—
(a) Am ount of commercial paper securing________________ ____ ___
2916
(b) Officials or trustees of interested in ___________________ !______
2914
(c) Uncollateralized_______________________________________________ 2916
(d) Wiggin, salary received from at time o f ______________________
2916
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
35
A rm ou r & C o .— Continued
Pa&e
Chase National Bank, officials interested in, Wiggin and F. Edson
W hite____________________________________________________________________
2916
Union Industrial Trust & Savings Bank, deposits in___________________
5011
Wiggin, salary received from_____________________________________________
2360
A r m sb y , G e o r g e : Blair & Co., Inc., and Blair & Co., partnership member
of (192 8)_________________________________________________________ ____________
3341
A rm str o n g : Daisy H ill Co. loan made by-on M itt’s authority_______8193, 8195
A rmstrong & V ickers L t d .: Bolivia obligated to, on contract for pur
chase of war supplies_________________________________________________ 2019 et seq.
A r th u r , R e x : Otis & Co., partner in________________________________________
*910
A r th ur , R ic h a r d :
Radio Corporation of America pool (1929), participant in_____________
*469
(See Raclio Corporation of America, pool.)
A sh , D octor : Radio Corporation of America pool (1929); received
$10,000 from, though not participant of record__________________ *475, 477, 494
A shcraft A utomatic A rc C o .:
Clarke, contract for acquisition by, of General Theatres Equipment,
Inc., when organized, to acquire stock of new company acquiring
assets of_________________________________________________________________
3417
Lamp Co. acquired b y __________________________ ______________ 3409, 3410, 3672
Lamps, arc for theaters, manufactures and sells________________________
3418
A shforth , A lbert B .:
*
Lincoln Building:
Appraisal of, furnished b y ______________________________________ 4062, 4073
Earnings of, lowest made, used by, in offering circular____________ 4062,
4075, 4079, 4080
Estimate based on 10 percent allowance for vacancies_______ 4063, 4073
Expert consulted on _________________________________________________
4062
Real estate, independent expert on_________________________________
4062
A siel -& C o.:
Wash sales not executed by this company in connection with German
reparation bonds, says Richard W hitney__________________________ 2 4 8 -*5 0
A ssets *
Morgan, J. P. & Co., of, liquidity o f____________________________________
117
United Corporation, o f____________________________ 324, 325, 499 et seq., 505
A ssets R e a l iza tio n C o.:
First National Co., later known as___________________________ _ __________
5209
First National Co., successor o f___________ ______________________________
5435
A ssociated D ry G oods C o r poration :
Directors o f________________________________________________________________
31
Lord & Taylor as subsidiary of________________________________________ - 31
A ssociated G as & E lectric C o .:
Advertisements in newspapers (1931?) showing upward trend in
power output and gross revenues designed to mislead?-------------- *888-889
Advertisements of Debentures Holders’ Protective Committee in
New York Tim es_________________________________________________ 1775 et seq.
Advertisement to induce purchase of stocks and bonds computed to
cost the company $1,000,000 a year, says William Z. Ripley---------*889
General business practice to add expense of advertising to expense of
production and charge it to consumer, says William Z. R ip le y -_ *891-892
Attorneys for_________________________________________________________ 1752, 1756
Baby bonds ($ 1 0 ) advertised by the company as being sold at not less
than $1,000,000 a week during depression, says William Z. R ip ley -_ *876,
879, 887-890
Form of financing criticized by Ripley--------------------------------------- *887-890
Guarantee advertised was that of Associated Gas & Electric
Corporation, a 100 percent owned subsidiary, says William
Z. Ripley_________________________________________________ - ________
*890
Bondholders of: Debenture Holders Protective Committee formed to
protect, though debentures not yet in default___________________ 1752,1753
Bonds of, dividends on, paid down to time of hearing_________________
1754
Business of:
Canada, operated in _________________________________________________
1754
Philippine Islands, operated in ______________________________________
1754
United States, operated in 26 States of-------------------------------------------1754
36
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A ssociated G as & E lectric C o .— Continued
Page
Capitalization of, rearrangement of, Debenture H olders’ Protective
C om m ittee contend plan for, benefits management and stock
holders at expense o f debenture holders_____________________ 1776 et seq.
Cheney’s (so-called "independent appraiser” of Associated’ s assets)
connections w ith H. C. H opson, a controlling influence in A ssociated. 7620
Com plicated in structure, say R obert E. H ealy and Ferdinand
Pecora _ _ _ ____________________ _____ _____________________ 7596-7597, 7611
C ontrol of, in management, not banks, states Patrick J. H urley_____
1752
Control o f over 300 companies in 26 States___________________________
2140
Corporate structure of, simplification of, in progress__________________
1754
Debenture Holders Protective. Com mittee, advertisement of, in New
Y ork Times and letter to debenture holders_____________ ♦—
1775 et seq.
Capitalization of com pany, plan for rearrangement of, benefits
management and stockholders at expense o f debenture holders
contended b y _________________________________________________ 1776 et seq.
Form ation of, to protect bondholders of, though debentures not y et
in default_______________________________________________________ 1752, 1753
Dividends on bonds of, paid down to time o f hearing_________________ 1754
Federal Trade Commission, investigation by, o f affairs o f____________
1752
H olding com pany: Largest public-utility holdings in United S ta tes.. 1755?
H opson, H ow ard C.:
Books of, necessary to determination of issuance o f securities
o f __________________________________________________________ 1762, 1763
Companies of, have dealt with Associated system at a profit,
says R obert E. H ealy______________________________________ 7620-7621
Control of, in _________________________________________________ 7620-7621
Executive vice president_______________ __________________________
1754
M anagement b y ___________________________________________________ 1754
Vice president and treasurer______________________________________
2139
Hurley, P. J., statement of, in behalf o f ______________________ ... 1752 et seq.
Insull companies:
1753
Comparable to, states Ferdinand J. Pecora______________________
Policies of, different from those of, states Patrick J. H u rley_____
1754
M anagement of, by H ow ard C. H opson ___________ ______________
1754
M an ge’ s companies have dealt with Associated system at a profit,
says R obert E. H ealy___________ _______________________________ 7620-7621
M ange controlling influence in ____________________________________ 7620-7621
President of, Mange, J. I ______________________________________________
2139
Public utility holdings of, largest in United States____________________
1752
Securities of, issuance of, books o f Howard C. Hopson, necessary to
determination o f____ '__________________________________________ 1'762, 1763
Statem ent o f Hon. Patrick J. Hurley in behalf o f______________ 1752 et seq.
Three hundred companies in 26 States controlled b y _________________
2140
W rite-ups:
Appraisals on basis of which assets written up were frequently
made by Cheney who is reported to be close to H . C. H opson,
a controlling figure in Associated, says R obert E. H ealy ______
7620
Federal Trade Commission accountant, by eliminating write-ups,
nonreceived incom e and received incom e which com pany not
entitled to receive, revised balance sheet o f Decem ber 31, 1929,
to reduce assets b y $50,387,000 out o f total o f $641,000,000,
says R obert E. H ealy _______ ______________________________ 7617-7619
T otal fixed capital of all its subsidiaries for D ecem ber 31, 1929,
was $402,000,000, as against Associated balance sheet figure of
$634,000,000, the difference representing m ainly excess cost to
Associated of investments in subsidiaries over the par or stated
value of these investm ents plus an item of cost of acquiring
capital, says R obert E. H ealy_____________________________ 7614-7615
W rite-up o f assets b y practice of taking on to books earnings o f sub
sidiaries, even when earnings never distributed or credited to parent,
says R obert E. H ealy______________________________ 7603-7604, 7612, 7614
W rite-up o f assets b y assigning higher (arbitrary) stated value to
non-par stock than price paid by subsidiary (which distributed
stock) and carrying difference into asset account called cost o f
acquiring capital, a practice now abandoned, says R ob ert E. H ealy;
subsidiary then wrote up the stock to market value or, if sold stock,
carried difference into profits____________________________. . . ____ 7611-7615
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
37
Page
A ssociated Stock E x c h a n g e s ____ ________________________ 6979, 6983-6984, 7524
A ssociation of C ertified A ccountants of S w e d e n : Chairman, Sillen,
. Oscar-------------------- ------------------------------------------------------------------------------------------- *1232
A stor S afe D eposit C o.: Directors of___________________________:_________
30
A stor , V in c e n t : County Trust Co., syndicates for purchase of stock of,
member o f____________________________________________ 3046, 3048, 3049, 3051, 3053
A tchison , T o peka & Sa n t a F e R a il w a y C o .:
Deposits of, with Morgan, J. P., & C o__________________________________
547
Directors of________________________________________________________________
29
Morgan, J. P., & Co.:
Bankers and depositaries____________________________________________
547
Joint account of, trading by, in securities of______________________
547
Securities of, traded in by joint account of J. P. Morgan & C o _______
547
A t k in s , R obert W .:
American Commercial Alcohol Corporation:
Director o f______________________________________________________ 5852, 5872
Options granted by directors and officers to Prentice & Slepack,
brokers for Goodwin, were negotiated by Atkins (see American
Commercial Alcohol Corporation, Pools— Options by directors
and officers to Goodwin)_____________________________________ 1___
5872
5872
Prentice & Slepack, member of__________________________________________
A tlas C orporation : Directors of___________________________ ________________
327
A tlas P o w d er C o .: Communication re Securities Exchange Act of 1934,
critical________________________________________________________________________
7203
A t t e r b u r y , W . W .:
Pennroad Corporation:
Director o f________________________________________ ___________________
1333
Trustee of voting trust for stock o f________________________ ________
1337
Voting trustee for stock of__________________ 1419, 1464, 1471, 1499, 1500
Pennsylvania Railroad Co.:
Director and president of____________________________________________
1337
President of____________________________ 1337, 1419, 1464, 1471, 1499,1500
Pittsburgh & W est Virginia Railway Co.:
Agreement to pay 170 for stock of, though market at 140_ 1471 et seq.
Sale of stock of, by Taplin syndicate to Pennroad negotiated by__ 1419,
1464, 1471 et seq.
A tt e r b u r y , G e n . W . W .:
Seaboard Air Line Railway Co. syndicate, participant in -------------------4188
Railroad of which president part owner of, while____________ 4188, 4189
A tto r n ey G e n e r a l :
Michigan, opinion of on right of bank holdings companies to become
Surety on bonds of subsidiaries___________________________________ 5012-5015
Union Guardian Trust Co. examining committee, member of— --------- 4855
A ttorn eys:
Advertising of securities issue by use of names of________________ * 1191, 1239
Angell, Montgomery B ____________________________________________ 817, 818, 819
Baker, Newton D _________________________________________________________
703
Bankers’ attorneys act for public in making sure securities are as
described in circular____________________________________________________ * 1249
B ech tel,_______ ____________________________ ________________________________* 1236
Cahill, John T ______________________________ _________________________ 1535,1617
Carter, Ledyard & Milburn______________ *1158, 1202, 1234, 1236, 1241, 1247
Client, responsibility to, to draw indenture as desired by client, testifies
Roland L. Redm ond____________________________________________________ * 1242
Davis, John W ____________________ 1 , 307, 359, 397, 407, 443, 527, 563, 619, 657
Davis, Polk, Wardwell, Gardiner & Reed_____________________________ 408, 496
D e Gersdorf, Carl A ______________________________________________________
957
Dunningham, Walter G _____________________________________________ 1535, 1617
Engellau, Ivar_____________________________________________________ * 1 1 9 5 ,1 2 4 1
Fitzpatrick, Herbert_________ _______ - ______ _____________________________
703
Franklin, George S __________ _______ _________________________________ 1535, 1617
Fraser, Leon_______________________________ _______ ________________________ *1 1 5 8
Ginn, Frank H _ _ ________________________________________ 619, 641, 643, 657, 704
Gray, W m . A ________________________________________ _______ * 1173; 1214, 1350
38
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A ttorn eys — Continued
Pa&®
Heiserman, C. B ____ __________________________________________________
1327
H opson, H oward C __________________ r ________________________________
2139
Howard, George H __________________________________________________ 308, 315
Hurley, Patrick J ________________.______________________________________
1752
Investors:
Advertisement to, b y use of names o f . ________________________ 1191
D uty to, o f ___________ _________________________ ___________________ *1242
Responsibility to, to see indenture creates legal obligation, and
that securities com ply w ith offer to public, testifies R oland L.
R edm on d____________________ __________________________________ *1242
641
Jones, T h om as______________________ __________________________________
Knollenberg, Bernhard____________ u__________ _____________ 1535, 1617, 2076
Kreuger & T oll Co., for 1195 et seq___________________________________
1241
Le Boeuf, Randall J., Jr_______________________________________________
1,
307, 316, 359, 443, 460, 527, 563, 619, 657, 863, 864, 867, 868
Leslie, W arren____________________________________________________ 1535, 1617
Lord, D ay & L ord_____________________________________________________
2076„
M achold, Earl J__________________________ 1, 307, 359, 443, 527, 563, 619, 657
M arting, H enry A _____________________________________________________
704
M cA d oo, W m . G., Senator___:___________ _____ __________________ 1892, 1893
1893
M cA doo, C otton & Franklin__________________________________________
M cD onough, James B. Jr_______________ _ 1, 307, 359, 443, 527, 563, 619, 657
MQbank, Albert G _____________________________________________________
215
M ilbank, Tw eed, H ope & W eb b ______ ^_______ ________________________
215
M ilb u m ,_______ ____________________________________ ____________*1234, *1235
M oore, M . T _______ _____________ ______________________________________
957
M urphy, C lifton____________:______________________________________ 1535,1617
M urphy, John P atrick_____________________________________ 641, 657, 671, 672
*119
Names of, used in advertising securities issue_________________________
Pecora, Ferdinand J ______________________ 1, 307, 359, 443, 527, 563, 619, 657
Perkins, Thom as Nelson_______________________________________________ *1241
Proskauer, Joseph M ___________________________________________ *1215, *1216
Public, responsibility t o ____________________________________________ _
*1242
Redm ond, R oland L ___________ _________________________________ *1234, 1235
R eputation of, n ot considered b y N ew Y ork Stock Exchange in con
nection with listing o f Kreuger & T oll securities____________________ *1356
Roberts, G eorge____________________________________ ________________ 408,496
R oot, Clark, Buckner & Ballantine_________________________ 1535, 1565, 1617
Ropes, Gray, Boyden & Perkins o f B oston __________ *1158, 1202, 1236, 1247
Saperstein, D a v id _____________ 1, 307, 359, 443, 527, 563, 619, 657, 1535, 1617
S em ler,_______ _________________________________________________________
496
Shearman & Sterlings_____ ______________________________________ *1774, 1871
Silver, Julius_____________ 307, 359, 443, 527, 563, 619, 657, 1535, 1617, *2297
Swaine, R obt. T ______________ . ______________ _________________________
957
Travis, Brow nback & P axson__________________________________________ 1756
Travis, Chas. M _________ _____________________________________________
1756
Untermeyer, Samuel___________________________________________________ *1305
Vincent, John____________________________________________________ •_____
2057
W inthrop, Stimson, Putnam & R oberts_____________________________ 408, 496
Zachry, Wallace P _____________________________________________ ___ 1535,1617
A tw ood , H. G .: American Com m ercial Alcohol Corporation, ex-director
o f ______________________________ __________________________________________ 5852
A t w o o d : Public attitude tow ard becom ing favorable_______________________ 5613
A u bu rn A utomobile C o . :
Brokerage holdings o f stock in 1929___________________________________
6373
Call loans made b y the com pany to brokers through Guaranty Trust
Co. of New Y ork in 1929_______________________________________ 6342, 6374
Fluctuations outrageous, says W illiam Z. R ipley__________________ *878, 880
Short interest approxim ated 50 percent of the floating supply of
approxim ately 100,000 shares, constituting one-half o f the out
standing stock; the other one-half being owned b y Cord, says
M atthew C. Brush______________________________ _______ ____________* *314
Transfers o f com pany’s stock in 1929, num ber o f ________________ 6373-6374
A uchincloss , G ordo n :
General Theatres Equipm ent, Inc., com m on stock committees,
counsel to, suggested as in Hagen m em orandum _______________ 3846, 3847
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
39
A uchincloss , J a m e s :
Pa«®
6236
Libby-O w ens-Ford Glass C o __________________________________________
6347
New Y ork Stock Exchange Publicity Committee, chairman o f ______
Officer of both New Y ork Stock Exchange and Better Business Bureau
of New Y ork C ity (In c.)— C o n n e ctio n .______________________ *1122-1124
A udits , A uditin g , and A u ditors :
Accounting standards justify requirement o f independent audits o f
marketed public issues, testifies B ern ing._____ _____________________ *1251
Adjustm ent of degree of precaution to reasonable expense, com
mented on, b y M a y _________________________________________________ *1274
Advertisement, use o f names for purposes of, in sale of issues________*1252
Aktiebolaget Industribyran, Swedish accounting firm _________________ *1232
American accounting practices grow out of good conscience and
business practice, testifies M a y __________________________ ________ _ *1266
American accounting practice in advance o f English in am ount of
inform ation given to shareholders___________________________________ *1266
American Institute of Accountants, report of, on value and lim ita
tions of corporate accounts and general principles for preparation
of reports to stockholders_____________________________________ *1359-1364
Bergenstrom, Ernst____________ _______________________________________ *1230
Certificates of, not technical, testifies Berning________________________ *1252
Certificates of, relied on by investors only for what they say, testifies
Berning_____________________________________________________________ *1252
Custom ary to refer to im portant transactions quickly follow ing close
of fiscal year, testifies Berning_____________________ __________ ______ *1252
Election of, in England b y shareholders, testifies Berning____________ *1250
Election of, in Sweden by shareholders_________________________ *1219, 1230
England:
Accounting practices in. American accounting practices in
advance of, in amount of inform ation given to shareholders,
testifies M a y ____________ _______________ '_______________________ *1266
Accounting practices, in, depend on statute, testifies M a y _______*1166
Election of auditors by shareholders in ___________________________ *1250
Responsibility of auditors to shareholders in _____________________ *1250
Ernst & Ernst of New Y ork C ity ______________________ *1249, *1251 et seq.
Expense, adjustm ent of precaution t o ____________ 1___________________ *1274
Foreign accounting practices reported to New Y ork Stock Exchange. *1354
Germany, independent audits by certified accountants required in___*1327
H opson, H ow ard C __________________________________________________ 4-2139
Independent audits:
A ccounting standards justify requirement of, testifies Berning. _ *1251
Companies listed on stock exchanges, presented by large per
centage o f ______________________________________________________ *1357
Germany, required in, by certified accountants__________________ *1327
New Y ork Stock Exchange, as requirement for listing o n ________*1272,
1312, 1354, 1357, 1358
N ot required for listing on New Y ork Stock Exchange__________ *1354
Practically unknown abroad, except in England____ ____________ *1354
Public, as protection t o ___________________________________________ *1273
International M atch Corporation, o f__________________________ *1251 et seq.
Investors:
Certificates relied on by, only for what they say, testifies Berning. *1252
Independent audits as protection t o ______________________________ *1273
Inform ation given to, under American practice com pared with
English_________________________________________________________ *1266
Kreuger & Toll Co. (See Kreuger & T oll Co., auditing, auditors.)
Lindencrona, C. G. A _________________________________________________ *1230
Morgan, J. P. & Co.:
Accounts of partners of, audited by Commissioner of Internal
Revenue________________________________________________________
35
New Y ork Stock Exchange:
Audits by. (See under New York Stock Exchange Audits.)
Foreign accounting practices reported t o _________________________ *1354
Listing on, independent audits as requirement o f________________ *1272,
1312, 1354, 1357, 1358
Precaution adjusted to reasonable expense____________________________ *1274
Price Waterhouse & Co., auditors___ _________________________________
119,
120, 510, 946-948, *1259
40
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A udits , A u ditin g , and A uditors — Continued
Pag®
1273
Public, independent audits as protection t o ___________________________
Qualified certificates give notice that work did not include certain
verifications, testifies Berning_______________________________________ *1250
Qualified certificates not given where scope o f work covers examination
of books sufficient to audit earnjngs accounts, testifies Berning____ *1250
Responsibility of:
Com pany, to, in Am erica___________ ______________________________ *1250
Shareholders, to, favored b y M a y _________ ______________________
1265
Shareholders, to, in England___________________________ __________ *1250
Sillen, O ________________________________________________________ _______*1232
Standardization o f practice of, necessary to prevent deception of
public, testifies Frank Altschul___________________________________ _ *1358
, Stock exchanges, listing on, independent audits as requirements o f ___*1272,
1312, 1354, 1357, 1358
Stockholders, responsibility to, favored_______________________________ *1265
Subsidiaries:
Audits of, brought into audit of American holding com pany,
testifies Berning________________________________________________ *1251
Audits of, required b y New Y ork Stock E xchange........................... *1357
Sweden, election of, auditors in, b y shareholders...... .......... ........ *1219, 1230
Tam m , P er__________________________________________________________ *1230
Tyler, Edward M _____________________________________________________ *1688
Value and lim itations o f corporate accounts and general principles for
preparation o f reports to stockholders. R eport o f Com m ittee o f
American Institute o f Accountants for Cooperation W ith Stock
Exchange_________ ________ __________ _________ ______________ _ *1359-1364
W endler, A ________________________ _____________________________________ *1230
Wendler, J _____________________ ____________ __________________________ *1230
Y oung & Co., a u d ito rs .7____________ ______________________ _____ >
____
325
A u sserer , C arl (broker)_________________ -____________________________ _
**592
A ustin N ichols & C o.:
Chaise National Bank, loan to:
Am ount o f commercial paper securing____________________________ 2916
Officials or trsutees of, interested in _________________ _____ _______ 2914
Uncollateralized'_____________________________________ _____________ 2916
Chase official interested in Schm idlapp____ ___________________________ 2916
A v e rh o ff.
(See Cuban loans, Averhoff.)
A v ia tio n C o r p o r a tio n , In c. (See also Aviation stocks).
Air-mail contracts, cancelation o f (See Aviation stocks, cancelation o f
air-mail contracts).
Prices: Closing quotations on New Y ork Stock Exchange for D e
cember 1933 and January and February 1934. High and low
prices in Decem ber, January, and February 1, 9, 10, 13, and 28__
7762
Short selling in_________________ _______________ _ _________ ________ 6729-6731
Short selling, Decem ber 29, 1933, to January 31, 1934, com pared
with stock prices and total reported sales January 2, 1934, to
February 15, 1934 (graph)_______________________________ 6844-6849, 6850
A v ia t io n St o c k s :
Aviation Corporation, In c --------------- ------------------------------------ ---------- —
7759
7759
Bendix Aviation Corporation---------------------- -----------------------------------------Blaek com m ittee, air-mail contracts, revision indicated_____________
7760
Cancelation o f air-mail contracts------------ --------------------------------------------7760
D ate announced, February 10, 1934______ ___________ ______________
7760
Curtiss-Wright Corporation_______________________________ ___________
7759
D ecline of price, February 1, 10, 1934:
Black com m ittee disclosures influential---------------------------- ---------7760
Liquidation o f long sales caused---------------------------------------------------7760
Mark-up in Decem ber 1933 and January 1934 influential___ ___
7760
Short sales had little effect________________________________________
7760
Douglas Aircraft Co., In c_________________ ________ - ___________________
7759
Investigation b y com m ittee, purposes_________________________________
7759
Investigation discontinued because o f expense_______________ i ___ 7 7 01 -7 702
List o f stocks reviewed b y cofnm ittee_________________________________
7759
M organ, A. T ., seller o f ____________________________ ___________________
7760
N ational Air Transport, Inc., seller o f_________________________________
7760
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
41
A viation Stocks — Continued
National Aviation C orporation________________________________________ 7759
N orth American Aviation, In c _________________ _____ ________________
7759
Price fluctuation:
January 1934, rising______________________________________________
7760
7760
February 1-9, 1934, decreases____________________________________
February 10, 1934, drops heavily________________________________
7760
Prices on New Y ork Stock Exchange:
Closing quotations first and last days of Decem ber 1933, January
and February 1934; also high and low prices in D ecem ber 1933,
January and February 1, 9, 10, 13, and 28, 1934_________ 7762-7766
Purchases of:
(See Sales and purchases of, post).
Q uotations:
Closing quotations for first and last days of Decem ber 1933,
January and February 1934. Also high and low quotations in
Decem ber 1933, January and February 1, 9,10,13, 2 8 ,1934_ 7762-7766
Rentschler, Frederick B., seller o f_____________________________________
7760
Sales just prior to cancelation of air-mail contracts__________________
7760
Specialists, b y ________________________________________________ 7760, 7761
Sellers of, late January through February 9, 1934____________________
7760
Shares bought and sold, ta ble____________________________________ 7760, 7761
Short sales interest rose from about 4,000 as of Decem ber 29, 1933, to
34,000 on January 31, 1934____________________________________ 6845-6856
Short sales had little effect on decline in price, February 1, 10, 1934___ 7760
Short selling:
Bendix Aviation Corporation stock __________________________ 7766-7776
Curtiss-W right Corporation stock___________________________ 7776-7803
National Aviation Corporation stock________________________ 7803-7804
N orth American Aviation, Inc., stock ______________________ _ 7805-7810
United Aircraft & Transport Corporation stock_____________ 7810-7843
W right Aeronautical Corporation stock _____________________ 7843-7844
Specialists’ sales just prior to cancelation of air-mail contracts___ 7760, 7761
Sperry Corporation, seller o f __________________________________________
7760
Townsend (J. H .), seller o f____________________________________________
7760
Trading in, by persons connected with aircraft companies_______ 7766-7844
United Aircraft & Transport Corporation_____________________________ 7759
W hitney (Richard) came to no conclusions as to whether the sudden
spurt in activity in aviation stocks from D ecem ber 1933 to February
9, 1934, was due to rumor of cancelation of air-mail contracts______
7407
W right Aeronautical Corporation_____________________________________
7759
A w a lt , F. G .:
Testim ony o f _____________________________________________________ 5828-5850
Bank examiners, leniency recommended to in letter o f___________ 5831
Bank holiday, Michigan, opposition t o ___________________________ 5844
Banking experience o f____________________________________________
5828
Bank, leniency toward, instructions to examiners concerning,
part played b y _________________________________________________
5837
Bonds, depreciation of, instructions of, to bank examiners, to
charge off 25 percent of intrinsically sound_____________________ 5831
Comptroller of the Currency:
A cting_________________________________ 4453, 4747, 5762, 5829, 5837
Counsel t o ___________________________________________________
5830
D ep u ty __________________________________________________ 5828, 5829
Comptroller of the Currency’s policy of leniency, approved by _ 5838, 5839
Federal Reserve district, fifth and sixth, supervision o f __________ 5830
First National Bank insolvent, belief o f _____________________ 5839-5840
Guardian D etroit Union Group, Inc., taken over b y ____________
4453
Guardian National Bank insolvent, belief o f ________________ 5839-5840
Leyburn transferred b y _________________________________________ 5762
Reconstruction Finance Corporation, board meeting February
22, 1933, present a t____________________________________________
4747
A y e r s , C. L .:
Union Guardian Trust loan account, individual w ith _________________
4863
Union Guardian Trust Co., loan account of Blair and, w ith __________ 4863
Collateral on _________________________________________________ ____
4863
42
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
A ztec T o w e r :
Page
N ew Union Building Co. erected_________________________________ 4783, 4806
B a b b a g e , R ichard G., attorney representing Real Estate Board o f New
. Y ork :
Testifies___________________________________ _________________ __________
6895
(Securities Exchange A ct o f 1934)___ ____________________________ 6895-6898
B abson ’ s Statistical O r g a n iz a tio n : Prosperity, prognostication of for
1931---- -------:______________________________________________________________ 4305
B a ch e , J. S.: 'J. S. Bache & Co., m em ber o f __________________________ *444, 2510
B a ch e , J. S., & C o ______________________________ ______________________ *444, 2510
B ack us , E dw ard W .:
Testifies_____________ _________ ^______________________ ________________
7645
Financial racketeering against M innesota & Ontario Paper Co., and
Great Lakes Paper Co., L td ____________________________________ 7645-7663
M innesota & Ontario Paper Co., of which Backus was guiding spirit,
was forced into receivership b y conspiring com m ercial banks,
notably Chase National Bank, First National Bank of Boston, and
National Shawmut Bank, to foster own selfish interests, says
Edward W . Backus_____________________________________________ 7645-7699
B a d g e r : Guardian D etroit Union Group, Inc., liquidation of securities
(1932) facts and figures concerning secured from ________________________
4587
B agehot , W a lte r , ex-governor of Bank of England: Author of Lom bard
Street_____ __________________________________________________ _____________
*362
B a k e r , G eorge F., J r .:
Banker____________________________________________________________ 735 et seq.
850
Concentration of wealth, disapproval of, b y __________________________
D irector of Erie Railroad__________________ __________________________ _
612
Erie Railroad, interests in, o f ______ 565, 612 et seq., 627 et seq., 736 et seq.
First National Bank of N ew Y ork, vice chairman o f _________________
537
Joint account of J. P. M organ & Co., meeting in regard to, attended
' b y -------------------------------------------------------------------------------------------------------537
M organ, J. P. & C o .:
Joint account of, meeting in regard to, attended b y ______________
537
Preferred lists of, mem ber o f ________ _ _;__________________________
828
B a k e r , H ugh B .:
Conservative________ __________________________________________________ *1929
National City C o.:
Management fund of, extent of participation in, o f___ _
*1965, *1966
President o f ___________________________________________ *1767, 1866, 1889
Stock Purchase Corporation, loan by, to, of am ounts necessary to re
deem National C ity Bank stock owned b y him but pledged to
secure his brother’ s d eb ts________________________________ ___ *1943 et seq.
T estim ony o f _________ *1889 et seq., 1911 et seq., 1926 et seq., 1965 et seq.,
2006 et seq., 2047 et seq., 2060 et seq., 2080 et seq.
B a k e r , L. H. D .:
Resignation of asked to make room for group ch oice_________ 4228, 4231, 4232
Resigned__________________________________________________________ 4228, 4232
B a k e r , N ew ton D .:
Attorney for Van Sweringlen________________________________________ *703
M organ, J. P. & Co., preferred lists of, mem ber o f ___________ *138, *178, *702
Twentieth Century Fund, m em ber o f _________________________________
6467
Van Sweringen interests recom m ended for, subscriber to Alleghany
Corporation sto ck --------------- -------------------------------------------------------------8867
B alance S heets :
N one included in—
Circulars b y such houses as Pynchon & Co. customarily, D odge
says-------------------------------------------------------------------------------- ------------- 3513
General Theatres Equipment, Inc., advertising circular_____ 3512-3513
B a la n c in g o f B u d g e t (see under Budget).
B ald w in L ocomotive 'C o . : Cutten (Arthur W .) director o f (1928)............ 3111
B a ldw in L ocomotive Secu rities C o r poration :
Baldwin L ocom otive W orks, subsidiary o f ____________________________
31
Directors o f________________________________________ ___________________
31
Subsidiary o f Baldwin L ocom otive W orks....................... ............................
31
Subsidiaries o f _______________________________________________________ _
31
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
43
B a ld w in L ocomotive W or k s :
Pa&e
Baldwin Locom otive Securities Corporation, a subsidiary o f __________
31
Cramp Brass & Iron Foundry Co. is a subsidiary o f__________________
31
Subsidiaries o f _________________________________________________________
31
B a ld w in , Samuel W .:
Testim ony o f ____________________________________________________*2141 et seq.
National City Co., treasurer o f_ n_____________________________________ *2141
Testim ony o f __________________________________________________ *2141 et seq.
B aldw in -S ou thw ark C orporation :
31
Baldwin Locom otive W orks, subsidiary o f ____________________________
Directors o f____________________________________________________________
31
Subsidiary of Baldwin Locom otive W orks____________________________
31
B a ld w in , W . B.:
8507
Citizens Savings & Trust Co., form erly w ith _________________________
Guardian Trust Co. of Cleveland, loan by, t o __________________ 8507 et seq.
Union Trust Co., president o f _________________________________________
8507
B a ld w in , W ilb u r M .:
Central United National Bank, indebted to, and amounts thereof___
8507
Compensation to, as officer of Union Trust C o __________________ 8122, 8162
D ebts of, and collateral therefor______________________________________
8507
Guardian Trust Co. o f Cleveland, loans by, t o __________ 8048, 8049 et seq.
8122
Lenihan report criticized______________________________________________
M itt’s right-hand m an __________________________ 8183, 8191, 8198, 8200, 8206
Painter loans:
Collusion resulting in, involved in _________ 8128, 8129, 8182, 8825-8850
Duties to bank violated by in connection w ith ________ 8188, 8825-8850
Handled personally b y _______________ 8183, 8833, 8843-8845, 8847-8848
Indicted as result o f ______________________________________________
8128
8188
Ohio Code, violation of, acts of believed to be___________________
Painter note returned b y _______________________________________•_* 8186, 8188
Union Cleveland Corporation:
D irector__________________________________________________________
8159
Vice president____________________________________________________
8159
Union Lennox C o.:
D irector__________________________________________________________
8160
President_________________________________________________________
8160
Union Trust C o.:
Loss of, privately arranged by with Van Sweringen______________ 8125
Official positions in and in other concerns___________________ 8225, 9228
Policies, member of group dom inating_________________ 8122, 8138, 8191
President_______________ 8048, 8049, 8122, 8158, 8182, 8191, 9228 et seq.
Responsibility toward never recognized_____________________ 8182, 8825
Van Sweringen loans approved b y _____________________ 8198, 8199, 8208
Van Sweringen loan collateral, switch in, attem pted explanation of
switch in b y ____________________________________________________
8206
B ales , E m m or : River Rouge Savings Bank of River Rouge, specified
5090
directors for, D . B. C. authorized to nominate_____________________
B a llan tin e , A rthur A .:
Testim ony o f _____________________________________________________ 5791-5810
Bank holiday, Michigan, present when declared______________________
4628
Banking, suggestions for im proving______________________________ 5808-5810
Capitol National Bank of Lansing, loan by, to Michigan Mortgage Co.,
of which guiding spirit______________________________________________
4713
Detroit, went to, to investigate Union Guardian Trust Co. situation. _ 5793
Ford, called on concerning additional financial com m itm ent__________ 4694
Guardian Detroit Union Group, Inc., Reconstruction Finance C orpo
ration application, present at meeting on ______________________ 4627, 4747
Law yer________________________________________________________________
5791
Michigan banking situation, continuous attention to after February 8
or 9, 1933____ ____________________________ _____________1_______ 5791, 5792
Reconstruction Finance Corporation acted for Mills on, to considerable
5792
extent_______________________________________________________________
R oot, Clark, Buckner & Ballantine, member o f_______________________
5791
Treasury:
Assistant secretary o f _____________________________________________ 5791
Under Secretary o f ____________________________________ 4627, 4694, 5791
Views of, on branch and group banking_______________________________ 5810
44
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a lla n ty n e , J o h n :
Page
Testim ony o f (D etroit Bankers C o .)_____________________________ 5057-5104,
5118-5123, 5157-5169, 5233-5255
A ctive, according to W ilson___________________________________________
5743
Authority, insufficient of, Wilson view _______________ ________________
5724
Authority, not exercised by, according to Stair__________________ 5408-5409
Bank mergers, opposed constitutionally t o ____________________________
5072
Bank o f M ichigan, chairman of board of directors o f ____________ 5064, 5065,
5069, 5070, 5071, 5072, 5073, 5079, 5080, 5096-5097
President o f ________________ ______________________________________
5072
Circulars addressed to stockholders of unit banks later forming D etroit
Bankers Co., signed b y _____________________________ 5069, 5071-5072, 5080
Clark, discussion with by, concerning forming D etroit Bankers C o. 5079-5080
Criticism o f by Stair_____ _________________________________________ 5408-5409
D etroit Bankers Co., director of, proposed in_________________________
5070
D etroit Bankers C o.:
Articles of association signed b y ____________________________ 5063, 5130
Authorized to vote stock o f at annual meeting o f First National
B ank___________________________________________________________
5087
Connected w ith_____________________________ _____________________
5058
D irector o f __________________________ _______ 5059, 5061, 5088, 5129, 5100
D irector of unit bank o f __________________________________________
5088
Directors in control o f hostile t o __________________________ :_______ £718
Directors meeting, present at when resolution adopted giving au
thority to vote stock of unit banks____________________________
5087
Discussions prior to organization:
(a) Participation in__________________________________________
5058
(b) Persons with w hom held______________:___________ _______
5058
5079
Founder o f ________________________________________________________
Governing committee, friction between and__________ ____________ 5384
L e ft_________________________________________ ________ _________ _
5153
Letter to stockholders of concerning consolidation:
(а) Change in made b y ______________________________________
5176
(б) Signed b y ----------------------------------------------------------- ------- 5175, 5176
N o knowledge of except what was furnished by officers and ac
countants t o _______________________________________________ 5160, 5163
Operation of, m ore profitable in 1931 than before, didn’ t know
w hether__________________________________________ ______________
5163
Plan of consented to b y :
(a) Out of fatigue______________________ *____________________
5071
(b) T o help old friend______ _________________________________
5072
President and director of, resignation as____________ ________ 5266-5267
President o f _____________ _ 5091, 5281, 5312, 5059, 5240, 5241, 5385, 5408
Com plete authority possessed by, Stair testified____________
5385
Duties as________________ ___ ____________________ :________ 5160-5163
Failure as, Stairs’ v ie w .____ _________________________________
5409
L e ft__________ _____________________________________ 5059,5266-5267
N ot perform ing services as, Stair testified______________ 5384, 5385
Report, annual, 1931, at time o f issuance o f ________________
5157
Resignation as_______________________________________________
5410
Resigned as___________________________________________________ 5583
Salary as___________________________________ _____________ 5162, 5246
Stair succeeded as_________ ______________________________ 5059, 5384
When becam e________________________________________________
5059
R eport, annual (1931):
(a) Believed business m ore profitable than previous year
when i s s u e d . _____ ______________________ ________ ___
5160
(b) Better showing in than before would believe fr o m .. 5165, 5195
(r) Figures for furnished t o _______________j._ 5158,5159,5160,5163
(d) Figures in believed to be correct b y ____________________
5159
Resignation from , of, caused loss of confidence, W ilson view ____
5724
Resolution com m itting to borrow for First National C o.’s obli
gation offered b y _______________________________ ____ '______5102-5103
Stock, sold b y before receivership__________________________ ’_____
5082
Trust agreement, participant in __...................................... 5066, 5131, 5132
Trustees shares, holder o f__ ..________________________________ 5061, 5128
Unit banks, official positions in __________________________________
5091
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
45
B a llan ty n e , J ohn — Continued
D etroit Trust C o.:
Page
5091
(a) D irector o f------------------------------------------------------------------------------(b) Executive committee, mem ber o f______________ ________ ______ 5091
D irector of D etroit Bankers Co. and D etroit Trust C o ______________
5332
5091
First D etroit Co., director o f _ ________________________________________
First National Co. of D etroit:
Apprehension concerning felt b y ------------------------- 5246, 5247, 5248, 5249
Chairman of the board o f___________________________________ 5086, 5091.
5236, 5242, 5246, 5247, 5249, 5251, 5252, 5385, 5408
Salary as_____________________________________________________
5246
Chairman of governing com m ittee o f_____________________________ 5493
Condition o f disclosed bv report o f bank examiner, according t o . 5245,
5246, 5247
Director o f . _ __________________________________________ 5091,5118,5237
Dividends, ignorance concerning____________________________ 5237, 5238,
5239, 5245, 5246, 5247-5249, 5250, 5251
D ividend policy of, responsibility for evaded b y ______ *____ 5251-5252
Dividend, voted for, must have, but no recollection o f_____ 5236, 5238
Highest executive o f,*authority insufficient, claim o f_____________ 5491
Meetings of board:
(а) N o recollection of an y ___________________________________
5239
(б) Present at when Ley burn criticized______________________ 5251
President o f :
(a) Bank examiner approved choice as______________________
5392
(b) Control and cooperation, did not get as______ _____ ____
5764
(c) Power, insufficient as________________________________ 5253-5255
(d) Qualifications for excellent______ ________________________ 5392
5252
(e) Resignation as___________________________________________
Reason fo r _________________________ ______________ r _ 5253-5255
T o maintain self-respect____________________________ 5764-5775
Stock ownership in State banks:
(a) Disapproved b y _______________________________ 5096, 5097, 5098
(b) O bjection made to by, no record o f_________________ 5098-5099
5491
First W ayne National Bank, senior executive o f____________ _________
Haass, old friend o f_______________________________________________ 5072, 5073
Ham tramck banks, acquisition of, by Detroit Bankers Co., does not
know enough concerning to testify_____________________________ 5233-5234
H art memorandum to, concerning Blessed and Leitner loan as trustees. 5669
Manufacturers National Bank of D etroit, president o f_______________
5057
Peoples W ayne County Bank of D etroit, director o f __________ _______ 5091
Salary o f _______________________________________________________________ 5410
Verhelle, confidential memorandum (a) addressed to, (b) given t o ___ 5267
Verhelle, memorandum from , to, discussing organization of D etroit
Bankers C o ____________________ ________________________________ 5312-5315
Wayne B ody Corporation loan conversation with Chittendon con
cerning, b y ___________________________________ 5663, 5664, 5665-5666, 5667
B altimore C hamber of C om merce : Communication re Securities Ex
change A ct o f 1934, protest________________________________________ 7135-7136
B altimore & O hio R ailroad C o.:
Alleghany Corporation, railroad interests exchanged w ith_________ 567, 588
Buffalo, Rochester, & Pittsburgh Railway C o.: Stock control of,
acquired by, from Alleghany Corporation at cost___________ 567, 588
Chase National Bank:
Loan t o ___________________________________________________________
4170
Repaid from Reconstruction Finance Corporation loan t o ______
4170
M organ, J. P., & C o.:
Joint account of, trading by, in securities o f_____________________
547
N ot bankers for the railroad_____________________________________
547
Railroad interests exchanged with Alleghany Corporation_________ 567, 588
B altimore Stock E x c h a n g e _____________________________________________
6736
Incom e and expenses o f mem bers_____________________________________
7900
Bank of Com merce:
Organized___________ _____________________________________________
8137
Union Trust Co. original bank___________________________________
8137
B anca I n te r n a tio n a le : Cuban bank with branches, failed 1820_______
2787
46
I^D E X TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n ca m erica B l a i r & C o .: (See also Cuban loans— Blair & Co.)
Chase National Bank stock, funds:
Page
2430
Purchase of one-half funds for, advanced b y ______________________
Trading accounts in, participant in _______________________________ 2858
Fox Film :
Debentures of, held by, interest on waived to avoid receivership _ 3809
Debentures of, purchase group for, member o f______ ________ 3617, 3622
Stock A purchase warrants, obtained from H alsey Stuart &
Co. b y _________________________________________ 3640, 3641, 3649, 3652
Fox financing, m em ber o f bankers group interested in one plan for__ 3584
General Theatres Equipment, Inc., repurchase from o f 70,000 stock
purchase warrants b y _______________________________________________
3803
R eport of, to board o f directors ta rd y ___________________________
3804
Reason for delay unknown to D od g e_______ _____________________
3804
Joint account managed b y M etpotan Securities Corporation, par
ticipant in ______________________________________________________ 2414, 2415
M etpotan Securities Corporation, letter to, of, arranging details o f
join t accon'nt w ith _______________________________ ___________________ 2415
Sinclair Consolidated Oil C orporation:
,
Party to underwriting of stock o f__ ______________________________ 2932
Subparticipations in underwriting account o f granted at request
o f ________________________________ _______________________________
2934
Trading account in, participant in ___I ___ ________________________ 2901
B ancamerica -B la ir C orporation (trading corp oration ):
Options granted by Bancam erica and E. A. Pierce & C o., to Sam Pass,
in Douglas Aircraft Co., Inc. stock and assigned b y Pass to Chartes
C. W right__________________________________________ 6119-6123, 6155-6156
Options granted by, to George F. Breen in Curtiss-W right Corpora
tion stock, and assigned by Breen to W right and Sexton______ 6137-6138,
6159-6160
Options granted by, to Charles C. W right, in Superior Oil Corporation
stock _____________________________________________ 6125-6127,6157-6158
Options granted by, in Julius K ayser & Co. stock to Redm ond & C o . _ 6293
Participated in John J. Levenson’ s profits during 1929-30. (See
“ Trader” Levenson)________________________________________________
*611
B ancamerica -B lair G roup :
Bankers, members o f ___ _______________________________________________ 3602
Fox Companies financing:
Organized to assist in _____ _______________________________________
3748
Participation in by, with Halsey Stuart & C o., discussed____ 3599, 3601
Plan fo r ____________________________________ : _____________________
3770
B an d ler , W illiam A .:
D irector o f Sid Klein Corporation at organization____________________
6177
(See American Com mercial Alcohol Corporation, Pools— Additional
issue of stock (abandoned) July 19, 1933.)
B a n k F or S avings op N ew Y o r k : D irectors o f ________________________
24
B a n k of A m e rica , N a tion al A ssociation of N e w Y o r k :
1
Consolidated Oil Corporation made call loans in 1929 th rou g h -- 6368-6369
R adio-K eith-O rpheum Corporation made call loans in 1929 through', _ 6386
B a n k of C ommerce of D e a r b o r n :
Acquisition of, b y Union Com merce Corporation arranged fo r ___4791
Guardian D etroit Group, Inc., acquired shares of, except qualifying. _ 4212
Union Commerce Corporation, m ajority stock ow ned by, in _________ 4778
B ank of D e t r o it :
Capital prior to merger________________________________________________ 5026
Guardian D etroit Group, Inc., acquired shares o f ^except qualifying. _ 4212
Surplus prior to merger________________________________________________ 5027
B ank of E n glan d :
Credit control_____________________________________________________ 7198-7200
Directors o f ______ ______________________________•_______________________
33
B ank of H am tram ck :
Guardian D etroit Union Group, Inc., control by, over directors o f . 5033-5034
Guardian D etroit Union Group, Inc., owned 54 or 56 percent stock o f . . 5034
Lord letter to cashier o f suggesting Adam s as director instead of
M anning_____ ;_________________ _____________________________________
5034
Lord, letter to from cashier of, name of one director crossed out and
another substituted in __________________________________________ 5033-5034
Opened after bank h olida y_____________________ __________ ____________ 4320
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
47
Page
B a n k of I o n ia : Condition of disclosed by examination______________ 4650, 4651
B a n k of M a n h a tta n C o.:
Guardian Trust Co. of Cleveland, loan of $5,000,000 to, by, to help
window-dressing scheme________________________________________ 8059 et seq.
International Acceptance Bank merged with___________________________
982
Trading account formed for trading in capital stock o f___________ 2828, 2830
Underwriting and subscriptions to new capital____________________ 2828, 2830
B a n k of M ic h ig a n :
Changes in capital stock, number or qualification of directors, or
classes of stock forbidden without two-thirds vote of common and
trustee’s shares_____________________________________________________ 5060, 5128
Circular to stockholders of, recommending exchange of stock for
Detroit Bankers Co. stock________________________________________ 5069-5071
Basis on which to be made__________________________________________
5070
Closed after consolidation________________________________________________
5086
Detroit Bankers Co., formation of, Livingstone acted for in connection
with______________________________________________________________________
5080
Detroit Bankers Co., limited in selling or mortgaging property of but
directors may consolidate with other subsidiaries_______________ 5062, 5130
Detroit Bankers Co., unit o f________________________________________ 5065, 5235
Peoples W ayne Bank, consolidation with__________________________ 5083, 5086
People’s W ayne County Bank:
5097
Consolidation with__________________________________________________
Merged with__________________________________________________________
5490
B a n k of N e w Y ork & T rust C o .: Officers of______________________________
1 -90
B a n k of Sa g in a w , M ic h ig a n :
Condition unsatisfactory__________________________________________________ 4633
5712
First National Co., purchase of minority stock interest in______________
Licensed, not, or reorganized________________________________________
5712
Guardian Detroit Union Group, Inc., not member of_____________ 4200-4201
Reopened, not yet_________________________________________________________
4700
B a n k of U n ited St a t e s :
Failure____________________________________________________________________ * * * 8 7 7
Fox deposits in, not used to pay notes__________________________________
3709
3727
Fox— Letter from, to, concerning extension of Fox Co. notes*_________
Security offer to prevent application for receivership_____________ 3729-3730
B a n k ers.
(See under Banks, banking, and bankers.)
B an k e r s B ond & M ortgage Co. of A m e r ic a : Chase National Bank,
loan to, officials or trustees of, interested in_______________________________
2914
B a n k er s C o.:
Bankers Trust Co. of New York, investment affiliate o f_______________
536
Directors of, not partners of J. P. Morgan & C o_______________________
543
Investment affiliate of Bankers Trust Co. of New Y ork_________________
536
Joint account with J. P. Morgan & C o____________________________ 536 et seq.
Morgan, J. P. & Co.:
Joint account with______________________________________________ 536 et seq.
Partners of, not directors of_________________________________________
543
B a n k e r s ’ P ool : Morgan, J. P. & Co. joint account with investment affi
liates of certain banks; name of newspapers for_____________________________
540
B an k er s T rust Co. of N e w Y o r k :
Affiliate of: Bankers C o __________________________________________________
536
Bankers Co., an investment affiliate_____________________________________
536
Call loans made by Electric Bond & Share Co. through bank__________
6323
Chase National Bank loan to County Trust Co., negotiated a t _________
3054
Chase National Bank and Chase Securities Corporation:
(a) Agreement with shareholders of_____________________ 2293, 2340, 2347
(b) Attorney to effect transfers of shares o f_______________________
2288
(c) Depository for share o f__________________________________________ 2287
(d) Shares of, issue directly, not to_________________________________
2289
Chase stock— Trading accounts in, participant in_________________ 2858, 2859
Detroit Trust Co., funds deposited in___________________________________
5334
Directors o f________________________________________________________________
24
Morgan, J. P. & Co., as partners o f________________________________
543
Fox, letter from, to, concerning extension of Fox Co. notes____________ 3727
Guardian Detroit Union Group, Inc.:
Loan to from____________________________________________________ 4679, 5038
Management of, supervision over given to _________________________ 467960604— 46 ------ 4
48
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n k e r s T rust C o . of N e w Y ork — C ontinued
Guardian Trust Co. o f Cleveland:
Page
Loan t o __________ ___________ __________ ____________________ 8544 et seq.
Sale by, to of, over $5,000,000 of stocks and loans under repur
chase agreements_____________________________________________ __ 8058
Investm ent affiliate o f: Bankers C o ____ _______________________________
536
M organ, J. P. & C o.:
Partners of, as directors o f . _____ ___________________________ _
543
Stock interests of, in ______________________________________________
848
N ational Distillers Products Corporation____________________________
6250
Prosser, Seward:
Chairman of board of _ ____________________________________________
91
Executive head____________________________________________________
537
6384
R a d io Corporation of America made call loans In 1929 through____
Stock of, held by J. P. M organ & C o _________________________________
848
Tilney, A. A., vice chairman of board o f __________________________ _
92
Union Guardian Trust Co., Accounts N o. 1 and N o. 2 in ______________ 4837
Union Guardian Trust Co. Account N o. 2 in __________________________ 4828
Reason for Account N o. 2 unknown to L on gley______________ _
4828
Security, offer of to, to prevent application for receivership. _ 3729-3730
Union Guardian Trust C o .:
Borrow ed from ____________________________________________________
4821
Funds deposited in ________________________________________________ 4820
B an k in g A ct of 1933______________________________ ________________________ 6448,
7052, 7146, 7223r 7224, 7229-7230, 7242, 7244, 7276, 7421, 7556-7557
B ank ing A ct of 1933 (G lass -S teagall B ill ) :
-----------Aldrich, amendments to suggested b y _ ------------------------------------- 3977,
3981-3986, 3986-3989, 3989-3990
Aldrich statement concerning gives public impression of haphazard
legislative contrivance, Glass says______________________ 4015-4016, 4029
Am endm ents to, proposed, should go to Banking and Currency
C om m ittee__________________________________________________________
4021
A m endm ents to, to accomplish separation of commercial and invest
ment banking proposed by A ldrich____________________________ 3984-3986
Insufficiency of suggested b y P ecora_______________________ 3992-3993
B ad practices, elimination of, congressional action to. eliminate
em bodied in ____________________________ ._____________ __________ ____
3976
N ot all eliminated b y ________________________ ____________________
3976
Bank officers, rem oval of, authorized b y ______________________________
5846
Await approval o f __________________ ______________________________
5846
Banking, commercial— investment banking separation from —
(a) Need for recognized b y _______________________________________
3981
(b) Purpose o f____________________________________________________
3982
N ot wholly accom plished b y ___________________________ 3982, 3983-3984
Banks campaign against___________ 4024, 4025, 4026, 4029, 4033, 4034, 4040
Banks, interlocking management o f left open b y section 32-33 of__ 3982,
3983-3984
Banks, representatives o f threatened defeat unless m odified_________ 4180
Deposit, guarantee provisions of—
(a) Danger of stated b y A ldrich_________________ 4109-4110, 4114, 4118
(5) Lim itation to deposits of $2,500 or under, Aldrich regards as
necessary__________________________ '____ _ 4115, 4116, 4117, 4118
(c) National banking system, first step tow ard_________________
5049
(d) Tem porary, lim ited, not dangerous according to A ldrich ____ 4114,
4115,4116
(e) Unlimited, permanent, dangers o f stated by A ldrich ____4114-4118
Drawn carefully________________________________________________________ 4022
■Glass discussion o f provisions o f___________________________________ 4022-4037
Interested persons, views o f presented during drafting o f _______________ 4016
Loans to officers, regulatidn o f b y _______________ - ________________ 4026, 4027
Officers, rem oval of, Com ptroller given power of b y _______________ 5286-5287
Procedure under for rem oval o f bank officers for m ism anagem ent____ 4705
Section 32 o f—
(a) Provisions o f ________________________________________ _________
4012
(b) Treasury regulations interpreting________________________ 4012-4014
■Securities affiliates— am endment proposed b y Aldrich to give better
opportunity to liquidate-------------------------------------------------------------- 3989-3990
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
49
B a n k in g and C u r r en c y , C ommittee o n :
Attorneys for______________________________________________________________ *2297,
307, 359, 443, 527, 563, 619, 657, 1535, 1617, 1635
Dillon, Read & Co.:
Cooperation of, with_________________________________________________
1535
Questionnaire sent to, and answers of firm thereto_____________ 2098, 2099
Economic adviser, Marrinan, John_______________________________________ *1145
Gray, William A ., counsel___________________ _________________ ,____ *1173, 1214
Investigation of banking, security, and security exchange practices by,
authorized__________________________________________________________ 2, 337, 339
Krueger & Toll bond issue, remarks on, of chairman of__________________ *1145
Marrinan, J., economic adviser___________________________________________ *1145
McDonough, James B ., Jr., attorney for___________ 563, 619, 1535, 1617, 1635
Meehan, Frank J., statistician____________________________________________ *1173
Morgan, J. P., & Co., investigation of, hindered by restriction on
investigation of documents_____________________________________________
159
Pecora, Ferdinand J., attorney for_____________________________________ *2297, 1,
307, 359, 443, 527, 563, 619, 657, 1535, 1617, 1635
Powers granted to, by Senate:
Resolution No. 56______________________________________ •_______ 1 ,3 3 7 ,3 3 9
Resolution No. 97____________________________________________________
780
Saperstein, David, attorney for_____________________ 563, 619, 1535, 1617, 1635
Silver, Julius, attorney for_____________________________________________ *2297, 1,
307, 359, 443, 527, 563, 619, 657, 1535, 1617, 1635
Statistician for, Frank Meehan____________________________ 563, 619, 1535, 1617
B a n k s (M r .): National Distillers Products Corporation, member of
executive committee of______________________________________________________
6253
B an k s, Banking, and B a n k ers (see also Commercial banks; Incorporated
banks; Investment banks; National banks; Private banks):
Advertisement, press dependent on names of bankers in advertising
issue__,____________________________________________________________ *1184-1189
Affiliates.
(See also under Banks, banking, and bankers; Investment
affiliates):
(A lso see Banks— Capital stock, trading and pool operations in of
parent by affiliate:)
“ Accidental,” exclusion of necessity from reporting on,
Aldrich recommended _________________________________ 3988-3989
Credit diverted from industry to stock market________________ *1984
Depression, causation of, part played in b y __________*1817 et seq.,
1990 et seq., 2241
Investment, lessons against identification with, learned,
Lord testifies__________________________________________________
4209
National Banking Act of 1933 needs clarification o n ___________ 4705
Purpose of organizing______________________________________ 2288, 2826
Unwisdom of speculation by_______________________________ 2834-2835
Altschul, Frank, of New York, banker__________________________________ *1328
American bankers in giving credit to Kreuger, relied on credit Sweden
had given him, testifies Roland L. Redmond_________________________ *1245
Assets of, represented by brokers’ loans as most liquid of all assets___*1819
Attorneys for, act for public in making sure securities are as described
in circular, testifies Redm ond__________________________________ _______ *1249
Audit, independent of, Aldrich opposes____________________________ 4133, 4134
Baker, George F., Jr., banker______________________________________ 735 et seq.
Bankers as corporate directors, legislation prohibiting, regretted by
J. P. M organ____________________________________________________________
5
Bankers not permitted to be directors of Railroad Corporations if selling
its securities______________________ _________________________________ 555 et seq.
Bankers, realization by of public responsibility for_____________________
3976
Banking Act of 1933.
(See Banking Act of 1933.)
Bills payable b y :
Public suspicious of showing________________ 4326-4328, 4353, 4357-4358
“ None” settled policy to show______________________________________ 4324,
4327-4328, 4330, 4346-4347, 4353, 4354, 4357, 4502-4503
Statement times, especially a t____________________ 4346-4347, 4353, 4357
Temporary elimination of, Couzens regards as fraudulent— 4614-4615
Done but not general__________________ _______ _______ _________ 4617
50
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n e s , B a n k in g , and B a n k e r s — C ontinued
Page
Board of directors:
4031
D ifficulty o f securing members financially qualified______________
Lim itation o f num ber o f under Banking A ct of 1933_____________ 4031
Responsibility o f for preventing abuses,in, Aldrich says_________
3976
B ond investments of, necessity for care in ________________________ 5749-5750
Borrow er on collateral, should be closed out and loan paid if security’s
5785
value reduced_____________________________________________________ _
Branch. (See Branch banking.)
Change in, necessity fo r ------------------------ --------------------------------- 3975-3976
Legislation------------------------------------------------------------------------------ 3976
Com pared with unit banking b y J. P. M organ ___________________
952
Brokerage houses exercise functions o f-------------------------------------------------- 1392
Brokers loans b y --------------------------- ----------------------------------------------- ------ *93-94
Control o f corporations b y reason of large loans upon securities _ _ *93-94
Brokers’ loans. (See also under Brokers loans, Banks and bank ers.):
Credit diverted from industry to stock m arket b y _______________ *1984
Deposits, expansion of, in 1929 as cause o f investm ent in _______ *1819,
*1820 et seq.
Depressions aided b y *1009 et seq., *1817 et seq., *1990 et seq., *2241
Extent of, in 1929________________________ ___________________ 543 et seq.
Federal Reserve Board, credit extended by, enabled banks to
make large am ounts o f _______________________ ___________________ *1815
Investm ent in, caused b y expansion of deposits in 1929___ *1819 et seq.
M ost liquid assets of banks_______________________________________ *1819
Nonbanking interests, by, powerless to prevent__________________ *1815
Propriety o f insofar as diversion of credit from other industries
m ay result_______________________________________________;___ *101-102
Speculation indicated b y large am ount o f__________ _______ *1815, *2241
Budget, balancing of:
A dvocacy of, by, w ithout defining------------------------------------- *1987 et seq.
.Definition of, not clear t o __________________________________*1987, 1988
Call loans of, in 1929____________________________________________ 543 et seq.
3428
Call m oney, interest paid on, b y ______________________________________
Capital, steady supply of, needed b y private banks, testifies J. P.
M organ____ _________________________________________________ 1_______
5
Capital stock, impairment o f :
(a) Com ptroller no m ethod of correcting, except b y assessment
on stockholders_____________________________________________ 5787
(b) Com ptroller threatened assessment o f stockholders to restore- 5809
Capital stock— Trading and pool operation in o f parent b y affiliates:
(See Chase National Bank stock, trading account in, D om inick
& D om inick.)
(See M etpotan Securities Corporation.)
Chase National Bank, Chase Securities Corporation:
(а) Accepts participation in join t account for trading in
stock Qf-------------------- ---------------------------------------------------- 2435
(б) Agrees to loan shares of, during option contract in
D om inick & D om inick_______ _________________________ 2457
(c) Bought stock of, through M etpotan C orporation_______ 2378,
2382-2383, 2414-2424
(d) Disposal of its holdings of stock in, puprpose in entering
trade agreem ent_____________________________ ____ 2440, 2441
(e) Profit from trading accoun t______________________________ 2460
Funds for M etpotan Securities Corporation, purchases bor
rowed partly from _________________________________________
2431
Joint account for trading in stock of:
(a) Explanation o f organization o f - ________________ 2437-2440
(b) Participation in by Chase Securities Corporation re
allotted to affiliates___ ’______________________ 2437-2438
W ithout record of, in minutes______________________ 2438
(c) Participation in by M etpotan & Shermar....... ........... 24332434,2437
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
51
B a n k s , B a n k in g , and BANKERs-T-Continued
Pas0
Capital stock— Continued
Chase N ational Bank, Chase Securities C orporation— Continued
M etpotan Securities Corporation:
(a) Joint account bought and sold stock of same day _ _ 2432
(b) M ade private arrangements with D om inick &
D om inick to share in fees of trading accounts in
shares o f__________________________________________
2449
(c) Purchase of excess stock o f____________________ 2382-2383
(d) Purchase of stock of:
Consideration paid fo r ______________________ _______ 2383
Over-the-counter transactions in______________ 2417, 2423
Purpose o f _______________________________ 2417, 2422-2424
(e) Subsidiary of Chase Securities Corporation, man
aged joint account for purchase and sale of stock
o f________________________________ 2414-2424,2428-2430
Option on:
(a) 80,000 shares of, given Dom inick & Dom inick with
out owning same_____________________________ 2440, 2441
(b) Larger number of shares of, than trading account
in, called for___________________________ 2433-2434, 2454
(c) Shares of, by Chase Securities Corporation, to
Dom inick & D om inick___________________________
2457
Participants in trading accounts managed by D om inick &
D om inick in shares o f_____________________________________
2451
N o member o f stock exchange was_________________ 2453-2454
Price fluctuations in, before, during and after M etpotan Se
curities Corporation trading in_______________________ 2425, 2430
Shares:
(a) Involved in joint account, owners from whom
D om inick & D om inick secured options on ___ 2440-2441
(b) Shermar Corporation arrangement with M etpotan
Securities Corporation to split fees on trading
account in ___________________________________ 2448-2450
(c) Shermar Corporation, obligation to furnish shares
of, to D om inick & Dom inick for joint trading ac
count to fulfill option granted b y Chase Securities
Corporation__________________________________ 2444-2445
(d) Shermar Corporation participation in trading ac
2445
count in shares o f________________________________
(e) Selling of, trading account managed by D om inick
& D om inick, equipped for________________________ 2455
(/) Selling of, by Chase Securities Corporation ap
proved b y W iggin________________________________
2455
(ig) T o dispose of which Chase Securities Corporation
participated in trading agreement owned by
M etpotan_______ ____________________________ 2440,2441
Trading account in shares of Chase National Bank:
(a) Profits distributed to participants__________________
2463
(b) Profit from --------------------------------------------------------- 2461-2463
(c) Reason for management by M etpotan Securities
Corporation rather than by Chase Securities
C orporation_____ ____________________________ 2431,2432
Chase Securities Corporation, trading account in shares of, managed
b y D om inick &' Dom inick, operations in __________________________
2462
Chase stock:
(a) Chase Securities Corporation profit from trading account in__ 2471
(b) M etpotan loss of, on sale of, shown on incom e-tax
return______________________________________________________ 2472-2473
Profit from trading account in _________________________ 2472, 2473
Disapproved of b y present management of Chase National
Bank____________________________________________________ 2856-2857
Cleveland, investigation of banks in. (See under Cleveland banking
investigation.)
Client, confidential relation t o ________________________________________ 65, 66
52
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n k s , B a n k in g , and B ank ers — Continued ^
Closing of Bay C ity:
Pago
(a) Mills explained to Vandenberg___ ______________________ 5569-5570
(b) Vandenberg inquiry to Mills concerning_________________ 5568-5569
Collateral bonds held by as, m ethod of valuation o f_____________ 4643-4644
Loans, leniency tow ard exercised_______i _________________________ 4645
Taking as stock o f com pany holding stock o f____________________ 4476,
4477, 4479, 4480, 4489-4491, 4492, 4496-4497, 4498, 4500-4501,
4505-4506, 4508, 4515, 4622.
(a) Circum vention of law____________ 4477, 4479, 4480, 4497-4498
(b) Critlbism of b y national bank examiners________________ 4477,
4479, 4480, 4483-4484, 4496-4497, 4497-4498, 4500-4501, 4 5 0 5 4506, 4508, 4515, 4518.
Taking own stock as by, illegal_________________ 4483, 4488, 4497, 4499
Collateral loan agreement form s___________________________________ _ 133-147
Com m ercial (see also under Incorporated ba n k s):
Affiliates of:
(a) Abolished______________________________ ____________ _____ 4022
(b) Public doesn’t realize harm done b y ________________ 4027-4028
(c) Regulation of, as against separation of, considered_____
4028
(d) Restricted definition of, Glass agrees'w ith Aldrich upon
/ need fo r ______________ _________________________________
4027
(e) Securities, unloading of by, on other banks_________ 4028-4029
Deposits of, centralized, for stock-gam bling purposes_______ 4025-4026
F unction of explained by A ldrich___________ „ _______________ ____
3979
Interest, now perm itted (by Banking A ct of 1933) on dem and
deposits________________________ _____________________ __________
4025
Investm ent banking:
(a) Functions of, contrasted w ith__________________________ 1 3979
(b) Interlocking w ith of, responsible for public condem na
tion of banks__________________________________________
3978
(c) Relationship between and explained b y A ldrich____ 3979-3980
(d) Separation from :
Am endm ent to Banking A ct of 1933 suggested b y Al
drich to accom plish____ __________________________ 3984-3986Insufficiency of statutes to accom plish _ _ 3982, 3983-3984
Insufficiency of suggested by P ecora__________ 3992-399$
Statutory (Banking A ct of 1933) provisions and
Treasury regulations prohibiting official in any
national bank from being official in any business
selling securities_____________________________ 4012-4014
W isdom of, Aldrich statement on _____________ 3977-3981
3981
N eed for recognized in Banking A ct of 1933____________
Obscured by private bankers doing both kinds of
business__________________________________________
3978
P ujo com m ittee report of 1913 o n __________________ 3978
Securities affiliate, opportunity to liquidate proposals
for by Aldrich__________________________ _________ 3989-3990
Speculation should be eliminated fr o m _________________
3977
Condition of becom ing w orse.______ _______________
5334
Congressional action on and relief program , Vandenberg’s views of necessity o f ___________________ 5605
Dual system of, criticized by Stevens______________
5820
G rou p:
Evils inherent in _______________________________
4411
Ford, E. B., opinion o n ___________________ 4697-4698
“ Vicious,” Leyburn’s opinion of, from D etroit
exam ples_____________________________________ 4702
Weaknesses, one of, failure of unit will break
grou p________________________________________
4629
Investigation, testim ony at:
(а) Confusion o f _________________________________ _______ 5790
(б) Frank, truthful, w ithout fear, Leyburn recom m ends
to all______ _______________________________________
5790
M onetary system, essential part o f _______________________________
3978
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
53
B a n k s , B a n k in g , and B ank ers — C ontinued
Commercial (see also under Incorporated banks)— Continued
Securities:
Pa&e
(a) Right to invest in discussed by Aldrich_________________
4042
(b) Should not be issued by_________________________________
4042
Shares, should not deal in its own directly or indirectly, Aldrich
states___________________________________________________________
4120
Situation:
Desperate, Mills believed_______________________________ 5561, 5564
Detroit:
(a) Federal agencies cooperated o n _____________________
5807
(b) Jeopardy of, not known in W ashington____________
5562
M ichigan:
Leyburn letter to Com ptroller concerning_________ 4633-4634
Conflagration, very little would set o ff__________________ 4637
Unsatisfactory condition described______________________ 4633
Worse, growing progressively___________________________
5813
Serious generally__________ '__________________________________
4590
Seriousness of, Mills indicated to Yandenberg_______________ 5571
State-wide branch:
(a) Guardian D etroit Union Group, Inc., directors hoped
fo r___________________________________________ 4396-4397
(b) Lord favored________________________________________ 4396
(c) M ichigan laws forbade______________________________ 4397
Stevens suggestions for im p ro v in g .________ 5820-5821, 5823-5826
Unified, constitutional amendment:
(a) M ay be necessary to secure____________________ 4030, 4034
(b) Offered b y Gore, looking t o ____________________ 4035-4036
Insurance on deposits, effect in cre?tin g_____________________ 4034
Unified State banks, outnumbering national, opposed_______ 4034
Washington handling of, Vandenberg letter to Mills concern
in g_________________________________________________________
5606
Worsening of, Mills view o n _________________________________
5570
Stockholders, earning a return for, by, proper, Aldrich says_____
3979
Trust capacity, propriety o f acting in, considered__________ 3993-3994,
3995-3996
Trust powers:
Com petition between State and national with reference to__ 4108
Contrasted with securities business of, by Aldrich___________ 4109
Danger o f conflicting interests in exercise o f_________________ 4110
Exercise of, by, history o f ______________________________ 4108, 4109
Federal statute authorizing exercise o f _________________ 4108, 4109
Com mittees after receivership, representation on, o f putting out secu
rities com m on_______________________________________________________
3845
Compensation o f employees, Chase National Bank, share o f additional. 2337
Com peting bankers given free participation in syndicate form ed by
Kuhn, Loeb & Co., to discover future com petition_________________
1235
Com ptroller o f Currency, calls on, by, for statements_________________ 4346
Confidence in, need for, stated by A ldrich____________________________
3992
Confidence o f foreign banks and bankers in Kreuger & T o ll__________ *1233
Control o f industry_______________________________________________ ____
*95
Corporate directors, legislation prohibiting bankers, to be, regretted
b y J. P. M organ____________________________________________________
Corporations com pared with partnerships (by J. P. M organ )______ 954-955
Credit diverted from industry to stock market by loans by, to brokers. *1984
Credit given Kreuger b y American bankers induced by credit Sweden
had given him, testifies R edm ond___________________________________ *1245
Credits by too easy, Stevens’ view ____________________________________
5823
Currency, issue of, by National banks and New Y ork State banks, but
not private banks___________________________________________________
100
D ay loan agreement form s_________________________________________ #147-153
54
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n k s , B a n k in g , and B an k er s — Continued
D ay loans b y (see also under D ay L o a n ):
Page
A m ount________________________________________________ 7923, 7925-7926
Brokers, to, as aid to speculation in stocks; question raised as to
whether such is effect___________________________________ *1990 et seq.
Dealers in investment securities, use o f w ord banking in reference to,
objectionable, testifies Clarence D illon ______________________________
1540
Defense of b y Aldrich_____________________________________________;____
3991
Definition of,-by Clarence Dillon, should not include floaters of invest
ment securities____________________________ :_________ _________________
1540
D em and deposits, interest rate on, paid by J. P. M organ & Co.,
norm ally 2 percent, and same as that o f Clearing H ou se___________20, 23
D eposit guaranty provisions for. (See Banking A ct of 1933, deposit
guaranty provisions of.)
D eposit guaranties, approved__________________________________________ 5753
D epositors:
Commercial depositors guided b y published statements__________
102
4538
D ouble liability protection rendered useless to ___________________
Investm ent advice to, should be disinterested_________ __________ *1942
Position of favorable, com pared to stockholders_____________ 2426-2427
Private banks, in, guided b y faith, testifies J. P. M organ ________
102
Propriety of parent banks recommending investm ent by, in secu
rities issued by investment affiliates of bank, questioned.. *1942 et seq,
*2019-2020
Sufficient consideration not given_________________________________ 5785
D eposits (see also under D eposits):
Decrease o f_________________________________________________ •_ 4646-4647
Dillon, Read & Co., b y __________________________________ _ 2152 et seq.
D uplication, prohibition of, recom m ended___________________ 5754-5755
Expansion of, in 1929, cause o f investm ent in brokers’ loans____ *1819,
*1820 et seq.
Incorporated banks, of, kept b y J. P. M organ & C o__________ 128, 129
2427
Interest on, except time deposits, forbidden b y la w ______________
Paid b y _________ _____________________________________________
2427
Kuhn, Loeb & Co., b y __________________________________________ 989-990
Legal reserve fo r _________________________________________________ 19-116
M organ (J. P.) & Co., b y ______________________________________ 128, 129
National banks, w ith______________________________________________
100
New Y ork State banks, w ith___________________________________ 100
Private banks, in____________________________________________ 5, 100, 102
Reserves fo r _____________________________________________________ 19, 116
Depressions:
A id b y bankers in creation of, by lending to brokers_*_____ 1009 et seq.
Brokers loans as aid t o ___ ________________ - _______________ 1009 et seq.
Crash foreseen by bankers bu t they were powerless to prevent it,
testifies O tto H . K ah n __________________________________________
1007
N ot foreseen b y ___________________________________________________ *1818
D etroit, decrease in deposits in__________________ _____________________
4281
Polish, closed______________________________________________________ 4280
Progressively worse 1930-32______________________________________
5812
D etroit, situation of, conference with President H oover, o n __________
5793
D etroit, troubles, beginning o f ________________________________ ________ ' 4280
4280
D ate o f _________________________________________________ v _________
D evices through banking structure to control expansion of Speculative
credit________•____ ____________________________________________ _______ *1392
D illon, R ead & Co. (See Dillon, R ead & Co.)
Loans by, to directors o f _____ ____________________________________ 2154
M embers of, as directors o f ____________ ___ _______________________ 2152
Private bankers___________________________________________________
744
Directorships held b y :
Corporations, in_____________________ 5, 33, 59, 555 ’et 86q., 1836 et seq.
Legislation preventing, regretted b y J. P. M organ ______ ________
5
Public-utilities companies, in ________________________________ 552 et seq.
Railroad corporations, in, bankers not perm itted to be, if selling
its securities____ ____________________________ ______________ 555 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
anks ,
55
B a n k in g , and B a n k er s — C ontinued
D irectors o f :
Page
American philosophy concerning function of, contrasted with
English____________________________________________________ 4111-4112
D illon, Read & Co., loans by, t o _________________________________
2154
Dillon, Read & Co., members as_________________________________
2154
Guardian Trust Co. o f Cleveland, loans by, t o ____________ 8048 et seq.
Interlocking:
Aldrich policy o n _____________________________________________ 4041
Statutory provisions (Clayton Act) and Treasury regulations
thereunder____________________________________________ 4007-4012
4113
Know ledge o f activities o f ________________________________________
Kuhn, Loeb Co., loans by, t o ______________________________ 1320 et seq.
K uhn, L oeb & C o., partners of, as_______________________________
1318
Loans t o ________________ 82, 90 et seq., 1320 et seq., 2154, 8048 et seq.
M organ & Co., loans by, t o ______________________________ 62, 90 et seq.
Should be required to sign letter stating report of, received, and
classification____________________________________________________ 5786
Stockholders, should be, Aldrich says____________________________
4113
5752
Dividends, approval o f Com ptroller for, recom m ended_______________
Cessation of, in lieu o f charge-offs, Union & People’s National
Bank o f Jackson________________________________________________ 4636
Com ptroller o f Currency asked cut in, to preserve resources_____ 4278
Declaration of, b y :
Earnings insufficient to warrant____________ 4253-4254, 4265-4267
T o maintain public confidence_______ 4416, 4419, 4424, 4426-4427
Dividends, not payable by, when deficiency in reserves according to
National Banking A c t__________________________________________ 5509, 5519
Dividends, too high, paid b y __________________________________________
5402
905
Drexel & Co., partners of, as directors o f _____________________________
D reyfus & Co. (See D reyfus & Co.)
Eastman Dillon & Co. exercised functions o f_________________________ *1392
E conom ic conditions, general, o f_________________________________ 4552-4553
Ethics of:
Brokers, day loans to, as aid to speculation in stock _____________ *1990
D ay loans to brokers as aid to speculation in stock; question raised
as to whether that is effect_____________________________________ *1990
Investm ent affiliates, financing by bank o f purchase o f bank’s own
stock by, for resale to public; propriety of, questioned.. *1978 et seq.,
*1994 et seq.
Investm ent affiliates, recom m endation b y bank to its customers to
purchase securities issued by, propriety of, questioned. *1942 et seq.,
*2019 et seq.
Examinations of:
Clearinghouse regulations_________________________________________ 8146
Federal Reserve bank makes, in addition to State exam ination. _ 5821
Federal Reserve bank, right to annual___________________________
8146
Federal Reserve System by, have not prevented failures, in opin
ion o f J. P. M organ____________________________________________
107
Laws o f State and Federal Governm ents providing fo r ________ 18-7983
National bank examiners’ advance notice o f ________________ 4513-4515
Ohio State laws concerning_______________________________________
8146
Reduplication of, recom mendation against__________________ 5751-5752
Required o f national and New Y ork State banks, but not o f private
banks___________________________________________________________
100
Useful, testifies George W hitney__________________________________
115
Examiners for, bankers’ lack o f confidence in, higher pay to recom
mended in by L e y b u rn ..’___________________________________________
5790
Instructions to chief national concerning classification o f loans. _ 5836
Should be protected against being shot a t_______ ________________
5790
56
B
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
anks ,
B anking , and B ank ers — Continued
Examiners, national:
Paso
Armour, em ploym ent of, b y ______________________________________
2409
A ppointm ent o f described________________________________________
5847
Banks, em ploym ent of, b y _______________________ 4454, 4474, 4708, 4720
(a) Chase____________________________ _______________ 2 4 09,2410
(b) D isapproved___________________________ ___________________ 2411
(c) Endorsed by L eybu rn ___________________________ _
4705-4706
(id) W ith C om ptroller’s consent ap proved_______ ____________ 5848
Endorsed by B ryan_________________________________ 4720-4721
C h ief:
Com ptroller, lenient policy laid down b y fo r _____ 4641-4643, 4644
D uties of, according to Patterson_________ •_ 4482-4483, 4485-4487
Jurisdiction of, supervision over field examiners_____________ 4618
Lenient policy laid down fo r ______________ _______ 4641-4643, 4644
Orders of concerning charge offs or dividends, no effect_____
5846
R eports:
(a) N ot signed by as routine:
A w ait’s view ______________________ — -------------------- 5845
Leyburn’s view ____________ __________ _________ 4616-4617
(b) Read before signing, Leyburn testified--------------------- 4616
(c) Signed by, as routine, Patterson testified___________ 4478,
4479, 4480, 4481, 4483, 4487, 4488
C ivil service, inclusion in:
(a) Await disapproved--------------------------------------- 1 -----------------5846
( b) Recom m ended__ ________________________________ ________
5751
Instructions to concerning bank examinations from com ptroller. _ 46 43 4644
Lauding o f Chase National Bank and Wiggins b y __________ 2408, 2410
Statements of exaggerated____________________ _________ 2409, 2410
Lenient policy for, laid down b y Com ptroller______________:. 4643-4644
Position o f unpopular________________________________________ 4712, 4722
R eport of, on First National Bank, criticized b y Stair______ 4712, 4722
Reports. (See Banks, reports o f .)____________________ 5386, 5387, 5388
R eports:
(a) Confidential, developed from letters accom panying re
p orts_______ ___ _______________________________________
5845
(b) R eceipts o f Com ptroller required notation o f in m inutes- 4655
5755
(c) T o o liberal_______________________________________________
Rotation of ap proved_____________________________________________ 5848
Same group examining same banks, error o f______________________ 4199
Service, proper basis for, outlined by B ryan______________________ 4721
Shifting o f_________________________________________________________ 4199
Failures_____________________________________________________ 4539, 5054, 5834
Holding companies:
5015
Danger o f becom ing surety on bonds o f subsidiaries________
Right of, to becom e surety on bonds o f subsidiaries, A ttorney
General’s opin.ion o n ______ ___________________________ 5012-5015
Indiana, closing, 100 expected during 1932_______________________
5719
M ichigan:
(a) Chart o f __________ ______ '___________________________ 4215-4216
(b) Payments on account only made by open _______________
4216
(c) Situation as to acu te__________________________ 4215, 4552-4553
Stockholders liability for statutory liability on bank stock, A ttor
ney General o f M ichigan approved_________________________ —
4893
Surety bonds, execution of, guaranteeing funds in unit banks, ,,
danger of, Attorney General’s opinion on ___________ 4970-4971, 5015
T oled o ____________________________________ _____________________ _
4280
Federal Reserve Board:
Credit of, utilized by, to make brokers’ loans______________ 1815 et seq.
Exam ination by, have not prevented failures in opinion o f J. P.
M organ_______________________ _________________________________ 1-107
57 varieties o f_____________ _______________________________________ 5748,5753
Financial operations, control of, by, com m ented on b y Vaness C o. in
letter to M organ & C o ____________________________________________ 740, 741
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
57
B a n k s , B a n k in g , and B a nk ers — Continued
Pase
Floaters o f investm ent securities should n ot be included in definition
of, states Clarence D illon___________________________________ a----------- 1540
Foreign banks:
Confidence of, in Kreuger & Toll C o _____________________________ 1233
Interests in, o f Kreuger & Toll C o __________________________ 1201, 1202
Functions:
Deposits, receipt o f _______________________________________________
474
Eastman, Dillon & Co., exercised b y ___________ _________________
1392
Securities, in dealing w ith ________________________________________
1157
Loans, for making of, to legitimate concerns for conduct o f
474
business and for deposit, testifies George W hitn ey____ _
'Germ any, governm ent control in __________________________________ . . .
1327
3695
Governm ent ownership of, forecast___________________________________
Guardian Trust Co. o f Cleveland, loans by, to officers and directors
o f _____________________________________________________________ 8048 et seq.
Hoarding b y ______________________________________________________ 5563, 5564
Holding companies for, disapproved by W ilson_______________________
5753
H oliday:
M ichigan____________________________________________________ 3695, 5359
Await opposition to __________________________________________
5844
Beat other States t o ____________________________________ 4653-4654
Closing o f banks inevitable, not caused b y __________________
4655
Conference at which called_____________________________ 4738-4739
Declaration o f _______________________________________________
5799
D etroit bankers and M ichigan Bankers Association re
quested_______________________________________________ 4628, 4653
D etroit clearing house request fo r ______________________ 5799, 5800
Events leading up t o ____________________________________ 5793-5799
(a) Described by Lebrun____________________ 5487, 5769-5770
(b) Stevens relates his part in_____ ________________ 5813-5816
Extension of, limitations on _________________________________
4747
February 14, 1933______________________________________ 4319-4320,
4628, 4653, 4657, 4696, 4707, 4738, 4808, 5548
Guardian D etroit Union Group, Inc., situation o f discussed
at conference o n ___________________________________________
4739
Governor’s proclamations extending, controversial provi
sions in _____________________
_____ ______________________
4748
Opposition t o ________________________________________________
4742
Persons present when declared_________________________ 4628, 4739
Preferring depositors prevented b y _____________ _____________ 4745
Proclamation extending_________________________________ 4746-4747
R. F. C. refused to take responsibility fo r ___________________ 4739
Relief o f suffering, effort to effect_______________________ 4742-4743
Situation not helped much b y ____________ ______________ 4744-4745
United States________________________________________________ 4320, 4699
Insolvent— Com ptroller can close_______________________ 4704, 4705
Law, violation of, Com ptroller can’ t close______________ 4703-4704
Loans, “ p olicy,” should be discontinued, Bryan’s opinion___ 4722
Management, Banking A ct o f 1933 gives Com ptroller neces
sary power o f ______________________________________________ 4705
Incorporated. (See under Incorporated banks.)
Industry:
Capital provided b y private banks, testifies J. P. M organ_______
4
Power over, by calling loans, testifies Frank E. Taplin _____ 1462, 1463
Insull companies, loans to__ *1506, *1508 et seq., *1529 et seq., *1534 et seq.,
*1544 et seq., *1559 et seq., *1692 et seq., *1761 et seq.
Insurance of—
(a) Capital fund set up fo r _______________________________________ 4035
Need for further_________________________________________
4035
(b) E ffect o f keeping in or bringing into Federal Reserve S ystem ._ 4034
(c) M aximum am ount, no need for limitation of, according to
A ldrich_____________________________________________________
4046
58
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n k s , B a n k in g , a n p B an k er s — Continued
Insurance of— Continued
Page
5749
Pledging o f assets to secure, views o n _____________________ •______
Pyramiding o f discu ssed.________________ _ __ ________________ 5824r-5825
Relation o f to capital_______ :____ ________________________________
4047
T em porary______________________________________ __________________
4399
(a) D epositors asked to m ake___________________________ 4399-4400
(b) Year end, Mills disapproved_____________________________
5559
Interlocking directorates, advisability o f _________________________ 865 et seq.
Investigation of, b y Com m ittee on Banking and Currency authorized. _
2
Investm ent. (See Banks, commercial, investment banking):
Deposits, not to be received b y under provisions o f Banking A ct o f
1933_______ ______________________ _______________ ________ 4029-4030
Legality o f provisions questioned_________________ 4029, 4030, 4031
Penalty for violations____________________________ ____________ 4080
D estruction o f or superseding o f b y Governm ent agency undesir
able, Aldrich says_________________ _____________________________
39,78
Functions of explained b y Aldrich________________________________
3979
Functions o f ____________________________ __________________________ . 4925
Investm ent advice to depositors should be disinterested______________ *1942
Investm ent, bringing out securities, should not deal in for others______
4042
Investm ent affiliates (see also Banks, banking, and bankers)—
Affiliates of:
Creation of, propriety of, questioned___________ _____________ 2019, 2020
Financing b y bank o f purchase o f bank’ s ow n stock by, for resale
to public, propriety of, questioned______ *1978 et seq., *1994 et seq.
Propriety o f bankers recom mending to depositors to invest in
securities issued by, q u e s tio n e d --._________ *1942 et seq., 2019, 2020
Regulation but not elimination of affiliate controlled b y bank
desirable, testifies Charles E. M itchell_________________ *2026 et seq.
Investm ent bankers:
Directors o f banks and trust companies as__________________ 2103, 2152
Should not be included in definition of banker, states Clarence
D illon ____________ ______________________________________________
1540
Investm ents of, disclosure of, approved b y Clarence D illon __________
1631
4495
Investments, large in stocks and bonds_______________________________
Investm ent trusts:
Control of, by, on basis of very small investm ents deem ed b y
Dillon, Read & Co. to be justifiable________________ _____2117 et seq.
Creation of, by, and sale to the trusts o f stocks o f corporations of
which the bankers are directors__________________________ 1836 et seq.
Rights in, of, should be no greater than those o f other persons,
certifies Otto H. K ah n __________________________________________ 1317
Trading accounts w ith ________________ L____________________ 1734 et seq.
Investors, du ty t o _______ ___________________________ *1243, 1249, 1918, 1923
Joint accounts (see also under Banks, banking, and bankers— P o o ls ):
Investm ent trusts, w ith ____________________________________ 1734 et seq.
Kreuger & T oll Co., confidence in _______________ *_____________________ *1233
Kuhn, Loeb & Co.:
Loans by, to directors and officers o f ______________________ 1320 et seq.
Partners of, as directors and officers of banks and trust com panies- 1318
Private bankers___________________________________________________
744
Lee, Higginson & Co., investment brokers_____ _______________ *1145 et seq.
Legislation (see also under Legislation— Banks and banking):
Difficulties of, caused by exercise o f brokerage houses o f func
tions of bankers_________________________________________________ *1392
Proposals by M ills___________________________________________ 5655-5661
Purposes: (1) Abuses, prevention o f; (2) financial m achinery,
reconstruction o f to encourage business revival, Aldrich state
ment o f _ - 1 _____________________________________________________
3975
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
59
B anks , B anking and B ankers— Continued
Leniency towaid—
Pa*«
Bank examiners urged to show______________________________ 4643-4644
Chief bank examiners urged to show__________________ 4641-4642, 4644
Collateral loans treated with_____________________________________
4645
Maudlan’s interpretation of---------------------------------------------------- 5835-5836
Official recommendation o f____________________________ 5830-5839, 5842
Policy of, exercised by examiners under Ley bum ________________
4644
Put off crash of, Leybum 's opinion_______________________________ 4646
Better if earlier------------------------------------------------------------------------------- 4646
Recommended by Pole_______________________________________ 5834-5835
Liquidity, too great, no proper service to community-------------------------- 5658
Methods of controlling suggested by M ills__________________ 5658-5659
Listing of bank stock on exchange rate, possibly because fluctuations
' in bank stocks on an organized market may be in one way or other
P* detrimental to shareholders’ interests, says Richard Whitney__ *169-170
Loans by—
Collateral security, not unethical for banks to make without, tes
tifies J. P. Morgan_____________________________________________ • 64
Insull companies, to__ *1506, 1508 et seq., *1529 et seq., *1534 et seq.,
*1544 et seq., *1559 et seq., *1692 et seq., *1761 et seq.
Legitimate function and business transaction and not a favor to
borrowers, testifies George Whitney------------------------------------------474
Missouri Pacific Railroad Co., to-------------------------------------------761 et seq.
Officers, usually called and liquidated by; directors do not usually
pass on such matters, says Percy A . Rockefeller_______________
*349
Pools and syndicates, in connection with, amount__________ 7924, 7927
Securities, secured by, amount______________________________ 7924, 7927
Union Trust Co. of Cleveland, to officers and directors of (Sep
tember 29, 1931)______ 8162-8168, 8168-8176, 8176-8189, 8982-8984
Loans by, devices to conceal in reports__________________________ 4325-4328,
4341, 4342, 4344, 4347-4362, 4366, 4376-4378
Inquiry as to purpose of advisability but should not be manda
tory, according to Aldrich_________________________________ 4128, 4129
On nonincome producing real property, Mills opposed----------------- 5657
4495
Loans from to purchase securities recommended b y ---------------------------Loans, “ policy,” made by__________________________________ 4495, 4500, 4710
Capitol National Bank of Lansing___________________________ 4712-4713
Reason for making, necessity of reporting such to appropriate
person__________________________________________________________
3987
Loans to directors, officers, and employees---------------- 2920, 4389-4394, 4710
Abuses, Mills believes, have existed---------------------------------------------5624
Borrowing from other, on collateral, reporting to own desirable— 5625
Call report should be listed in____________________________________
5789
Own law does not prohibit___________________________________ 2921
Necessary in small communities________________________ 5624, 5625
Preferable_______________________________________________ 2913, 2921
Criticism of by bank examiner and suggestion of signed financial
statement from_____________________________________________ 5420-5421
Detroit Bankers Co., stock of put up as collateral on Dillon Read
& Co., by_______________________________________________________
2154
Discharging, method of, without loan department being concerned
in, Verhelle describes one_________________________________ 5275-5277
Executive committee approval should be required for___________
5789
Failures due to____________________________________ _______________ 2913
First National Bank, Detroit_______ 5395, 5414, 5538, 5617-5621, 5775
Detroit Bankers Co. stock, collateral on_________ ___________
5395
Fox, loan to, by_________________________________________ 5373-5374
Losses on--------------------------------------------------------------------------------5395
Report of................................................................. 5620-5627, 5581-5597
60
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B an k s , B a n k in g , and B an k er s — C ontinued
Loans to directors, officers, and em ployees— 'Continued
First W ayne National B a n k :
Fact
(a) Liquidation o f 1931-33____________ ________________ 5632-5633
(b) Loans-------------------------------------------------------------------------------5764
(c) M inutes of show ing_____________________________________ 5627,
5631, 5632, 5633-5634, 5635, 5636, 5637, 5638, 5639, 5640, 5641,
5642, 5643-5644, 5645, 5646, 5647, 5648, 5649, 5650, 5651
(d) Policy, future o n _________________ 5631, 5632, 5633-5634, 5635
Graustein, loan to, by Chase National B ank_____________________
2329
Guardian D etroit Union Group, Inc., high salaries paid to secure
repaym ent o f ------------ ------------------------------------------------------------------ 4639^
Stock, pu t up as collateral o n . _ _____________________________
4714
Guardian Trust Co. of Cleveland, b y _________ __________ 8048 et seq.
Legislative prohibition recommended, by W ilson______________ _ 5748
Liquidation, legislation to achieve, M ills recom m ended_____ 5657-5658
M organ, J. P. & Co., b y ---------------------------------------------------- 62, 90 et seq.
National Bank o f Ion ia___________________________________________
4650
. N ational Bank o f Iow a______________________________________ 4631-4632"
New Y ork C ity:
(a) N ot made by, t o _________________________________________
4650
(b) Policy o f not to perm it on its collateral w ithout board o f
director’s confirm ation____________________________ 5621-5622
Overdraft privilege should not be a c c o r d e d .______________ 5623
Practice bad, with exceptions______________________ _________ 5827-582$
Prohibition o f in smaller communities, M ills opposed t o _________ 5657
Publication of—
(a) Couzens approves___________________________________ ____
5849
(b) Await questions__________ _________ ________________ 5848-5849
Reopening o f M ichigan banks on 100 percent basis prevented by__ 5748
R eporting of, suggested b y Aldrich— __________ ________________
3986
Salaries, paid to p rotect--------------------------------------------------------- 4507, 4639
Survey o f by Verhelle------------------------------------------ 5621-5622, 5624, 5625
Loans to judges:
First National Bank, large aggregate am ount o f _________________
5415
T o enterprises with which officers and directors conn ected______
4715
T o ‘ ‘friends” __ ________________________________ ___________________ 4494r
Loans to public officers:
Michigan State treasurer-------------------------------------------------------- 4712-4713
Others, not m any---------------------------------------------------------------------------- 4713
Trading purposes, com m endable, on sufficient security, W iggin
testified____________________________________________________ 2912-2913
Loans to, public suspicious o f------- ----------------------------- 4326-4328, 4353, 4357
M anagement o f poor, Bryan’ s opinion_________ __________________ 4721-4724
Marketing principles consistent with banking principles testifies
D urant_______________ - - -------- --------------------------------------------------------- *1157
M arket, “ protection” of, by, b y trading a ccou n t________________ 1049, 1050
Merchandisers of securities, testifies D onald D uran t___________ _ ____ *1157
M ichigan, closed b y State holiday, licensed after Federal h olida y:.___ 4320
M ichigan, closing, danger o f m any_______________________________ 4633, 5719
Conditions o f in ________________________________________________ _
4582
C onservators:
(a) Appointed fo r --------------. _______________________ __________ 4743
(b) Reconstruction Finance Corporation loans t o ____ _______ 4743
(c) Replaced b y receivers___________________________________
4743
Receivers, Reconstruction Finance Corporation, loans t o ________
4743
R eal estate, loans on security of, b y _____ ____ ______________ 4633-4635
Reopening of, underlying causes for failure of, W ilson gives. _ 5746-5748
State banking department questions legal right of to assume con
tingent liability for loans o f banks in regional association_____
5562
State:
(a)—
'
A legislative campaign to increase powers o f ___________
4779
Trust powers, limited, granted t o _____________ _________
4779
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
61
B anks , B anking , and B ankers— Continued
Michigan, closing, danger of many— Continued
State— Continued
(6)—
•
Page
Minority stock interests in purchased by First National
Co., number licensed after holiday, prices paid______
5712
Minority stock interests in purchased by First National
Co., danger of Detroit Bankers Co. examination of
condition of___________________________________________
5715
Unlawful for to issue certificates of deposit to borrow
money________________________________________________
4999
Minutes of meetings of board of directors:
(a) Considering bank examination should be sent to Comptroller. 5788
(b) Discussion should appear in_____________________________ 5788-5789
Missouri Pacific R. R. Co., loans to --------------------------------------------- 761 et seq.
Morgan, J. P. & Co. (see also Morgan, J. P., & C o.):
Loans by, to directors of---------------------------------------------------- 62, 90 et seq.
Partners of, as directors of------------------------------------------------------------905
National banks. (See under National banks.)
National laws on, single system of under, Lord recommended________ 5049
National trust business permitted to—
(a) After Federal Reserve A ct___________________________________
4779
(b) In Michigan, where refused State banks, court test o f_______ 4779
Nationalization of—
(а) Approved by Lord------------------------------------------------------------------- 5055
(б) Deposit guaranty plan largely accomplished_________________
5055
New York State banks. (See under New York State banks.)
New York Stock Exchange members, loans to___ _______________ 7925, 7931
New York Stock Exchange members participating with banks in retail
distribution of securities--------------------------------------------------------- 7925, 7931
Officers. (See Banks, loans to directors, officers, and employees.)
Officials:
Chase National, trading accounts entered into by Wiggin with___ 2899
Compensation:
Chase National Bank:
Employees’ wage reduction necessary, while executive
salaries increased_________________________________ 2360-2361
Exclusive services of not required_______________________ 2325
Extra banking activities, from. (See Bank officials,
extra-banking activities of.)
Tabulation of salaries and “additional” compensation to
officers----------------------------------------------------------------- 2324, 2356
Chase National Bank, “additional” :
Determination of________________________________________ 2337
No special funds from which payable___________________ 2336
Resolution concerning authorized chairman of board to
divide fund at his discretion_________________________
2337
Senior officers helped fix each others and their own____
2338
Wiggin, “additional” as officer of Chase Securities Corpora
tion________________________________________________________
2320
As president of Chase National Bank___________________ 2321
As recognition of responsibility for profit, but no reduc
2321
tion for losses_________________________________________
Fixed by himself________________________________________
2337
Reported as earned income for tax purposes____________ 2321
Wiggin, increase of, not inconsistent with view regarding
necessity of wage cut, view of_____________________________
2361
Pension_____________________________________________ 2302-2313
Bank losses heavy before voted____________________
2315
His suggestion______________________________________ 2311
Services performed for________________________ 2305, 2306
Terminated_________________________________________ 2719
Wiggin as president Chase National Bank_______ 2310, 2322, 2323
Dominate, rather than serve_____________ ________ _________ ______ 4112
62
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n e s , B a n k in g , and B a n k e r s — C ontinued
Officials— Continued
Extra-banking activities of:
Page
Aldrich view s‘o n _____________________________ _____ 3987, 4111, 4119
Beneficial, says W iggin__________________________________ 2325, 2938
Chase National Bank employees, em ploym ent applications
o f required exclusive services unless exception____________
2324
Chase National Bank, exclusive services o f officials not re
quired______________________________________________________
2325
Com pensation from , Aldrich views o n _ _____________________ 4118-9
Reporting o f Aldrich recom m ended__________________________
3987
Trading accounts, prohibition of participation in recom
mended ___________________________________________________
3987
Wiggin, compensation as—
Chairman finance com m ittee B. M . T _______ 2319-2320, 2359
M em ber Armour & Co. finance com m ittee______________ 2360
Wiggin, com pensation from — ■
American Locom otive C o_______________________ ________ 2319
American Sugar Refining C o . ________________________
2319
Corporations other than Chase N ational Bank____ 2319-2320,
2359-2360
International Paper C o__________________________________ 2319
Guardian Trust Co. o f Cleveland, loans to, b y . ___________ 8048 et seq.
Loans to. (See Banks, loans to directors, officers, and em ployers
by.)
Loans to Chase National, and directors, and o f affiliates, b y W ig
gins fam ily corporations___________________________________ 2891-2893
Purposes for which borrowed, participation in trading a c
counts, one o f______________________________________________
2898
Panic am ong______________________________ ___________________
5835
Persons to w hom made for such purpose____________________
2890
Reports. (See Banks, reports.)
Syndicate trading in stock of, should not be perm itted to partici
pate in, Aldrich view _______________________________________4119-4120
Unethical practices o f (First W ayne National B a n k )________ 5221-5232
Ohio, investments, pamphlet dealing with lawful for banks and trust
com panies____________________- _________ 1_______________________9126-9127
Over-counter market, stock o f banks usually dealt'in on, rather than
on stock exchanges__________________________________________________ *1999
Partnerships compared with corporations (by J. P. M organ )_______ 954-955
Politics in ______________________________________________________________
5717
Pools, participation in ________ ______________________________ 7925, 7928-7931
Pools, participations in, by, should be condem ned, testifies Charles E.
M itchell_____________________________________________________________ *1846
Postal savings, inflation o f deposits in, b y means o f __________________
5749
Power felt b y __________ ____________________________ ______________ 3743-3744
Power of, in industry acquired b y “ breaking” industries b y calling
loans, testifies Frank E. T aplin ________________________________ 1462, 1463
Practices, regulation o f proposed b y A ldrich________________ - ___ 3986-3987
Precautions in abundance w ould rule out ordinary banking, testifies
M a y _____________________________________________________ __________ !_ *1274
President, im portance o f having understand desperate situation o f . _ _ 5563
Press, reliance of, in giving publicity to securities issues. _ *1184, *1185, *1189
Principles of, consistent with marketing principles, testifies D onald
D urant______________________________________________________________ *1157
Private (see Private banks):
D eposit and investment business t>y______________________________ 3978
Paralleled by commercial banks doing investm ent ba n k in g ._ ,3978
Profits, legislation compelling revelation of, prior to public offering o f
bonds, favored b y J. P. M organ & C o ______________________________
169
Prospectus, spread should be fully disclosed in, testifies H arold L.
Stuart_________________________________________ *1615 et seq., *1674 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
63
B an k s , B a n k in g , and B ank ers — C ontinued
Public:
* Page
Interest in, of, inferior to interest in self and client________ 1236 et seq.
Responsibility to, in offering securities is to see Securities are
genuine and to have confidence in enterprise they are sponsor
ing, testifies R edm on d_____ _1_________________________________ *1243
Publicity as to conditions o f :
Couzens ap p rov ed ________________________________________________
5789
Leyburn points out difficulties o f ___________________ ________ 5789-5790
Publicity b y _________ 4321-4323, 4333-4338, 4367-4371, 4379, 4382, 4383-4
P u blicity: Press depends on name o f bankers in advertising
issues____________________________ ____________________________ *1184-*1189
Railroads (see also under Railroads— Bankers fo r ):
Directors of, bankers not perm itted to be, if selling its securi
ties______________________________ _____ ____________________ 555 et seq.
Influence over policies o f ____________________________________ 732 et seq.
Real-estate operators, large loans to b y ____________________ 4494, 4507-4508
Receiverships of—
Secrecy, in connection with, M ills’ view ____ h____________________ 5659
Recom m endation for legislation concerning by Leyburn_____ ___ 5786-5790
Recom m endations, general, concerning by W ilson_______________ 5748-5754
Reliance on, by press in giving publicity to securities is su e s._______ *1184,
*1185, 1189
Reopening o f Guardian National Bank o f Com merce and First Na
tional Bank impossible w ithout new capital_______________________ 5803-4
Reports of. (See also Banks, statements of.)
R ep orts:
Assets:
(a) Appears as pledged on som e_____________________________ 5808
5808
(b) Should appear as p led ged--------------------- -------------------------D eceptive___________________ _______________ 4459, 5157-5169, 5572
D etroit Bankers Co. annual (1932) for stockholders omissions
from, o f First National C o_____________________________________
5434
Guardian D etroit Union Group, Inc., banks not yet units included
in __________________________________________________________ 4385-4387
Guardian National Bank o f Commerce, United States bonds,
4379
pledging of, not shown in______________________________________
Union Industrial Trust & Savings Bank, Flint, M ich., false state
ments in ___________________________________________________ 4376-4378
Concealment in ______________________________________________ 4557, 4559
Lord adm its_________________________________________________
4326
D enies_________________________ ' ----------------- -------------------- 4339-4341
National Bank o f Commerce, U. S. bonds, pledging of, not shown
in _______________________________________________________________ 4379
Industrial Trust & Savings Bank, Flint, Mich., false statements
in __________________________________________________________ 4376-4378
Detail, need for m ore_______________ 4130, 4132, 4133, 4557, 5748, 5786
Devices to enable making satisfactory______________________ 4325-4328,
4341, 4342, 4344, 4346-4362, 4366, 4374-4375, 4376-4378, 4557,
4559, 4560, 4573-4576, 4611-4614.
Examiners:
(a) Confidential for Comptroller, another for bank, bankers
familiar with difference_______________________________
5463
Figures identical____________________________________ 5620, 5621
Mills objection to confidential___________________________ 5660
No effort to conceal confidential________________________
5774
Used since 1914__________________________________________ 5774
(b) Public not reached b y ___________________________________
4131
Failure to becom e acquainted with conditions revealed
b y o f First National Bank governing board______ 5774-5745
Mills not lulled into security b v _________________________ 5776
Securities held by included in assets and liabilities__________ 4380-4381
60604— 46------ 5
64
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B a n k s , B a n k in g , and B a n k er s — C ontinued
Page,
Reserve, secondary of, short term investm ent, advisability of, fo r____ 4127,
...
41 28 ,4 12 9
Responsibility
bankers in offering securities to public, is to see secu
rities are genuine and to have confidence in enterprise they are spon
soring, testifies Roland L. R edm on d________ _ _ _ ____________________ *1243
Secrecy o f operation o f criticized_______________ _________________ 5659-5660
Secured loans (exclusivfe o f street loans) by, am ou n t_______*7924, 7926-7927
Secured loans, secured b y securities, a m o u n t._____________ _____ 7924, 7927
Securities:
Bankers as merchandisers o f _______________ ______________________ *1157
Use o f word “ banking” in reference to dealers in, objectionable,
testifies Clarence D illo n _________________ ______________________
1540
Securities affiliates of, necessity for, stated by J. P. M organ__________
953
Securities A ct required disclosure o f spread__________________ 201, 692, 1590
Seligman Co., private bankers_____________ ___________________________
744
Serious situation o f _______________________________________________ 4538-4539
Services rendered t.o customers relating to securities__________________
7222
Size, emphasis on, rather than on quality, mistake, Stevens v ie w .. 5824, 5825
Skandinaviska K reditaktiebolaget:
Swedish private banking house_________________________ _________
1149
Kreuger & T oll bon d issue floated b y _____________________________ 1149
Speculation:
Brokers loans, encouraged b y means o f_ _ _ ____ ____ 1009 et seq., *1990
Brokers loans, large am ount of, indicative o f ______*1815, *1990, *2241
Loans for Union & People National Bank o f Jackson for ________
4636
Stock market loans from , for purpose o f_______________. _________
4494
Speculative credit, devices to control_______________________ 1_________ *1392
Spread:
Disclosure of, required by Securities A c t________________ 201, 692, 1590
Disclosure to public, desirability of, questioned b y Charles E.
M itchell_________________________________________________ *1802 et seq.
Prospectus, should be fully disclosed in, testifies H arold L.
Stuart-___________________________________ *1615 et seq., *1674 et seq.
State Banks. (See under N ew Y ork State Banks.)
State, withdrawal from Federal Reserve System, danger o f___________ 4109
Statements o f :
(See also Banks, reports of.)
Operating earnings, write-offs not shown against____________ 4299-4300
Standard form contrasted with understandable__________________ 4367-4369
Standard form preferred to understandable___ ________________________ 4367
“ Trust assets” distortion o f including item _________________________ 4365
Stock market, stabilization o f and bolstering of, by com bination o f
bankers in 1929_____________________________________________________
127
Stock of:
Em ployees should buy but without pressure from , recom m ended- _ 4120
K reuger & Toll, ow ned b y _____________________ ______*1198, 1201, 1202
Legislajion to prohibit bolding by corporation, suggested________ 5656
O ver-counter market, usually dealt in_____ _______________________ *1999
Stock exchange listing, prohibition o f recommended,. _______ 5752-5753
Stock prices, February 1928 to M arch 1, 1932, com pared with listed
stocks (chart)________________________________________________ *243-244, 11
Street loans by, am ount___________________ ________________ 7923, 7925-7926
Success or failure o f issue depend on merits o f issue and issuing com
pany, as well as name o f sponsoring banker, testifies Roland L.
R edm ond_______________ __________________________ _________________ *1243
Syn dicate:
(See Banks, capital stock, trading and p ool operations in o f parent
by affiliate.)
Banking syndicate defined by Clarence D illon___________________
1624
General Theatres Equipm ent, Inc., financing o f by mem bers o f ___ 3452
Trading account for “ protection” o f m arket__________ __ ________1Q4§, 1050
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
65
B an k s , B anking , and B ankers— Continued
Trading accounts:
Pase
(See also Banks, Capital stock— trading and pool operations in.)
Operations in of parent by affiliate__________________________ 2827-2828
Trading accounts in stock of national_________________________________ 2827
Wiggin companies, extent of_________________ _ _:---------------------- . . 2830
Troubles of, rumors concerning___________________ ____________________ 4443
Underwriting by, of stocks tends to prevent market drop .caused by
new issue____________________________ ,_________________________ 1039, 1040
952
Unit banking compared with branch banking. ____ ___________________
United States deposits in should be preferred------- -----------------------------5786
Utility corporations, bankers as directors of_____________________ 555 et seq.
War being fought by in Michigan_________________________ 4476, 4500, 4503
“ Window dressing” bv—
(а) Expression or Wilkind concerning scheme for concealment of
bills payable__________________________________________ 5009, 5010
(б) First National Bank_____________________________________ 5501-5508
(c) Piocess to show bills payable none by______ 4993-4996, 5001-5012
Worse, changing for the------ ----------------------------------------------------------------471*1
Write-offs and recoveries on loans, amount. -------------------------------- 7924, 7928
Write-offs, not able to make out of earnings, Lord testified_____ 4298, 4299
B anta , C. W .:
Bank of America, vice president of_______________________________ 4322,4335
Guardian Detroit Union Group, Inc., praise of by........ .......... ........ 4322, 4335
B arbour , G eorge H .:
Detroit Bankers Co. and Detroit Trust C o., director of______________
5332
First Wayne National Bank:
Director of________________________________________________________ 5636
Loan by, to, unsatisfactory condition of reported________________ 5636
Amount of and collateral on_________________________________ 5636
B arbour , W illiam T .:
Detroit Bankers Co.:
(o) Director of_______________________________________________ 5061, 5129
Proposed as, in circular to stockholders of unit banks
forming________________________________________________• 5070
(6) Directors’ meeting, present at, when resolution adopted giving
authority to vote stock of unit b a n k s .--,________________ 5087
(c) Trust agreement, participant in--------- ------------------- 5066, 5131, 5132
(d) Trustees’ shares, holder of____ _________________________ 5061, 5128
B a rk ley , A lb en W . (See Senate Committee on Banking and Currency
and Subcommittee on Stock Exchange Practices.)
B a iInbs , A lbert M .: Dillon, Read & C o., director of____________________ *1151
B arnes, member of Tully, Montieth & Mitchell--------------------------------------*592
B arnet , C harles D ., & C o.:
Fox Film Corporation syndicate to purchase Westco stock exchange
able for Fox Film Corporation stock (1928), participant in.__ *1039,1040
(See Fox, Fox Film Corporation, Westco.)
B arnsdall C orporation :
Day (Henry Mason) formerly connected with------------------------------------- 6220
Options in stoek of, granted by Barnsdall Corporation, and Post &
Flagg to Redmond & C o ________________ _________ _ 6281, 6292,6294-6296
Pool in stock of_____________________________________________ 6292, 6294-6296
B arr , James H .:
General Asphalt Co. pool (1929-31), participant in___________________ *535
(See General Asphalt Co., pool.)
National Supply Co., chairman of board of----------------------------------------*535
B arr , R obert I.:
Chase National Bank, vice president of, in charge of Habana------ 2538, 2580
Chase official interested in Knox Hat Co_________________________ ,___ 2918
Cuban loans:
(a) Chase National Bank, only officer of directly familiar with
the first stage of financing___________ _________ _____________ 2538
66
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B arr , R obert I.— Continued
Cuban loans— Continued
Page
(6) Personally negotiated first tw o stages o f financing, to F eb
ruary 1930________________________ _________________________ 2538
D ied before hearings__________________ _____________________ 2538, 2580, 2639
B a r r e t t , H . C .: River Rouge Savings Bank, R iver Rouge, authorized to
attend annual meeting of and vote D etroit Bankers Co. stock __________ 5087
B a rrett , D. S., Jr.:
Alleghany Corporation, director o f ____________________________________
706
703
Attorney for Van Sweringen______________________ * ___________________
D irector:
Alleghany Corporation, o f . _______________________________________
706
Missouri Pacific Railroad Co., o f _________________________________
703
Missouri Pacific Railroad Co., director o f _____________________________
703
M organ, J. P., & Co., preferred lists of, in connection with Alleghany
Corporation, m em ber of, suggested by Van Sweringen______ 138, 702, 703
Union Trust Co. agent to deliver collateral on loans to J. P. M organ
.
& C o ___________________________________________________________ 8884-8885
Van Sweringen, inform ation concerning, from ____________________ 8931-8934
Van Sweringen’s representative__________________ ._________ j __________
8931
B a rr e tt , E dw ard F .:
(Testim ony o f )__________v_______________________________________ *2196 et seq.
N ational C ity Bank, vice president o f_______________________ _________ *2196
B arron C o ll ie r : Chase National Bank loaned m oney to on D ahl’s en
dorsement __________________________________ _____________________________
3031
B a r tle tt , F r e d :
Sinclair Consolidated Oil Corporation____________________ 3056, 3091, 3108
D irector o f ___ ___________ ____________________________________ 3282, 3295
P ool and syndicate (1928), participant in. , (See Sinclair Corisolidated'O il Corporation, pool and s y n d ic a te )._______________ 3093,
3094, 3108, 3110-3111, 3253, 3282
Pool and syndicate (1928), connections with formation of. (See
Sinclair Consolidated Oil Corporation, pool and syndicate) __ 3056,
3063, 3091
B arto w , F rancis D .:
D irector o f :
American Radiator & Standard Sanitary C orporation___________
30
31
H om e Life Insurance C o __________________________________________
International General Electric C o ________________________________ 30-31
Johns-M anville Corporation^____________________________________30, 813
150 William Street Corporation________________________ __________
30
United Electric Securities C o _____________________________________ 30-31
W illow Corporation______________________________________________ _
31
Joint account o f M organ, J. P., & C o.:
M anaged by Bartow ________________ _____________ 537, 540, 541, 550, 551
537
M eeting in regard to, attended b y B artow ________________________
Morgan, J. P., & C o.:
Joint account o f meeting in regard to, attended b y B artow ______
537
Partner o f _________________ _ ___________ ____________ 8, 537, 540, 551, 813
United Aircraft & Transportation C o.: Stock of, held b y _ _ _________ 550-551
B atchelder , C has . F .:
(Testim ony o f ) ______________________________________________ .____ 2535-2541
Chase Harris Forbes Corporation, vice president o f___________________
4090
Chase National Bank:
Officer o f __________________________________________ _ - ____________
4086
V ice president o f _____________________________ ____ !____ .__________
2535
Chase Securities Corporation:
* T o Cuba to work on loan fo r_____________________________________
2582
Vice president________________________ _______________________ 2536,4099
Cuba, Bisbee went with to ________ .___________________________________
2538
Cuban bond issue prospectus prepared by, with Bisbee_______________ 2755
Cuban loans:
(а) Connection with preliminary study o f public works program,
and $40,000,000 loan _______________________________________
2537
(б) Letter to Tinker concerning Chase National Bank participat
ing in_^___________________________________ '2568-2569, 2594-2595
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
67
B a tch elder , C has . F.— Continued
Cuban loans— Continued
Pa^e
(c) Personal negotiations concerning_____________________________
2537
(<d) W ent to H avana to discuss in behalf o f Chase National Bank
and Chase Securities Corporation____________________« ____
2580
Funded debt, definition of b y _______________________ ____________ ____
2757
Lincoln Forty-second Street Corporation:
(a) Bondholders Committee, Chase National Bank represented
4086
on b y ______________________________________ ________________
(b) Headed b y ____________________________________________________ 4086
(c) Voting trustee o f_____ ________________________________________
4086
Securities business, general knowledge o f _____________________________
2536
Wiggins fam ily corporations, borrowed fro m ._ _ _ _ :___________________
2893
Tinker, letter to, from _____ ___________________________ 2568-2569, 2594-2595
B au e r , P a y n e , P ond & V iv ia n : New Y ork Stock Exchange firm which
became insolvent________________________________________________________
6522
B ay C ity B a n k s : Closing o f_________________________________________ 5568-5570
B a y C ounty Savings B a n k : Closing o f_________________________________
5569
B e ad y , A mos L .: Chase official interested in Texas C o___________________
2919
B e an , L. H .:
D odge, m em orandum to by, re Lincoln Building_________________ 4050-4051
Lincoln Building, syndicate for financing:
(a) Manager o f ___________________________________________________
4052
(b) Prospective member o f__________________________________ 4052, 4056
Lincoln Forty-second Street Corporation, vice president o f _________ 4052
Robinson, Dwight P. & Co., member o f ___________ *__________________ 4051
B e a r R aids (see also under Stock Exchange; Bear raids):
American Telephone & Telegraph stock; attem pted by office partner
of Phillips & Solomon— but sale was not canceled_____________ *35-36, 47
Defined by Richard W hitney_____________________________________ *9, 33, 218
Distinguished from short selling— it is illegitimate short selling,
says W h itn ey__________________________________ *33, 158, 217-218, 262
Investigations by New Y o fk Stock Exchange_____ *33-36, 52, 150, 262-263
M odus operand!_______________________________________________________
*18
New Y ork Stock Exchange rule that brokers must know whether sell
ing orders are for long or short account and interpretation that sales
may not be made for short account at a lesser price than the last
sale_____________________________________________________________ *34, 41, 42
New Y ork Stock Exchange rule passed in N ovem ber 1931 that short
sale m ay not be made at price lower than last sale on the market,
caused disappearance of bear raids, says M atthew C. Brush___ *303-304
N ew Y ork Stock Exchange rule that short sale m ay not be made at
lower price than last long sale (adopted April 1, 1942) is easily
evaded, says William B. C ravath___________________ „___________ *364-365
New Y ork Stock Exchange rule that short sale may not be made at
lower price than last long sale (adopted April 1, 1932) does not
protect against bear raids, says Edward P. K night_____________ *405-406
Rum ored raid of April 9, 1932_______________________________ *8-9, 10, 33, 44
Short sales distinguished from ___________________________________ 1207, 1208
Violation o f New Y ork Stock Exchange rules_____________________ *9, 33, 43
B e ar s , S tearns & C o .: Loewenstein (V. T .) member o f__________________
2510
B e asle y , G ilb er t W .:
D etroit Bankers Co., com m ittee of, facts o n _____________________ 5587-5588
First W ayne National Bank, concerned in unethical practices w ith__
5221
Verhelle criticism on conduct o f :
(a) Statement in memorandum concerning______________________
5587
(b) Whitewashing report exonerates from ________________________
5391
“ B e a tin g tIie G u n ” : (See under Investm ent banks, banking, and bankers;
Beating the gun.)
B e a t t y , R. S.:
Bank examiner....... .............................. .................................... ............................ 5412
First National Bank, report on (N ovem ber 1932), signed b y _______
5412
B eaumont , S mith & H a r r is : D etroit & Canada Tunnel Co., counsel to
bankers for legal fees due from as_____________________________ 3960, 4003, 4005
B e av e r C oal C orpo r a tio n : D irectors o f __________ ■............................. ........ 29 ,32
B e c h te l : Carter, Ledyard & M ilburn, partner o f ___________ _________ ___ *1236
68
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
P age
B e c k : Wiggin pension, letter to Glass from , concerning illegality o f______
4019
*B e ck er , M u rr a y C .: F ox, attorney f o r ____ _______________________________ 3653
B ee L in e T r ansportation C o .: D irectors of I _____ ________ ______________
32
Beebe:
Am erican Com mercial Alcohol Corporation, auditor o f __________ 5852, 6177
Am erican Distilling Co., director of at organization__________________
6177
B eekm an C o. L td .:
(See also Forrestal, J. V .; Beekman Co. Ltd.)
1537
Dillon Read & Co., stockholder o f _______________________ ____________
2054
Organization of, b y J. V. Forrestal____________ _______________________
Stockholder of Dillon Read & C o___________________ _________________
1537
Strieffler, Paul M ., President & Treasurer.*________________ 2056, 2057, 2089
T ax evasion b y (see under Forrestal, J. V .; Beekman Co. L td .; taxa
tion.)
Vincent, John, -vice president and secretary_______________;______ 2056, 2057
B e ek m a n , C orporation op D e l a w a r e :
(See also Forrestal, J. V .; Beekman Corporation o f Delaware.)
Organization of, by Forrestal, J. V ___________*________________________ 2055
Strieffler, Paul M ., president and treasurer____________________________ 2089
B eere & C o.:
Lion (D avid M .) em ployed to furnish publicity on stock in which Beere
& Co., was interested______________________________ ________________
*711
(See also Lion, D avid M .)
B elding H e m in w a y C o . : Options in stock of, granted b y F. Gerli & Co.
Inc., to Charles C. W right________________________ 6111-6112, 6135-6136, 6159
B ell & B e c k w it h :
Libbey-O w ens-Ford Glass Co. pool resulting froiii options June 1 and
16, 1933, participant in (see Libbey-Ow ens-Ford Glass Co., p ool)__ 62226223, 6243-6245
New Y ork Stock Exchange mem ber___________________________________ 6222
Toledo Stock Exchange m em ber______________________________________
6222
B e ll , K . C .:
Chicago, R ock Island & Pacific Railw ay C o., general counsel and
mem ber o f board o f __________________ ________ _____________________ 4183
Fox Film Corporation insurance, mem orandum re, to executive vice
president Chase Harris Forbes Corporation from _________________ _ 3857
N icholas Power Co., stockholder o f _________________________________ 3857
B e ll T eleph o ne Co. of P e n n s y lv a n ia : Directors o f ____________________
30
B e ll Evue -S tratford H otel C o .: Directors o f _________ __________________
^9
B e n a r d : Cuban loans, connection with for Chase National Bank_________ 2557
B e n d ix A v ia tio n C o r p o r a t io n : (See Aviation stocks)__________________
7759
Prices, closing quotation^ on New Y ork Stock Exchange first and last
days o f D ecem ber 1933 and January and February 1934. H igh and
low prices in Decem ber, January, and February 1-9, 10 and 13-28_ _ 7762
Sales and purchases of, b y persons connected with aircraft com
panies— Decem ber 1, 1933 to February 9, 1934._____________ ___ 7766-7776
Short selling in__________________________ 1_______________ _____ _ _ 7766-7776
Short selling, Decem ber 29, 1933, to January 31, 1934, com pared
with stock prices and total reported sales, January 2, 1934, to
February 15, 1934 (graph)_________:___ ;____________ ______ 6844-6850,6851
B e n t , M aurice H .:
Eastman, D illon & Co., partner o f_ _ j^ ____________________________
*1367
Kreuger, agreement betw een Eastman, D illon & Co. and negotia
tions for, participated in, b y ___________________________________
1367
B enton H a rb o r , M ich .: Banking situation, in acu te________________
4633
B e re n so n :
F ox Film, Boston lawyer w ho started suit against____ _________ : ____
3750
New Y ork, New H aven & Hartford, suit against, started by.____ 3750, 3768
Paym ent to, Hughes, Schurman & D w ight handled___________ _ _____
3754
B erg en , J ohn J ____________ ___________________________________ 6143-6144,6166
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
69
B ergenstrom , E rnst :
p»se
Auditor of Kreuger & Toll’s books____________________________________ *1230
Banker and broker of Stockholm___ _______________________ __________ *1230
. Kreuger & Toll’s books, auditor of____________________________________ *1230
B erle, A. A ., Jr., Columbia University: “ Modem Corporation and Pri
vate Property,” coauthor of______ ______________________________________
*891
B erlin B ourse (stock exchange):
Closing of (see Securities exchanges, closing)______________________ *170-171
German Regulation of Stock Exchange, 1896-1908, by J. Edward
Meeker___________________________ _____________________________ 7159-7165
Listing requirements are “ very casual” in nature, says Frank
Altschul_____ _____________________________________ _____________ 5981,5982
B erman , W illiam :
(See also Moody, A . H .)
Affairs, discussion of, refused by_____________________________________
5260
Charged off items of, information concerning, sought_______ ________ 5260
Loan, Moody explanation o f__________________________________________
5260
Merriam, note of, discounted after death of, shown by files__________ 5257
Moody turned over money to be credited to __________________________ 5260
B ermingham , E dward J .:
Dillon, Read & C o.:
Director of_______________________________________ ________________ *1151
Stockholder of______________________ , _________ ___________________ 1537
B ernet, J. J.:
Chesapeake & Omo Railroad Co., president of________________________
703
Erie Railroad Co., president of________________________________________
703
Morgan, J. P., & Co. preferred lists in connection with Alleghany Cor
poration, member of, suggested by Van Sweringen_______________ 139, 703
Nickel Plate Railroad Co., president of__ ____________________________
595
Pere Marquette Railroad Co., president of____________________ 652, 658, 703
Railroads, stock of which acquired by Alleghany Corporation; con
nections with_____________________ J_________________________________
703
B ernheim , A lfred L ., Director of Securities Markets:
Survey of the Twentieth Century Fund, Inc_____________________ 6948-6949
Testifies— (Securities Exchange Act of 1934)__________________ _ 6936-6956
B erning , A. D .:
Ernst & Ernst, member of_____________________________________________*1249
Kreuger & Toll Co. never audited by-------------------------------------------- -------- *1249
Kreuger, doubts about, communicated by, to Durant_________ *1255 et seq.
Testimony of----------- ,------------------------------------------------------------------ *1249 et seq.
Accounting standards justify requirement of independent audits
of marketed public issues_______________________________________*1251
Auditing certificate:
Customary to refer therein to important transactions quickly
following close of fiscal years____________________________ _ *1252
Ernst & Ernst, name of, in, not used to advertise Interna
tional Match Corporation’s securities_____________________ *1252
Investors’ effect on, of, unknown to Berning__________ *1252,1253
Investors’ reliance on, only for statements therein__________ *1252
N ot technical________________________________________________ *1252
Audit of subsidiaries brought into audit of American holding
company________________________________________________________*1251
Auditor usually answerable in America to company______________*1250
Certificate of Ernst & Ernst on International Match Corporation
employed to cover the particular situation_____________________ *1251
Company, auditor usually answerable to, in America____________ *1250
Ernst & Ernst:
Certificate used by, on International Match Corporation
employed to cover particular situation and would not be
used unless necessary______________________________________ 1251
See Higgson & Co., officers of, contacted by, to secure busi
ness of auditing books of Kreuger & Toll Co_________ 1253,1254
Name of, in auditing certificate not used to advertise
International Match Corporation’s securities_____________ *1252
70
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B er n in g , A. D .— Continued
Testim ony of— Continued
Page
Independent audits of m arketed public issues justified b y account
ing standards---------------------------------------------------------------------______*1251
Investors rely on auditing certificate only for statements therein. *1252
Investors rely on type o f industry, reputation o f management,
reputation o f banking firm sponsoring, and possibly on direc
t o r s - . ___________________ ___________________________ _______. . . *1253
Kreuger & Toll Co. and its owned and affiliated companies, audit
of, as protection to American investors__________________ ______*1258
Krueger & T oll Co., irregularities in accounts of, suspected in
M arch 1932____________________________________ ______________ *1254
K reuger’s suicide__________________________________________________ *1255
Price, Waterhouse & C o., report of, correct________________________ *1258
Qualified certificates:
,
N ot given where scope of work covers examination of books
sufficient to audit earnings accounts______________________ . _ *1250
Used b y auditors to give notice that work done did not
include certain verification_________________ _______________ *1250
R eports of and inform ation about Kreuger companies sent to
D urant_____________________________________ , _____________*1256,1257
Subsidiaries, audit of, brought into audit o f American holding C o . *1251
Swedish accountants selected by shareholders o f Kreuger &
T oll C o_________ ______________________ ________________________ *1250
B ern stein , S. L .: Com m unication re: Securities Exchange A ct o f 1934,
com m endatory____________________________________________________ 6892-6893
B e r r y H olding C o . :
Radio Corporation o f Am erica pool (1929), participant in _________**470, 472
(See Radio Corporation of America pool.)
B ertles , R aw ls & D onaldson :
(See also Rawls.)
Bankers, investment, with offices in D etroit and New Y o rk ______ 3891, 3967
Private______________________________________________________ ^
3967
D etroit & Canada Tunnel C o .:
Bonds of—
(a) Prospectus, for, signed b y ________________________________
3941
( b) Syndicate, m em ber o f underwriting_________________ 3908, 3916
Debentures of—
(a) Syndicate, m em ber o f underwriting. ____________________
3908
(b) 20 percent interest in______ ___________________ 3916, 3938-3939
Preliminary agreement for share in stock of, signed b y . _ 3939-3940
Financial prom oters o f __________ ________ _________________________ 3951
Plan for originated b y ____________________________________________
3899
Real estate for—
(a) M em ber o f com m ittee assembling_______________________
3949
(b) Profit on acquisition of, paid t o ____________________ 3965-3966
(c) Syndicate profits from , t o . ______________________. . . 3967-3968
Profit from — (a) Participated in from , spread o f stock o f_______
3918
Prom oted b y ________________________ _ _ _.______________________ ____
3967
D etroit bankers, m em ber o f group interested in financing o f proposed
D etroit tunnel________________________________________ ______________
3896
D etroit tunnel— syndicate agreement for acquisition o f real-estate
options for, party t o __________________________ 3946, 3947-3948, 3997-4001
B e rtle s , R a w ls & D onaldson , I n c . : P ool participant (M arch 4 ,1 9 2 9 )___ 630116302
B e st , W a lte r , em ployee o f M . J. Meehan & C o____________________________ *1073
Testifies (W illiam F ox and the F ox C orporations)_______ ________ *1073-1076
B e t h e a : Reconstruction Finance Board meeting, February 22, 1933,
assistant secretary at______________ _____________________________________
4747
B ethlehem Ste el C o r po r a tio n :
Brokerage holdings of stock in 1929______________________________ ______ 6374
Call loans made b y the com pany to brokers through banks in 1929. _ 6342-6343,
6374-6375
Chase Securities Corporation, trading account in stock of, participa
tion in o f________________________________________________________ 2836, 2859
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
71
B ethlehem ” S teel C orporation — Continued
Pa*®
547
Directors of, as directors of Guaranty Trust C o________________________
547
Guaranty Co., financing b y ____________________________________________
Guaranty Trust Co., directors of, as directors o f___ ____________________
547
Financing of, by Guaranty C o _ _ _______________________________________
547
Morgan, J. P. & C o .:
Joint account of, trading by, in securities o f _______________________
547
N ot bankers for Bethlehem Steel Corporation_____________________
547
Rockefeller (Percy A .), director o f _____________________________________
*329
547
Securities of, traded in by joint account of Morgan, J. P. & C o _________
Transfers o f com pany’ s stock in 1929, number o f - ______________________ 6374
Union Industrial Trust & Savings Bank, deposits in b y ________________
5011
5012
Tem porary, som e; permanent, som e______________________________
B e tter B usiness B u r e a u :
Business practices investigated b y __________________ __________________ *2203
Dishonest business practices investigated b y and attem pted to be
stopped b y __________________________________________________________ *2204
B etter B usiness B ureau op N ew Y ork C it y , I nc . :
Hardeman (Clark G.) sued this bod y for $20,000 for trying to put him
out of business and it settled out of court for $20,000________^____ *1124
N ew Y ork Stock Exchange, connections w ith__________________________ *1122
Auchincloss (James C.) officer of both bodies______________________ *1122
N ew Y ork Stock Exchange never investigated b y ______________________ *2204
W hitney, Richard, director of investors’ section o f_____________________ *2203
B e ye r , A. Q u a y :
Guardian National Bank of Commerce, officer o f _____________________ 4873
Maurice, memo to from concerning finding employm ent for Union
Guardian Trust Co. mortgagees_______________________________ 4873-4874
B id : Ticker tape does not reveal__________________________________________
*58
B iddison , N ed D .: Warren Foundry & Pipe Corporation, participant in
join t account in _____________________________________________________ 6299-6300
B iggerm an : Bank examiner em ployed by Chase National B ank_________
2410
B i l l s P a y a b le . (See Banks.)
B isb e e , E ldon :
(See also Rushmore, Bisbee & Stern.)
Testim ony o f _______________________________- _____________________ 2287, 2294
Chase Securities Corporation, legality of, considered b y ______________ 2364
Organization of described b y ________________________________ 2287-2291
Organized as securities affiliate of Chase National Bank to permit
stockholders to do what law forbade bank to do, according t o ._ 2288
Cuban bond issue prospectus prepared by with Batchelder_____ — __ 2755
M em ber law firm of Rushmore, Bisbee & Stern_______________________ 2287
Rushmore, Bisbee & Stern, o f counsel to the Chase National Bank
and The Chase Corporation___________________________________ 2475-2534
Securities affiliates, legality o f Chase Securities Corporation:
(a) If Lehman opinion adverse to, disagrees_____________________
2364
(b) Lehman adverse opinion dealt with different situation_______ 2364
Never read b y ______________________ _____________________________
2364
N o recollection of hearing o f _____________________________________
2364
Shermar, director of, when liability for participation in trading ac
counts in General Theatres Equipment, Inc., incurred_____________
3879
Shermar, memorandum of concerning such liability______________ 3880-3883
Present at conference on such liability___________________________
3879
Chase National Bank represented by a t_____________________ 3879
Wiggin proxy voted in part b y _______________________________________
2300
B ishop, G e o r g e T .:
¥
Continental Shares, Inc., president of (June 15, 1932)____ ___________
*900
Eaton interests___________________________________________________ 8054, 8056
Guardian Trust Co. o f Cleveland, loans by, t o ___________________ 8054, 8056
Syndicate manager____________________ ___________________________ 8054,8056
B ishop , R . H., Jr.:
Eaton interests____________________________________________ 8054, 8056 et seq
Guardian Trust Co. of Cleveland, loans by, t o _______ 8054, 8056 et seq., 8513
B ittin g , I n c .: C ovington addressed a t___________________ ________________
4918
72
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B ittin g , C larence M .:
Fisher & Co.
Page
(a) Assumed to b e________________________ _______________ ___ 4950,4951
(b) Head o f__________________________________________________ 4950, 4951
. (c) W ith _____ ____________________________________________________
4494
Goldman, Sachs & Co., Union Commerce Co. stock:
(a) Came to Covington attention through_____________________ _
4921
(b) Purchase o f block o f discussed w ith _____ _______________ 4788, 4794
(c) Repurchase of, cooperating with Covington on __________ 4946, 4948
Negotiated b y ______________________________________ _______4952,4959
Union Com merce Co. stock— selling syndicate in, mem ber o f_________ 4950,
4951, 4953, 4954
B l a c k , E ugene R ., G overnor of Federal Reserve B oard: Testifies
(Securities Exchange A ct of 1934 and Federal Reserve System )____ 7415-7441
B la c k , J u d g e : Union Industrial Trust & Savings Bank, Flint, M ich.,
investigation of, made b y ___________________________________________ 5003, 5007
B lack bu rn e , F. H .:
Continental Shares, I n c _______________________________________________
*904
(See Continental Shares Inc.).
B lagden , G e o r g e :
Clark, D odge & Co., director o f . .............. ...... .......... ............______________ *1150
Director of Clark, D odge & C o________________________________________ *1150
B la in e , J oh n J. (Sefi Senate Com mittee on Banking and Currency and
Sub-Com m ittee on Stock Exchange Practices.)
B l a ir & C o .:
(See Bancam erica Blair & C o.; Cuban loans, Bancamerica, Blair &
Co.)
Consolidated Oil Corporation made call loans in 1929 th rough. _ 6368-6369
M em bers of partnership were the same as those interested in a co
existent corporation named “ Blair & Co., In c.” _______________ 3341-3342
M embers were: Hunter Marston, H enry Lockhart, Jr., J. Cheever
Cowdin, George Arm sby, G. N. Lindsay, E. F. Hayes, H arry
Bronner, Graham Youngs, Clarence Lewis, and Elisha W alker____
3341
B l a ir & C o., I nc .:
Brazilian bonds, syndicate form ed b y Dillon, Read & Co., to sell;
mem ber o f____________________________________________ _________ 1959, 1960
Dealers in investm ent securities________________ _________ _____________ 3323
Dillon, Read & Co., syndicate form ed by, to sell Brazilian bonds;
mem ber o f________ _____________________________________________ 1959, 1960
M embers of corporation were the same as the partners constituting a
co-existent partnership named “ Blair & C o.” ________________ 3341,3342
Members were: Hunter Marston, Henry Lockhart, Jr., J. Cheever
Cowdin, George Armsby, G. N. Lindsay, E. F. Hayes, H arry
Bronner, Graham Youngs, Clarence Lewis and Elisha W alker____
3341
Sinclair Consolidated Oil Corporation, bankers o ff for a num ber o f
years including 1930, 1928 and years prior thereto______ 3292-3293, 3346
Sinclair Consolidated Oil Corporation pool and syndicate (1928),
participant in (see Sinclair Consolidated Oil Corporation, pool
and syndicate)____________ ____________________________________ 3000-3002,
3006-3008, 3093, 3094, 3107, 3253-3254, 3267-3269, 3325-3327,
3342.
Blair & Co., Inc., granted subparticipation in purchasing syndi
cate to only tw o people to extent of one-half of 1 percent, viz.
L. W. Hill and C. O. Kalman, says Elisha W alker___ 3326, 3331, 3332
Walker (Elisha) president o f (1928)___________ 3070,3074,3224,3323,3341
B l a ir , F ran k W .:
*
Testim ony o f _____________________________ ________________________ 4759-4807
Bodm an succeeded_______________________________ ________________ 4772, 4787
Goldman, Sachs & Co., Union Com merce Co. stock:
(a) Negotiations for purchase of block of carried on b y ______ _
4788
(b) Repurchase of, from , telephoned H igbie concerning_________ 4946,
4948, 4953-4954
(c) T o o much owned by, view o f______________________ _____ 4922, 4985
Guardian D etroit Union Group, In c .:
(a) Board of directors, chairman o f______ _______ 4316-4317, 4682, 4759
(b) D irector o f _______________________________________________ 4267, 4760
(c) Executive committee, m em ber of, 1930_______________________ 4526
(d) M eeting o f (Decem ber 14, 1931) present and presided a t _ . 4682
(e) Stockholder___________________________________________________
4267
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
73
B l a ir , F r an k W .— Continued
Keane, H igbie & C o:
Pa*e
(a) Acquisition of, statement concerning prepared b y __________ 4787
(b) Union Com merce Co., evidence of agreement for furnishing
stock o f to Goldman, Sachs & Co., w ord o f ____ 4939, 4941, 4944
National Bank of Commerce, director o f__ ___________________________ 4267
Union Commerce C o.:
(a) Letter to stockholders of, from, regarding acquisition of
4791
subsidiaries by Union Commerce C o ______________________
(b) Participation in, idea o f____________________________________
4780
(c) Principal negotiator for in consolidation with Guardian
D etroit Group, Inc., to form Guardian D etroit Union
Group, In c_____________ _____ _____________________________
4785
(d) Stock, sale of to G oldm an,'Sachs & C o., carried out b y _____ 4921,
4925, 4944
(e) Subscriber, original of, and stock subscribed b y _____________
4782
Union Guardian Trust C o.:
(a) Chairman o f board o f____________________________________ 4277, 4759
(b) Loan account of Ayres and w ith_____________________________
4863
4497
(c) President o f __________________________________________________
(d) Quit as executive officer o f ___________________________________
4772
Union Joint Stock Land Bank of D etroit:
(a) Connected with at time of hearings__________________________
4497
(b) President o f __________________________________________________
4759
Union State Bank, Dearborn:
(a) D irector o f_______________________________________________ 4316, 4317
(b) D ividend, double, asked of b y ________________________________ 4316
(c) Vice president o f______________________________________________ 4317
Union Trust C o.:
(a) Chairman of the board o f ____________________________________
4759
(ib) Consolidation of with National Bank of Commerce, agree
ment for signed b y ____________________________________ 4774, 4780
(c) President o f __________________________________ 4497, 4759, 4760, 4767
(d) Retired fro m _________________________________________________
4787
Reason fo r ________________________________________________________
4787
B lair W illiam M c C orm ick :
Lee, Higginson & C o.:
D irector o f _____________________________________________ __________ *1150
Partner o f____________ ____________________________________________ *1224
B lake B ros ________________________________________________________________ 7028
B lendem an , L ouis C .: Barnsdall Corporation pool, participant in ______ 6292,
6294-6296
B lessed :
First National Bank:
(a) Loan to, partly in name of, charged o ff_________________ 5553-5555
(b) Officer of previously__________________________________________
5554
W ayne B ody Corporation, loan to as trustee (with Leitner) for First
National Bank, o f m oney paid for purchase o f___ _____ _______ 5664-5665
B liss , C. N .:
Broker, acting for Eastman, D illon & C o ....... .......... .. *1381, 1382, 1383, 1385
Gilchrist & Bliss, m em ber o f ____________ __________ __________________ *1381
M organ, J. P. & Co. preferred lists, m em ber o f_____________________ 138, 177
Republican N a t’l. Com mittee, form erly treasurer o f __________________
177
Sales and purchases by, for Eastman, Dillon & Co., not wash sales,
testifies Siler________________________________________________________ *1384
Wash sales b y _____________________________________________ *1383, 1384, 1386
B liss , F r an k E .:
American Com mercial Alcohol Corporation options granted by
directors and officers to Bliss (see American Commercial A lcohol
Corporation, pools— Options b y directors and officers to Bliss) _ _ 5858, 5861
Libbey-Ow ens-Ford Glass Co. pool resulting from options June 1 and
16, 1933, floor broker o f_____________________________________________ 6225
(See Libbey-Ow ens-Ford Glass Co., pool)
.
,
New Y ork Stock Exchange m e m b e r.-_____ ________ ___________________ 5858
74
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B lock (B enjamin ) & C o.:
Page
' General Asphalt Co. pool (1929-31), connections w ith ______ __________
*543
(See General Asphalt Co., pool.)
B l o c k , M a lo n e y & C o .:
*
Anaconda Copper M ining Co. large pool o f M arch -M ay 1929, people
participated in through_______________________ ________________ _____
*764
(See Anaconda Copper M ining Co., pool, large, M arch -M ay
1929.)
R adio Corporation of Am erica pool (1929), participant in ____ *467, 471, 472
(See R adio Corporation of Am erica, pool.)
B lodgett , I nc .: Chase National Bank, trading account managed b y
D om inick & D om inick in shares of, participant in ______________________
2451
B loomfield , A rthur G .: Guardian D etroit Union Group, Inc., board of
4682
directors meeting, Decem ber 14,1931, present a t________________ _____ _
B l u m e n r e ite r :
Clarke set up in insurance b u sin ess.__________________ _______________
3856
3856
Saved m oney for companies w ith which conn ected________________
B lu m en th al , H. W .: Options granted by, to Charles C. W right, in
G otham Silk Hosiery Co. Inc., stock ______ __.______________________ 6115, 6152
B lumenthal (S idn ey ) & C o., I n c : Com m unication re Securities Exchange
A ct of 1934, critical_________________________ __ i ....... ..................... .. _ _ 7264-7269
B oa l , A rth ur M .: Counsel for Ruloff E. C utten ______________________ 3299-3376
B oard of T a x A ppeals . (See under T axation; Board of Tax Appeals.)
B oardemare C orpo r a tio n : Balance sheet of Decem ber 3 1 ,1 9 3 2 __________ 3040
7469
B oatman ’ s N ation al B a n k : Smith (T om K .) president o f_________________
B odde , A n th o n y :
Bodde, John R ., loan n ot established as accom m odation to, made to_ _ _ 5227
D etroit Bankers Co., Articles of Association signed b y _______ ______5063, 5130
D irector o f ___________________________________________________ 5061, 5129
D irectors’ meeting, present at, when resolution adopted giving
authority to vote stock of unit banks________ ______________ :___
5087
Trust agreement, participant i n _ _ _ ______ _____________ 5066, 5131, 5132
Trustees shares,-holder o f____________________ ___ ________ ___ 5061, 5128
Eckert and, trustees fo r Peoples W ayne County Bank:
(a) Letter con cern in g-___________________________________________
5673
(b) Origin of situation___________________________ 5668, 5671-5672, 5673
First W ayne National Bank:
Balance in at closing. _________ _ ___________ ______________________
5651
R eduction in _________________________________________________
5652
D irector o f ________________________________________________________ 5637
Liability to, of, unsatisfactory condition o f reported_______________ 5637
Am ount of collateral o n __________ ___________________________
5637
B odde , J ohn R . :
Account o f ov e rd ra w n ..______ _________ ________ _v_____________________
5227
Berman affairs, full knowledge of possessed b y . ______________________
5260
Bodde, Anthony:
(a) Am ount checked out b y credited t o _____ ____________________ 5227
(b) Loan made to, not shown to be accom m odation t o ____________
5227
First W ayne National Bank:
(a) Balance ih, of, at closing________ _____ ______________________ 5651
5221
(b) Unethical practices with, concerned in _______________________
(c) Vice chairman o f the board o f __________ ___ _________________
5226
Greenville (M ich .), bank note, im properly secured, placed in Peoples’
W ayne C ounty Bank endorsed b y ___ __________ ____________________ 5226
N otes endorsed by —
(o) Em ployees and officers m aking___________ ___________________ 5227
(b) Question if for benefit o f ____ ____________________________ 5226-5227
Peoples’ W ayne County Bank, vice president o f _____ _______ 5069, 5070, 5071
Circular addressed to stockholders o f unit banks later forming
D etroit Bankers Co. signed b y ____ _____ ___________ ______ 5069, 5071
D etroit Bankers Co., director for proposed in _________________ 5070
Verhelle adverse criticism on conduct of, whitewashing report exon
erates from _:____ ____________________________________________________ 5390
White, salary increase given to on recom mendation o f _____ ___________
5226
Wise Chrome Products C o.:
5229
Check credited to, after endorsed b y _____________________________
Definite relationship between and, shown_______ ________________
5229
Interest in .............. _ ________________________ ______ 5227-5229, 5443-5444
M ortgage, familiar with account, according to E ck ert_____________ 5229
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
75
B od in e , W illiam W .:
Pas«
United Gas Im provem ent Co., chairman o f board o f-------------------------- 479
United Corp., option warrants of, issued t o ________________________ 467, 504
B odman , H eney E .:
Testim ony o f _ _______________________ •____________________________ 4965-4989
Blair succeeded b y ________________________________________________ 4772, 4787
D etroit tunnel, engineers’ , independent, survey, recom mended in
letter o f __________________ __________________________________________
3958
Guardian D etroit Bank, stock option contracts for, statement con
4245
cerning, prepared in part b y ____________ ________________ 1 . .......... ..
Guardian D etroit C<?., director
___________________________ '_______
4985
Guardian D etroit Group, Inc., attorney fo r __________________________
4966
Guardian D etroit Union Group, In c.:
(a) Attorney fo r ------------------------------------------------------------ 4245, 4819, 4975
4269
(b) Board of directors, chairman o f ______________________________
M eeting of, Decem ber 14, 1981, present at_______________________ 4682
(c) Criticism by, of information furnished at directors’ meetings,
acted u pon _________________________________________________
5041
(d) D irector o f_______________________________________________ 4965, 4972
Ie) Dividends, declaration of, approved b y . _____________________ 4975
(/) Executive committee, chairman o f_________________ 4526, 4965, 4974
Meetings, memorandum from to Lord concerning necessity of
detailed form al report a t__________________________________ 4977-4978
(g) Founder o f____________________________________________________ 4599
(h) M eeting of June 1932, at which condition of unit banks of
discussed, present at__________________________________________4606
(i) Organizer o f __________________________________________________
4965
{j) Heports, annual, for Michigan Securities Commission helped
prepare________________________________________________ 4975-4976
(.k) Report, annual, for stockholders:
(1) Deficit might well have been shown in, view o f _________ 4976
(2) D raft of submitted t o ___________________________________
4972
(3) Helped prepare__________________________________________
4456
(4) True picture given by according t o __ ___________________ 4976
(I) Surety bonds, execution of, by, for funds in unit banks,
legality of approved b y _____________ ___________ 4966, 4969, 4970
Guardian Trust C o .:
(a) Associated with in early days o f _______________________ _____
4787
(bj D irector of__L________________________________________________
4763
'Lawyer, D etroit prom inent__________ ______________________ ^_________
3958
Lord:
(a) Letter to, from, concerning facilities of prospective D etroit
tunnel_________________________________________________ 3957-3958
(b) M emorandum furnished to, by, concerning Guardian Detroit
Union Group, Inc. reports_________________________________
4973
Reconstruction Finance Corporation loan:
4626
(a) Present at meeting of group and Leyburn o n ________________
(b) Seriousness of situation explained to, b y ____ 4814, 4845, 4846-4847
Union Guardian Trust Co. A funds:
(a) Letter from to Longley concerning deposit in unaffiliated
institutions____________________________________________ 4815-4816
(b) Suggestion from to Longley concerning deposit in unaffiliated
institution:
(1) Antedated letter on _________________________________
4816
(2) D elay in acting on ________________________ 4816-4817, 4819
Board of directors, chairman o f __________________________________ 4813, 4834
Deposits in unaffiliated institutions, policy o f ______________ 4815-4816, 4819
Director o f ____________________________________________________________
4763
Reconstruction Finance Corp. loan to, appeared before Board of, on__ 4813,
4814, 4845, 4846
Voorhees, letter from, to, enclosing letter to commissioner of insurance
relative to Guardian D etroit Union Group, Inc., executing surety
- bonds guaranteeing deposits of public funds in unit banks_________ 4963
Voorhees, letter to, from, concerning legality of Guardian Detroit
Union Group, Inc., executing surety bonds guaranteeing deposits
of public funds in unit banks o f -------------------------------------------------------- 4966
76
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B o e in g A ir p la n e & T r a n s p o r t C o r p o r a t io n :
Page
H olding com pany________________ _____________,________________ *2324 et seq.
National C ity Co. (see under National C ity Co., Boeing Airplane &
Transport Corporation.)
United Aircraft & Transport Corporation, as new name given to — ___*2337
B o l iv ia :
Armstrong & Vickers, L td., obligation to, in 1927 for m oney furnished
to purchase war supplies______________________________________ 2019 et seq.
B ond issues of, issue o f 1922 floated b y Equitable Trust C o__________
2015
Bonds of, issued by Dillon, R ead & Co. (See under Dillon, Read &
C o .; Bolivia bond issue.)
Dillon, Read & Co. (See under Dillon, Read & C o .; Bolivia bon d
issue.)
Equitable Trust Co., bond issue o f 1922 floated b y ___________________
2015
K ennedy & Carey, railroad contract awarded to, b y _____________ 2011, 2134
Railroad contract awarded to K ennedy & Carey b y ____ _________ 2011, 2134
B ollard , I s a b e l l e : Dillon, Read & Co., stockholder o f__________________
1537
B ollard , R alph H .:
Dillon, Read & C o.:
D irector o f _____ _________ ______________________ __________________*1151
Stockholder o f______________ > _____________________ ____ - _________
1537
1536
Vice president o f ________ ___ _________________________________ ___
B olles , N orman T .:
Testifies (see Indian M otocycle Co. p o o l)_______________________ ^_ *593-596
Indian M otocycle Co., president o f___.___________ *587-588, *593-594, *596
B onbright & C o.:
American Superpower Co. (See under American Superpower C o.;
Bonbright & Co.)
Com parison of assets o f United Corporation w ith other public utilities
companies prepared b y -------------------------------------------------------------- 499 et seq.
Contract of, with United Corporation__________________________ 363, 373, 375
Dealings with selves in United Corporation transaction______________
452
Form ation of United Corporation b y _______ 310, 375, 389, 493, 496, 408, 409
*535
General Asphalt Co. pool (1929-31), participant in ___________________
(See General Asphalt Co., pool.)
Joint account of, with J. P. M organ & C o _____ ______________ ___ 507 et seq.
Loomis, Alfred L., affiliations of, w ith_________________________ ____ _
360
M arket stabilization in United Corporation preferred stock _____ 507 et seq.
408
M embers of, as directors of United Corporation______________________
M organ (J. P.) & Co., joint account with,,,________________ •_____ 507 et seq.
Niagara Hudson Power Corporation, units of, purchased b y _______ _
497
O ption warrants, familiarity w ith -_____________ ______________ ________
409
O ption warrants of United Corporation issued to, at $1 each_________
339,
375, 376, 383, 386, 410, 411
Pools o f__________________________________________________ _ _ „ ____ 507 et seq.
Preferred lists o f_______________ , ____________ _
370-372, 373, 376, 377, 379
President, Thorne, L. K ______ '________________________ _______________
361
Public Service Corporation of New Jersey, stock of, owned b y ______
413
Public utilities companies:
Asset of, comparison of, b y _ . _______________________________ 499 et seq.
Securities of, owned b y _________ _________________________________
414
Stabilization o f mai&et in United Corporation preferred stock __ 507 et seq.
Thorne, L. K ., connections of, w ith_________________________________ 361, 362
United Corporation:
Assets of, comparison of, with other public utilities, made by_ 499 et seq.
Contract of, w ith______________________________ _____________ 363, 373, 375
Directors of, connected w ith ____________ ______________________ 326, 408
Form ation of, b y _________ 310, 362, 373, 375, 389, 408, 409, 452, 493, 496
O ption warrants of, sold to, at $1 each _____ 339, 375, 376, 383, 386, 410, 411
Public utility companies in which interests owned b y ; population
served with electricity by, table of, prepared b y ____________ _______
323
Stabilization o f market for preferred stock o f ____________________ 507 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
77
B onbright E lectric C orpo r a tio n : United Corporation, cash received Page
by, from, in exchange for its capital stock . _ 328, 329, 332, 333, 334, 363, 375, 376
B onbright , H o w a r d : Guardian D etroit Union Group, Inc., founder of__ 4600
B ondholders ’ L ist s : M achinery for making lists available to bon d
holders is necessary, says Samuel Untermeyer______________________ 7708-7709
B ondholders P rotective C om m ittee : Foreign countries, desirability of
committees to seek enforcement of obligations of, questioned_____ 1971, 1972
B o n ds :
Association in Am erica with m ortgage bond, testifies R edm ond______ '*1247
Bankers profits in flotation of, legislation compelling revelation of,
169
prior to public sale favored b y J. P. M organ & C o __________________
Bolivia, of. (See under Dillon, Read & C o.; Bolivia bond issues.)
Brazil, of. (See under Dillon, Read & C o.; Brazil.)
Brazil, Minas Geraes, bonds of, payable in gold francs; holding by
French courts that paym ent to be made in gold_ *2128, 2130, 2131 et seq.
Chesapeake Corporation. (See under Chesapeake Corporation;
Bonds.)
Chile. (See under Chile; M ortgage Bank of Chile.)
Collateral security:
Bonds as______________________________________________ *1165, 1166, 1169
Foreign governm ent bonds as________________________ *1165, 1166, 1169
Governm ent bonds as________________________________ *1165, 1166, 1169
Substitution of frequently not perm itted and generally per
mitted only for securities of equal or greater value, testifies
M ax W inkler___________________________________________________ *1317
Committees, protective, to enforce paym ent of foreign governm ent
bonds, desirability of, questioned____________________________ 1971, 1972
Conversion of, into other security, constitutes paym ent, testifies
George W hitney__________________________________________________ 167, 168
Conversion of, possible only at election of holders____________________
168
Convertible:
Customarily issued_______________________________________________
337
Defined by Senator Kean as perpetual option to buy stock______
337
D ebenture:
Com pared to, by D onald D urant________________________________
1149
Practically identical with, testifies M ax W inkler_________________ *1306
D efau lted:
Charged off alw ays__________________________________________ 5830, 5833
M organ (J. P.) & Co. or Drexel & Co., syndicate manager of
issue______ t _________________________________________________ 303-304
Morgan (J. P.) & Co. or Drexel & Co., participated in issue___ 304-305
D efaults in issues listed on New Y ork Stock Exchange (1928 to Sep
tem ber 1, 1933)____________ _____________________________ 7293,7354-7391
D efinition of:
Debenture, practically identical with, testifies M ax W inkler____ *1306
Formal instrument with penalty in event of failure testifies R ed
m on d ___________________________________________________________ *1247
Promise to pay, testifies D urant_________________________________ *1149
Sealed instrument, testifies M ax W inkler________________________ *1306
D epreciation of, policy of Com ptroller of the Currency with reference
t o ______________________________________________________________ 5830-5834
State banking department leniency_________________________ 5838-5839
Dillon, Read & Co. issues participated in and managed b y _____ 2261 et seq.
D om estic:
*
D efaulted: Drexel & Co. as syndicate manager of issue___________
304
Drexel & Co. as syndicate manager of issues_____________________
304
Drexel & Co., issues participated in by and issued by _ _ 240-247, 264-269
Flotation of:
Bankers profits, legislation compelling revelation of, prior to
public sale favored by J. P. M organ & C o _____________________
169
Syndicates used by J. P. M organ & Co. in _______________________
168
Foreign (see also under Chile— M ortgage Bank of Chile; Dillon, Read
& Co.— Bolivia bond issue, Brazil bond issue, M ontevideo bond
issue, R io de Janeiro bond issue; Foreign b on d s):
Bankers, duty of, to investigate merits of governm ent issue in
view of inability to coerce paym ent____________________________ 1918
78
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B onds — C ontinued
Foreign— Continued
Bolivia. (See under D illon, Read & Co.— B olivia b on d issue.)
Brazil. (See under D illon, Read & Co.-— Brazil bon d issue.)
Brazil Central Railw ay Electrification Bonds. (See under D illon, Page
Read & C.o.— Brazil-Central Railway Electrification bonds.)
Chile. (See under Chile— M ortgage Bank of Chile.)
Collateral security, as______________________________ *1165, *1166, *1169
Com mittees, protective, to enforce paym ent o f foreign govern
m ent bondp, desirability of, questioned___________ ^______ 1971, *1972
Debenture practically identical with, testifies M ax W inkler_____ *1306
D efaulted:
Drexel & Co. as syndicate manager o f issue_____.___________
304
M organ (J. P.) & Co., as syndicate manager o f issue_______
303
Definition o f:
D ebenture, practically identical wTith, testifies M ax W in kler. *1306
Form al instrument with penalty in event of failure testifies
R edm ond______________ ________________________________ . . . . *1247
Promise to pay testifies D uran t_____________________________ *1149
Formal instrument with penalty in event of failure testifies R ed
m on d ----------------------------------------------------------- ------------------------------ *1247
France, of. (See under France.)
Germ any, o f: Financed b y J. P. M organ & C o ---------------------------167,
Governments, o f:
Bankers, duty of, to investigate merits o f issue in view of
inability to coerce paym ent— ------------------------------------------1918
Committees, protective, to enforce paym ent o f; desirability
of, questioned______ _________ _____ ___________________ 1971,1972
Payments cannot be coerced_______________________________ .
1918
Prospectus of, required to be subm itted to United States
State D epartm ent__________________________________ 2123,2124
United States bond not different from , except for difference
in credit standing testifies Mrix W inkler____________ ______*1313
Interest on __________________________ *1156, *1165, et seq. *1321, *1322
M ontevideo. (See under Dillon, Read & Co.— M ontevideo bond
issue.)
M ortgage Bank of Chile. (See under Chile— M ortgage Bank o f
Chile.)
Obligation in itself ^without regard to foreign political conditions
testifies D onald D urant_______________________________________ *1148
Paym ent cannot b e coerced. ---------------------- ------------------------------- 1918
Promise to pay as definition o f ___________________________________ *1149
R io de Janeiro. (See under Dillon, R ead & Co.— R io d e Janeiro.)
United States bond not different from foreign governm ent bonds
except for difference in credit standing, testifies'M ax W inkler. *1313
German reparation bonds. (See German reparation bonds.)
167
Germany, o f: Sale of, financed by J. P. M organ & C o____. . _________
Gold clauses: Bonds of M inas Geraes, Brazil, payable in gold francs;
holding b y French Court that paym ent to be made in gold _______ *2128,
*2130, *2131 et seq.
Governm ent. (See also under Bonds; Foreign governm ents.)
Foreign bonds not different from United States bond except for
difference in credit standing, testifies W inkler_________________ *1313
Investm ent bankers:
D elivery of bonds usually required by, 6 to 12 m onths before
issuance o f further bonds by issuer.____________________________ 1894
Options, irrevocable, rarely taken by, for financing o f issu es.. . .
1894
Investm ent trusts, of. (See under Investm ent trusts; bonds.)
Investors generally w ithout knowledge of loan agreement between
issuer And banker____________ _____________________________ _________
1902
Issues of—
D illon, R ead & C o., participated in and managed b y ______ 2261 et seq.
D rexel & C o., participated in and issued by .24 0-24 7, 264-269, 303 et seq.
M organ (J. P.) & C o., participated in and issued b y _____ 228-239,
259-264, 303 et seq.
Kreuger & T oll Co. (See under Kreuger & T oll Co.)
Kuhn, Loeb & Co., participation by, in issues o f ____ 1360 et seq., 1398 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
79
Bonds— Continued
Pas®
Listed bonds on exchanges outside New Y ork City num ber of (as
of February 19, 1934)_______________________ - ___________ 6995-6996, 7004
Listing requirements. (See Listing stocks, requirements.)
Loan agreement between issuer and banker: Investors generally
w ithout knowledge o f _______________________________________________
1902
M ontivideo, of. (See under Dillon, Read & C o.; M ontivideo bond
issues.)
M organ (J. P.) & Co., issues participated in and issued b y _ _ _______ 224-225,
228-239, 256, 264, 303 et seq.
M ortgage bond, associated with, in Am erica__________________________ *1247
Municipalities, of: Purpose of issuance generally stated in prospectus. 1902
National banks, only legal investments for___________________________
5833
Nickel Plate R. R. Co., of. (See under Nickel Plate Railroad; Bonds.)
Options, irrevocable, for financing of issuer rarely taken by invest
ment bankers_______________________________________________________
1894
Payment of, by conversion into other security_____________________ 167, 168
Paym ent of foreign governm ent bdhds cannot be coerced____________
1918
Prices:
Drastic declines, says Richard W h itn ey__________________________ *244
Great Britain Governm ent_____________ ________________________
*244
United K ingdom Governm ent____________________________________
*244
*244
United States Governm ent bonds stable_________________________
Public offerings by J. P. M organ & Co. of, since the w ar__________ 224, 225
Purpose of issue is of minor im portance, testifies R obert O. H ay
w ard____________________________________ _____________________ 1902 et seq.
R io de Janeiro, .of. '(See under Dillon, Read & Co., R io de Janeiro
bond issues.)
Sales of, w ithout power of substitution of collateral security, frequent,
testifies M ax W inkler_______________________________________________ *1317
Sealed instrument, testifies W inkler___________________________________ *1306
Serial maturities less desirable than sinking fund requirements, testifies
Clarence D illon --------------------------------------------------------------------------------2113
Serial maturities more desirable than bonds with sinking fund pro
visions which may be secretly avoided______________________________ 2113
Settlement through stock clearinghouse_______________________________ *249
Short selling in, m eager_________________________________ *168-169, *243-244
Sinking fund provisions; should be required:
All issues, should contain, so that bonds may be retired at matu
rity, testifies Clarence D illon______ ____________________________
2113
Serial maturities, better than, testifies Clarence D illon ________ _
2113
Serial maturities more desirable than, since public knows when
obligation of serial bonds will be met, but sinking fund pro
visions may be secretly avoided_______________________________
2113
Substitution of, as collateral security frequently not permitted and
generally permitted only for securities of equal or greater value,
testifies M ax W inkler_______________________________________________ *1317
Success or failure of, depends on merits of issue and issuing house as
well as sponsoring bankers, testifies R. L. R edm ond_______________ *1243
Syndicates used by J. P. M organ & Co. in flotation o f ________ 168, 303-304
Transactions (total) in bonds listed on exchanges outside New York
City (19 29 -33)___________________________________________ 6995-6996,7003
Underwriting of:
Drexel & Co., b y ______________ 240 et seq., 249, 264 et seq., 303 et seq.
Morgan (J. P.) & Co., b y ___________________________________ 228 et seq.,
248 et seq., 256 et seq., 303 et seq.
United States:
Balancing of budget of, essential to increased sale of bonds of
United States, testifies Charles E. M itchell_____________ *1985 et seq,
Bonds of, not different from those of foreign governments except
for difference in credit standing, testifies M ax Winkler________ *1313
Valuation of, national bank examiners’ instructions of, on_______ 4643-4644
B on n er , B rooks & C o.:
Participated in John J. Levenson’s profits during 1929-30 (see
“ Trader,” Levenson)________________________ ______________________
*615
B onus Sto c k : International Projector Corporation, com m on stock of,
sent with allotm ent certificates w as________________________________ 3-181-3482
60604— 46------6
80
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
* *
I
Page
“ B ook ,” T h e _______ ________ ____________________________ _ 6074-6075, 6094-6097
B ook V a l u e _____ __________________________________ ___ __________________
3266
D e fin e d ._________________________________________________________ ____ _ 1716
B oo ker , Y . E., vice president o f Washington Stock Exchange: Testifies
(Securities Exchange A ct of 1934)__________________________________ 6885-6888
B ooth N e w s pa pe r s : First W ayne Nationail Bank, fluctuation of account
in over year end__________________ ____________________ ____ ______________
5557
B ooth , R alph H.:
B ooth Publishing Go., president o f______________________________ _____
4210
D etroit Citizen, well known, connected with Guardian D etroit Union
4210
Group, In c _____________________________________________________ _
Guardian D etroit Union Group, Inc., board o f directors meeting,
D ecem ber 14, 1931, present a t _______________________ _
_______ 4682
Founder o f ____ ___________________________________________________
4600
B ooth , W . 'H.:
D irector of Guaranty C o _________ ___________________________ _________ *1150
Guaranty Co., director o f____________________ .________________________ *1150
“ B o o t l e g ” L oa n s (see Brokers’ loans; loans b y (for) “ others” .)
B opf , S. P.: Com munications re: Securities Exchange A ct of 1934, laud
atory ______________________ _____ __________ ______:___________________ ____
6891
B orgm an , M ason :
First W ayne National Bank, concerned in unethical practices w ith__
5221
M ortgages, delinquent charged against, and fam ily, regarded as
nothing unusual_____________________________________________________
5391
B o r r o w 'n g o f S to ck . (See Loan of stock.)
B orton , T. E.:
‘
Borton & Co., o f ___________________________ ______________________ 8212, 8903
Higbee Co.:
D irector____________________ •-------------------------------------------------- 8212, 8903
Stock interests preferred, represented________________________8212, 8903
B oston & M aine R a ilroad C o.: Pennroad Corporation, acquisition by,
o f stock o f________ ^______________________________________________ 1252, 1335
,7901
B oston C urb E xc h a n g e : Incom e and expenses of mem bers_____________
B oston Stock E xc h a n g e ____________ __________________ ____________ 7032, 7034
Incom e and expenses of mem bers__________________________________ 7900
Morgan, J. P. & Co., m em ber________________________ ________________
126
B otany C onsolidated M ills :
#
Chase National Bank, loan to, collateralized__________________________
2917
2916
Chase National Bank, loan to, official of, interested in _______________
C h ^ e official interested in— Elisha Walker..__________________________
2916
B otany W orsted M il l s :
Chase National Bank, loan t o ____ ___________ __________ ______________
2916
Chase National Bank, loan to, am ount of com m ercial paper___ ,_____
2916
Chase National Bank, loan to, uncollateralized_______________________
2916
B outhron :
Guardian D etroit Union Group, Inc., consolidated statement o f
earnings, form o f approved b y __________________________________ 5047, 5048
Price, Waterhouse & Co.:
D id not, except through, examine or approve Guardian D etroit
Union Group, Inc., consolidated statement of earnings____ j _ . 5048
Of the firm o f ____ __________________________ _____________________ _ 5047
4527
Represented _ _ , _________________________________________ _________
B oventzer , G eorge W .:
Kuhn, Loeb & Co., partner in_________________________ ____________ 958, 1336
Pennroad Corporation, director o f ___________________________ _________
1336
B ow en , J ulian P.:
First W ayne National Bank:
(a) Balance in of at closing____________________________________ _
5651
R eduction in--------------- -------------------------------------- -------------------- 5652
(b) D irector o f____ _ _ _ _ ___ ..._ ^ _ ---------------------------------- ---------------5637
(c) Loan of, to, unsatisfactory condition o f reported___ _________
5637
Am ount of and collateral o n _____ ,-------------------------------5637
(d) Stock assessment against--------------------------------- ----------------------5,§37
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
81
B ow en , J. W .:
Page
American Com m ercial Alcohol Corporation pool and syndicate .ipanaged by Thomas E. Bragg, participant in (see American Com m er
cial Alcohol Corporation pool— Options by directors and officers to
B ragg)_________________________________________________________ 5953,6038
Bragg (Thom as E .), relationship t o ------------------------------------------------------ 6053
W hanger (J. W .), known to --------- ------------------------------------------------------6047
B o w er , D udley W .: Dun report, statement in, by, that Bodde and
Sweeney retained interests in Wise Chrome Products C o ________________ 5227
B o w e r , L. V.:
D etroit & Canada Tunnel Co. bondholders’ protective committee for,
secretary o f_________________________________________________________
3935
Letter from as to Ramsey concerning plan to be subm itted to
3935
D etroit International Bridge Co., president o f___________ _____ ______ 3910
B ow ers , H e nry S., partner in Goldman, Sachs & C o.:
Testifies (K elsey-H ayes Wheel Co. joint accou n t)_______________ 6282-6286
Goldman, Sachs & Co., partner o f------------------------------------------------ *566, 6282
B ow ery Savings B a n k : Bruere (Henry) connected with_________________ 6467
B oyd , J. C ookman , attorney:
Testifies (Radio-K eith-O rpheum Corporation recapitalization plan of
1931)____________________________________________________________ *863-873
Radio-K eith-O rpheum Corporation recapitalization plan of 1931 con
tested by B oyd in suit which was settled by purchase o f B oyd ’s
stock, M arch 1932 (see Radio-Keith-Orpheum Corporation, re
capitalization plan)________________________________________ *834, *849-853
J. Cookm an B oyd was a stockholder and plaintiff and J. Cookman
Boyd, Jr., represented him; J. Cookman B oyd also represented
*864
a client, says J. Cookman B oy d _______________________________
B oy d , J. C ookm an, Jr., attorney. (See Boyd, J. Cookm an.)
B raden C opper C o.:
Directors o f - _____ _____________________________________________________ 30, 31
K ennecott Copper Corporation, subsidiary o f__________ i _____________
30
B r ad ley , C harles L .:
Alleghany Corporation, director o f-------------------------------------------------- 706, 8868
706
D irector of Alleghany Corporation___________________________________ _
Morgan, J. P. & Co., preferred lists of, in connection with Alleghany
Corporation, m em ber of, suggested by Van Sweringens. 138, 702, 703, 714
Nickel Plate Railroad, stock control of, acquired b y Van Sweringens,
associations w ith ------------------------------------- 569, 571, 597, 600, 605, 624, 625
Painter-Bradley-M eyer & Bros, trust,, supervisor o f__________________ * 8973
Railroads, associated with Van Sweringens in field o f_______ ________
569,
571, 597, 600, 605, 624, 625
Union Trust C o.:
D irector___________________________________________________________ 8190
Vice president_______________________________ _____ _______________
8935
Vaness Co., interests in, o f___________________________________________
714
Vaness Co. stockholder________________________________________________
8190
Van Sweringens, associated w ith______________________________________
569,
571, 597, 600, 605, 624, 625, 703, 714, 8862, 8864, 8868
Van Sweringen interests, connection with, and with Union Trust Co__ 8935
B rad sh aw , J oseph P.: Clark, D odge & Co., director o f __________________ *1150
B rad w a y , J udson :
Testim ony o f _____________________________ 3945-3966, 3970-3971, 3973-3975
D etroit & Canada Tunnel Co.:
A ctivity for, at the instance of a committee com posed of Bertles,
Rawls & Donaldson and Anderson & Gardiner________________ 3949
Brokers, one of whom helped assemble real estate fo r ___________
3948
Rawls em ployed as, no written contract________________ 3948, 3949
Connected with closely only in real-estate transactions till
elected president o f ____________________________________________
3952
D irector of, in 1928, when bought real estate from syndicate in
which manager____________________________________________ 3970-3971
Financing of, knew little about___________________________________ 3964
Legal fees to attorneys for bankers, does not kijow why paid by__ 3964
g2
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B r a d w a y , J udson — C ontinued
D etroit & Canada Tunnel C o.— Continued
Page
President o f_____________ _____ ______________ ................... 3903, 3904, 3945
Became, June 1928___________ ________________ _____________ _ 3946
Real estate for—
(a) Contribution of self and wife for carrying________________
3963
(b) Dummies in whose names title taken selected by or con
nected with office o f________ __________ _________________3949
(c) Prom oter___________________________________________________3970
(d) Shared in 35 percent profit o n ______________________ . _ _ _ 3903
Stock of, received by, as prom otion stock for activities m ore or
less a donation_____________ ^________ _ _ ^______________________
3961
x Spread of 10 points in price between bankers and public
“ very reasonable” - - - - — -------------- - _ _ u ------------------------- 3964
Syndicate agreement for purchase o f real estate, participant in
and manager o f _______________________ ■_ _:-------- 3946, 3947, 3998, 4001
Vice president o f____________________________________ _ - __________
3945
G uardian'D etroit Union Group, Inc., founder of______________ _______ 4600'
Occupation of— real estate___________________ ^_____________________ _
3945
B r a d y , N. F.: D irector of National C ity C o ______ ______________________ _ *11 50
B r ad y , N icholas F. (now deceased)___________________________________*1063
Fox Theatres short sale pool (1929), participant in (see Fox, F ox
Theatres C orporation)------------------------------ -------------------- *984, *1 0 6 3 -1 0 6 4
N ational City Co., director o f_________________ ______________— ______* 1150
R adio Corporation of America pool (1929), participant in (see Radio
Corporation o f America, p o o l)_ ._ ------------------------------------------------------ *468.
B ragg , T homas E.:
Testifies:
(Personal trading; pools; Lim a Locom otive pool; Anaconda
Copper Mining Co. pool; Radio Corporation o f Am erica
p o o l) _______ __________ — _ _ _ __ _ ---------------------------------- - * 4 0 6 -* 425(R adio Corporation of Am erica pool)^ — _________________ * 46 5-* 492;
Accounts in which Percy A. Rockefeller participated; photostat
copies of brokers’ reports (retained in com m ittee files)_____ *359, *361
Alaska Juneau syndicate, participant in, says Percy A. Rockefeller
(see Lima L ocom otive; Syndicate, Alaska Juneau)-------- ;___________ * 340»
Alaska Juneau stock syndicate, n ot participant in, says B ragg. *42 1, *436American Com mercial Alcohol Corporation pool and syndicate,
manager of (see American Com mercial Alcohol Corporation, Pools—
‘ Options by directors and officers to Bragg)_________ __________ ____ 5878,
5912, 5951, 6043, 6045, 6^12-6614
American International Corporation, connected "with for 10 years
prior to 1928____ ________________________________________ ______* 350, * 407"
American International Shipbuilding Corporation, secretary o f (1919) _ * 415
Anaconda Copper Mining Co. pool, participant in (see Anaconda
Copper Mining Co., pools.)
Bear raider____________ __________ ______ _______________________________ * 339:
Bowen (J. W .), relationship t o ________________________________________
6053
Briggs M anufacturing pool, participant in ______________________ _____ * 422
General Foods, market operations in ______ ______________________ 6053-6054
Incom e tax returns o f . ___________________________________ _________ *415-416.
Lima Locom otive syndicate, participant in (see Lim a L ocom otive,
Syndicate)__________________________________________________ ________
*337
New Y ork Shipbuilding Co. connections_________________________ „ ___
6056
Position in market; long until September 1929 and short since then to
date of hearing April 23, 1932, largest short position being approxi
mately 50,000 short, says Bragg____________________________ _
*408-410
R adio Corporation o f Am erica pool (1929), participant in (through
wife, Vera Bragg) and nominal manager of (see R adio Corporation
o f America, p o o l)________________________ *422, *466, *468,. *4‘69, *471-472"
Rockefeller (Percy A.) first m et Bragg in 1919, says B ragg___________ *415
St. Louis & Southwestern Railroad pool, participant in _______________ *422"
Smith (Bernard E .), broker for pool and syndicate in American' Com
mercial Alcohol Corporation, managed b y Bragg (see American
Com mercial Alcohol Corporation, pools— Options b y directors and
officers to B ragg)_____________________ _________________________ 6058-6065
Speculating started b y him in 1918, 1919, or 1920, ^ays Bragg—_____
*407
Speculator and market operator_____________________________ 3913, 6052, 6088-
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
83-
B r ag g , T homas E .— Continued
Pase
Union Oil, market operations i n . ______________ _______________6053-6054
W . E. H utton & C o.:
Connections w ith ___________________________________________ 5913-5914,
6052-6053, 6057-6058, 6087-6088, 6090-6091
M em ber of (1928 to O ctober 1930)__ _______________________ *406, *466
Whanger (J. K .) given Bragg’s check—
Representing profits of pool and syndicate in American Commer
cial Alcohol Corporation stock, managed by Bragg (see Whanger,
J. K .) __________________________________________ 6047-6057,6059-6060
Com ing from market operations in General F oods__________ 6049-6051,
6053-6054
Com ing from market operation in Union O il____ 6049-6051, 6053-6054
Whereabouts during Senate hearings_____________________________ *337-338,
350, 5913-5915, 6056-6057, 6071
B ranch B a n k in g :
Bill:
Michigan, Guardian D etroit Union Group, In c.:
(a) Effect o f passage on ________________________ _ 4620, 4622, 4623
(b) H oped for passage o f _________________________ 4620, 4622, 4623
(c) Reliance on passage of b y ______________ _________________ 4637
Communities, small, need some form of, Stens’ view _________________
5823
C ounty-w ide:
(а) Stevens against_______________________________________________ 5823
(б) W ilson would lim it t o ___________________________________ 5732, 5734
Federal bill legalizing, pending________________________ __________ 4648, 4649
5810
G roup banking less good than, Ballantine’ s view _____________________
Guardian D etroit Union Group, Inc., capital structure, reorganization
of dependent on legalizing_____________________________________ 4648, 4649
Michigan, perm itted in__ _____________________________________________ 4211
Solution of banking problem in United States according to L ord_____ 5055
B ranch , C laude : Tem porary counsel to Senate Com m ittee on Banking
and Currency_______________*____________________________________________
1
B ranch I nvestment C o .:
Financial statement, com parative_______________________ - _____ 8614 et seq.
Formation of, by Guardian Trust Co., of Cleveland, for purpose of
taking over sublease on property intended for housing of branch of
bank____________________________________________________________ 7989,7995
Guardian Trust Co. o f Cleveland:
Loan made by, t o ________________________________________________
7995
Subsidiary o f____________________________________ 7989, 7995, 8596, 8614
H istory o f ________________________________________________________ 8596, 8614
Leasehold estate and three vacant lots owned by, at cost of $701,587.12
which assessed at $429,060___ ________________________________i ____
7995
Loan to, by Guardian Trust Co. o f Cleveland____________________ 7995
Profit and loss statem ent______________________________________________ 8615
Subsidiary o f Guardian Trust Co. of C levela n d .________________ 7989, 7995;
8596, 8614
Surplus account, reconcilm ent o f ______________________________________
8615 v
B ran deis , M r . J u stic e :O ther People’ s M oney, book written b y ________
856
B ra n d on , F. M . (see also, Lord, B ran don ):
C ity National Bank & Trust Co., Niles, M ich.:
(a) Conditions of, unknown by, until bank exam ined___________
4314
(b) Dividends, declaration of, by, com m unication between
Maxwell and, concerning______________________________ 4307-4309
(c) President o f ______________________ . ___________________________
4259
(d) Rem oved from _________ _________________________________ 4314-4315
Maxwell, communications by, to, seeking dividend declaration. _ 4308-4309
Patterson, intergroup memorandum from, expressing inadvisibility
o f dividend declaration b y --------------------------------- ----------------------------- 4312
Walsh, intergroup memorandum to, from —
(a) Concerning loan to eliminate bills payable________ 4352, 4353, 4357
(b) Congratulating on showing bills payable “ none” ____________
4363
Walsh, letter from , to—
(а) Congratulating on showing bills payable “ none” - ---------- 4364-4365
(б) Requesting daily telegraphic inform ation o f bills payable
before call dates____________________________________________ 4349
Walsh, letter to, from , regarding pu blicity..... ............................................. 4373
84
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
Page
B r an t , I r v in g : Com m unication re Securities Exchange A ct o f 1934_.___ 6892
B ratton , G u y :
D etroit Bankers Co. service contracts in charge o f recovery depart
ment under_______ . _____ ___________________________ _______________
5094
First National Bank and People’s W ayne C ounty Bank, consolidated
claims department in charge o f_________________________________5725, 5728
B r a z il. (See also Dillon, Read & Co., B razil):
Bankers for. Dillon, Read & Co. becam e exclusive_____________ 1974, 1975
Banking syndicate for bond issue o f_______________ ___ ______1959, 196Q
Bonds issued b y tsubdivisions of, now in default_____ ______________ 1894
Bonds of. (See' under Dillon, Read & Co.— Brazil; Brazil Central
Railw ay electrification.)
Central Railway electrification bonds. (See under D illon, Read & Co.,
Brazil Central Railway electrification bonds.)
Central Railway of, territory and mileage covered b y ________ ________
1985
Credit ranking of states of, by National City C o _____________________ *2123
1894
Default on bonds issued b y subdivisions o f_________ - ________________
D illon, Read & Co. (See also Dillon, Read & Co., B razil):
Bankers for, but not for political subdivisions o f_________________
1975
Hayward, R obert Oi, faith of, in financial recovery and loyalty to
United States o f----------------------------------------------------- ;__________ 1975 et seq.
Minas Geraes bonds payable in gold francs; holding b y French courts
that paym ent to be made in gold______________ *2128, *2130, 2131 et seq.
Minas Geraes is a State in______________________________________ *2122, 2123
National City Co. (See under National C ity Co., Brazil.)
States of, credit ranking of, by National City C o _____________________ *2123
Taxation, powers of, possessed b y States, bu t not municipalities,
testifies Ronald M . Byrnes__________________________________________ *2125
B r azilia n T raction L ight & P ow er C o ., L td .:
1950
B ond issues of, financed b y Dillon, Read & C o _______________________
Dillon, Clarence, form er director__________________________________ ___
1950
Dillon, Read & Co., financed bond issues of._*_____ :----------------------------1950
D irectors o f___ _____________________ .__________________________________
1950
H ayward, R obert O., director_________________________________________
1950
Mackenzie, Sir Alexander, as head o f__________________ _______________
1950
Public utility in South America, largest one_______________________ 1950
South America, largest public utility in_______________________________
1950
U tility, largest, in South Am erica_______________________ ______________
1950
B r ee n , G eorge F .:
Testifies (Free-lance trading; Kolster R adio Co. p o o l)____________ *549-563
Corporate directors and officers make it practice to em ploy Breen
and others to buy stocks to support the m arket when price seems
to be w avering_______________________________ _______________ ___ *550-553
Breen (or other traders) was guaranteed against loss and is
compensated by having profits on resale, if any, accrue to /
him __________________________________________________________*551-552
O bject sometimes to liquidate block o f stock for individual or
institution, says Breen__________________________________________ *552
K olster R adio Co. (See K olster R adio Co., Pool.)
Oil Well Supply Co., supported for couple of years b y him, says
Breen____ ________;__________________________________________ *551-552
Purpose “ to stabilize, not fix the price,” says B r e e n ..___________
*553
Purpose to stabilize stock 'and so aid com pany’s credit, says
Breen________________________________________________ _____ *551, *553
Stocks can be guided both upward and downward, says B r e e n ... *551
Free-lance trader?____ _____________________________________________ ! *549-553
Kolster Radio Co. pool o f 1928, participant in (see K olster R adio Co.,
P o o l)___________________________ I ___________________________________
*553
Lion (D avid M .) em ployed to furnish publicity to K olster R adio Co.
stock in which Breen was interested (see also Lion, D avid M. ) _ *678-680
Options granted by, to Charles C. Wright, in Curtiss-W right Corpo
ration stock____________ :__________ __________________ 6137-6138, 6159-6160
Participated in John J. Levenson’s profits during 1929-30 (see
“ Trader,” Levenson)__ ________ '____ ______________.____________ ____
*614
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
85
B b e e n , G eorge F.— Continued
Pa^e
Plummer (A. N ew ton), publicity man, retained by Breen to write
material concerning Simms Petroleum stock and pay financial
writers to publish it in newspapers, says F. H. LaGuardia-------------- *456
Radio Corporation of America pool (1929), participant in (see Radio
Corporation of America, P o o l)__________________________________ *468, 469
Sinclair Consolidated Oil Corporation pool and syndicate (1928),
participant in (see Sinclair Consolidated Oil Corporation, P ool and
Syndicate)___________ _________________________ 3093, 3094, 3109-3111, 3253
B relsford , E. C .: International Shares, subsidiary o f Continental Shares
(In c.), secretary and treasurer o f ________________________________________
*906
B r ew e r , J oseph H .:
Grand Rapids, disturbance in, if obligations not met b y _________ 4301, 4302
Institutions in which interested_______________________________________
4304
B r e w e r , J oseph H .:
Grand Rapids National Bank:
(a) Chairman of board or president o f ____ ______________________
4272
(b) Head of reorganized__________________________________________
4304
(c) Stock purchase of, by, for Guardian D etroit Union Group,
In c____________________________________4271-4276, 4292-4295, 4305
L ord’s efforts to com pel carrying of, b y ___ _____ _______ 4290-4293
Loan to from Guardian D etroit Union Group, Inc., of $15,000__ 4301, 4302
(a) Conference concerning, five or six members present at con
nected with Guardian D etroit Union Group, Inc., and not
with Saginaw bank___________________ ________________ 4303-4304
(b) M emorandum concerning____________________________________
4302
(c) Second National Bank & Trust Co. o f Saginaw declared
dividend to reimburse Group Co. fo r ___________ ‘ _____ 4302, 4303
Loan to, old, from Guardian National Bank o f C om m erce___________
4301
Loan to, refusal of by Guardian National Bank of Com merce and
Guardian D etroit Union Group, In c ________________________________ 4301
Lord, correspondence with, concerning carrying of Grand Rapids
National Bank stock, purchased in connection with form ation of
Guardian D etroit Union Group, I n c ___ 4273-4274, 4290-4293, 4294-4295
Lord, letter from, to, concerning purchase of Grand Rapids National
Bank stock for Guardian D etroit Bank________________________ 4273-4274
National Bank of Ionia, replaced director of, at choice of Guardian
D etroit Union Group, In c ________________________________ 4228-4229, 4234
Patterson, intragroup memorandum to, from, enclosing bank exam
iner’s letter with tabulation of estimated losses of Grand Rapids
4296
National B ank__________:___________________________________________
Saginaw bank declared dividend to reimburse Guardian D etroit
Union Group, Inc., for loan t o ______________________________________ 4302
Waters, Dudley, associated with in Grand Rapids National Bank
managem ent________________________________________ 4272, 4273, 4293, 4294
B ridge (I nternational ) :
Coverdale & Colpitts, engineers of in regard to traffic________________
3910
3910
D etroit International Bridge Co., builders o f_________________________
M cClintick-M arshall, builders o f ______________________________________ 3910
M odjeswi & Chase, engineers o f __________ ____________________________
3910
Traffic laws, five for vehicular traffic designed, one for pedestrians___ 3909
B rid g e , I n tern ation al (A mbassador ) : Construction of, over D etroit
River, begun when tunnel planned______________________________________
3909
B ridgem an , B ates & C o __________________________________________________
*587
B riggs C ommercial & D evelopm ent C o .: Radio Corporation of America
pool (1929), participant in (see R adio Corporation of America, P ool). *470, *472
B riggs M an u factu rin g : Pool involving Thomas E. Bragg______________
*422
B riggs , W a l t e r : Guardian D etroit Union Group, Inc., founder o f ______
4600
B r ig h t o n C o r p o r a t io n (see also Dillon, Read— Brighton Corporation &
C o .): Subsidiary of Dillon, Read & C o ____________________________2104 et seq.
B r it is h G au m on t Co. (see also Fox Theaters Co., British Gaum ont C o.;
Ostrer English Co.) controlling chain of theaters________________________ 3690
B r ixto n T rading C orporation , fam ily corporation of the Warner B ros. *648
B roadw ay Savings & T rust C o .: W oodland Avenue Savings & Trust
Co. consolidated with, in the name of Union Trust C o ____ _____________ 8134
B r o d e r ic k :
Bonds, depreciation of, policy of leniency tow ard________________ 5838-5839
New Y ork State Banking Departm ent, superintendent o f____________
5838
86
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B roeksm it , J ohn S.:
Pase
arris Trust & Savings Bank, vice president o f____________ ;__________ *1742
estimony o f _____ ;__________________ , _______________ ^______________
1742
B r o k e r s (see also Brokers and custom ers):
Banking functions exercised b y ________________________________________ *1392
D ay loans to. (See also under D ay loans.)
D om inick & D om in ick _____ ___________________________________________
1640
Eastman, Dillon & C o ______________________________________ ___ _______ *1375
Loans to. (See under Brokers’ loans.)
N ew Y ork Stock Exchange, questionnaire of, answers required only
of brokers doing marginal account business_____________________ _
126
Paine, W ebber & C o________________ ___________________________ 615, 646, 647
B r okers and C u stom ers :
Broker borrowing custom er’s stock ___________________ ________________
*203
Broker interested in one side o f m arket advising custom er to con
trary________________________________________________ .___________ *145, *205
Brokers do not do this, says Richard W h itn ey__________________
*205
N o specific New Y ork Stock Exchange regulation; bu t would
be expelled, says Richard W hitney__________________ *145, *205-206
Broker’s powers to pledge or loan custom er’s stock in margin accounts
only (see Consent card; Custom er’s agreem ent)________ *73-80, *195-196
Broker’s power to pledge or loan custom er’ s stock is restricted to
“ Fair and reasonable” am ount, says Richard W h itn ey_____________
*81,
*137-138, *206-210, *212, *397-398
Excess margin required by N ew Y ork Stock Exchange to be
*212
kept in separate boxes__________________________ _______________
Examining accountants merely “ spot check” ; com plete
physical examination impossible, says Richard W hitney *212-215
Investigated by N ew Y ork Stock Exchange___________ _ *209, 212-213
N ew Y ork statute_____________________ _______________________ *209-210
Rule is an old N ew Y ork Stock Exchange rule______ ________ *209-210
Rule not made specific to avoid “ odd lots,” and to take care of
m arket fluctuations, says Richard W h itn ey____________________ *209
Violations few _____________________________________________________
*209
V iolation caused expulsion o f m em bers____________ i _____________ *209
Brokerage holdings o f com m on stock:
July 1, 1929__________________________ 7933, 7934, 7935-7937, 7942-7943
July 1, 1933............................ .............................. 7933, 7935-7936, 7938, 7941
Charges for carrying accou n t___________________ _____________ *86, *395-396
Decreased when broker gets use o f m oney put up b y borrower
of the custom er’s stock, says Richard W h itn ey ____________ *129-131
E ffect of broker’s pow er to lend the securities o f the accoun t____ - *86
C om m ission_______________________________ ___________ :____________ ___
*85
Consent card or custom ers’ agreement perm itting broker to lend or
pledge custom er’s stock gotten under pressure (see also K enny,
Thom as A .)____*140-141, *200, 201-*202, *377-384, *397-398, 6444-6445
Letter o f N ew Y ork Stock Exchange business condu ct com
mittee to custom er______________________________________________ *202
Consent card, typical form _____________ :_____ ____ *________ _________ *78-79
Custom ers’ agreement, typical fo r m .________________________________ *77 -78
D istribution o f listed stocks b y brokers perm itted under special
regulations, says Richard W hitney___________ :___________________*252-253
H ypothecation b y broker o f customers’ securities in safekeeping
accounts (i. e., fully paid-up securities) occurs, says Edw ard P.
K n i g h t - ______________________________________________________ *403-404
Inconsistency in loaning stock o f customer, w ho buys on margin for
rise, to short seller w ho m ay depress prices___________________ _ *135-136
Interest rate on debit balance in margin account is arbitrarily set b y
broker w ho first puts down rate o f interest charged to custom er
and then adds an item o f carrying charges representing cost to
broker o f borrowing m oney, plus an arbitrary profit, says Edw ard
P. K n igh t____ ________ ___________________________________________ *395-396
Interest received on customer’s m oney as result o f borrowing stock for
customer kept b y broker, says Edward P. Knight ______________ *396, *405
Interest charged customer b y broker loaning stock for custom er is
higher than actual interest rate paid by broker, says Edw ard P.
K night____________________________ *_____________ ____________________ *397
?
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
87
B r o k e r s and C ustomers — C ontinued
Pase
Lending broker has use of m oney put up b y borrower of custom er’s
stock______________________________________________________________ *129-131
Loan of stock. (See Loan of stock.)
Loan power o f broker restricted to cover loans necessary to carry the
accoun t“ fair and reasonable” ____*81, *137-138, *206-210, *212, *397-398
Premium for loans of customer’s s t o c k _______________________ *73, *123, *131
A m ou n t________________________________________________________ *133-134
Premium for loan of customer’s stock usually kept by brpkers unless
customer raises question, in which case, if account be large, cus
tomer may be given one-half the premium, says Edward P. Knight_ *396,
*405
*203
Principal and a g en t_______________________________________ ___________
Recom m endation to customers of stock held by broker on option has
been a com m on practice, but is unethical, says Ruloff E. Cutten__ 59035904, 5909-5910
Segregation of securities held in margin accounts o f different cus
tomers advocated by Edward P. Knight, so that broker may not em
ploy customers’ equity toward trading for own account, which
jeopardizes customers’ equ ity. ____________________________________ *399-400
Selling out account (Margin accounts o n ly )___________________________
*77
Short sales with use of customers’ stock by broker prohibited by New
Y ork Stock Exchange_____ ___________ ____________________________ *76, *81
Taking and discontinuing of accounts at Absolute discretion of broker. *202
Trading by broker for own account with use of customers’ stock pro
hibited______________________________________________________________
*76
Trading by broker for own account. (See Trading by exchange mem
bers for own account.)
*
B rokers ’ L oan s :
(See also Banks, banking, and bankers, Brokers’ loans.)
See also Call loans. D ay loans__________________ _________________ 7278-7281
American & Foreign Power Co., Inc. (See American and Foreign
Power Co., Inc., Call loans made by.)
American Can Co., lender________________________________________ 6342, 6371s
American Founders Corporation, lender___________ _______________ 6346, 6389
Am ount, October 1929, was $8,500,000,000, and only $500,000,000 on
April 1932________________________________________________________ *101-102
Anaconda Copper Mining Co., lender______________________ 6342, 6371-6373
Auburn Autom obile Co., lender__________________________________ 6342, 6374
Banks and bankers:
Assets of, represented by, are m ost liquid of all assets__________ *1819
Credit diverted from industry to stock market b y loans by_:____ *1984
Deposits of, expansion of, in 1929 as cause of investment by banks
in __________________________________________________ *1819, 1820 et seq.
Federal Reserve bank, credit of, brokers’ loans made by banks
largely o n ________________________________________________ *1815 et seq.
Loans for “ A ccount of others” during speculative market of 1929
could not be prevented by, testifies Charles E. M itchell_______*1815
M ade by, in 1929________ ___________________________________ 543 et seq.
Nonbanking interests powerless to prevent loans b y _____________ *1815
Speculation encouraged by, b y means of_ 1009 et seq.,*1815, 1990, 2241
Banks, by, am ount_________________________________________ 7923, 7925-7926
Banks are chief lenders________________________________________________
*93
Propriety o f ____________________________________________________ *101-102
Bethlehem Steel Corporation, lender_________________ 6342-6343, 6374-6375
Book written by Louis H. Haney, Lyman S. Logan, and Henry S.
Gavens___ _____________________________________________________ 6345-6346
“ B ootleg” loams. (See Loans by (for) “ others,” post.)
Brokerage holdings of com m on stock:
Julv 1, 1929__________________________ 7933, 7934, 7935-7937, 7942-7943
July 1, 1933_______________________________J 7933, 7935-7936, 7938, 7941
Chrysler Corporation, lender_____________________________________ 6343, 637&
Cities Service Co., lender. (See Cities Service Co., Call loans made
by.)
Collateral loan agreement forms used by bank^____________________ 133-147
Consolidated Oil Corporation. (See Consolidated Oil Corporation,
Call loans made by.)
88
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B r o k e r s ’ L oans — Continued
Page
Corporations’ loans to brokers as cause of speculation, testifies O tto H .
K ah n _____________________*______________________ ___________________
1010
Credit diverted by bankers from industry and stock m arket b y _ _ ___ *1984
Credit structure, inflation of, resulting from large am ounts o f; warn
ing of, given b y Federal Reserve Board in M arch 1929_____ *1815 et seq.
D aily settlem ent practice o f New Y ork Stock Exchange responsible
for call loans________________________________________________ ________
6454
D ay loan agreement form s— _______________________ ______________ 147-153
Deposits in banks, large expansion of, in 1929 as cause o f banks’
investment in __________________ _________________________*1819, 1820 et seq.
Depression:
Causation of, part played in ________________ *1817, 1990 et seq. 2241
Index o f___________ _______ ________________________________________
1009
Speculation created by corporations’ loans to brokers, testifies
Otto H. K ahn_________________________________________________ _ 1010
Inflation o f credit on brokers’ loans is cause of, says R obert L.
Owen____ __________________________________________________ 7279-7281
Electric Bond & Share Co., lender. (See Electric Bond & Share Co.,
Call loans made by.)
Evils o f________________ _________ _________ 6440-6443, 6445, 6447-6448, 7260
Federal Reserve Board:
Credit of, utilized b y banks, in order to m ake_______________*1815 et seq.
Rediscount rates raised by, in M arch 1929 in order to check
further large am ount of, and to sound warning, of inflation o f
credit structure---------------------------------------------------- ----------- *1815 et seq.
Warning given by, in M arch 1929 of inflated credit structure
resultant from large amounts o f _______________________ *1815 et seq.
General Foods Corporation, lender___1__________________________ 6343, 6377
General M otors Corporation, lender_______________________ 6343, 6378, 6380
Inflation o f credit structure resultant from large am ounts of, warning
of, given by Federal Reserve Board in M arch 1929__________ *1815 et seq.
Interest o f 20 percent paid on, prior to stock market panic o f 1929____ *1814
Interest rates January to October 1929, ranged from 5 to 20 percen t. _ 6317
Interest rates as of February 23, 1934, 1 percent less com m ission______
6338
Interest rate should be limited, says R obert L. Owen____________ 7278-7279
International Nickel Co. o f Canada, Ltd., lender___________ 6343, 6380-6381
Kuhn, Loeb & Co., made b y ____________________________ 990, 991, 1404 et seq.
M ethod of keeping funds employed, as____________ 990, 991, 1400 et seq.
Liquidity and safety pointed out by Russell G. Longm ire______ 7272-7273
Loans by (for) “ others,” i. e., b y others than banks— such as industrial
corporations, etc________________________________________________ 6891, 7142
American & Foreign Powei' Co., Inc. (See Am erican & Foreign
Power Co., Inc., Call loans made by.)
American Can C o ____________________________________________ 6342, 6371
American Founders Corporation_____________________________ 6346, 6389
Am ount and num ber o f loans made b y private corporations
in 1929_______________________________________________ 6341-6342, 6370
Anaconda Copper Mining C o _____ ______ ________ 1____ 6342, 6371-6372
Auburn Autom obile C o ______________________________________ 6342, 6374
Bethlehem Steel Corporation____________________ 6342-6343, 6374-6375
“ B ootleg” loans_____ *_______________________________________ 6344-6345
Chrysler Corporation_______________________ ___ _____________ 6343, 6376
Cities Service Co. (see Cities Service Co., Call loans made
b y ) ____________________________ ________ ____________________ 6310-6311
Consolidated Oil Corporation. (See Consolidated Oil Corp.,
Call loans made by.)
_
D om inantly im portant in 1929, said Charles H . E. Scheer in
D ecem ber 1928 to February 1929_______________________ 6310-6315
Electric Bond & Share Co. (See Electric Bond & Share Co.,
Call loans made by.)
Evils— “ Part o f a vicious circle in stock m arket inflation” and
represent potential burden on banks since uncontrolled “ others”
rapidly withdraw loans upon econom ic disturbance______ 6345-6346
General Foods C orporation. _ _____._________________________ 6343, 6377
General M otors C orporation___________________________ 6343, 6378, 6380
International Nickel Co. of Canada, L td ---------------------- 6343, 6380-6381
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
89
B r o k e r s ’ L oans — Continued
Loans b y (for) “ others” i. e., by others than banks— Continued
p ase
Irresponsible m on ey_________________________________ ________ 6447-6448
National City largely nullified Federal Reserve effort to stop
speculation, says Pecora________________________________________ 7240
N ational Distillers Products C o _______________________ 6249-6250, 6253
Pan American Petroleum & Transport C o ____________ 6343, 6382-6383
Potential call on bank credit since banks would find it necessary
to take up loans upon withdrawal of loans by “ others” said
Charles H. E. Scheer in D ecem ber 1928 to February 1929_ 6313-6314
Prohibited by Banking A ct o f 1933 and clearing house exchange. 6448
Radio Corporation of Am erica______________________________ 6344, 6384
Radio-K eith-O rpheum Corporation___________________ 6344, 6385-6386
Speculation of 1929 would have been maintained even without
loans b y “ others” ; the m oney would have com e from banks and
foreign funds, says R. P. R esor___________________________ 6337-6338
Standard Oil Co. (Inc., in New Jersey). (See Standard Oil Co.
(Inc., in New Jersey), Call loans made by.)
Tri-Continental Corporation___________________________ 6344, 6386-6387
“ U ncontrolled” because even where made indirectly through
banks, reserves against such loans were n ot required and
because com pletely unregulated, said Charles H. E. Scheer___
6313
United Corporation____________________________________ 6344, 6387-6388
United Gas Im provem ent C o ___________________1___________ 6344, 6388
N ational City Bank made loans of $25,000,000 at 16 to 20 percent in
M arch 1929, thus nullifying Federal Reserve B oard’s attem pt to
check speculation by raising rediscount rates_______________________ 6317
National [Distillers Products Co., lender (see National Distillers
Products Co., Call loans made b y ) ______________________ 6249-6250, 6253
New Y ork limitation on time loan rate of interest is a factor in rise of
*358
call loans, says Percy A. Rockefeller_______________________________
Nonbanking interests:
Bankers powerless to prevent loans b y ___________________________ *1815
Loans by, o f bulk of m oney to brokers in 1929 despite efforts of
bankers to prevent situation, testifies Charles E. M itchell_______ *1815
Pan American Petroleum & Transport Co., lender_________ 6343, 6382-6383
Panic of 1929, prior to, 20 percent interest paid o n _______________ _ __ *1814
Pivotal element in 1929, said Charles H. E. Scheer in Decem ber 1928
to February 1929_______________________________________________ 6310-6315
Private corporations, loans made by (1929)________________ 6341-6342, 6370
R adio Corporation o f America, lender____________________________ 6344, 6384
Radio-K eith-O rpheum Corporation, lender_________________ 6344, 6385-6386
Small holders make loans, says Richard W h itn ey_____________________
*93
Speculation:
>
Bankers’ encouragement of, by means of broker’s loans___ 1009 et seq.
Corporations’ loans to brokers as cause Of, testifies O tto H. Kahn_ 1010
Index o f__________________________ 1009 et esq., 2241 1815, 1990 et seq.,
Large am ount o f brokers’ loans at high interest rates indicative
o f ---------------------------------------------- 1009 etseq., *1815, 1990 et seq., 2241
Speculation o f 1929 could not have been maintained without, says
R. P. R esor_________________________________________________________
6373
Standard Oil Co. (Inc., in New Jersey), lender. (See Standard Oil Co.
(Inc., in New Jersey), Call loans made by.)
Stock market panic o f 1929, 20 percent interest paid prior to, o n ____ *1814
Stock prices approximately paralleled brokers’ loans during 1928. 6313-6315
Tables, graph, January 1931 to April 1932________ „ ___________________
*53
Explanation by Richard W hitney____________________________*52, 54-56
Tri-Continental Corporation, lender________________________ 6344, 6386-6387
United Corporation, lender_________________________________ 6344, 6387-6388
United Gas Im provement Co., lender____________________________ 6344, 6388
Volume increased tremendously with heavy rise in securities’ price
and fell rapidly with break in O ctober 1929_____ _____________ 6437-6439,
6440-6441, 6448-6449
Volum e of brokers’ loans from banks decreased from 1928 to 1929,
banks shifting funds to customers, but loans by (for) “ others”
caused rise in brokers’ loans, says Thom as W oodlief_____ 6455, 7200-7201
Volum e of brokers’ loans from banks reached peak in 1930, says
W oodlief Thom as__ ___ ____________ _____ _____________________ 6455-6456
90
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
Page
B r o n n e r , H a r r y : Blair & Co., Inc., and Blair & C o., mem ber o f (1928) ~
3341
B r o o k h a r t , S e n a t o r Sm ith W .:
Statement, Better Business Bureau of N ew Y ork C ity (In c .)___*1122-1124
Senate Com m ittee on Banking and C urrency_________________________
B rooklyn E conomic S erv ic e , I nc .: Prosperity, prognostication o f for
1931_____________________________________________ ____________ ___________
4305
B r o o k ly n M a n h a tta n T r a n s it Co. (See also Dahl, Brooklyn, M an
hattan Transit C o .):
Chase'N ational Bank brought out note issue of_ ______________________ 3023
Chase National Bank, loan to, officials or trustees of, interested in ___ 2914
Chase National Bank loans to :
(a) Am ount o f ____________________________________________________
2917
(b) Uncollateralized______________________________________________
2917
(c) Whether paid uncertain______________________________________
2917
3023
N otes held by, of, falling due__________ __________________________
Chase officials interested in, W iggin and D ah l________________________
2917
Dahl sold Chase National Bank stock held as collateral on loan o f __
3023
3028
D efault prevented by Wiggin and associates__________________________
D ividend passed_____________________________________________________3023
M emorandum on _________________________________________________
3027
Finances o f arranged______________________________________________ 3027, 3028
N otes issued for refinancing:
(a) H eld in portfolio______________________________________________
3028
(b) Paid partially_________________________________________ ________
3028
Preferred stock, dividends not passed_________ ________________________ 3028
Shermar sold_________________________________ ____________________
3029
Stock of:
(a) Price low at hearing tim e_____________________________________ 3026
Fell after Wiggin and Dahl sale o f ___________________________
3029
3025
Range of June 4, 1932. _____________________________________
(b) Sold by Wiggin on exchange__________________________________ 3023
Wiggin and Dahl sale o f influenced by inside inform ation_______ 3027-3028
Wiggin, director o f _ _ _________________________________ i __________ 2893, 3022
Wiggin, salary received fr o m ..'_____________________________ 2359, 2893, 3022
B rooks B ros .: Directors o f_______________________________________________ . 327
B rooks , J ohn S.: Continental Shares (Inc.). (See Continental Shares
*904
(In c.).)_________________________ ________ _____________ ______________ i ____
B rookside M anor C o.:
Balance sheet o f_______________________________________________________
8629
Guardian Trust Co. of Cleveland, subsidiary/of__________________ 8596, 8629
H istory o f __________________________________ ^__________________________
8629
Land D evelopm ent & Realization Co., subsidiary o f _______ ______ 8596-8629
B room hall , K illough & C o., I n c .:
Bankruptcy of, prevented taking Chase Stock___________________ 2515, 2516
Chase stock, letter from to M etpotan ,Securities Corporation concern
ing trading accounts i n . . --------------------------------- --------------------------------2512
Loss o f on share o f charged against trading accounts in_____ 2514, 2516
Participation in trading account in__________________________ 2511, 2512
Shares o f in bou ght b y M etpotan Securities Corporation____ ___
2514
2514
A t loss.i______________________________________________________
Taken over tiy M etpotan Securities Corporation at market
price________________________ __________________________ 2515,2516
M etpotan Securities Corporation, letter to, from concerning trading
accoutat in Chase stock______ ____________-___________________________
2512
B r ow ald , E.: Swedish Investigating Com m ittee, m em ber o f_____________ *1176
B r o w n , -----------:
Manhattan Electrical Supply:
P ool 1929-30, participant in _______________ _____________ _______*265-267
President o f_______________________________________________________
*265
B r o w n , B. C.: National Distillers Products Corporation, specialist---------- 6132
B row n B ros .: Partners o f _______________________ ___ __________________548
B row n B ros . & C o.:
Chase stock, trading account in participated in i______________________
2859
Chase National Bank, trading account managed b y D om inick &
D om inick in shares of, participant in_____________________________ _
2451
D irectors of, list o f ____ ._______________________________________________ *1150
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
91
B row n B ros . & C o .— Continued
p ase
Kreuger & T oll bonds, flotation of, b y ___________________________ *1149, 1150
New Y ork Stock Exchange, member o f__________________________ ____ *1149
Stock exchange m em ber_______________________________________________ *1149
B r o w n , D an ie l D .: Guardian D etroit Union Group, Inc., board of
directors meeting (D ecem ber 14, 1931), present a t______________________ 4682
B row n , D avid A.:
Broadw ay National Bank & Trust Co., chairman of the b oa rd _______ 3785
Pox Securities Corporation, president_________________________________ 3785
B r o w n , E dgar D .: Testim ony of (National City C o., m ethod of, of
handling investments for; unfair tactics em p loyed)_______________ *2170 et seq.
B r o w n , F red e r ic k :
- Chicago, R ock Island & Pacific Railw ay C o., member of board o f___ 4183
Lincoln Building, land for acquired b y ------------------------------------------------- 4047
Real estate, dealer, large, in_________ ______ L-------------------------------------- 4047
St. Louis & San Francisco Railroad Co., chairman of board o f_______
4183
B ro w n , F. Q.: Redm ond & Co., special partner o f________________________ 6219
B ro w n , H. S.:
American Com mercial Alcohol Corporation .pool and syndicate man
aged by Thomas E. Bragg, participant in. (See American Com m er
cial A lcohol Corporation, Pools— Options by directors and officers
to Bragg)_______________________________________________________ 5953, 6037
Participation concealed under name of C. C. Capdevielle________ 6037
Brown (Russell R .), brother o f___________________________________ 5953, 6037
C. E. Welles & Co., m em ber o f_______________________________________
6037
*816
B r o w n , H iram S.: Radio-K eith-O rpheum Corporation, president o f_____
B row n H oisting C o.: Chesapeake & Ohio Railroad Co., equipm ent of,
bought from ___________________________________________________________ 626, 627
B r o w n , J ames C r o sby : Brown Bros. & Co., director o f__________________ *1150
B r o w n , R ussell R ., chairman of board of American Commercial Alcohol
Corporation:
Testifies (American Commercial A lcohol Corporation P o o l s ) 5851-5894,
5911-5963, 6027-6057, 6171-6186, 6206-6218
American Commercial Alcohol Corporation: '
Chairman o f board of directors________________________;______ 5851-5852
Pool participant and optionor of stock (see American Commercial
A lcohol Corporation, P o o l s ) ------------------------------------------------------ 5859,
5870-5872, 5878, 5887, 5892-5894, 5904-5907, 5919, 5951, 60356037, 6046, 6065-6066, 6190-6191, 6208-6209, 6212-6215.
Salary as chairman of board for 1933; was fixed at $21,000 in M ay
1933, but in D ecem ber 1933 fixed (and to relate back) at
$50,000_________________________ _____________________ 5960,6027-6029
6068
Trading for individual account in the com pany’s stock ___________
United States Industrial Alcohol Co., ex-president o f___________
5852
B r o w n , T. F.:
American Commercial A lcohol Corporation, cashier o f ________________ 6177
American Distilling Co. at organization, director o f__________________
6177
B row n , T hatcher M a gou n :
Brown Bros. & Co., director o f________________________________________ 1150
D irector of Brown Bros. & C o-------------------------------------------------------------1150
B r ow n in g , M cP h e rson :
Testim ony o f _____________________ ____________________ 5368-5370, 7368-7374
D etroit & Security Trust C o.:
(a) Condition of, discussed by, with bank examiner_________ 5336, 5334
(b). Connection w ith _____________________________________________
5368
(c) D irector o f______________ ____________________________________
5332
(d) President o f ________________ 5069, 5070, 5071, 5336, 5350, 5354, 5368
Circular addressed to stockholders o f unit banks later forming
D etroit Bankers Co. signed by as______________________ 5069, 5071
D etroit Bankers Co.:
Articles of Association signed b y _____________________________ 5063, 5130
D irector o f_____________________________________________ 5061, 5129, 5332
Proposed fo r _______________________________________ _________
5070
D irectors’ meeting, present at, when resolution adopted giving
authority to vote stock of unit banks________ ___________________ 5087
92
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B row n in g , M cP herson — Continued
D etroit Bankers C o .— Continued
Page
Organization of, Ballantyne discussed w it h .______________________
5059
Trust agreement, participant in _____ _________________ 5066, 5131, 5132
Trustees shares, holder o f _____ _______________ ___ ________ ___ 5061, 5128
Vice president o f . . ___________ ________________________________ 5061, 5129.
First W ayne National Bank, director of, at time of consolidation of
5373
People’s W ayne County Bank and National Bank of D etroit_____
F ox loan account and charge-offs in, not familiar w ith .____________
5374B ruce , J a m e s :
Chase National Bank, vice president o f_ ..... .................................... ______ 2604
Couch, letter to, concerning putting loan in shape probably written b y . 4162
Cuba, there or recently there, when wrote Rovensky letter___________
2604
Em ployed by Hom e Owners Loan Corporation during investigation. _ 2634
R ovensky, James— Chase National Bank, vice president of, letter to,
from _____ ■________________ _ _ - ____ _____ ______________________ 2604-2605,
2633;
Wiggin, stopping to see_______________________ _____________________ ___
B r u cker , --------—:
Banking situation, interest in _______ ___________ _ _ 1_______________ ___
5612
Citizens Savings Bank, closing of, disastrous effect on chances o f for
reelection in M acom b C ounty______________ _______________________
5612
5612
G overnor of M ich ig a n .._________________ _____________________________
M acom b County, did not c a r r y _ _ _________________ _______________ ___
5613
B rtjere, H e n r y :
Bowery Savings Bank, connected w ith ____ _______________ _____ ____ _ 6467
Twentieth Century Fund, mem ber o f __________ *________ _ ___________
6467
B rush , M atth ew C _ ---------------------:------ --------------- ' _------ _ _:----------------------- - *444
Testifies (stock exchange practices and personal trading) _ _ ________ _ *289-321
American International Corporation, president o f _ _ j ________________
*289?
D irector or officer of approxim ately 50 corporations_________________ _ *290
Fox film, director of 1930______ _,______________________________________ 3759
R adio Corporation o f America pool (1929), participant in (see Radio
Corporation of America, P o o l)_________________________________ :____
*472
Short seller only since April 1930, says Brush_________________________ *318.
Sliort sales made to hedge against losses on long holdings o f some
stock which Brush had to hold because he was director or officer or
because of loyalty to associates or. both, says Brush___________ _ *317-318.
Sinclair Consolidated Oil Corporation p ool (1928), participant in
(see Sinclair Consolidated Oil Corporation, P ool and Syn dicate)___ 3094,
3109, 3253;
Stock market operator_____________________________ ____ :______________
3760-Traded in stock substantially 1921-30, having a high long position ,of
125,000
shares and a high short position of a similar am ount; his
holdings had a $15,000,000 liquidating value in September 1929_ *290-293.
B r y a n , C harles A .:
Testim ony o f ------------------------------------ _------------------------------------------- 4707-4723,
Bank examiner, national------------------------------- __------------------------------------- 4707
(a) Became, August 1924------------------------------------------------------------4707
(b) Before Guardian D etroit Union Group, Inc., em ployed______ 4230,
4474, 4708.
(c) D etroit headquarters______________________ _____ _ ____________ 4708
(d) Form erly-------------------------------------------------------------------------------- _ 4653,
(e) Patterson, under. __ _____________ ________ _____ _____________*_ 4387
Capitol National Bank of Lansing, 1 year a t . _______ 1----- ----------- 4707, 4719Circumstances o f going t o __________ _ — -------- ;---------- ______ 4719-4720
Vice president o f _ _ _ _______________________ ____________— ___ 4720*
Criticism of, displeasing to officers and directors o f Guardian D etroit
Union Group, Inc., and unit b a n k s ._______________________ ;___ 4716-4718First National Bank of Ionia, effort to collect loan for, departure from
compelled as result o f _______________________ ____________4717-4718.
First National Bank o f Ionia, remaining 2 weeks a t_______ __________
4719
Sent t o _____________ _ — -------------------- •----------------------------- ----------- 4717
Guardian B ank.of Detroit,, assistant to president o f----------------- ----------- 4716
Condition of, faifed to rem edy__________ _______________ . ------------ 4716
Lack o f cooperation, m et with a t ____ ____ t _________ _____________ 4716.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
9a
B r ya n , C harles A.— Continued
Pase
Guardian D etroit Union Group, Inc., acquisition of National Bank of
4388
Ionia reported on adversely b y ___________________________________ _
Criticism o f-------------------------- „ -------------------------------------------------------4712
Em ploym ent w ith ________________________________________________
4708
Examiner for_________________________________________________ 4707, 4708
Stock, collateral on loans, concentration of criticized b y _________ 4715
Increase, substantial o f______________________________________
4715
Unit banks of, examination of by (1930)_____________________ 4710<
Undesirable condition disclosed by (1930)__________________
4710
Unit banks:
Exam ination of 15 or 20 b y (1930)___________________________ 4709
Examination of, helped m ake_______________________________
4474
Exam ination, second, of worse condition revealed b y _______
4711
N one examined b y for purpose of acquisition_______________ 4714
4653
National Bank of Ionia, put into b y group___________________________
Patterson:
B oyh ood friends__________________________________________________
4707
Superior of in Guardian D etroit Union Group, In c _______________ 4707
Chief national bank examiner, superior of, in ninth district_____ 4708
Transferred with to tenth district_____ __________________________ 4708
Pennigrath, bank examiner under_____________________________________ 4708
Reports:
Com plete, made b y _______________________________________________ 4709Confidential section in regarding bank m anagem ent_____ 4709, 4711
Reports of subm itted to Patterson_______________________ _____________ 4716
Situation o f embarrassing, criticism of chiefs b y ______________________ 4712
“ B uccaneers ” : People’s W ayne County Bank, advertising pamphlet is
sued b y ______________________________________________________________ 5549-5550
B uchanan , M ich .: Banking situation in __________________________________ 4633
B uck , W alter E .: American Commercial Alcohol Corporation, director
o f ________________________________________ ________________________________ 5852
B u ck am an : American Commercial Alcohol Corporation, shareholder o f. 5935
6622, 6775-6777
B ucket S h o p : Short selling with customers’ stock s_______________________
*76
B u ck lan d , E. G .:
M organ, J. P. & Co., preferred lists of, member o f ______ ____________
520
New York, New Haven & H artford Railroad Co., chairman of board
o f directors o f _______________________________________________________
520'
B u ck n er , M o r tim e r :
Clearing House Association o f Banks, president o f___________________
90
Loan to, from M organ, J. P. & C o ____'______________________________
90
M organ, J. P. & Co., loan by, t o _____________________________________
90
New Y ork Trust Co., officer o f ____- __________________________________
90
President of Clearing House Association of Banks___________________
90*
B udd W heel C o .: Options in stock of, granted by A. M . Andrews In
vestm ent Corporation to Charles C. W right_________________ 6139-6140, 6161
B udget , B alancing o f :
Bankers not clear on definition o f _______ _______________________*1987, 1988
Bonds o f United States, balancing of Budget essential to increased
sale of, testifies Charles E. M itchell_____________ _____________ *1985 etseq,.
Definition of:
Bankers, not clear t o _______________________________________ *1987, 1988
M itchell, Charles E., b y __________________________ ________*1986 et seq.
Depression, elimination of,' requires that United States balance
Budget, testifies Richard W h itn ey_____________________ ____ *2235 et seq.
M eaning o f phrase not clear to bankers______ '_________________ *1987, 1988
United States:
Bankers advocate for, w ithout defining_____________ *1987, 1988, 1989
Credit of, will suffer, if Governm ent fails to balance Budget,
testifies Charles E. M itchell______ ______________ ________*1991 etseq.
W hitney, Richard, belief of, that United States must balance Budget
if depression to cease______________________________:___- _____ *2235 et sea.
B uescher , W . J.: Warren Foundry & Pipe Corporation join t account,
participant in _______________________________________________________ 6299-6300
94
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B uffalo , R ochester & P ittsburgh R a il w a y C o .:
Pager
Alleghany Corporation, ownership by, o f stock o f . 567, 588, 722, 747, et seq.
Baltim ore & Ohio Railroad Co., control by, o f stock o f____ - _____ 567, 588
Securities of, delivered to Alleghany Corporation by Van Swerin g e n ----------------------------------------------------------------------------------------- 747 et seq.
Stock control of, sold b y Alleghany Corporation to Baltimore & Ohio
Railroad Co. at c o s t - ............ — _____ ____________________________ 567,588
Stock of, bought b y Alleghany Corporation___________________________
722
B uffalo Stock E x c h a n g e : In co m e and expenses o f m em bers___________
7901
B uh l Stamping C o .:
First National Bank, loan from , to_________________ __________________ 5425
Listed in bank examiner’s report (N ovem ber 1932)______________
5426
Payment, Stair doesn’t know about____________ ___ ______________ 5426
B uhl S ons C o .: First W ayne National Bank, balance in, of, fluctuation
over year en d____________________________________________________________
5557
B u lk le y , H a r r y C .:
Guardian D etroit Union Group, In c., executive committee, mem ber
of, 1930______________________________________________________________ 4526
Union Com m erce Corporation, subscriber, original, and stock sub
scribed in________ ___________________________________________________
4782
Union Guardian Trust C o., conference with Reichert on, present at . _ 48694870
D irector o f___________________:____ ________________________________ 4864
Loan account with collateral o n __________________________________
4864
B u lk le y , L ad ya r d , D ickinson & W r ig h t : Guardian D etroit Union
Group, Inc., surety bonds, execution of, by, legality of approved b y ___
4966
B u l l . (See Stock exchange Bull.)
B un dy , C. L .: Com m unication re Securities Exchange A ct o f 1934, critical- 7412
B u rchard , A nson W .:
D illon, Read & Co., stock o f United States & Foreign Securities Cor
poration acquired from , at cost_________ ____________________ !___ _
1576
United States & Foreign Securities Corporation:
D irector o f ________________________________________________________
1577
Stock o f (500 shares o f junior preferred and 2,500 shares of
com m on ), received by, from Dillon, R ead & Co. at cost
to Dillon, Read & C o ____________________________________ _ 1576s
B u r e a u o f I n t e r n a l R e v e n u e (see also T a x a tion ):
Partnerships: M ethod o f revaluation o f securities once adopted cannot
74
be changed_________________________________________________■_________
Tax on profits o f short sales b y W illiam Ewing as trustee, hearings
o n --------------------------------------- — -------------------------------------------•___ 817 et seq.
Tax returns o f T . S. Lam ont not questioned b y __________ ___________
782
B u rk e , E. S., J r .:
8232
M cK inney Steel H oldipg Co. stock sold to Union Trust C o ..... ..........
M itt, commission offered to, by, for sale o f stock to Union Trust
C o ________________________________ __________ _______ 8231-8232,9037-9038!
B u rk e , J ames F r a n c is :
Fox, advised conferring with Louis B. M ayer_______________ ____ 3665-3666i
Attorney fo r _______________________ :_______■_____ _________________
3667
Fox companies, counsel for, becam e______ _______________________
3707
Report to, on progress o f m e r g e d _____ _______________ 3670, 3671
B urnham (J ohn ) & C o., I nc .: Zenith Radio Corporation pool, .manager
o f _ K_______________________ _________________________________________ 6202-6205
B urnham , H erman & C o.:
Levenison’s (John J.) brokers for trades during 1929-30 and par
ticipated in some o f his profits (see also “ Trader,” Levenson)_ *602, *615
Rodney (Earl H.) partner in^_______ ___________________________ *619, *^053
B urns B ros .:
Chase National Bank loan to :
(a) Officials or trustees of interested in ___________________ _____ _ 2914
(b) Uncollateralized______..__________________________________ ____
2917
B urns , E. S.:
Guardian National Bank o f Com m erce:
Cashier o f ____ i,_______________ ________ ___________ __________ 4671, 467$
Vice president o f _____________________________________________ 4671, 4673
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
95
Page
B urns, George A .: First National Bank, vice president o f_______________ 5621
B urns, Ju liu s :
Jefferson Savings Bank, president of________________ _____________ 5035-5036
Unsatisfactory to Guardian Detroit Union Group, Inc___________ 5035,
5036, 5037
B urns, Samuel R .:
Testimony of______________________________________________________ 3364-3376
Check to, mechanical means of effecting sale of assets of Nicholas
Power Co____________________________________________________________ 3385
Clarke did not make president of Nicholas Power Co________________ 3415
Instructions to, may have been given by for disbursing checks
received for assets of Nicholas Power Co________________ 3372-3373
Known over 10 years by__________________________________________ 3364
Fox Film, director of, 1930____________________________________________ 3759
General Theaters Equipment, Inc., board of directors, number of___ 3488
International Projector Corporation check:
(a) Doesn’t remember whom to ______ _____ _____________________
3367
(b) For assets of Nicholas Power Co., doesn’t know why payable
to him______________________________________________________ 3367
3366
Received by______________________________________________________
Director o f______; ---------------------------------------------------------------------------------- 3168
President of_______________________________________________________ 3364, 3373
Salary as__________________________________________________________ 3373
3364
Vice president and secretary of before president-----------------------Nicholas Power Co.:
. ,
Active president of___________________________ _____ ______________ 3368
Became through action of largest stockholders of________________
3365
Salary as_________________ _____ ______________________________ 3369
Connected with 10 years before sale of assets to International
Projector Corporation_________________________ T_______________
3365
3375
Connection with, through Edward Earl__________________________
Director of________________________________________________________ 3368
3166
Money for, paid to_____________________________ _________________
President of:
(а) Knew nothing about negotiations for sale of assets o f . . 3366,
3367, 3374
(б) When acquired by International Projector Corporation,
and for 1% years before____________________________—
3365
Records of, doesn’t know what became of________ ____ 3367, 3375,3376
Salary of, as president____________________________________________
3369
3376
Precision "Machine Co., connected with_______ l ______________________
B urw ell , W . R .:
Continental Shares (Inc.), director and president of (at formation of
company 1926) (see Continental Shares (In c.))______*903, *904, 906, 957
Eaton (Cyrus S .), nephew of---------------------------------------------------------------*958
Bush T erm inal: Pool: Publicity boosting stock (see also Lion, David M.)_ *684
Business (see also under Industry): Better Business Bureau. (See under
Better Business Bureau.)
B usiness C ondition : Worse in 1931 than in 1930---------------------------- 5236, 5239
B ustom ante, A ntonio S. de (see also Cuban loans).
Bustomante attorney for Chase interests in Habana__________________ 2561
Bar, standing at Cuban___________________________________________ 2588, 2640
Cuban loans, attorney in Habana who passed on legality of--------------2588
World Court, member of, formerly president of---------------------------- 2588, 2640
B utcher , H oward , Jr .; Vice president of Philadelphia Stock Exchange
and Member of Butcher & Sherrard____________ _______- ............................ 7457
Testifies (Securities Exchange Act of 1934)__________ 6963-6973, 7455-7469
B utcher & Sherrard , stockbrokers: Butcher (Howard, Jr.), member of__ 7457
B utler , C. A .: Radio Corporation of America pool (1929), participant in
(see Radio Corporation of America, P ool)----------------------------------------- - - _ *471
B u tle r , C h a rles H en ry : (See Cuban, loans, Butler, Charles, Charles
Henry).
B utler , L aw rence K .:
v
Detroit Co., authorized to attend annual meeting of, and vote Detroit
Bankers Co. stock_____________________________________ ____________
5087
Detroit Trust Co., condition discussed by, with bank examiner.— 5336, 5354
60604—46------ 7
96
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
B u tle r , L aw rence K .— Continued
Page
Vice president o f --------------------------------------------------------------- - .5336, 5350, 5354
Report, answering charges made in confidential m em orandum of
Verhelle criticizing officers o f First W ayne Bank o f D etroit, signed
b y ______ ____________________________ ___________________________ 5390,5392
Verhelle, confidential mem orandum of, com m ittee to investigate
charges in, m em ber o f__________________________________________ 5438, 5579
B u t l e r , W . J.:
'
American Commercial Alcohol Corporation pool and syndicate man
aged by Thom as E. Bragg, participant (concealed) in (see Am erican
Com mercial Alcohol Corporation, pools— Options by directors and
officers to B ragg)______________________ ___________________ 5953, 6037, 6046
C. E. Welles & Co., mem ber o f________________________________________ 6037
B u tte n w e ise r , B enjamin J.:
Testim ony o f . .980 et seq., 1018 et seq. 1091 etseq.. 1121 etseq., 1125 et seq.
K uhn, Loeb & Co., partner in __________________________ _____ ________
958
B u tzel , L eo M .:
First W ayne National Bank:
Balance in___________ !__________________________________ 5638, 5639, 5651
Increase in_______ ____________________________________________
5652
. Liability to, of, unsatisfactory condition o f reported_______________ 5637
Am ount of, and collateral o n ...______________________________
5638
Stock assessment against__________________ ______________________
5638
B u ye r s , J. F r e d e r ic : Union Trust Co., diiector o f _________;____________ *1151
B y l le sb y , H. M. & C o.: Chase stock, trading account in, participant i n . . 2858
B yr n e s , J ames F .: Senate Com m ittee on Banking and Currency.
B yr n e s , R onald M .:
Testim ony o f _______________________________________ ______________________ j _ _ *2119 et seq., 2298 et seq.
National C ity C o.:
Connection w ith __________________________________________ *2119 et seq.
V ice president of, form erly______________________________________ _ *2119
T estim ony o f ___________________________________ *2119 et seq., 2298 et seq.
C. & D. H olding C o.:
Assessment on, letter suggesting matter be turned over to proper
parties_______________________________________________ _______________
5615
Beneficial interest of, represented guaranteeing banks and trust com
panies in D etroit____________________________________________________
5614
Cats and D ogs, letters in name stood fo r ___________________________ _
5614
Citizens Savings Bank stock, corporation form ed to h old ______ 5613, 5614
5614
T o avoid possible assessment on ____________________ .____________
M ills, incorporated at request o f ______________________________________
5615
C a d o w , S ir T hom as : M organ, Grenfell & C o ----------- --------------------------------33
C a h il l , J ohn T .: Dillon, Read & Co., attorney fo r _________________ 1535, 1617
C a l d w e l l , D r. E .: Radio Corporation o f Am erica pool (1929), par
ticipant in. (See Radio Corporation o f America, P o o l)_________________
*470
C a l d w e ll , R o g er s : Character o f_________________________________________
4143
C a ldw ell & C o.:
Louisiana & Arkansas Railway Co., syndicate to purchase, mem ber
o f ___________________________________________________________ _
4142,4145
Participation of, i n ----------------------------------------------------------------- 4143, 4.145
C a lifo r n ia S ecu rities A ct — -------------------------------- 6769-6772, 6774, 7005-7006
C a l k in s : Federal Reserve Bank o f San Francisco, Governor o f __________
5837
C a l l ___________________________________________ 6251-6259, 7062-7068, 7092-7094
Calls and puts as an insurance device____________________________ 7205-7207
Churning activity b y puts and calls; sometimes used, says R uloff E.
Cutten_________________________ •_____________________ . I _______ 5908-5909
D efined___________________________________________________________ *404, 7063
C all L oans (see Brokers’ loans; Loans, brokers’ call, Street loans; Call
m on ey )------------ ------------------------------------------------------ -------------------- *101-102,6327
Banks, made by, in 1929________________ _____________________ 2-543 et seq.
M organ & Co., made b y - _ - ---------------------------------- 1-192 et seq., 195 et seq.
C a ll M o n e y : Interest paid on b y banks__________________________________
2428
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
97
C a lla h a n , F r a n k (now deceased). (See also Cuban loans, Callahan).
Pa&e
Chase National Bank, formerly connected w ith_______________________ 6253
Chase Securities Corporation:
Connected w ith ______________________________________________ 2580, 2934
Executive officer o f _______________________________________________
2937
Vice president o f _________________________________ 2889f 3845, 3223, 3327
Died before hearings------------------------------------------------------------- 2580, 2598, 2690
General Theatres Equipment, receivership, suggestions for, b y ____ _
3845
Loan to, not for trading accou n t______________________________________ 289S
National Distillers Products Corporation, ex-member o f executive
committee o f________________________________________________________
6253
6253
Rushmore, Bisbee & Stern, formerly connected w ith_________________
Sinclair Consolidated Oil Corporation, underwriting account in shares
of, subparticipant in ________________________________________________
2934
Wiggins fam ily corporations borrowed from , while held official posi
tion in, and in Chase National Bank or affiliates__________________
2891
C a l l a w a y , T r o w b r id g e : Com munication re: Securities Exchange A ct
of 1934___________________________________________________________________
7586
C alum et T rust (.see Van Sweringen affiliate Calumet Trust).
C a l v in , C. W .: Testim ony o f ______________________________________ *2103 et seq.
C a m pbell , B uckley & L e d y a r d :
Union Com merce Investm ent Corporation, attorneys in corporating-_ 4776,
4781
Union Trust Co., attorneys fo r ------------------------------------------------------------- 4776
C a n a d a: Taxation of Canadian Corporations (see under Taxation Cana
dian corporations).
C a nadian B order T ow' n s :
Autom obile plants, branches of many American manufacturers located
in ___________________________________________________________________
3892
Growth and names o f _________________________________________________
3892
C anadian I nternational P aper C o . : Chase Securities Corporation, trad
ing account in bonds of, participation in___________________________ 2836, 2859
C anton Co. of B a ltim o r e :
Kuhn, Loeb & Co., commission of 2% percent received by, for sale of
stock of, to Pennroad Corporation________________ 1249, 1295 et seq., 1334
Pennroad Corporation, purchase by, of stock of, through Kuhn, Loeb
& Co., latter receiving commission o f 2% percent. 1249, 1295 et seq., 1334
Stock of, purchased by Pennroad Corporation through Kuhn, Loeb
& C o______________________________________________ 1249, 1295 et seq., 1334
C a n t o r : Bryan w ouldn’ t cooperate w ith _____________ ________ _______ 4716-4717
C a pd e vie lle , C. C .:
American Commercial Alcohol Corporation:
D um m y for Russell R. Brown in N oxon, Inc., transaction (see
American Commercial Alcohol Corporation, Pools— Options
b y directors and officers to Thom as E. B ragg)___________ 5930-5931,
5940, 5941, 5942, 6030-6033, 6068
D um m y for Philip Publicker, M . M . Ewing, W . J. Butler, and
H. S. Brown and participant in pool and syndicate managed by
Thom as E. Bragg (see American Commercial Alcohol Corpora
tion, Pools— Options by directors and officers to Thom as E.
B ragg)_______________________ 5942-5943, 6035-6037, 6043, 6045, 6047
Dum m y for K nox B. Phagan (Russell R. Brow n’s dumm y) in
American Distilling Co.— Sid Klein Corporation transaction
(see American Commercial Alcohol Corporation, Pools— Addi
tional issue of stock (abandoned) July 19, 1933)_______________ 6177
Business, molasses broker_________________________________________ 5931, 6177
Financial responsibility___________________________________________ 5932-5933
C a p it a l :
Banks need steady supply of, testifies J. P. M organ__________________
5
Banks, provided by, for industries, testifies J. P. Morgan_____________
4
Depression, industry deprived of flow o f capital during, testifies J. P.
M org a n _____________________________________________________________
5
D ividends paid out of, in Kreuger & Toll case__________________ *1271, 1354
Industry deprived of flow, of, during depression, testifies J. P. M organ .
5
M organ, J. P. & Co., o f _______________________________________________
19
Private banks need steady supply of, testifies J. P. M organ__________
5
Private banks, provided by, for industries, testifies J. P. M organ--------4
98
INDEX TO HEARINGS' ON STOCK EXCHANGE PRACTICES
C a pita l G ains and L osses . (See under Taxation.)
Page
C a pita l I ssu e s : Necessity for, stated b y J. P. M organ _____________ ____
953
C apital M a r k e t :
Need for sound___________________________________________________ 4121-4122
Stagnation of described b y Aldrich________________________ _______4121-4122
C apitol N a tion al B a n k op L a n s in g :
Conservator, in hands o f ______________________________________________
4699
Dividends, justified in payin g_________________________________________
4638
Guardian D etroit Union Group, Inc., acquired shares o f except
qualifying------------------------------------------------------------------- ------------------------ 4213
Lansing, deposits in controlled b y ________________________________ 4605-4606
Loan, “ Policy,” to—
(a) M ackay, Michigan State treasurer______________________ 4712-4713
4712
Undercollateralized_______________________________________________
Unpaid for year, loans to friends o f directors b y _________________
4712
M ichigan M ortgage C o______________________________________
4713
Reorganization expected____________________________________________ J. 4699
C a r & G e n e r al I nsurance C o ., L t d ., U nited States B r a n c p *.
D irectors o f__________________________________________ r ----------------------30
R oyal Exchange Assurance, American Branch, subsidiary o f _________
30
Subsidiary of R oyal Exchange Assurance, American Branch_________
30
C a r b a y a , E nrique H ern a n de z . (See Cuban loans, Carbaya.)
C a r e y , P eter J.: County Trust Co., repudiates purchase o f stock o f ____ 3046,
1
3047, 3049, 3053
C a r e y , R obert D .: Senate Com m ittee on Banking and Currency.
C a r lisle , F loyd L .:
Corporate affiliations o f ----------------------- ----------------------------- ---------------- 359, 360
D irector:
Colum bia Gas & Electric Corporation, o f ________________________
360
359
Consolidated Gas Co. o f New Y ork, o f ___________________________
M ohawk Hudson Power Corporation, o f_________________________
360
New Y ork Power & Light Co., o f_________________________________
360
Niagara Hudson Power Co., o f ------------------------------ ------- ------------ 359, 394
United Corporation, o f ______________________________ ________ 314, 324
360
United Gas Im provem ent Co., o f_________________________________
Niagara Hudson Power Co., chairman o f board o f _________________ 318, 394
Public utility corporations, affiliations w ith ____ ____________________ 359, 360
C arlson , C harles W .:
Lenihan report criticized________________________ ______________________
8122
Painter loan, involved in unlawful collusion resulting in ___ 8128, 8182, 8825
United M ilk Products Corporation stock, held as nominee for oth ers. . 8246
Union Trust Co. Bank, responsibility toward, never recog n ized -. 8182, 8825
Union Trust Co., vice president______________________ 8182, 8191, 8246, 8825
C arlto n , C. C .: Com m unication re Securities Exchange A ct o f 1934,
critical-------------------------------------------------------------------------------------------------------- 7247
C a r n e g ie , H a t t ie : F ox (W illiam ) maintained a brokerage account deal
ing in Fox Theatres Corporation stock in name o f __________________ 1___*1086
C aro lin a P ow er & L ight C o .: W rite-up o f assets in connection with
consolidation am ounted to $19,000,000, says R obert E. H ealy_____ 7604, 7607
C a rpe n te r , J. E. R .:
A rch itect________________________ .______________________________________
4048
Lincoln Building, plot for, John H. & J. E. R., conceived idea of acquir
in g ---------- -------------------------------------------------------------------------------------------- 4048
Lincoln Forty-second Street Corporation, vice president o f___________ 4052
Syndicate for financing:
(а) Agreement includes provision for hiring o f as architect______
4055
(б) M ember o f____________________________________________I . . 4052,4056
C a r pe n te r , J ohn H .:
Lincoln Building, letter accom panying prospectus for first-mortgage
bonds of, signed b y __________________________________________________ 4076
Syndicate for financing, manager o f___________ ________ 4052, 4053, 4056
Compensation as_______________________________________ i ____
4053
Lincoln Forty-second Street Corporation, letter accom panying pros
pectus for debentures of, signed b y _________________________________
4080
President o f___________________________ __________ 4052, 4076, 4077, 4080
Real estate, business o f in _________________ _____________________ ______ 4048
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
99
C a rpe n te r , P a u l : International Projector Corporation, patent attorney
Pase
for ___________________________________________ — ________ __________________ 3212
C a rpe n te r , S cott D .:
National Bank of Commerce, Boulevard Branch, D etroit, vice presi
4383
dent o f______________________________________________________________
Walsh, letter from , to, concerning group p u blicity----------------------- 4383-4384
C a rroll , R. A .:
D etroit Trust Co., letter to, from ________________________ >________ 5336-5337
M ichigan bank examiner--------------------------------------------------------------- 5335-5336
C a r r y , E. F.:
90
Continental Bank of Chicago, director o f _______ _____________________
90
M organ (J. P.) & Co., loan by, t o _________________ ___________________
“ C a r r y -O v e r .”
(See Term settlement.)
C a rte r , B. S .: M organ & Co., Paris, partner o f---------------------------------------34
C a r t e r , J. R .:
34
Morgan & Co., Paris, partner o f ______________________________________
C a r t e r , L edyard & M il b u r n :
Advertising of Kreuger & T oll debenture issue by use of name of, not
paid for, testifies R edm ond_________________________________________ *1239
Attorneys in New Y o rk ___________ *1158, 1195, 1196, 1202, 1204, 1236, 1241
Kreuger & T oll Co., fo r ______________________________ *1195, 1196, 1202
Lee, Higginson & Co., for___________________________________*1236, 1241
New Y ork Stock Exchange, for___________________________________ *1235
Bankers or companies, representation of, in connection with issue of
securities avoided by, because of connection with New Y ork Stock
Exchange as counsel, testifies R edm ond------------------------------------------ *1248
Drafting of contracts or agreements not done by law clerks of, testifies
Roland L. R edm ond________________________________________________ *1239
Fees:
Additional, paid by Kreuger because of volume o f work done,
testifies Roland L. R edm ond___________________________________ *1240
Asked for, of Kreuger & T oll C o___________________________ *1239, 1246
Smaller fees asked for than customary for issue of size of Kreuger
& T oll Co. issue, testifies R. L. R edm ond_____________________ *1246
Use of firm’s name in advertising Kreuger & T oll issue not paid
for, testifies R. L. R edm on d___________________________________ *1239
Voluntary addition to fee asked for, paid by K reuger___________ *1239
Indenture of Kreuger & T oll Co., drafting of, to carry out terms de
termined b y bankers and Kreuger & T oll Co., task o f _______ *1240, 1242
Kreuger & T oll C o.:
Advertisem ent of issue of, b y use of name o f_____________________*1239
Attorneys fo r _________________________________________ *1195, 1196, 1202
Fees paid by, to _______________________________________ *1239, 1240, 1246
Indenture of, drafted b y ______________________________ *1158, 1240, 1242
N ot represented by Carter, Ledyard & Milburn, testifies R. L.
Redm ond_______________________________________________________ *1241
Lee, Higginson & C o.:
Attorneys fo r _______________________________________________ *1236, 1241
As trustee of Kreuger & T oll debenture issue not represented by,
testifies R. L. R edm ond________________________________________ *1247
Milburn formerly m ost active mem ber of firm as counsel for New
Y ork Stock Exchange_______________________________________________ *1235
New Y ork Stock Exchange:
Attorneys fo r _______________________________________________ *1235,2484
N ot representative for, in regard to Kreuger & T oll issue testifies
R. L. R edm ond_____________ _________________________________*1248
Partners o f _____________________________________________________ *1234 et seq.
Redm ond (Roland L .) :
M ember o f ________________________________________________________ 2484
M ost active member o f firm as counsel for New Y ork Stock
Exchange___ _____________________ _____________________________ *1235
Substitution clause of Kreuger & T oll indenture, changes in, made by_ *1240
C ase (J. I.) C o.:
A ctive stock (Frederick says J. I. Case Co. has only 194,960 shares
outstanding, yet in 1931 a total of 13,777,300 shares were traded)__ *164
Corner not present in this stock at any time, says Richard W h itn ey. _ *241
100
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C ase (J. I.) C o .— Continued
Page
Short selling and trading large as com pared w ith relatively small
outstanding issues_____________________________ _____________________
*314
Am ount o f short interest in this stock once equaled 71 percent o f
outstanding stock; not unhealthy or corner, bu t this situation
rather aids stability, says Richard W h itn e y ._______________ *240-241
Short selling in August and September 1931_______________________ *240, 241
T able comparing stock prices_____________________________________
10
■Case T h r e s h in g M a c h in e C o. (See under J. I. Case Threshing M achine
Co.)
C ase P om ery & C o .:
i Chase National Bank, loan t o _________________________________________
2917
Collateralized_____________________________________________________
2917
C a ss , G er so n :
First W ayne National Bank, in volved relationship of, w ith__________
5231
Reserve set up on loans o f ______ ______________________________________
5231
C assatt & C o .: Chase stock, trading accounts in, participants in ___ 2451, 2859
C assel , G u sta v :
Econom ist_________________________________________ „ ___________________ *1244
Kreuger & T oll fiasco, responsibility for, im puted to Lee, Higginson &
Co., b y ______________________________________________________________ *1244
Lee, Higginson & Co. deemed by, responsible for Kreuger & T oll fiasco. *1244
C a ste r , H. O .: Henry L. D oherty & Co., member o f executive com m ittee
o f _______________________________________________________________ 6313-6314
C atchings , W addill , m em ber o f New Y ork Stock Exchange:
Goldman, Sachs & Co. and Goldm an Sachs Trading Corporation,
formerly connected w ith_________________________________________ :___ *629
Goldman, Sachs & Co., conference on purchase o f Union Com m erce
Co. stock, represented by, a t ______________________________ '___ ____
4788
Offer to Union Com merce Co. made by, and W einberg__________
4801
Higbie, friend o f________________________ _______________________________
4945
*629
W arner Bros. Pictures (In c.), director o f______________________________
C a t lin , H e n r y W . (See also Cuban loans and Cuban Public Works,
Catlin, changed m an)____________________________________________________
2607
Chase interests, recom m ended to, as M achado’s friend, retained b y , for
legal services on Cuban loan________________________ _______________
2650
Chase National Bank, Cuban branch of, mem ber o f advisory board __ 2570,
2603, 2651
Loans of, t o __________________________________________________ 2635-2636
Overdraft of, t o ______________________________________________ 2635-2637
Clarkson, R., conversations of, with, concerning Cuban floating d e b t. 2654
Death o f __________________________________________________________ 2570, 2636
2654
Electric Bond & Share Co. lawyer em ployed b y ______________________
Officer o f __________________________________________________________
2570
M achado, friend o f _____________________________ 2650, 2652, 2724, 2725, 2726
Present when Stewart entertained b y __________ __________________ 2724
National City Bank, close to, but preferred association with Chase
interests_______________________ __________ ___________________________
2655
N uisance________________ ________ ______________________________________
2606
Santiago Electric Co., president o f______________________ ________ _ 2607, 2636
Stuart advised to be associated w ith _____________________________ 2650, 2652
C ats and D ogs : Undesirable securities______________________ !________ 4642-4643
C a va n ag h , J ohn J.: C ounty Trust Co. syndicate for purchase of stock of,
member o f_________ ______________ _____________3046, 3048, 3049, 3051, 3053
C e n tr a l A m e r ic a :
M organ, J. P. & Co., interests of, in public utilities in; none________
471
Public utilities interests of J. P. M organ & Co. in, n one______________
471
C e n tr a l H a n o ve r B a n k & T rust C o .:
Consolidated Oil Corporation made call loans in 1929 th rough. _ 6368-6399
Corporation Securities Co., loan to, b y _________________ *1545 et seq., *1760
D avison, George W ., chairman of board o f directors o f _________ *1759, 1760
Dillon, Read & Co. members as directors o f___________________________ 2103
D irectors of, members o f Dillon, Read & Co. as______________________
2103
Electric Bond & Share Co. made call loans in 1929 th rough _______ _
6323
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
101
C entr a l H ano ver B a n k & T rust C o .— C ontinued
Pas®
Insull companies, loan to, b y ___________________ *1509 et seq., *1544 et seq.
H istory o f _________________________________________________ *1544 et seq.
Secured b y stocks o f operating companies in Insull groups. *1760 et seq.
“ Standstill agreement” of bank creditors of Insull companies
agreed to by Central Hanover B ank___________________ *1509 et seq.,
*1552-1553 et seq., *1761 et seq.
Insull utilities, loan to, b y _____________________________________________*1760
Insull U tility Investments Inc., loans to, b y ______ ____________ *1545 et seq.
Loans by—
Corporation Securities Co., t o _____________________ *1545 et seq., *1760
Insull companies, t o _________*1509 et seq., *1544 et seq., *1760 et seq.
Insull Utility Investments Inc., t o ________________________ *1545 et seq.
National Public Service Co., t o ___________________________ *1760 et seq.
National Public Service, loan to, b y ___________________________________*1760
“ Standstill agreement” of bank creditors of Insull companies agreed
to b y ______________________ *1509 et seq., 1552-1553 et seq., *1761 et seq.
Timmerman, Louis F., assistant vice president o f_____________________*1544
Union Guardian Trust Co. A funds, deposited in _________ ________ ___
4821
Wabash Railroad, loan to, participation in____________________________ 4169
Y oung, Owen D ., solicitation by, of, to enter into “ standstill agree
m ent” with reference to collateral pledged by Insull companies to
various banks to secure loans to Insull com panies____ *1760-1761 et seq.
C entr a l I llinois C o., Chicago: Fox Film debentures, purchase group for,
member o f___________________________________________________________ 3617,3622
C e ntral N ational B ank op B attle C r e e k :
First National Co., purchase of m inority stock interest in, b y ______
5712
Licensed to d o unrestricted business__________________________________
5712
C entr a l P ublic S ervice C o r po r a tio n : W rite-up of assets by practice
of taking onto books earnings of subsidiaries, even where earnings never
distributed or credited to parent, says R obert E. H ealy____________ 7603-7604
C e ntral R epublic B a n k & T rust C o . op C h ica g o :
Dawes, Charles Gates, formerly chairman of board o f ________________ *1529
Insull companies and affiliates and officers and employees thereof,
loans to, b y ___________________________________ *1529 et seq., *1534 et seq.
History o f __________________________________ *1529 et seq., *1534 et seq.
Loans by, to Insull companies and affiliates and officers and employees
thereof________________________________________ *1529 et seq., *1534 et seq.
Reconstructions Finance Corporation, loan by, to ; loan o f Central
Republic Bank to Insull companies as collateral security fo r . *1529, 1530
C entral T rust C o . of I ll in o is : Dawes, Charles Gates, as president. 90, 415
C entu ry I ndemnity C o .:
Aetna Insurance Co. of Hartford subsidiary o f _______________________
29
D irectors o f____________________________________________________________
29
C e r f , E. E .: Participated in John J. Levenson’s profits during 1929-30
(see “ Trader,” Levenson)_______________________________________________
*615
C erro D e P asco C opper C orpo r a tio n : Directors o f __________________
29
C erta in - teed P roducts :
Chase National Bank:
Loan t o ___________________________________________________________
2917
Interested officer, Elisha W alker_________________________________
2917
2917
Uncollateralized_______________________________________________________
C ertificate of D e po sit :
Listing requirements. (See Listing stocks, requirements for.)
Michigan banks, unlawful for to issue, to borrow m oney_______________
4999
Use of to cover real bank condition______ 4326, 4341, 4342, 4346, 4356-4358,
4366, 4372, 4376-4378, 4384, 4994-4995, 4998-4999, 5001-5002
C esp ed es, C a r l o s M ig u e l d e (see also Cuban loans and Cuban public
works, Cespedes):
Chase National Bank, loan account, with, o f____________________ 2646-2647
M ember o f Cuban cabinet____________________________________________
2646
Public works, secretary o f ________________________________________ 2585, 2728
Residence, elaborate o f________________________________________________
2728
102
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C h adbourne , H um phrey W .:
Page
American Commercial Alcohol Corporation:
D irector o f ______________________________________ __________________ 5852
Pool and syndicate managed b y Thom as E. Bragg, participant
(concealed) in (see American Commercial A lcohol Corporation,
Pools— Options b y directors and officers to Bragg) __ 5951,*6037, 6046
C h adbou rn e , Stanchfield & L e v y ___________________________’____ *1043, *1129
General Theatres, Equipm ent, Inc., debenture com m ittee, counsel .
proposed for, if H ayden chairman, in Hagen m em orandum ___ 3845, 3847
Hayden, Stone & Co., attorneys for______ _____________________________ 3845
C h a g r in F a l l s B a n k in g Co. (see also Union Cleveland C orporation;
Chagrin Falls Banking C o .):
Condition, statement o f _________ _________________________________ 9187-9189
D eposits_____________________________________________ _________________
8258
Directors borrowed price o f qualifying shares from _________ 8259, 9191-9192
D irectors figureheads_____________________________________________ 8259, 9192
Funds, public in, insufficiently secured___________________________ 8258, 9189
Jenks indebtedness t o ___________________________________ ______________ 8258
Liability for repudiated___________________________________________ 8259, 9192
Salary schedule________________________________________________________
9190
Stock, price paid by Union Trust C o _______________________ 8257, 8258, 8259
C hain B a n k in g :
D efinition of, b y Lord__.................. ................. ................... ............ ;_________
5055
Lord disapproves______________________________________________________
5055
C handler & C o., I nc .: United States D aily Products Corporation (The),
syndicate manager in stock o f_______________________________________ 6305-6307
C h a pin , R oy D .:
Bank holiday, M ichigan, present when declared______________________
4628
Com merce, Secretary o f ______________________________ 4608, 4628, 4694, 5793
D etroit & Canada Tunnel Co., support, enthusiastic of, significant____ 3906
D etroit:
Businessman, prom inent__________________________________________
3906
Citizen, well known, connected with Guardian D etroit Union
Group, In c ______________________________________________ _ 4210,4628
W ent to, to investigate Union Guardian Trust Co. situation____
5793
Ford called on concerning additional financial com m itm ent__________
4694
Guardian D etroit Union Group, In c.:
D irector o f ___________________________________________________ 3906, 4628
Founder o f __________________________*_____________________________ 4600
Stock purchase group in, committee in charge of, mem ber o f ____ 4608
Harris, Forbes & Co., London office, head o f__________________________ 3931
Hudson M otor Car Co., board of directors, chairman o f _________ 3906, 4210
C h a pm a n : National Bank o f Ionia, director, loan t o ____________________4650
C hapm an , M . A., m em ber o f Chisholm & Chapman_____________ ____ 2478, 2510
C harles E. H ires C o .: D irectors of_____________________________________
32
C h a rn le y , W illiam S l a t e r :
Dillon, Read & C o.:
D irector o f __________ j.____________________________________________ *1151
Stockholder o f ____________________________ _________________ _____
1537
Vice president o f ____________________________________________ _____
1536
C h a r ts . (See Tables.)
C h ase & S a n b orn I n c .: Standard Brands, Inc., as su ccessor._ _________
197
C hase C or po r a tio n : •
Chase Securities Corporation, successor t o _______ _____ _________ 2293-2294,
2383, 2536, 3654, 4150 (or 45)
Garfield National Corporation, subsidiary o f _ _ _ ______________________
2370
Officers and directors of, also o f Wiggin fam ily corporations__________ 2888,
2889-2890
C hase H arr is F orbes C o.:
Balance sheet of D ecem ber 31, 1932_________________ _______________ „ 3040
Bernegan, letter to, from, concerning establishing incom e-tax losses . .. 2944
Chase National Bank, securities affiliate o f ___________________________
3978
Subsidiary o f______________________________________________________ 4106
Chase Securities Corporation, wholly owned subsidiary o f____________
2941
Dissolution proposed________________________ _____________________ 2295, 2296
4088
Harris, Forbes & Co., predecessor o f __________________________________
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
103
•Chase H a rr is F orbes C o.— Continued
Pa£®
Letter of, to Wile, Oviatt & Gilman concerning Lincoln first-mortgage
certificates, legality of for trust funds and investments of, in__ 4097-4098
Liquidate, voted t o ____________________________________________________ 3978
Kendall, letter to, from, concerning establishing incom e-tax losses___ 2941
Subsidiaries o f _________________________________________________________
3040
Taxes, handling sale of stock by, to show loss where seller intended
2946
to repurchase_______________________________________________________
Incom e, summary of inform ation concerning Federal, prepared
2944
b y ______________________________________________________________
C h a se I n t e r e s t s (see also Chase Corporation, Chase Harris Forbes Co.,
Chase National Bank, Chase National Executors & Trustees Corpora
tion, Ltd., Chase Pom eroy & Co., Chase Safe D eposit Co., Chase Secu
rities C orporation):
Clarke, argument for half financing of, by, after purchase o f Fox vot
ing stock ____________________________________________________________ 3774
Fox companies financing, bankers sole in, after Halsey, Stuart & C o.’s
withdrawal__________________________________________________________
3618
Fox Film financing:
(a) Continuance by Halsey, Stuart & Co., not opposed b y . 3580, 3581
(b) N o interest in ___________________________________________ 3580, 3584
F ox Film General Theatres Equipment, Inc., and related companies,
recapitulation in, o f___________1_____________________________________ 3645
General Theatres Equipment, Inc., loans to, b y _________________ 3442-3443
Lincoln Forty-second Street Corporation, bondholders committee,
members of chosen b y ____________________________________ 4088, 4089, 4098
Selection of Loasby on, b y _______________________________________
4089
Prospectus issued by— Cuban bond issue 1930 concealed Cuban debt
situation________________________________________________________ 2744-2761
Stockholders in, increased_____________________________ 2845-2846, 2855-2856
C h ase L oans. (See also Chase National Bank, Loans.)
C h a se N a t io n a l B ank (see also Chase Securities Corporation; Chase
stock; Cuban loans):
Affiliates:
Separation of, position taken for, alone among banks____________ 4028
Views concerning on, divergent___________________________________ 4020
Aldrich, connection w ith______________________________________________
2294
Bank examiners, em ploym ent of, b y ________'_____________________ 2409, 2410
Lauding of bank and Wiggin b y ________ _________________________ 2408
Banking bill, contributed no m oney to campaign against_____________ 4181
Officials went to Washington to oppose_______________ 4019-4020, 4022
Banking, commercial, separation b y from investm ent:
(a) Policy carried into effect b y _____________________________ 3977-3978
(fr) Steps taken to effectuate_____________________________________
3978
Bond business in Government bonds, and other bonds lawful for na
tional banks, taken over from securities affiliates b y _______________
3978
Brokers’ loans, report of, by, required________________________________
2929
Call m oney:
2427
Handled b y ________ ,______________________________________________
Interest paid on b y _______________________________________________
2428
Callahan (Frank) form erly connected w ith____________________________ 6253
Capital stock. (See Chase stock.)
Chase Securities Corporation:
536
Investm ent affiliate of Chase National Bank_____________________
Investments of and affiliates and officials, financed b y ___________
2926
Losses from _______________________________________________________
2926
W ritten o ff___________________________________________________ 2926-2927
Option on shares of—
(а) D om inick & D om inick__________________________________
2460
(б) Shermar Corporation furnished__________________________ 2460
Sales of stock of, b y ______________________________________________
2979
Chase stock, trading account in:
(a) Authority fo r______________________________ ______________ 2831, 2832
(b) Participants in ________________________________________________ 2859
Chicago, R ock Island & Pacific R y. Co., creditor of when Reconstruc
tion Finance Corporation made loan t o ________________________ 4177, 4181
Repaym ent to, out of loan ___________________________________ 4177, 4181
104
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C h a s e N a t i o n a l B a n k — Continued
P age
Compensation, “ Additional” b y ________________________ _________ 2336-2338
Consolidated Oil Corporation made call loans in 1929 through__ 6368-6369
Continental Shares, Inc., transaction in O ctober 1930 whereby Con
tinental obtained a $30,000,000 loan and its proceeds were used to
pay off obligations of Cyrus S. Eaton (who controlled Continental),
Otis & Co. (in which Eaton was greatly interested), and Foreign
Utilities (personal holding com pany of Eaton) to various banks,
was known in all its details b y Chase, including possible incom e-tax
evasion b y Forpign Utilities, through an alleged delivery in Canada
in this connection, says D avid Stock (see Continental Shares,
In c ____________________________ _________________ *919-923, *930-933, *969
County Trust Co., loan to, from , made through Bankers Trust C o __
3054
Paid__________________________________________________________ 3044, 3053
Cuban Ambassador, officers of, confer w ith____________________ _______
2792
Cuban branch of:
(a) Cuban G overnm ent sugar bonds taken for paym ent on loan
2630
b y __________________________________________________________
(b) D eficit of 1930 becam e profit in 1931____________ ___________
2630
(c) M achado, arrangements with to im prove Cuban credit______
2631
(d) M achado’s brother-in-law made notarial attorney fo r ________
2655
National City Bank beaten by in securing_______________ ____
2655
(e) Officers in charge of, January and February 1927____________
2593
( /) President M achado received loan from ____________________ 2630'
Cuban financing:
(a) Bruce arrangements for renewing loan _______________________
2631
(b) Confidential advice on, offered b y ____________________________
2632"
(c) Political compromises necessary to reestablish credit________
2631
Cuban Governm ent, loan accounts with officials o f______________ 2645-2648
Cuban loans. (See also Cuban loans.)
Cuban loans b y :
'
2586
(a) Arrangements for subm itted to State D epartm ent___________
(b) Bonds to finance defaulted____________________________ _______
2451
2452
(c) Facts concerning testified to by Aldrich______________________
(d) R eport o f chairman concerning_______________________________
2453
Bank group, one of, who participated in, bankers credit o n ______
2542
Cuban loans investigation was never opposed by Senate Subcom m ittee
on Banking and Currency, as New Y ork Tim es indicated, says
Senator Couzens_______.______________________ :________ _________ 2475-2476
D ecker loan, Wiggin doesn’t know if paid!____________________________
2993:
Deposits, relation o f to capital______________ __________________________
4047
D etroit Bankers Co. borrowed from to pay indebtedness______ 5106-5107
Paym ent of indebtedness to ___________:____ 5125, 5138-5140, 5141-5142
Resolution concerning its indebtedness to, minutes o f board of
directors containing_______ ___________________ „ ________________
5139
Dillon, Read & C o.:
Joir^t account of, with United States and International Securities
, Corporation, nominee fo r _______________________________________
1783
Members of, as director o f________________ __________ ______________
2103
Directors o f__ ,__________________________ :_______________________________
91
2103
Dillon, Read & Co. m em ber as___________________________________
Investm ent banking houses, connected with, reduced__________ ,
3978
D ivorcem ent o f investment and commercial banking o
f __________
2297
6323
Electric Bond & Share Co. made call loans in 1929 through___________
Em ployees of, keeping books, rotated_________________________________
4199
Asked to buy stock o f_____________________________________________
2922’
Sale of stock t o ____________________________________________________
2921
2922
(a) Contract for enforced against____________________________
(b) Detrimental t o _______________ ___________________________
2922'
(c) Dividends paid to during purchase o f______________ _____
2925
(d) Interest charged on loans fo r ____________________________
2925
(e) Interest paym ents on higher than dividends____________
2926
(f) Loans fo r __________________ ______________________________
2925
(g) M emorandum concerning________________________________
2925
(h) M etpotan advanced individual’s m oney fo r____________
2922
(i) Payments after initial____________________________________
2923
(j ) M ethod o f _________________ _____ _______________________
2921
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
105
C hase N a tion al B ank — Continued
E m ployees of, keeping books, rotated— Continued
Sale o f stock to — Continued
Pase
(,k) Price o f shares t o ------------------------------------------------------ 2923, 2925
Higher than to stockholders_________________________ 2923, 2925
(T) Terms o f_____________ _________________________>--------------2922
( to) Turned out no favor____________________ __________ _____
2924
Equitable Trust Co. of New York and Seaboard National Bank of
New Y ork merged w ith ___________________________________ _________
91
Examination of, immensity o f task___________________________________
4199
Examiners, 8 or 10, em ployed in same Federal Reserve district______
4199
Extra banking activities o f :
2324
(a) Em ployees, exclusive services generally required____________
(b) Officials, exclusive services not required______________________ 2325
Federal Reserve System, member o f __________________________________
2929
Findley, Cuban branch of, em ployed in_______________________________
2634
N ot good for______________________________________________________ 2631
Fox Film “ A ” stock syndicate, financed by loan from ______________ 3607,
,
3610, 3611, 3612, 3613
Collateral for the stock bou gh t------------------------------------------------------ 3607
Fox Film Corporation, further help to refused b y -------------------------------- 3807
General Theatres Equipment, Inc., and related companies,
3644
financial summary of interest in _______________________________
Held debentures of, o f group who waived interest to avoid
receivership_____________________________________________________ 3809
3764
Letter to, from , answering plea for extension of credit___________
Syndicate in “ A ” stock, all members except Shermar completely
financed b y ____________________________________ ________________
3613
Fox— letter from , to, concerning:
(a) Extension o f Fox Co. notes past due______________ 3726, 3727, 3728
(b) Security offer to, to prevent application for receivership. 3729-3730
General Theaters Equipment, Inc., loan asked b y for purchase of,
from :
(a) Fox stock __________________________________________ 3579,3587,3591
Repaid from _______________________________ „ _________________
3591
(b) Stock of, loan to Pynchon & Co., manager o f syndicate in
stock o f______ 3541, 3542, 3543, 3544, 3545, 3547, 3548, 3549, 3550
Loans to, by, and affiliates and participations in trading accounts,
heavy losses from _______________________________________________ 3867
Loan to, bv April 18, in anticipation of issuance o f debentures of
M ay 1, 1930_______________________________________________ 3590, 3591
Pynchon & Co., manager of fourth syndicate, loan to :
(a) Payment o f _____________________________ ________________
3545
(b) Security fo r _______________ i _____________________________
3545
Registrar, one of, for com m on stock o f _______________________ _
3574
Repaid earlier loan t o ------------------------------------------------------------3543
Trading account in, mem ber o f com m ittee which settled obliga
tions arising from _______________________________________________ 3875
Used funds of to strengthen market value o f Fox “ A ” stock large
blocks of which were held by as collateral_____________________
3799
G overning board created_____________________________________________ _ 2284
Incom e taxes, department of to help customers o n ___________________
2940
International business______ ,__________________________________________
2281
International Projector Corporation registrar_________________________ 3211
Investm ent affiliate of, Chase Securities C o ___________________________
536
Lincoln Forty-second Street Corporation, debentures of, secured by
indenture under which named as trustee—_________ 4064, 4077, 4079, 4098
Resigned as______________________________________________________ _ 4098
T o avoid conflict of interest______________________________________
4106
Listing on New Y ork Stock Exchange canceled prion to 1929, but not
at instance of New Y ork Stock Exchange, but on initiative of
bank____________________________________________________________ 6874-6875
Loan— Wiggin or Shermar, lender taken over b y ___________ 2990, 2991-2992
Explanation of b y W iggin______________________________________2991
Loans, presented and approved b y board of directors January 4,
1928, August 23, 1933__________________________________________3130-3154
106
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C hase N a tion al B a n k — Continued
Loans to:
See also—
Page
Chase National Bank: General Theatres Equipm ent, Inc.,
loan to, by.
Cuban Cane Sugar: Chase N ational Bank loans to.
Cuban loans: Chase National Bank.
Dahl : Chase N ational Bank loans to.
Eastern M anufacturing C o.: Chase N ational Bank loan to.
Finance Co. o f Great Britain & Am erica, L td .: Chase
National Bank loan to.
F ox Film syndicate in “ A ” stock o f: Chase N ational Bank
loan to.
General American Tank Car Corporation: Chase N ational
Bank loan to.
General M otors Acceptance Corporation: Chase N ational
loan to.
General Theatres Equipment, In c.: Chase N ational Bank
loan to.
,
G raustein: Chase National Bank loan to.
H avem eyer & Elder, In c.: Chase N ational Bank loan to.
International Paper & Pow er C o.: Chase N ational Bank
loan to.
International Securities: Chase National Bank loan to.
Kansas City Southern Railw ay C o.: Chase National Bank
loan to.
Lee Tire & R ubber C o.: Chase National Bank loan to.
Louisiana & American Railw ay C o.: Chase National Bank
loan to.
M acjaado: Chase National Bank loan, account of.
M enocal: Chase National Bank, loan account of, with.
2917
A m ou n t maximum fixed by law to one borrow er_________________
A pp roved by board of directors, of January 4, 1928, August 23,
1933 (marked “ Exhibit 81, O ctober 31, 1933,” for identifica
tion) :
Chase Securities Corporation and six brokers_______________
2917
Classification o f in reports to Federal Reserve B a n k :
(a) Brokers and dealers_________________________________
2993
2993
(&) O th ers.______________________________ _______________
Com panies in which officials or trustees of interested, aggregate
am ount of 1927, 1929, 1932________________________ z ______ 2914-2915
N ot because of such interest, W iggin testified_______________
2920
D a h l _ „ ________________________ „ ____________________ ________ 2326-2327
D om estic, 1927, to others than companies in which officials
interested___________- ___________________________________________
2919
Enterprises in which officials and trustees interested_____________ 2927
Cuban G overnm ent officials________________________ _________ 2645-2647
F ox Film, aggregate am ount o f___________________________________
3806
General Theatres Equipm ent, Inc., for purchase o f F ox “ A ”
stock _____________________________________________________ 3793,3795
For stock m arket operation in Fox “ A ” stock _________________ 3795,
3796, 3797, 3798, 3799
$10,000,000 made t o _____________________ ____________________ 3795
Loan, prior, of $4,000,000, paid back w ith ______________ 3795
N ever repaid beyond old $4,000,000_________ 3795, 3796, 3799
Paym ent o f anticipated means of included sale of F ox
“ A ” stock bought w ith __________________________ 3794, 3796
Lincoln Building syndicate________________________________ ^______ 4101
Louisiana & Arkansas Railway Co., syndicate to purchase. _ 4141-4144
(a) Am ount of ________________________________________________ 4142
(b) Collateral fo r _____________________________________________
4144
Valuation o f arbitary________________________ '___________
4146
(c) Paym ents on account o f__________________________________ 4144
(d) Syndicate managers______________________________________ 4141
(e) Syndicate members and participations. _ 4142-4143,4144-4145
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
107
C hase N ation al B a n k — Continued
Loans to — Continued
Pa&0
M urlyn & Shermar Corporation, N ovem ber 8, 1929, to Decem ber
11, 1929_________________________________________________________ 2909
Purpose of, purchase of stock o f _____________________________
2909
4170
Railroads, repayment of not asked from som e___________________
Seaboard Air Line Railway Co. syndicate________________________
4187
R epaid_______________________ _____________________ 4187,4189,4190
Syndicate:
3044
(a) Or purchase o f County Trust Co. stock ____________
(b) M ade up m ostly of Seaboard Air Line securities___ 4191
3811
W esco________________________________________________________
M cCain, loan account w ith____________________________________________ 4163
Collateral on ______________________________________________________
4166
Increase of June 15, 1932------------------ ------------------------------------- 4163, 4165
Couch to enable to make paym ent on its loan -account __ 4164, 4166
O pen______________________________________________________________
4166
Payments on ______________________________________________________ 4191
Uncollateralized substantially_______________________________
4,190
N o public market for collateral on ______________________ 4191
Management, change in _______________________________________________
2402
M ergers___________________________________________________________ 2282, 2286
Merger of Equitable Trust Co. of New Y ork and Seaboard National
Bank of New Y ork w ith____________________________________________
91
M erger with Equitable Trust Co. and Interstate Trust Co. Bank as
part of single transaction__________________ ____________________ 2381-2382
Garfield National Bank________________________________ 2282, 2286, 2369
Mechanics & Metals National B ank_____________________________
2368
M etropolitan B ank____________________________________ 2366, 2371, 2855
M utual Park B ank___________________________________________ 2282, 2369
M etpotan Corporation, shares of for M urlyn and Shermar Corpora
tions, bought through-----------------------------------------------------------------------2909
Trading in stock of, unknown to M cC ain ________________________
4184
M ilbank, Albert G., director__________________________________________
91
M innesota & Ontario Paper Co. receivership forced by Chase and
other commercial banks in conspiracy, with resultant financial
* racketeering, says Edward W . Backus_________________________ 7645-7699
543
M organ, J. P., & Co., partners of, not directors o f ___________________
M urlyn Corporation, borrowing by, from _____________________________
2908
New Y ork Stock Exchange listing of stock____________________________ 2373
(a) N ot separate from Chase Securities Corporation stock ______
2376
2373
(b) Term inated___________________________________________________
Reason fo r ___________________________________ 2374, 2375-2377, 2417
(c) Trading in, w hile--------------------------------------------------------------------2375
Nom inee for joint account of United States and International Securi
ties Corporation with Dillon, Read & C o ----------------------------------------1783
Officers and directors of and affiliates, none since January 1933 officer
in Wiggin fam ily corporation except Selden________________________
2930
Organized_________________________________________________________ 2283, 2285
Over-the-counter trading in stock of:
(o) Exceeded exchange trading___________________________________ 2377
Reason fo r ____________________________________________________
2377
(6) Existed during listing on New Y ork Stock Exchange________ 2376
(c) Fluctuations published not accurate_________________________
2376
Price of shares N ovem ber 11, 1929, to March 7, 19 30________________ 2910
Pynchon & Co., loan to by not paid in full, included in bankruptcy
claims filed against__________________________________________________ 3550
Claim allowed in am ount of over $5,300,000_____________________
3551
Pynchon & Co., loan to, by, of $9,000,000_________________ 3547, 3549, 3550
Radio-K eith-O rpheum Corporation made call loans in 1929 th rou gh . 6386
Reconstruction Finance Corporation loans to railroad from which
repayments t o __________________________________________________ 4169-4171
Report 1930 concealed financial condition of Chase Securities Cor
poration________________________________________________________ 2390-2393
Rescue parties launched b y ------------------------------------------------------------------- 2335
Rockefeller family have large interests i n _ _ ___________________________
130
108
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C hase N ation al B an k — C ontinued
Page
Seaboard National Bank o f New Y ork and E quitable Trust Co. of
91
New Y ork merged w ith ____ ________________________________________
Securities affiliate of, mem ber of syndicate trading in shares o f St.
Louis & San Francisco Railway C o _ ___________________________ 4174, 4175
Shares of— M etpotan, inconsistent position of in seeking wider dis
tribution of and in selling to Wiggin fam ily corporation ____________ 2910
Shares of Shermar Corporation:
Bought with m oney borrowed from _______________________________ 2910
Sold sh ort-------------------------------------------------------------- 2910-2911, 2952, 2956
Shermar Corporation (see Shermar C orporation):
Am ount received on short sales o f stock o f_____________ ____ 2949-2950
Borrowings by, from __________ ______________ __________ 29Q6-2907, 2908
Repaid b y ___________________________ _________________________ 2907
Dealings with affiliates o f_______ _________________________________
2893
Decker, loan-to paid b y ______________________________________ 2991-2992
Short sales of, b y ______________________________________ 2910, 2952, 2956
2911
Com mendable, W iggin testified_________________ _____________
Profit from ___________________________________________________
2949
Purposes o f___________________________________________________
2951
Sales “ against the b ox ” ________________________________ 2956-2957
Sinclair Consolidated Oil Corporation pool and syndicate (1928) w as
loaned $12,000,000 b y Chase to finance com m itm ent to buy 1,130,000
shares o f Sinclair Consolidated stock from Sinclair Consolidated,
says M illard F. Tom pkins (see Sinclair Consolidated Oil Corpora
tion, P ool and Syndicate)__________________________ 3091-3092, 3344-3345
Size and grow th_________________________________ 2280, 2281, 2282, 2283, 2285
Stock. (See Chase stock.)
Stock, sale of to employees. (See Chase N ational Bank employees,
sale o f stock to.)
Stock, trading in by affiliates. (See Banks, capital stock, trading and
pool operations in o f parents by affiliates.)
Stockholders— identical with Chase Securities Corporation, certifi
cates covered shares in both corporations__________ 2281, 2287, 2288, 2291
Syndicates. (See also Chase stock, trading account in.)
Trading account in shares of, participants in __________________________ 2973
Trading accounts in General Theatres Equipm ent, Inc., and F ox
Films, loans to be used to help financing, W iggin says_____________
3868
Wabash Railroad, loan to, participation in__________________ _________
4169
Wages, reduction necessary while executive salaries increased___ 2360-2361
W ernersback, em ployee o f bank, was at. same tim e treasurer o f
Albert H. W iggin’s fam ily corporation, Shermar Corporation, and
his compenastion was paid by b o th ____________________________ 3003-3004
W esco notes, $15,000,000 ow ned b y ___.._______________________________ 3811
W iggin. (See W iggin, Albert A .; Wiggin fam ily; W iggin fam ily
corporation.)
W iggin, Albert A., chairman o f board o f____________________________ 180, 537
W iggin fam ily did n't sell m ore stock o f than they owned, W iggin
conclusion_______ ______________________________________________ 3888, 3889
C hase N a tion al E xecutors & T rustees C orporation , L t d .: Balance
sheet o f D ecem ber 31, 1932______________________________________________
3040
C hase P omeroy & C o.: Chase official interested in, Jeremiah Mil,bank___ 2917
C hase S afe D eposit C o .: Chase National Bank loan to, officials or
trustees o f interested in __________________________________________________
2914
■Chase S e c u r itie s C o r p o r a t io n (see also Chase National B ank; Chase
•stock; Cuban loans, Chase Securities Corporation:
American Express Bank & Trust C o., sharep o f allotted influential
persons by vote o f ___________________________________________________ 2331
Subscriptions to stock o f ________________ * _______________________
2286
American Express C o.:
Subsidiary o f_________________________________________________ 2287, 2330
97 percent of stock of ow ned b y __________________________________
2390
Balance sheet of and o f subsidiary companies Decem ber 31, 1932____
3040
Bankers T ru st Co., depository o f shares o f Bank & Securities Corpora
tion __________________________________________________________________
2287
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
109
C hase S ecu rities C orporation — C ontinued
p agre
Callahan, vice president of (1928)------------------------------------------------- 3223, 3327
Capital, reserve and surplus, increases_______________ 2365-2372, 2378, 2380
Reasons fo r ___________________ - ____________ 2365-2372, 2378, 2381, 2382
C apital stock, change in value of in 1932 report, not voted till 1933_ 2396-2397
Par v alu e-_________________________________________________ 1_ 2373,2383
2383
T ota l outstanding________________________________________________
Certificate of stock ownership stam ped on shares of, and o f Chase
National B ank______________________________________________________
2281
Chase Corporation, successor t o _________________ 2293-2294, 2383,2536, 3654
Chase Harris Forbes, consolidated investment business w ith_________ 3203
Chase National Bank, capital stock of, shares held by, disposal of
purpose of trading agreement with D om inick & D om inick ____ 2440, 2441
Dom inick & D om inick, letter from , concerning option on shares of, to_ 2459
Employees, sale of stock to, custodianship of taken over b y __________ 2925
Joint account for trading in stock of, reason fo r ____________ 2440, 2441
Option contract for, shares o f given Dom inick & Dom inick, by__ 2457
Shares to be furnished b y Shermar Corporation fo r _________ 2458
Profit of, from trading account in shares o f ______________________
2460
Reallotm ent of participation in joint account for trading in stock
o f . _________________________________________________________ 2437-2438
Stock:
(a) Being bought and sold through simultaneously_____ 2980-2981
(b) Bought b y to stabilize m arket___________________________ 2440
(c) N ot owned by when option given Dom inick & D om in ick. 2458
(d) Trading account, participation in by, reallotted to
affiliates_______________________________________________ 2437
(e) Trading in by. (See M etpotan Securities Corporation.)
(/) Trading in through participation in joint account ac
cepted b y _______ ^_______________________________________
2435
Trading account managed by Dom inick & D om inick in
shares of, participant in ___________________________________
2451
4062
W holly owned subsidiary o f_________________________________
Chase stock bought and sold for Chase National Bank, affiliates, and
Wiggin fam ily corporations, through_______________________________
2978
Bought and sold for Shermar short sales and syndicate operations
in through____________ ___ _________________________________ 2980,2981
Joint account and trading in participation in accepted b y _______
2435
Letter to J. W . Seligman from concerning trading in ________ 2823
Loan of to:
By Shermar to make deliveries under D om inick & D om inick
option _________________________________________________ 3019-3020
For the purchase of the Harris-Forbes C o ___________________ 3018
Trading accounts in:
(a) Participant in ------------------------------------------------------------ 2858-2859
None after July 1931____________________________________
2848
(b) Participation in to M etpotan Corporation__________ 2823-2825
Clarke discussed National Theatre Supply Co. financing w ith ________ 3193
Insistent on participation of in purchasing preferred stock of
General Theatres Equipment, I n c ---------------------------------------------3206
Cuban loan, financing of secured b y ___________________________________
2591
One of group who participated in bankers’ credit on _____________
2542
Current earnings distinguished from net profits_______________________
2385
D etroit & Canada Tunnel Co. (See D etroit & Canada Tunnel Co.,
Chase Securities C orporation):
Bonds of, signed prospectus for-----------------------------------J__________
3941
Syndicate, member of underwriting-------------------------------- 3908, 3916
' Connected with securities issued b y ---------------------------------------------- 3890
Debentures of, interest in __ _________________________________ 3916, 3939
Underwritten by syndicate headed b y _______________________ 3908
Financing of, signed preliminary agreement for__________________
3940
First mortgage bond purchase group, participation in ___________
3916
Profit to from participation in, debentures and first m ortgage
bonds o f________________________________________________________
3928
110
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C hase Securities C orporation — C ontinued
D etroit & Canada Tunnel C o.— Continued
Page
Stock of, acquired by, Bertles, Rawls & D onaldson sources______
3922
Bonus stock, referred to as_______ _____________________ 1 3924, 3926
Cost o f__________________________________________________ 3922, 3926
Profit from ______________________________________ 3904, 3950 et seq.
Stock of, optioned some of, refused later request fo r _____________
3925
Trading account in debentures of, manager of and interest in ____ 3929
Dividends, declaration and am ount o f________ _____________ 2368, 2383-2387
D odge officer of on General Theatre Equipment, Inc., board of direc
tors_________________________________________________________ ________
3591
D om inick & D om inick, letter o f July 19, 1929, from , to, arranging for
joint accoun t_________________________________ ___________ 2433-2434,2441
O ption agreement w ith for purchase of Chase shares___________ 2440,
2441, 2443, 2467, 2468
Stock owned by, profit from , to M etpotan Securities corporation
and Shermar Corporation_______ _•______________________________ 2468
Executive officers, active, o f ___________________________________________ 2937
Subparticipation given to b y W iggin and W iggin corporations
and vice versa___ _______i _________________________________ 2937-2938
Film Securities Corporation, organization of caused b y ____________ •
___
3622
3602
Fox Co. financing, interest in _________________________________________
Fox companies, reorganization of, refused to take leadership in__ 3559, 3560
Fox Film:
“ A” stock, profit from syndicate in_ _ _ ___________________________ 3614
“ A ” syndicate, interest in transferred t o _________________________
3610
M em ber o f ________________________________________ 3603 ,3 60 4,36 05
Profit from withheld b y Pynchon & C o _____________ ________ 3614
Debentures bought by group headed b y _______________ 3617, 3622, 3790
General Theatres Equipment, Inc., and related companies,
financial summary of interests in o f ____________________________
3645
Owned and managed after reorganization b y bankers group
headed b y ----------------------------------------------------------------------------------3816
Stock accepted by members o f syndicate headed b y for debts___ 3811
Fox Film Corporation financing, incident to the acquisition o f Fox
Film Corporation and F ox Theatres Corporation b y General
Theatres Equipm ent (Inc.) was done b y group including Chase
Securities Co., says W illiam A. .Gray (see Fox, F ox Film Corpora
tion, General Theatres)____________________________________ *990-991, 1095
Freeman, president of (1928)_______________________________ 3269-3270, 3327
General Theatres Equipment, In c.:
Agreement for oganization of and purchase of debentures______
3416,
3417-3422
Board of directors, representation on, o f --------------- ----------------------- 3591
Debentures committee, representative of suggested in Hagen
m em orandum ____ J------------------------------------------------------------- 3844, 3847
Debentures issued M ay 1, 1930, part sold t o -------------------------------3589
M ore acceptable to appear on than stock ____________________ 3506
Trading account, second in __________________________________
3553
Financing brought to attention of when could profitably partici
pate_________________________________________________________ —
3493
Participated in with Shermar to extent desired_____ ________
3493
Preferred stock offering of, w ould n ot have participated in _____
3489,
3490, 3506
Prospectus o f signed b y ______________________ L----------------------------- 3501
Purchase of debentures and sale to public, participated in b y ___
3505
Stock offering, participation in b y “ objections to appearance” b y
W iggin_______________________________________________ 3206,3490,3506
Explanation_____________________________________________ 3491, 3506
Stock :
Participation of in syndicate owning through Shermar______ 3539
Purchase by account o f______________________________________
3517
Syndicate and trading accounts in, profit and loss summary of
participation in____________________________________________ 3940-3943
Losses written o ff____________________________________________
3936
Syndicate, fourth, refused to go in to_____________________________ _ 3543
Syndicate, third, eliminated with form ation o f___________________
3544
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
111
C hase S ecu r ities C orporation — C ontinued
Pas°
G row th ___________________________________________________________ 2280-2281
Harris Forbes Co., stock of owned b y _________________________________ 2390
International Projector Corporation, financing of, invited to partici
pate in----------------------------------------------------------------------------------------------- 3207
Refused because of lack of standing o f ______________________ 3207, 3481
International Paper & Power Co. issue brought out b y _______________ 2330
International Projector Corporation, financing participation in offered
to, taken by Shermar__________________________________________ 3208, 3481
Investment affiliate of Chase National Bank--------------------------------------536
Investments o f and affiliates, Chase National Bank, financing o f_____
2926
Joint account with J. P. M organ & C o----------------------------------------- 536 et seq
K ey men frequently given participations in transactions_____________
2935
Letter to from M etpotan Securities Corporation accepting partici
pation in trading account in Chase stock___________________________ 2825
Lincoln Building, banker, original fo r______________________ 4064, 4068, 4072
4047
Debentures of, participated in b y ________________________________
M ortgage loan certificates on, participated in b y _________________ 4047
Syndicate for financing prospective, m em ber o f_______ 4052, 4056, 4061
Losses over five times dividends paid__________________________ 2406-2407
M etpotan Securities Corporation:
Subsidiary owned b y _____ 2414, 2431, 2440, 2441, 2468, 2825, 2826, 2834
Traded in joint accounts in Chase National Bank stock instead
o f ____________________________________________________ 2431,2823-2826
Trading accounts participated in by, an d/or_____________________
2837
Morgan, J. P. & C o.:
Joint account w ith_______________________ ___________________ 536 et seq.
Partners of, not directors o f______________________________________
543
Murlvn stock loaned t o __________________________________________ 3036, 3037
N et profit___________________________________________________ 2367, 2383-2387
Option contract for Chase National Bank shares given b y without
2444
owning same________________________________________________________
Organization of, from stock dividend Chase National Bank with
identical stockholders______________________________ 2281, 2287, 2288, 2361
Organized 1917-------------------------------------------------------------------------------------- 2536
Plummer (A. New ton), publicity man, retained to write material con
cerning—
Maxwell M otors stock and pay financial writers to publish it in
newspapers, says F. H. LaGuardia_________________________ *457-458
Pure Oil stock and pay financial writers to publish it in news
papers, says F. H. L a G u a r d ia ._________________ *452-453, *454-456
Profit, none on option agreement with Dominick & D om inick for Chase
stock ____________________________ ___________________________________
2468
Public offerings, defaults, dissolution__________________________________ 2282
Started 1928______________________________________________________
2281
Purpose, to permit identical stockholders to benefit from securities
business which law forbade Chase National Bank engaging in ____ 2288,
2826, 2827
R eport 1930 redistribution of assets not apparent from __________ 2390-2393
Resolution of, concerning borrowing of funds, pledging and transfer of
securities_________________________________________________ 2829, 2830-2831
Securities business, relinquished b y ___________________________________
3978
Securities in portfolio 1932, valuation o f _________ ____________________ 2400
Securities, value of Fox and General Theatres written off_______ 2401, 2402
Shermar Corporation:
Agreement with:
Settling obligations for participation in General Theatres
Equipment, Inc., trading account____________________ 3872-3874
For Chase stock to fulfill option________________________
2469
Liability of, to, arising from participation in trading accounts in
General Theaters Equipment, In c _____________ 3875-3878, 3880-3883
Officers of, conversations with, concerning assigning participation
in joint account t o _________________________________________ 2439, 2440
Stock loaned t o ___________________________________________________
3038
60604— 16-------8
112
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
•Chase S e c u r it ie s C o r p o r a t io n — Continued
p age
Shermar Corporation’s and Chase Securities C orporation’s participa
tions in Sinclair Consolidated Oil Corporation pool and syndicate
(1928) (see Sinclair Consolidated Oil Corporation, P ool and syn
dicate) _________________ ________________ 3268-3270, 3326-3327, 3330-3331
Sinclair Consolidated Oil Corporation, party to underwriting of stock o f .. 2932
Trading account in, participant in _______ ___________________ 2901, 2902
Sinclair Consolidated Oil Corporation pool and syndicate (1928),
participant in (see Sinclair Consolidated Oil Corporation, Pool and
s y n d ic a te )-.______ ____________________________________________ 3000-3002,
3006-3008, 3093, 3094, 3112, 3254, 3268-3270, 3326-3327, 3330-3331
Shermar Corporation’s participation in syndicate suggested and pre
sum ably invited b y Callahan, representing Chase, says Elisha
W alker__________________________________ 3268-3270, 3326-3327, 3330-3331
Stock certificates______ ________ ___________________________________ 2290, 2339
Changed__________________________________________________________
2289
Stock exchange, listing of, not separate from Chase N ational Bank__ 2376
Stockholders, additional shares issued subscribed for b y _________ 2365, 2366
Agreed not to transfer or pledge stock w ithout like transfer o f
Chase National Bank shares_____________________________ _ 2293, 2340
Identical with Chase National Bank, certificates covered shares
in both corporations..................... .......................... 2281, 2287, 2288, 2291
Stock split, reason for__ ^_______________________________ _________ 2372-2373
Stock transfers, m ethod__________________ , ___________________________
2288
W ithout transferring bank shares, never attem pted____________ _ 2290
Subsidiaries of, American Express Co. stock and Harris Forbes C o . - 2390
Trading accou n ts:
Corporations in issues of which participated___________ 2836, 2858-2859
Participated in by, m onth-by-m onth and year-by-year operation
in ________________________________ ____________________ 2837,2860-2875
Participation in m any b y ________________________________ ________
2834
2833
N ot intended by organizers o f _____________ _________________
Speculative atmosphere prom pted___________________________
2834
W esco Corporation, notes of, sold t o _________________________________ _ 3790
W iggin fam ily corporations given subparticipation in transactions by_ 2936
Wiggin:
2299
N o t present to vote on changes in ___________ ____________________
Stock ownership o f and fam ily in _______________, ____________ 2300, 2301
Talked to, by, before option given on Chase National Bank
shares to Dom inick & D om inick______ _________________________ 2446
C h a se S to c k (see also Chase National Bank; Chase Securities Corpora
tion; Chase sto ck ):
Affiliates trading in stopped_____________________________________ ______ .4184
Bank’s affiliates’ personnel used to effect sales of b y W iggin fam ily
corporation. __________ _______________________________________ _______ 2979
Bought and sold b y M etpotan Securities Corporation, subsidiary of
Chase Securities Corporation___________________________ , ______ 2414, 2415*
Certificates, form _____________________________ ___________________ _ 2290, 2339
Chase affiliates did not share in profits from short sales o f _______ 2978-2979
Conflict o f interest in, o f Shermar and M etpotan and Chase Securities
Corporation, coordination o f ___________________________________ 2978, 2979
Corporation, Chase, through which bought and sold__________________ 2978
D ivergent positions taken in trading in by Shermar and M urlyn, both
Wiggin fam ily corporations, W iggin’s explanation for_________ 2976-2978
M arket too high on, Wiggin thought__________________ __________ 2951, 2972
M etpotan:
Bought and sold_______ ____ ___________________________ 2951, 2972, 2982
Short selling, none b y _________________ ».__________________________
2982
Trading accounts in, purpose of going in to_______________________
2974
M urlyn Corporation bought back short from M etpotan __________ ___
2977
P rice:
August to O ctober 1929________________________ ________ _________
2983
August and D ecem ber 1929_________________ _____________________
2949
D rop in, 1929_______ ____________ ______________ _________ ________
2952
Fluctuations in_________________________________________ 2424-2425, 2428
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
113
C hase Stock — Continued
Price— Continued
Page
Rise during M etpotan Securities Corporation, trading in------ 2425, 2430
Opposing effect on, by short selling of Shermar and syndicates in
which M etpotan and Chase Securities Corporation partici
pa ted __________________________________________ 2975, 2976, 2977, 2978
September 21, 1927, to Decem ber 31, 1931__________________ 2855, 2875
Stabilizing b y pools and syndicates too high__________________________ 2972
Trend of, during trading accounts________________________________ 2464
Schroeder & Co., option to, on, to be furnished by officials of bank
and affiliates________________________________________________________
2986
Shares of held by Chase Securities Corporation, disposal of, purpose
of trading agreement with Dominick & D om inick_____________ 2440, 2441
In volved in joint account, owners from which secured___________
2441
Shares of not held b y Chase Securities Corporation but b y M etpotan
C o__________________________________________________________________
2442
Shermar, maximum short position, on ________________________________
2959
Options given by, to trading account in _____________________ 2983-2984
Num ber of shares involved in ___________________________ 2983-2984
Shermar Corporation, short position on _______________________________ 2856
2970
Short sales of, covered by Wiggin fam ily corporations________________
By Wiggin, improper, his view ___________________________________
2970
G ood to furnish purchasing power, Wiggin says_________________
2969
2970
M anner covered__________________________________________________
Purposes o f______________________________________ 2970-2972, 2974-2975
Reasons for____________________________________________ 2970, 2971, 2972
Split_________________________________________________________ 2372-2373,2430
Syndicates in __________________________________________________________
2974
Trading account in (see also M etpotan Securities Corporation,
Chase s to ck ):
Formed August 1930_________________________________________ 2843, 2844
Increase of stockholders during___________________________________ 2846
Managed by D om inick & Dom inick sold, but not short_________
2982
Dom inick & D om inick managed (July 1929 to N ovem ber 1929)
shares bought fo r _______________________________________________ 2982
Obtained for from Shermar options___________________
2983-2984
Participation in t o _____ ______________________________________ 2823-2825
Profit o n __________________________________________________________
2515
T o M etpotan____________________________________________ 2848, 2849
Shares remaining unsold at close_________________________________
2514
Shares traded in__________________________________________________
2513
Trading accounts in, none:
(a) Participated in by M etpotan or Chase Securities Corporation
2848
after that o f August 1930____________________________________
(b) Wiggin knows o f _________________ ____________________________
2843
Trading account in of August 1930:
Borrowed fo r _____________________________________________________
2844
Continuation of M ay 1930 accou n t______________________________
2845
M arket trend downward during_____________________________
2846
Reason for return from to participants___________________________ 2847
Termination o f__________________________________________ 2844, 2847
Volume of operations_______________________________________ _
2846
Trading account in o f M ay 1930:
Distribution, less as a result o f ___; _______________________________ 2842
2842
Shareholders m ay have been m ore_______________________________
M arket trend downward during__________________________________
2842
Maximum com m itm ent______________________________________ 2839, 2840
Participants in __________________________________ _________________
2841
Profit in, n one____________________________________________________
2841
Participants, distribution of to at termination_____ ;______________
2841
Reason for participation o f _______________________________________
2843
Syndicate bought more than it sold_________________________ 2841-2842
Termination o f _______________________________________________ 2841, 2845
Volum e of operations_____________________________________________
2841
Trading accounts in, participants in__________________ 2511, 2512, 2858-2859
And Chase Securities Corporation or subsidiaries. 2838, 2839, 2860-2875
114
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C hase Stock — C ontinued
Trading accounts in :
Page
Shermar given participation in som e______________________________ 2849
Stock o f needed fo r ________________________ __________________ 2849
Short position not taken b y _______________________________________ 2974
Stabilization o f market, purpose________________ 2826, 2827, 2974, 2975,
2976, 2977, 2983
2974
Summary o f ___' _________________ _________________________________
Wiggin fam ily corporations, participation in Chase National
Bank officers did not disapprove______________________________
2891
Wiggin statements concerning______ ____________________ 2855-2856
Trading in. (See M etpotan Securities Corporation.)
Trading in by affiliates (see Banks, capital stock, trading and pool oper
ations in o f parent by affiliates):
A ccepted by Chase Securities Corporation through participation
in joint accoun t________________________ ______I ________________ ; 2435
Trading in, inconsistent position taken b y short selling o f Shermar and
long selling o f syndicates in which M etpotan and Chase Securities
Corporation participated____________________________ 2975, 2977, 2978
Wiggin family corporation:
(a) Difference in trading operations in, from M etpotan _____ 2851-2854
(b) Except Shermar, no holdings of O ctober 9, 1929_____________ 2856
2851
(c) Profit from exceeded M etpotan in same period______________
Reasons f o r ________________________ _____________________ 2851-2854
W iggin fam ily holdings in, increase of from O ctober 1929 to Decem ber
1 9 3 1 . _ _ : _______________________________________________ ____________
2848
October 9, 1929___________________________________________________
2856
Fam ily interests, bought an d sold among, for short sales o f_____
2970
Family large holdings in, interests the same______________________ 2977
Group j holdings of, long position o n ___________ __________ ________ 2856
Holdings in increased during M etpotan trading in _______________ 2424
C hatham P h o e n ix C o.:
Chase stock, trading account in, participant in _______________________
2859
Fox C o.’s financing, 5 percent interest in ______________________ '______
3602
Fox film debentures purchase group for, m em ber of_^------------------- 3617, 3622
C hatham P h oen ix N ati onal B ank
T rust C o .: Consolidated Oil
Corporation made call loans in 1929 through_______________________ 6368-6369
C helsea E xchange B ank.:
Fox, letter from concerning extension of Fox Co. notes b y ______ 3726-3727
Security offer by to prevent application for receivership____ 3729-3730
C h e m ica l B an k & T r u s t C o.:
C onsolidated Oil Corp. made call loans in 1929 through_________ 6368-6369
Electric Bond & Share Co. made call loans in 1929 through__________ 6323
Guardian Trust Co. of Cleveland:
Agreement w ith _______________ ____________________________ 8456 et seq.
Repurchase agreements of. with, in am ount of $1,500,000 and
$500,000_______________ ___________________________________ ____
8058
Lincoln Building, Chase National Bank resigned as trustee for deben
ture holders in favor o f______________ ______________ __________ ______ 4098
Union Guardian Trust C o.:
“ A” funds deposited in__________________________ ________________
4820
Borrowed from ____________________________________________________ 4821
Repurchase agreement o f Guardian Trust Co. o f Cleveland
w ith___________________________________________________________ 8156 et seq.
C hem ical N ation al B a n k :
Fox, letter from concerning:
Extension o f Fox C o.’s notes b y __________________________________ 3727
Security offer by, to prevent application for receiversh ip._ 3729-3730
Lincoln Forty-second Street Corporation, succeeded Chase National
Bank as trustee for debenture holders o f_____________ ;______________ 410&
C h eney:
Appraiser (so-called independent) o f Associated Gas & Electric Co__ 7620
Connections with H. C. H opson, a controlling influence of Associated
Gas & Electric C o ___________________________________________________ 7620
C hern off , L o u is : First W ayne National Bank, questionable transac
tions w ith ___ ____ ’_______________________________________________________
5231
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
115
C h esapeak e & O hio R ailroad C o .:
Alleghany C orporation:
Pa.se
Railroad stocks acquired from ____________________________________
589
Stock owned by, in _______________________________________________
5-47
Van Sweringens, delivery by, to, o f securities o f ___________ *747 et seq.
American Car & Foundry Co. (See under American Car & Foundry
C o.; Chesapeake k Ohio R. R. Co.)
American L ocom otive Co. (See under American L ocom otive C o.;
Chesapeake & Ohio R. R. Co.)
Attorneys fo r __________________________________________________________
703
Bernet, J. J., president________________________________________________
703
Bonds of:
Issue of, approved by Interstate Commerce Com m ission________
611
Underwriting of, by J. P. M organ & C o________________610, 611 et seq.
Cheaspeake Corporation, ownership by, of stock o f_________ 675 et seq., 713
Coal is 80 percent of tonnage o f ______________________________________
,568
Consolidation of:
W ith H ocking Valley R ailroad___________________________________
566
With Missouri Pacific system not thought of, testifies 0 . P. Van
Sweringen____________________________________________________ 568, 587
Continuous line from tidewater at Newport News to T o le d o _______ 566, 588
Control of, in Van Sweringens (m inority stockholders)_______ 608, 857, 858
Directors o f____________________________________________________________
703
D ividends earned and paid by, throughout depression, testifies O. P.
565
Van Sweringen______________________________________________________
Equipment of:
Companies from which purchased______________________________ 626, 627
Purchase of, financed b y loan o f J. P. M organ & Co. to Van
Sweringen__________________________________________ 565, 594, 609, 610
Erie Railroad C o.:
Control of, by, denied b y Interstate Com merce Commission . . 566, 567
Stock of, owned b y _______________________________________________
615
General Securities Co., sale to, of stock of, b y Vaness Co. in exchange
for its stock and then sold to Chesapeake Corporation at market
price; cost to Vaness Co. being much less, Vaness Co. made profit
and avoided taxation __________________________________________ 675 et seq.
H a ra h a n ,------- , president_______________________________________ 565, 595, 609
566
H ocking Valley Railroad, consolidated w ith__________________________
Interstate Com merce Commission, approval b y :
Of acquisition by, of stock control in case o f Pere M arquette
Railw ay Co. and disapproved in case of Erie R ailroad______ 566, 567
O f bond issue o f___________________________________________________
611
Loan of J. P. M organ & Co. t o ________________________ _
565, 594, 609, 610
Location of, continuous line from tidewater at N ew port News to
T o le d o ___________________________________________ ________________ 566, 588
M arket value of stock o f ______________________________________________
759
M organ (J. P.) & C o.:
Loan by, to Van Sweringens, to finance purchase of equipm ent
for____________ J_________ ___________________________ 5 6 5 ,5 9 4 ,6 0 9 ,6 1 0
Underwriting by, of bonds o f _______________________ ' _______ 611 et seq.
Nickel Plate Railroad Co. (see also under Nickel Plate R . R . C o.;
Chesapeake & Ohio R . R . C o .):
Ownership by, of stock o f__________________ 668 et seq., 672, 673 et seq.
Railroad stocks acquired from ____________________________________
589
Sale by, to, o f stock o f Pere M arquette Railroad C o _______ 653 et seq.
Nickel Plate Securities Corporation. (See under Nickel Plate Secur
ities C orporation ; Chesapeake & Ohio R . R . Co.)
Pere M arquette R ailroad:
Control of, b y ______________________ 566 et seq., 588 et seq., 651 et seq.
Stock of, owned b y ________________________ 566 et seq., 588, 651 et seq.
Railroad stocks:
Acquisition of, from N ickel Plate Railroad Co. and from Alle
ghany Corporation_____________________________________________
589
Acquisition of stock control of, by, approved by Interstate Com
merce Commission in case o f Pere M arquette Railw ay Co. and
disapproved by in case o f Erie R ailroad-------------------------------- 566, 567
Ownership of, b y _______________________________________________ 589, 615
116
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C h esapeake & O hio R ailroad C o .— Continued
Securities of, delivered to Alleghany Corporation b y Van Sweringen- _
Page
747
et seq.
Special Investm ent Co., ownership by, o f stock o f ______________ 668 et seq.,
672, 673 et seq.
Stock o f :
A dditional issue o f_________________ :____________________________ 693, 694
Alleghany Corporation, ownership b y __________________ 547, 747 et seq.
Chesapeake Corporation, ow n ersh ip'by___________________________
163,
566, 667, 668, 670, 672, 673 et seq., 713
Cost o f acquisition of, b y Chesapeake C orporation from Vaness
Co. through General Securities Corporation____________________
713
Cost of:
T o Nickel Plate Railroad Co., $80 per share______ ___ 598 et seq.
T o Van Sweringen____________ _______________________________
759
General Securities Corporation, ownership b y _______________ 675 et seq.
Huntingtons, sale by, to Van Sweringens and N ickel Plate R ail
road C o _________________ _______ 565, 588, 592 et seq., 620 et seq., 857
M arket value o f____________________________________________ 599, 602, 759
Nickel Plate Railroad C o.:
Chesapeake Corporation, sold to, by Van Sweringens and__
566,
667, 668, 670, 672, 673 et seq.
Cost to, of, $80 per share_______________________________ 598 et seq.
Owned b y __ 565, 588, 592 e't seq., 620 et seq., 668 et seq., 735, 857
Special Investm ent Co., sold to, by, in exchange for its
sto ck _____________________________________________ 672, 673 et seq.
Nickel Plate - Securities Corporation, cost to, of, $550 per
share_______________________________________________________ 605 et seq.
Special Investm ent Co., ownership b y _______________________ 668 et seq.
Vaness Co., ownership by, and then sold to General Securities
Corporation in exchange for its sto ck _____________________ 675 et seq.
Vaness Co., purchase by, w ith borrow ed m on ey____________ 695 et seq.
Van Sweringens:
Chesapeake Corporation, sold to, b y N ickel Plate Railroad
Co. and____________ _______ 566, 667, 668, 670, 672, 673 et seq.
565,
Huntingtons, purchased from , b y ____________________________
588, 592 et seq., 620 et seq., 735, 857
Paym ent by, for, b y issuance of bonds o f N ickel Plate R ail
road Co. to pu blic____________________________________ 599 et seq.
Purchase by, with borrow ed m on ey ________ 623 et seq., 695 et seq.
Stocks of railroads owned b y ________________________________________ 589, 615
Subsidiary of, H ocking Valley Railroad C o _________________________ 566, 595
T ax evasion scheme b y transfer o f stock of, by Vaness Co. to Chesa
peake Corporation through General Securities C o rp oration ._ 675 et seq.,
713
Vaness Co., ownership by, o f stock o f____________________________ 675 et seq.
Van Sweringens (minority stockholders), controlled b y ___ 608, 759, 857, 858
C hesapeake C orporation (see Van Sweringen affiliate Chesapeake Cor
poration) :
Alleghany Corporation as largest stockholder o f ____________ 698, 747, et seq.
Assets of, pledged to secure loans by J. P. M organ & Co. to Vaness
Co. and to secure ow n bon d issue___________________________________
697
Attorneys f o r . _________________________________________________________
704
Bonds of:
Chesapeake & Ohio Railroad Co. stock, secured b y ---------- - 685 et seq.
Convertible collateral trust, underwritten b y J. P. M organ &
C o_________________________________________________________ 679 et seq.
Issued to fund a debt o f $67.50 per share, subject to which the
600,000 shares o f Chesapeake & Ohio Railroad stock were
acquired______________________________________________ 680 et seq., 694
Morgan, J. P., & Co., underwritten b y ------------- 163, 566, 679 et seq., 681
Sale of, proceeds of, used in part paym ent o f debt o f Vaness Co.
to J. P. M organ & C o __________________________________________
694
Sale of, to J. P. M organ & Co. and Guaranty C o.; negotiations
of O. P. Van Sweringen w ith Arthur M . Anderson of J. P.
Morgan & C o ---------------- --------------------------------------------- 679 et seq., 681
Secured b y Chesapeake & Ohio Railroad Co. stock _________ 685 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
117
C hesapeake C orporation — C ontinued
Pa£e
666
Capital structure o f___________________________________________________
Chesapeake & Ohio Railroad Co. stock:
Cost of acquisition of, from Van ess Co. through General Securities
Corporation:________________________________ : ------------ 675 et seq., 713
Nickel Plate Railroad Co., sale by, of, to, in exchange for its
stock ----------------------------------------------------------------------------------- 667 et seq.
Ownership o f_____________________________ 163, 547, 566, 667 et seq., 713
Van Sweringens, ownership by, of, transferred to Chesapeake
Corporation_______________________ 566, 667, 668, 670, 672, 673 et seq.
C ontract of, with J. P. M organ & Co. and Guaranty Co. for sale of
bon ds_____________________________________________________________ 685-687
Directors o f____________________________________________________________
704
Dividends earned and paid b y ______________________________________ 698, 699
Formation of:
Date o f ------------------------------------ *------------------------------------------- 598, 665, 666
Purpose of:
T o acquire control of railroads through stock ownership____ 569,
665 et seq.
T o take shares of stock of Chesapeake & Ohio Railroad Co.
out of ownership of Nickel Plate Railroad C o__ 566, 665 et seq.
Van Sweringens, b y _______________________________________________
163
Guaranty Co. of New York, sale to, of bonds of_ 679 et seq., 685, 687 et seq.
Holding com pany_____________________________________ 163, 649, 665, 666, 668
Morgan (J. P.) & Co. (see also under M organ & Co., Chesapeake Cor
poration) :
Joint account of, trading by, in securities o f_____________________
547
Underwriting by, of bonds o f _________________ 163, 566, 679 et seq., 681
Vaness Co. contract with, regarding purchase of bonds of Chesa
peake Corporation_________________________________________ 688 et seq.
Nickel Plate Railroad Co., stockholders of, issue to, of stock o f___ 666 et seq.
Organized by Van Sweringen brothers________________________________
163
Pere M arquette Railroad Co., stock of, owned b y _______________ 651 et seq
Purpose of, to acquire control of railroads through stock ow nership. _
569,
665 et seq.
Railroad stocks owned b y ___ _______________________________ 566, 651 et seq.
Railroads, control of, through stock ownership sought b y __ 569, 665 et seq.
Securities of:
Alleghany Corporation, delivered to, by Van Sweringens___ 747 et seq.
547
M organ (J. P.) & Co., joint account of, trading by, in___________
Stockholders of, Alleghany Corporation, largest____________ 698, 747 et seq.
Stock of:
Increase of, in June 1929, part sold to stockholders at $50 a share
and rest given as stock dividend__________________________ 697 et seq.
Issued to stockholders of Nickel Plate Railroad Co. and Vaness
C o_________________________________________________________ 666 et seq.
Nickel Plate Railroad Co., distributed to stockholders of, in
exchange for stock of Chesapeake & Ohio Railroad C o _________
556,
667, 668, 670, 672 et seq.
Nickel Plate Railroad Co., issued to stockholders o f_________ 666 et seq.
Vaness Co., issued to stockholders o f________________________ 666 et seq.
Van Sweringens, distributed to, in exchange for stock of Chesa
peake & Ohio Railroad C o ________________ 566, 667 et seq., 672 et seq.
Tax evasion scheme by means of acquisition of Chesapeake & Ohio
Railroad Co. stock from Vaness Co. through General Securities
Corporation___________ ____________________________________ 675 et seq., 713
Vaness Co., contract of, with M organ & Co. regarding purchase of
■ bonds o f________________________________________________________ 688 et seq.
Van Sweringens:
,
Chesapeake & Ohio Railroad Co. stock transferred by, t o _______
566,
667, 668, 670, 672, 673 et seq.
D elivery by, of securities of, to Alleghany Corporation_____ 747 et seq.
Organizers__________________ ;______________________________________
163
C hicago & E rie R ailroad C o . : Directors o f____________________________
29
C hicago & N orth W e st e r n : Chase National Bank repaid from R econ
struction Finance Corporation loa n ______________________________________ 4169
118
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
Page
C hicago B oard of T r a d e : Speculation__________________________________
*99
C hicago C urb E xchange A ssociation : Incom e and expenses o f m em
bers. _--------------------------------------------------------------------------------------------------------7903
C hicago P n eum atic T ool C o .:
2914
Chase National Bank loan to, officials or trustees o f interested in _____
Chase Security Corporation trading account, participation in, in
stock o f _________________________________________________________ 2836, 2858
C h ic a g o , R o c k I s la n d & P a c if ic R a ilw a y Co. (see also M cCain, Chicago,
R ock Island & Pacific R y. C o .):
Board of directors, members o f________________________________________
4183
Continental Bank, owed m oney to ___________________________________ _ 4181
N ew Y ork Trust Co., owed m oney t o _________________________________
4181
Dillon, Read & Co., n obody from on the board o f ____________________
4183
Trading account managed by, in, terminated N ovem ber 1929___ 4185
D ividend, earnings declined before declaration o f la st________________
4181
4182
Reasons for declaring, false o p tim is m ___________________________
Hayden o f H ayden, Stone & Co., chairman of the board o f __________
4183
Reconstruction Finance Corporation, loans t o _________________________ 4176
St. Louis & San Francisco R ailw ay Co. directors, on board of, because
o f ownership of stock o f _____ _______________________________________
4183
Stockholders, principal, on date o f last dividend, mem bers o f syndicate
trading in shares o f __________________________________________________ 4177
4184
Trading account bought but never sold stock o f ______________________
United States & International Corporation, stockholder, large o f _____ 4182
United States & International Securities Corporation, investm ents of,
' in stock of, to extent o f $5,000,000_____________________________ 1728, 1731
C hicago Stock E x c h a n g e :
Davis, Paul.H ., president and ijiember o f________________________ ____ *1566
Incom e and expenses o f m em bers______________________________________ 7903
Insull Utility Investm ents, Inc. (see also under Insull U tility Invest
ments, Inc., Chicago Stock Exchange):
Listing application o f ______________________ *1567 et seq., *1745 et seq.
Listing o f stock of, on, history o f_________________________ *1566 et seq.
Investm ent bankers not perm itted to be members o f_________________ *1578
Listing o f stock on, procedure fo r______________________________ *1570 et seq.
Public, no duty to inform, o f real values o f stock as against market
values testifies, Paul H. D av is________________________________*1573, 1582
Values o f stock, no duty to inform public o f real values as against
market values, testifies Paul H. D avis_______________________ *1573, *1582
Wash sales:
Investigation of, duty o f business conduct com m ittee of, bu t
scarcely any discovered, testifies Paul H. D avis________*1574 et seq.
M ethods o f transacting of, o n _______________________ ______*1575 et seq.
Prohibition of, on, b y law o f Illinois______________________ *1574 et seq.
C h ildren ’ s F und of M ic h ig a n : Union Guardian Trust Co., liability t o . 48 68 4869
C hilds ’ R e sta u ra n t :
Syndicate carried in Tucker-Anthony brokerage__________________ *335-336
Barbour’s (president of Childs’ Restaurant) participation vel non
not known by Percy A. R ockefeller____________________________
*338
Details other than that pool started in 1928 or 1929 and ended w ith
division o f stock in 1931 not recalled b y Percy A. R ock efeller. *3 3 5 *336
Participants, Percy A. Rockefeller, George M . M offatt, and others
not recalled b y Percy A. R ockefeller_______________________ *335-336
C h il e :
B on d issues of. (See under Chile, M ortgage Bank of Chile.)
Bonds of, financing of, prior to 1925 done by European bankers. 1011 et seq.
European bankers did all financing of, prior to 1925___________ 1011 et seq.
Fiscal agents for, National C ity C o ______________________________ 1141, 1142
Kuhn, L oeb & Co. (See under Chile, M ortgage Bank o f Chile.)
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
119*
C hile — C ontinued
Page
M ortgage Bank of Chile (see also Chile, M ortgage Bank o f Chile bond
issu e):
Bankers fo r ________________________________________________ 1012 et seq.,
1109, 1132 et seq., 1167 et seq., 1177 et seq., 1187 et seq.
Bond issues of (see also Chile, M ortgage Bank of, Chile bond
igSUe) *
Default, all in _____________________________ 1011, 1023, 1091 et seq.
Financing of, prior to 1925 done by European bankers- 1011 et seq.
Statement o f prices and amount of those put out by Kuhn,
Loeb & C o ____________________________________________ 1019, 1020
Business of bank: Loans on first mortgage__________________ 1011, 1019
Capital, n on e_______________________________ :_____________________ 1027
Chile G overnm ent at time of issuance of bonds of, had come into
power by force and violence____________________________________ 1015,
1017 et seq., 1097 et seq., 1100 et seq.
Default, bonds all in __________________________ 1011, 1023, 1091 et seq.
Dreyfus & Co., French bankers, ■brought notice of issue of, to
attention of Kuhn, Loeb & C o ______________ 1012, 1018, 1126 et seq.
Federal land banks, analagous t o ________________________________
1027
Financial condition of, so bad that Kuhn, Loeb & Co. would not
issue its bonds unless guaranteed by Chile________________ 1025, 1026
“ Finders” fees paid because of bond issues of-_ 1012 et seq., 1126 et seq.
Financial record of, not investigated by Kuhn, Loeb & Co. beyond
noting that its record over 70 years was g o o d _________________
1092
Guaranty by Chile of mortgage loans o f _________________________
1011
Guaranty by Chile revolutionary governm ent of bonds of__ 1015 et seq.
Guaranty Co. of New Y ork :
Bankers__________ 1012, 1109, 1132 et seq., 1177 et seq., 1187 et seq.
Loan by, to, not repaid---------------------------------- --------------- 1147, 1148
Guaranty Trust Co. of New Y ork as fiscal agent fo r _________ 1139, 1140
H istory and business of, stated______________________________ 1021, 1022
Investigation of, by Kuhn, Loeb & C o ______________________ 1092 et seq.
Kuhn, Loeb & C o.:
Bankers____________ __________________________________ 1109 et seq.,
1132 et seq., 1167 et seq., 1177 et seq., 1187 et seq.
Bond issues put out by, statement o f prices and am ount
o f ___________________________________________________ 1019 et seq.
Dreyfus & Co., Franch bankers as “ finders” for__ 1012 et seq., 1018
Investigation by, o f ___________________________________ 1092 et seq.
Loan of $8,000,000 made by Kuhn, Loeb & Co. and its asso
ciates but actual am ount o f this loan subscribed b y Kuhn,
Loeb & Co. individually was $600,000________________ 1016, i017
Loan by Guaranty Co. and Kuhn, Loeb & Co. not re
paid___________________________________________________ 1147, 1148
Lehman Bros, as bankers fo r_____________________________________
1109
Loans on first m o r ta g e , business o f _________________________ 1011, 1019
Guarantee of, by G overnm ent___________ L_________________
1011
Loan t o :
B y Kuhn, Loeb, & Co., and associates to am ount of $8,000,000
but actual am ount subscribed b y Kuhn, Loeb & Co. in
dividually was $600,000______________________________ 1016, 1017
B y Kuhn, Loeb & Co. and Guaranty Co. not repaid____ 1147, 1148
B y originating bankers of issue of 1928 of bank to be partly
repaid from proceeds o f issue, not revealed in pros
pectu s_________________________________________________ 1145, 1146
M arket for bonds of, supported b y bankers for 60 days____1121 et seq.,
1137, 1138
M ortgage loans b y :
Appraisal basis of, Kuhn, Loeb & Co. relief on Chile Am
bassador’s statement that loans were made equal to onefourth of value of l a n d ___________________________________
1093
Guaranty of, b y Governm ent o f Chile______________________
1011
Soundness of, not attem pted to be ascertained b y Kuhn,
Loeb & C o _________________________________________________ 1027
120
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C hile — C ontinued
M ortgage Bank o f Chile— Continued
Pase
Profit, bank not operated for_____________________________________
1027
Prospectuses for bond issues o f____________ _______________ _______ 1020
et seq., 1030 et seq., 1103 et seq., 1145, 1146, 1164 et seq.
Public, sale to, o f 90 million dollars o f bonds o f__________________
1016
R ecord of, o f only few losses relied on by Kuhn, Loeb & Co. as
indicating safety of issue of bonds o f bank_____________________
1027
R eserve fund of, made up of bonds o f bank ______________________
1137
Security for bonds o f_________________________________________ 1023, 1027
Sinking fund for bonds o f _______________________ __________________
1108
Spread of bankers for bond issues o f ___________________ 1108, 1117, 1136
M ortgage Bank of Chile bon d issue:
Bankers for________________________________________________________ 1012,
1109 et seq., 1132 et seq., 1166 et seq., 1177 et seq., 1187 et seq.
B udget o f governm ent, failure of, to balance for m any years not
revealed in prospectus o f _____ ____________________________ 1103, 1104
Chile G overnm ent at tim e of issuance of, had com e into pow er
b y force and violen ce_________________________*________ 1015 et seq.
Chile m ilitary governm ent which guaranteed issue not y et recog
nized b y United States at time o f guaranty_________ __________
1033
D avis, Norm an H ., paid “ finders” commission b y originating
bankers_____________________________________ 1013 et seq., 1127, 1128
D efault, bonds all in ___________________________ 1011, 1023, 1091 et seq.
D revfus & Co. received “ finders” commission from originating
bankers_________________________________ 1012 et seq., 1126, 1127,1128
■“ Finders” commissions paid to Dreyfus & Co. and Norman H.
D avis___________________________________ 1012 et seq., 1126, 1127, 1128
Fiscal agents for, Kuhn, Loeb & Co. and Guaranty Trust Co.
appointed as, and received fees for such services_________1139, 1140
Guaranty Com pany o f New Y ork and Kuhn, Loeb & Co. sold
1016
$90,000,000 o f bonds to pu blic_________________________________
Guaranty Co. o f New Y ork as bankers fo r ____________________ 1012
et seq., 1109 et seq., 1132 et seq., 1177 et seq., 1187 et eq.
G uaranty.of Chile:
Am ount of, equal to one-third o f preexisting indebtedness of
Chile_______________________________________________________
1094
Budget o f governm ent, failure of, to balance for m any years
not revealed in prospectus o f issue____________________ 1103, 1104
D efaulted on 6 years after first issue_____ ______________ 1091, 1092
Guaranty of governm ent which had gained pow er b y v io
lence___________________ 1015, et seq., 1097 et seq., 1100 et seq.
Industries owned b y governm ent known b y Kuhn, Loeb &
Co. to be operating at loss but did n ot prevent their reli
ance on g u a ra n ty .________________________________ 1102 et seq.
Kuhn, Loeb & C o.:
Obtained by, because latter ddtibted security o f bank
1023
itself________________________ __________________________
Regarded b y as best selling point o f issue_______ '______
1023
Required by, before it consented to issuance, because of
poor financial condition o f bank_____ 1018, 1019, 1025, 1026
Nitrate industry chief business o f country not investigated,
though relevant on question o f soundness o f _________ 1094 et seq.
Nitrate industry o f country, decline in prosperity of, did not
deter Kuhn, Loeb & Co. for relying o n ______ 1102, 1103 et seq.
Prospectus fo r __________________________________________1020 et seq.,
1030 et seq., 1103 et seq., 1145, 1146, 1 1 6 4 e tse q .
Prospectus, nondisclosure in, that G overnm ent’s Budget
had failed to balance for many years________________ 1103, 1104
Prospectus stated it to be that o f governing council whereas
in fact it was that o f revolutionary m ilitary c o u n cil-- 1031, 1032
Reliance on, by Kuhn, Loeb & Co. so that firm did not
greatly investigate financial status of bank__________ 1092, 1093
Required by Kuhn, Loeb & Co. because o f poor financial
condition__________________________________ 1018, 1019, 1025, 1026
Revolutionary governm ent considered merely “ liberal m ove
ment” by Kuhn, Loeb & C o______________________________
1097
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
121
C h ile — C ontinued
M ortgage Bank of Chile bond issue— Continued
G uaranty o f Chile— Continued
Pase
Revolutionary governm ent with military council in power
which had dissolved legislature relied on by Kuhn, Loeb &
C o _________ 1015 et seq., 1024, 1025, 1097 et seq., 1100 et seq.
Sound, considered by Kuhn, Loeb & Co. and its counsel to
be____________________________________________________ 1027 et seq.
Trade balance of Chile, figures showing favorable balance
greatly relied upon by Kuhn, Loeb & Co. as indicating
soundness of guaranty and not analyzed b y Kuhn, Loeb
& C o___________________________________ 1094 et seq., 1096 et seq.
United States at time o f guaranty had not yet recognized the
m ilitary de facto governm ent which guaranteed the issue. 1033
Guaranty Trust Co. and Kuhn, Loeb & Co. appointed as fiscal
agents for and received fees therefor______________________ 1139, 1140
Investigation of financial record of bank not made by Kuhn,
Loeb & Co. beyond noting that its record over 70 years was
g ood ______________________________________________ 1_____________
1092
Investors not informed o f Chile’s failure to balance its budget for
1104
many years________________________________________ ' ___________
Kuhn, Loeb & C o.:
Bankers_________________________________ 1012 et seq., 1109 et seq.,
1132 et seq., 1167 et seq., 1177 et seq., 1187 et seq.
Chile revolutionary governm ent which guaranteed issue con
sidered a “ liberal m ovem ent” b y __________________________ 1097
Fiscal agents, appointed as, and received fees therefor to
gether with Guaranty Trust C o ______________________ 1139, 1140
Guaranty o f Chilean revolutionary governm ent considered
sound and required by, before it consented to issuance be
cause of poor financial condition of bank____________ 1018, 1019,
1025, 1026, 1027 et seq., 1097 et seq., 1100 et seq.
Guaranty of Chile relied on by, and it did not greatly investi
gate financial status of bank__________________________ 1092, 1093
Investigation of financial record of bank not made by, beyond
noting that its record over 70 years was g ood ______ 1092 et seq.
Prospectus prepared by together with mortgage, bank
1103
officials_____________________________________ _______________
Public, $90,000,000 of bonds sold to, by, on conjunction with
1016
Guaranty Co. o f New Y ork _______________________________
Reliance by, on Chile Am bassador’s statement that mortgage
loans were made equal to one-fourth of value o f land_____ 1093
Security for issue, soundness of mortgages which were, not
1027
attem pted to be ascertained b y ___________________________
Trade balance, favorable, o f Chile, figures relied on as show
ing, not analyzed by Kuhn, Loeb & Co. and hence sound
ness of country’s guaranty not analyzed___________ 1094 et seq.,
1096 et seq.
Lehman Bros, as bankers fo r ________________________ 1012 et seq., 1109
M arket for bonds of, supported by bankers for 60 days__ 1121 et seq.,
1137, 1138
M ortgage loans b y bank:
Appraisal basis of, Kuhn, Loeb & Co. relied on Chile Am bas
sador’s statement that losses were made equal to one-fourth
of value of land____________________________________________ 1093
Kuhn, Loeb & Co. made no effort to ascertain soundness of_ 1027
Prospectus did not reveal bank empowered to make second
mortgage loans__________________________ 1106, 1107, 1108 et seq.
N ational City Co. fiscal agents for Chile given participation by
Kuhn, Loeb & Co. and Guaranty Co. and Lehman Bros, in
issuance of, at request o f Chile__________________________ 1141 et seq.
1925 issue (see under Chile, M ortgage Bank of Chile bon d issue of
1925).
1926 issue (see under Chile, M ortgage Bank of Chile bon d issue of
1926).
1927 issue (see under Chile, M ortgage Bank o f Chile bond issue of
1927).
122
INDEX TO SE ARIN G S ON STOCK EXCHANGE PRACTICES
C hile — Continued
M ortgage Bank o f Chile bon d issue— Continued
Page
1928 issue (see under Chile, M ortgage Bank o f Chile bond issue of
1928).
1929 issue (see under Chile, M ortgage Bank of Chile bon d issue of
1929).
Prospectus of:
Budget of Chilean Government, failure of, to balance for
m any years, nondisclosure of, in ______________________ 1103, 1104
Guaranty stated in, to be that of governing council whereas
in fact it was guaranty of revolutionary military coun
cil_____________________________________________________ 1031, 1032
Kuhn, Loeb & Co., preparation by, together with m ortgage
1103
bank officials_______________________________________________
M ortgage loans, bank stated to be lim ited to first m ortgage
loans, whereas actually bank empowered to loan on second
m ortgage_______________________________ 1106, 1107, 1108 et seq.
Preparation of, b y Kuhn, Loeb & Co. and mortgage bank
officials jo in tly _____________________________________________
1103
Public, $90,000,000 of bonds sold b y Guaranty Co. of New Y ork
and Ktihn, Loeb & Co. t o __________________________________ ____
1016
R ecord of bank o f only few losses relied on b y Kuhn, L oeb & Co.
as indicating safety o f__________________________________________
1027
Reserve fund of bank made up of bonds o f_______________________
1137
Security for:
Guaranty of Chilean Governm ent obtained b y Kuhn, Loeb
& Co. which did not rely on security of bank itself. 1015 et seq;
1092 et seq.; 1100 et seq.
M ortgages held b y bank, Kuhn, Loeb & Co. made no effort
to ascertain soundness of _ _ ________________________________ 1027
Sinking fund to redeem loans at time of m aturity provided fo r ___ 1108
Trade balance of Chile, which was favorable, greatly relied on by
Kuhn, Loeb & Co. as indicating soundness o f guaranty b y
Chile o f ___________________________________________ ______ 1094 et seq.
M ortgage Bank of Chile bond issue of 1925:
Agreement of bank with Kuhn, Loeb & Co. with reference t o . 1154 et seq
Bankers:
Originating: Kuhn, Loeb & Co., Guaranty Co. o f New Y ork,
Lehman B ros__________________________;____________________
1109
1108
Spread o f 4% points__________________________________________
Syndicate of, foi issuance of paid “ finders” fee to Norm an H.
D avis_____________________________________________________
1014
Chile, Governm ent of, guaranteed first mortgages held b y M ort
gage Bank o f Chile_______________________ ______________________
1011
D avis, Norm an H., received “ finders” commission from Guaranty
Co. o f New Y ork for aid in obtaining bon d issue of, for G uaranty
Co. and Kuhn, Loeb & C o________________ 1013 et seq., 1127 et seq.
D istribution of, made in 1 day b y selling groups____________ 1115, 1116
D reyfus & Co. “ finders” o f issue for Kuhn, Loeb & Co. and
received fee therefor________ ______________________ 1012 et seq., 1018
“ Finders” fee paid to D reyfus & Co. and Norm an H. D avis b y
issi;|ng bankers_____________________________ 1012 et seq., 1127 et seq.
Guaranty b y Chile of first mortgages held b y M ortgage Bank o f
Chile____________________________________________________________
1011
Guaranty Co. o f N ew Y ork jointly interested with K uhn, Loeb
& Co. in financing o f _______________________ 1012 et seq., 1109 et seq.
G uaranty Co. o f N ew Y ork paid finders fee to Norm an H. D a v is. _ 1013,
et seq., 1127 et seq.
H istory o f negotiations for, and marketing o f : ____________ 1113 et seq.
Kuhn, Loeb & C o .:
Bankers__________________________________ 1109 et seq., 1145 et seq.
Financing b y ____________________________________ 1011 et seq'., 1109
“ Finders” fee paid by, to D reyfus & Co., French bankers—
1012
et seq., 1018
Spread o f 4 ^ points t o _______________________ _______________
1108
Syndicate which purchased issue from originating group
form ed and managed b y ________________________ __________
1110
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
123
C h ile — C ontinued
M ortgage Bank of Chile bond issue o f 1925— Continued
Page
Lehman Bros., bankers___________________________________________
1109
Market for, supported by originating bankers for 60 days_________1121
et seq.
M arketing of, process o f ------------------------------------ 1109, 1110, 1113 et seq.
Mortgages held by M ortgage Bank of Chile guaranteed by G ov
ernment of Chile_________________________________________ 1011 et seq.
Price of, selling group constrained by Kuhn, Loeb & Co. to sell
only at offering price for at least 60 days after issue offered___ 1121,
1122, 1123
Profit to originating banks on sale o f ------------------------------------ 1108, 1117
Prospectus o f ------------------------------------------------------------------------ 1020 et seq.
Selling groups:
Disposition by, in 1 day, of bonds o f------------------------------ 1115, 1116
Kuhn, Loeb & Co., constrained by, to sell only at offering
price for at least 60 days after issue offered ---------------- 1121 et seq.
Organized and managed b y Kuhn, Loeb & C o ______________
1110
Spread of 4% points to bankers---------------------------------------------1108
Syndicate formed and managed by Kuhn, Loeb & Co., pur
chased issue from originating bankers_______________ 1109 et seq.
M ortgage Bank of Chile bond issue of 1926:
Agreement between bank and Kuhn, Loeb & Co. with reference
t o _________________________________________________________ 1167 et seq.
Banking groups, none form ed in connection with, but originating
bankers distributed issue directly through selling groups______
1136
Guaranty Co. of New Y ork relied on guaranty of Chile, though
aware of poor econom ic situation of coun try______________ 1132, 1133
Guaranty of Chile:
Econom ic situation o f Chile not investigated b y Kuhn, Loeb
& Co. though bonds bore guaranty_________________ 1133 et seq.
Guaranty Co. of New Y ork, reliance by, on, though aware
of bad econom ic situation of country_________________ 1132, 1133
Kuhn, Loeb & Co., reliance by, on, though nitrate industry
of Chile suffered by com petition from synthetic nitrates
in 1926 and Kuhn, Loeb & Co. aware o f Chile’s bad eco
nom ic situation_______________________________________ 1130, 1131
M ilitary governm ent still in power in 1926 when Kuhn, Loeb
put out second issue bearing guaranty_______________ 1135, 1136
Kuhn, Loeb & Co. relied on guaranty of Chile though aware of
bad econom ic situation of country due to synthetic nitrates 1130 et seq.
Profit to originating bankers_____________________________________
1136
Prospectus fo r ______________________________________________ 1164 et seq.
M ortgage Bank of Chile bond issue of 1927: Market for, supported by
originating bankers for 60 days-------------------------------------------------- 1137, 1138
M ortgage Bank of Chile bond issue of 1928:
Agreement between bank and Kuhn, Loeb & Co. and Guaranty
Co. with reference t o _____________________________________ 1177 et seq.
Banking syndicate not form ed for, but originating group dis
tributed issue directly through' selling group___________________
1145
Loan to bank by originating bankers to be repaid partly out of
proceeds of, not revealed in prospectus_______________,____ 1145, 1146
National City Co. fiscal agents for Chile given participation by
Kuhn, Loeb & Co. and Guaranty Co. and Lehman Bros, in
issuance of, at request of Chile______________ 1141, 1142, 1143 et seq.
Prospectus of, did not reveal that part of proceeds of issue were to
be used in repayment of $8,000,000 loan made to bank by
originating bankers_____________________________________________
1146
M ortgage Bank of Chile Bond Issue of 1929:
Agreement between bank and Kuhn, Loeb & Co. and Guaranty
Co. o f New Y ork with reference t o ______________________ 1187 et seq.
Details of issue_________________________________________ 1148, 1149, 1150
National City Co. as fiscal agent for____________________________ 1141 et seq.
C h ile C op p er Co. (See under National City Co., Chile Copper Co.)
C hile C opper Co. (Chile)________________________________________________ *793
Anaconda Copper Mining Co., Chile stock converted into (January
23, 1929, to date of hearings)_________ *773, 774, *778-779, 782, *791-793
124
INDEX TO H EARINGS ON STOCK EXCHANGE PRACTICES
C hile C opper C o .— C ontinued
Page
Anaconda Copper M ining Co., subsidiary o f _____________________ ___ _ *1848
Guggenheim fam ily large holders of (1929)____________ 1____________*794, 799
Joint account o f John D . R yan, National C ity Co., Charles K elley,
Daniel Guggenheim, Harry Guggenheim and T hornton (D ecem ber
1928 to February 19 29 )___________ *756, 786-789, *798-799, 801-803, *805
Accum ulated 111,110 shares o f Chile stock between January 14
and 22, 1929, at time when participants b y reason of. inside
inform ation knew or expected that Anaconda Copper M ining
Co. would make effective agreement for conversion o f Chile
stock into Anaconda on January 23, 1929; stock was converted
*802
for 81,103 Anaconda, on February 4 ___________________________
Block, M aloney & Co. was given, and exercised February 1929,
option for 50,000 shares Chile Copper Co. (converted into
Anaconda) and these shares ultim ately went into A naconda
large pool of M arch to M ay, 1929 (see Anaconda, pool, large,
M arch to M ay 1929)______________________________ *789, *798-799, 803
H ornblower & Weeks were brokers through w hom purchases were
m ade------------ ------------------------------------------------------------------------------- *801
, H ornblow er & Weeks had absolute discretion (through James A.
Fayne, a m em ber of the firm) says, Fayne_____________ *808, 811-812
Purpose to “ stabilize the market,” says F ayne________________ *812
National City Co. carried account, charging 6 percent interest and
commission charges_____________________I __________________ *788-790
National City Co. books do not show to w hom account belongs,
account being headed merely, “ Chile Copper Joint A ccou n t” ___ *805
Participants included National C ity Co., John D . R yan con
nected with National City Bank and Anaconda Copper M ining
C o.; Charles K elley, president of Anaconda Copper M ining
C o.; the Guggenheims, large stockholders o f Chile stock ; and
Thornton, president o f Greene-Cananea Copper C o _____ ____ *798-799
Profit approxim ated $1,250,000 on distribution; Guggenheim
chose cash and got profit of $404,400.86; R yan took proportion
. o f the 30,000 shares distributed stock, exchanged it for Ana
conda and held to Anaconda to date o f hearings, suffering
severe loss on price drop; National C ity Co. also took stock on
distribution___________________________________ *786-789, 802-*803, 805
M arket value o f stock of, pegged by join t account o f Anaconda Copper '
M ining Co. with National City Co. and Guggenheim Bros, pending
merger o f Chile Copper Co. with Anaconda Copper M ining Co_ 1847 et seq.
Subsidiary o f Anaconda Copper Mining C o ____________________________
1848
United Metals Selling Co., subsidiary o f Anaconda Copper M ining
Co., traded in stock o f (1929) (see also Anaconda Copper M ining
Co., United Metals Selling Co.. trading)__________________________ *794-801
C h in lun d , E dw in F., representing Controllers Institute of America, testi
fies (Securities Exchange A ct o f 1934)____________________ 7082-7089, 7491-7492
C hisholm & C h a pm a n : Chapman (M . A.) mem ber o f_________________ 2478, 2510
C h itten d en , H e n r y :
First National Bank, president o f _____________________________________
5392
Reconstruction Finance Corporation D etroit advisory council m em ber. 5600
W ayne B ody Corporation loan, conversation with Ballantyrie con
cerning______________ _________________________'5663, 5664, 5665-5666, 5667
C h itte n d en , H e rb e rt L .:
D etroit Bankers C o.:
Articles o f Association signed b y _______ _____________________ 5063, 5130
D irector o f _____________________________________________ 5061, 5129, 5332
Proposed as________________________ _____ ____________________
5070
D irectors’ meeting, present at when resolution adopted giving
authority to vote stock of unit banks_______________________ _____ 5097
Organization of, Ballantyne discussed w ith_______________________ 5058
Trust agreement, participant in_ ______________________ 5066, 5131, 5132
Trustees shares, holder o f____________________________________ 5061, 5128
D etroit Trust Co., director o f _________________________________________
5332
First National Bank of D etroit, president o f ____ _____________________
5246
Peninsular State Bank, president o f________________________ 5069, 5070, 5071
Circular addressed to stockholders of, unit banks later form ing
D etroit Bankers Co. signed by, as___________ ,____________ 5069, 5071
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
125
Tage
C h oa te , A r th u r D .: Clark, D odge & Co., director o f ____________________ *1150
C h r istie , R obert E., J r .:
Dillon, Read & C o .:
D irector o f ________________________________________________________ *1151
Losses of, not chargeable t o _______________________________________
1639
M em ber o f ---------------- --------------------------------- ;______________________
1639
Profits of, interested in _ ..__________________________________________
1639
Secretary and treasurer of___ _____________________________________
1536
D om inick & D om inick, option given to, in aid of pool operations in
com m on stock of United States and Foreign Securities Corpora
tio n ___________________________________________________________ 1665 et seq.
Losses of Dillion, Read & Co., not chargeable w ith __________________ 1639
M em ber of Dillion, Read & C o -------------------------------------------------------------- 1639
Pool operation of, in com m on stock of United States & Foreign Se
curities Corp------------------------------- ------------------------------------ 1656, 1665 et seq.
Profits in Dillon, Read, interested in __________________________________
1639
Testim ony o f ________________________ 1638 et seq,, 1659 et seq., 1691 et seq.
P ool operations, unfamiliar w ith__________________________________ 1660
United States and Foreign Securities Corporation, pool opera
tions in com m on stock of, for purpose of reducing his invest
ment in that com pany and not to make m oney__________________
1656
United States & Foreign Securities Corporation, pool opera
tions in com m on stock o f: public holding shares not, in
jured b y option given to Dom inick & D om inick in aid of
pool operations by latter________________________ __________ 1665, 1666
United States & Foreign Securities Corporation:
Officer o f __________________________________________________________
1639
Pool operations in com m on stock o f _________________ 1656, 1665 et seq.
C hrysler C o r po r a tio n :
Brokerage holdings of stock in 1929 and 1933................................... 6375-6376
Call loans made by the com pany through banks in 1929________ 6343, 6376
First W ayne National Bank, balance in fluctuation over year end
5557
Explanation o f _______________1_______________________________ 5557, 5559
Transfers of com pany's stock in 1929, number o f _____________________ 6376
C h r ysler , W a l t e r :
D etroit banking situation, seriousness of, advised o f_______________ 4729, 4732
M cK ee m et______________________________________ ________________
4729
Fox Theatres Corporation short sale pool (1929), participant in (see
Fox, Fox Theatres C orp oration )___________________________ *984, 1063-1064
Libbey-Owens-Ford Glass Co. pool resulting from options June 1
and June 16, 1933, participant in (see Libbev-Owens-Ford Glass
Co., p o o l ) ____________________________________ 6222-6223, 6238, 6243-6245
R adio Corporation of America pool (1929), participant in (see Radio
Corporation of America p o o l)________.______________________________
*469
C h u r n in g : ___________________________________ _____________ 5908-5909,6121-6122
D efined___________________________ _________________________________ *277-278
Wash sales distinguished, by Richard W hitney________________________
*278
C in cin n ati Stock E xchange : Incom e and expenses of mem bers_________ 7902
C in em a B uilding C orpo r a tio n :
Property of, at 90-92 G old Street, New Y ork C ity ___________________
3167
Price of, paid to H ealy estate____________________________________
3168
C in e M a c h in e r y C o r p o r a t io n : (see also International Projector Cor
poration) :
Acm e offer, accepted b y _______________________________________________
3171
International Projector Corporation, successor t o ________________ 3162, 3170
C ir c u l a r s : United Corporation, o f_________________ _____ 365, et seq. 377, 379
C ities S ervice C o.:
Call loans made by the com pany directly to brokers in 1929. 6315-6322, 7593
Am ount of each loan averaged $312,856.46__________________ 6319, 6359
Am ount and number dropped to zero after “ crash” of October
1929_______________________________________________________ 6315-6316
Am ount and number increased from January to September 1929- _ 6315
Am ount outstanding largest on September 25, 1929, $41,900,000. _ 6315,
6319, 6320, 6321, 6359-6361
Am ount o f loans, $285,325,092.21_____________________ 6315, 6319, 6359
126
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
•Cities Service C o.— C ontinued
Call loans m ade b y the com pany directly to brokers in 1929— Con.
Am ount outstanding daily averaged $10,375,778.23________ 6317-6318,
6319, 6359
Borrower paid small fee to the intermediary m on ey broker. _ 6321-6322
Call loans were also made in 1919, possibly in 1926 and then
began again in 1928____________________________________________
6316
Henry L. D oherty & Co. acting as fiscal agents for the com pany
made the loans_______ _________ ________________________________
6315
Interest rates, fixed on floor of exchange, ranged from 5 to 20
percent______________________________________ ___________________ 6317
Interest received in 1929_____________________________________ 6317-6318
Johnston (Ernest H .) supervisor_________________________ ________
6316
M echanics of making loans__________________________________ 6316-6317
N um ber o f loans, 912________________________ . . . ______ 6315, 6319, 6359
Sources o f funds loaned were earnings o f the operating com
panies and proceeds o f issuance and sale o f securities o f the
com pany and its subsidiaries______________________________ 6318-6319
6318
Tim e o f loans made in 1928-1929 averaged 4 to 5 days__________
C ities Service Power & Light Co' is subsidiary o f_______________ ______ 6311
D istribution of stock to small holders and employees of Cities Service
Co. and subsidiaries April 1927 to D ecem ber 1930. _ 7588-7593, 7626-7634
Average yield per share to Cities Service Co. was less than $25,
although many people paid m uch m ore and the m arket value on
April 2, 1934, was about $2, says R obert E. H e a ly .________ 7591-7592
Campaign conducted so as to keep stock off market, says R obert
E. H ealy ________________________________________________________
7588
Commission agents lost commission if investor resold within
certain period, and were encouraged b y com panies’ literature
to sell in small lots, says H ealy____________________________ 7588, 7590
Installment sales made house to house b y thousands o f
distributors, with condition that delivery o f stocks delayed
even if installment payments anticipated, says H ealy.7588-7589,
7590-7591, 7606-7607, 7610
C ontrol o f Cities Service Co. was maintained by D oherty,
for directly afterward the com pany issued 1,000,000 shares
with full voting rights at $1 per share, all of which were
purchased by D oherty, says H ealy_____________________________
7591
Cities Service Securities Co. conducted cam paign_____________ . . .
7588
Em ployees of com pany and subsidiaries were appointed dis
tributors or salesmen in large numbers, says R obert E. H ea ly. 7588
Em ployees of com pany and subsidiaries were expected to invest
part of earnings in the stock, says R obert E. H ealy ______ 7588, 7592
M arket price kept up b y vast purchases on market b y Cities
Service Securities Co., total purchases being close to $1,000,000,000, as contrasted with sales of over $1,000,000,000, says
R obert E. H ealy _____________________________________ 7589-7590, 7607
Purchases were not made from people who bought during the
campaign, says R obert E. H ealy_____________________ 7590-7591
M arket purchases mainly from persons other than those obtain
ing stock during campaign, says R obert E. H ealy________ 7589-7591
New capital realized b y issuance o f original shares am ounted to
$77,000,000, says R obert E. H ealy_____________________________
7591
Proceeds of campaign am ounting to $1,146,518,000 were used
mainly in market purchases of the stock made for purpose of
keeping market up, am ounting to $965,000,000, says R obert E.
H ealy______ _____________________ __________________________ 7589-7591
Average yield per share to Cities Service Co. was less than
$25, though many people paid much more, and the market
value on Apr. 2, 1934, was about $2, says R obert E.
H ealy_______________________________ _________________ 7591-7592
D oherty’s (Henry L.) shares and shares of Gas Securities
Co. wholly owned b y D oherty, bought and marketed at
total profit o f $19 000,000 to D oherty, says H ealy ________ 7591
T)oherty (H enry L.) director and president o f ________________________
6311
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
127
C ities Service C o .— C ontinued
Page
D oherty, H enry L., & Co., fiscal agents for (see also D oherty, Henry
L., & C o .)___________________________________________________________
6311
Financial advisors and operating departments maintained by
6311
Henry L. D oherty & C o _______________________________________
Funds of Cities Service Co. and some subsidiaries formerly
deposited with Henry L. D oherty & C o _______________________
6311
Funds of Cities Service Co. and some subsidiaries no longer
deposited with Henry L. D oherty & Co., February 23, 1934___ 6321
6321
Service rendered gratis, says Ernest H. Johnston________________
Incorporated in Delaware_____________________________________________
7592
Johnston (Ernest H .), director and vice president o f _____________ 6309-6310
“ M onthly letters” on econom ic conditions to executive com m ittee of
Henry L. D oherty & Co., as fiscal agents for Cities Service Co., were
prepared by Charles H. E. Scheer, a Cities Service em ployee, in
1929 and prior years___________________________________ ________ 6310-6315
Excerpts___________________________________ 6310-6311, 6312-6313, 6314
Purpose to acquaint com m ittee with econom ist’s ideas of busi
ness and financial trends and to explain earnings records of the
com pany and its subsidiaries, says Ernest H. Johnston_______
6314
Public utility holding com pa n y__________________ _______________ 6310, 6311
Scheer (Charles H. E .), engineer and econom ist o f ___________________
6310
Stockholders advertised by the com pany to number over 1,000,000, in
assets over $1,000,000,000 says William Z. R ip ley __________________ *876
6321
Subsidiaries carry funds in bank in own name (February 23, 1934),__
Transfers of com pany’s stock in 1929, number o f __________ 6320-6321, 6360
C ities S ervice P ow er ’& L ight C o.:
Cities Service Co. is parent o f____________ ____________________________
6311
D anbury-Bethel Gas & Electric Co. is subsidiary o f__________________
6312
East Tennessee Light & Power Co. is subsidiary o f ___________________ 6312
Empire District Electric Co. is subsidiary o f __________________________ 6311
Ohio Public Service Co. of Colorado is subsidiary o f _________________
6311
Public Service Co. of Colorado is subsidiary o f - , . ____________________
6311
St. Joseph Railway, Light, Heat & Power Co. is subsidiary o f ___ 6311-6312
T oledo Edison Co. is subsidiary o f____________________________________
6311
C ities S ervice Securities C o.:
Cities Service Co. stock distributed by. (See Cities Service Co.,
distribution of stock to small holders and employees of Cities
Service Co. and subsidiaries, April 1927 to Decem ber 1930.)
Federal Trade Commission, summary of report of examiner. 7592, 7626-7634
C itizens N ational B ank & T rust Co. of N il e s : Bills payable “ none,”
report of 1930 showed_______________________________________________ 4364-4365
C itizens S avings & T rust C o.: Union Trust Co., consolidated into with
First Trust & Savings C o___________________________________________ 8121, 8134
C itizens Savings B ank of M ount C lemens , M ich .:
American State Bank liquidating committee representatives met
with concerning financial assistance____________________________ 5593-5594
Closed____________________________ _____________________________________ 5598
Closed after election___________________________________________________ 5613
Closing arguments against, wanted, bank examiner__________________
5612
Officers trying to avert___________________________________________
5612
Condition of, progressively worse, after Reconstruction Finance Cor
poration loan ___________________________________________________ 5611-5612
Deposits, shrinkage in_______________ --------------------------------------------------- 5603
D ifficulty in, effect on D etroit banking situation_____________________
5597
D irectors of, confidence talked in to ______________________________ 5610-5611
Financial assistance, agreement entered into fo r ___________ 5594, 5595-5596
Asked b y _________________________________________ 5593-5594, 5597, 5599
First W ayne National Bank advances to, against Reconstruction
Finance Corporation loan prospects________________________________
5610
Cleaned out best assets of, Couzens criticism____________________
5611
M emorandum advising caution on _______________________________
5609
Loans to facilitate withdrawals by insiders, Couzens criticism o f._ 5610, 5611
60604— 46------ 9
128
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C itizen s S avings B ank op M ount C lemens , M ich .— C ontinued
People’s W ayne County Bank:
Page
Acquisition of stock control o f_______________________________ 5592-5596
Agreement by to make loan and take controlling interest in
stock o f ______________________________ _______________ 5594,5595-5596
Loans b y ________________________________. ______________ 5594, 5595-5596
Collateral on ______________ •__________________________________
5598
Increased beyond am ount agreed u p on _________________ 5596, 5597
Liquidated_____________ ____________^____________________ ____
5599
M aximum am ount o f ________________________________ ____ ___
5597
People’s W ayne County Bank loan to, repaym ent of, Mills sure w ould
have occurred regardless of Reconstruction Finance C orporation. _ 5616
Progress, table of, after one-man grand jury proceeding_____ ___ 5612-5613
Reconstruction Finance Corporation loan application:
(а) Am ount o f _______________________________________________ 5601, 5602
(б) D etroit advisory council members connected with D etroit
Clearinghouse did not vote o n _____________________________
5602
(c) M ills’ withdrawal as chairman of meeting o n ________________
5601
(d) Minutes o f D etroit Clearinghouse did not vote on ___________
5602
5607
Collateral, additional, required o n ________________________________
Granted, am ount o f_______________________________________________
5608
Proceeds insufficient to build up reserves after paying off loans
5607
and charges_____________________________________________________
Loans to and collateral o n ___________________________________ 5609, 5610
Run on, after one-man grand jury investigation______________________ 5612
Stockholders, assessment on ___________________________________________
5613
Proceeds, payments to be made b y ___________ '_________________ _ 5599
Stock of, collateral on American State Bank loan ________________ 5592-5593
C itizen s State B a n k , F lin t , M ich . : Condition so bad, possibility o f
closing_____ ]________________________________________________ _____ ________
4633
C ity B a n k F armers T rust C o .:
D irectors o f:
M itchell, Charles E., chairman o f boa rd ___________________ *1769, 1787
M anagement fund for officers o f:
Established to enable com pany to retain as em ployees officers
with specialized training b y giving them share in profits. _ *1770 et seq.,
*1787 et seq.
Mitchell, Charles E., amounts received by, f r o m . . . ________*1786, 1787
Mitchell, Charles J].:
Am ount received by, from management fund for officers o f . _ *1786, 1787
Chairman of board of directors o f_____________ __________ _ *1769,1787
543
M organ & Co., partners of, not directors o f___________________________
National City Bank shareholders own proportionate participation in
beneficial trust holding stock o f City Bank Farmers Trust Co.,
, •
such participation being evidenced on reverse side of N ational City
Bank stock certificates, says Charles E. M itchell___________________ *769
543
National C ity Bank, trust affiliate o f _____________________ ________ _
Officers of, management fund for. (See under C ity Bank Farmers
Trust Co.)
Management fund.
Trust affiliate of National C ity Bank__________________________________
543
C it y N ation al B ank & T rust C o . of B attle C r e e k :
Assets, doubtful of. Guardian D etroit Union Group, Inc., b o u g h t. 4282, 4313
Condition, unsatisfactory_______ •_____________________________________
4635
Dividends declared b y ________________________________ 4282-4283, 4307-4313
Guardian D etroit Union Group, Inc., placed executive vice president
in ____________________________________________________________________
4635
W orst national banks in, one o f _________________ ________________
4638
Losses, estimated o f . r _____________________________ _______________ 4635-4636
Open after bank h oliday_______________________________________________
4320
Open at hearings_______________________________________________________ 4554
Real estate, loans on security o f frozen_______ ___________________ 4635-4636
Reconstruction Finance Corporation loan to, conditionally agreed
upon_________________________________________________________________
4554
Union Commerce Corporation owned m ajority stock in ______________
4778
Shares except qualifying__________________________________________
4212
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
129
C it y N ation al B an k & T rust C o ., of N il e s :
Pase
Capital, impairment o f ___________________________________________ 4619, 4635
Instructions to make g ood ________________________________________
4313
M ade g o o d _________________________________________ ______________ 4314
New, necessary fo r ________________________________________________ 4635
Closing of, necessity for, except member of group_____ _______________
4636
Condition of, required conference according to bank examiner unsatis
factory, letter of Leyburn to Com ptroller concerning_______________ 4635
D ividend declaration by Guardian D etroit Union Group, In c.:
(a) Instruction against___________________________________________
4312
(b) M emorandum concerning failure to m ake___________________ , 4307
Dividend, nonpaym ent o f________________________________________ 4309-4312
4309
Paym ent of, assumed by Guardian D etroit Union Group, In c___
Guardian D etroit Union Group, Inc., acquired shares of, except quali
fyin g_________________________________________________________________ 4213
Letter from, suggesting declaration of dividend by ______________
4260
W orst national banks, one o f_________________________ ___________
4638
Reconstruction Finance Corporation helped__________________________
4700
Reopened after holiday___________________________________________ 4320, 4700
Reorganized, terms on which__________________________________________ 4699
R otten condition of, bank examiner W alker’s opinion. _____________
4645
Statement, trust assets eliminated from _______________________________ 4365
C ity N ational B ank of L a n sin g :
Capitol National Bank of Lansing (Guardian D etroit Union Group,
Inc., unit) took o v e r ________________________________________________
4547
Guaranty fund established to take care o f____________________________
4547
Hysteria directed tow ard______________________________________________
4547
C la r k , D odge & Co.
Chase National Bank, trading account managed by Dom inick & D om
inick, in shares of, participant in ___________________________________
2451
Directors of, list o f ____________________________________________________ *1150
Kreuger & Toll bond issue, floatation of, b y _____________________ *1149, 1150
New Y ork Stock Exchange, m em ber o f_______________________________ *1149
C la r k , E. W., & C o., stockbrokers.
Com pelled customer, Thomas A. K enny, to sign authorization per
mitting them to loan his stock despite his com plaint to com
mittee on business conduct of New Y ork Stock Exchange_____ *377-384
C l a r k , E mory W .:
Ballantyne, negotiations with, concerning D etroit Bankers C o__ 5079, 5080
Bank stock purchases by First National Bank, knew o f______:_______
5757
D etroit Bankers C o.:
Articles of association signed b y _____________________________ 5063, 5130
Director o f _____________________________________________ 5061, 5129, 5332
Proposed as__________________________________________________
5070
Loan from First National Bank, officer or director interested in__ 5620
Questioned___________________________________________________
5620
Organization of, discussed with Ballantyne and Haas _ 5058, 5079, 5080
Trust agreement, participant in _______________________ 5066, 5131, 5132
Trustees shares, holder o f ___________________________________ 5061, 5128
D etroit Trust Co., director o f _______ _________________________________
5332
First National Bank in Detroit, chairman of the board of directors
o f _______________________________________ 5069, 5070, 5071, 5079-5080, 5757
Circular addressed to stockholders of unit banks later forming
D etroit Bankers Co. signed by as_________________________ 5069-5071
Guarantee of, signed b y __________________________________________
5760
First National Co., agreement to furnish credit to, signed b y ________ 5758
5080
Haas, negotiation with, concerning D etroit Bankers C o_______ ' ______
Verhelle’s resignation requested b y ____________________________________ 5760
C l a r k , E van s , executive director, Tw entieth Century Fund, In c .:
Testifies________________________________________________________________
6962
Tw entieth Century Fund, Inc., executive director of__ 6467, 6936, 6956, 6962
C la r k , G eorge C r a w f o r d :
Clark, D odge & Co., director o f _______________________________________ *1150
Director of Clark, D odge & C o _______________________________________ *1150
C l a r k , L ouis C., J r .:
Clark, D odge & Co., director o f _______________________________________ *1150
D irector of Clark, D odge & C o _______________________________________ *1150
130
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C l a rk , T .:
Page
R adio Corporation o f Am erica pool (1929), participant in (see R adio
Corporation o f Am erica p o o l)_________ __________________________ *471, 519
C l a rk , W illiam , United States judge for district of N ew Jersey:
Testifies: (Securities Exchange A ct of 1 9 3 4 ).____________________ 6927-6935
C larke, H a r le y:
Testim ony of (see also F o x )__________________________________________ 31 6 1 3203, 3413-3443, 3447-3462, 3494-3501, 3622-3652, 3754-3788,
3818-3838, 3852 -385 9/
Acm e M otion Picture Projector Co. held m ajor part o f securities of__ 3163
Interested in, president o f ___________ ________________________3164,3169
Stockholder, principal in_______________________________ __________
3164
Ashcraft Autom atic Arc Co., contract for acquisition o f made b y . 3565-3566
Burns, agent o f--------- ------------------------------------------- 1 ____________________
3382
Chase N ation al'B an k loan to Fox Film, for purchase o f additional
stock, idea o f ------------------------------------------ -------------------------------------------- 3801
Cine Machinery Corporation, president o f ___________ ____ ____________ 3162
Companies to be acquired by General Theatres Equipment, Inc.,
securities of, held by, when conferences took place_________________
3484
Conflicting interests (International P rojector Corporation and
Nicholas Power Co.) represented b y ________________________________
3391
Corporations, security holders, protection of through trading accounts
business o f---------------------------------------------------------------------------------------3179
Differential he received for National Theatres Supply Co. stock,
attem pted explanation o f ____________________________________________ 3403
D odge, every confidence in ____________________________________________
3485
International Power Corporation, director of, at suggestion o f ____ 3204
Telegram to, concerning (a) Fox Co., (6) Halsey, Stuart & C o__
3580
Fox, acquaintanceship with progressed___ ____________________________
3671
Fox companies, financing secured by half Halsey, Stuart & Co. and
half Chase interests---------------------------------------------------------------------------3774
Halsey, Stuart & Co. terms very fair------------------------------------- 3638, 3640
Loan to refused b y ---------------------------------- ----------------------------- --------- 3696
M erger of with Loew ’s and Paranlount Pictures suggested b y ____
3693
Governm ent refusal of, F ox held responsible fo r ________________
3669
Fox, com petitor o f----------------------------------------------------------------- 3478-3479, 3552
Forced agreement of with General Theatres Equipment, I n c ____ 3653
General Theatres Equipment (In c.), owned by, says William A. Gray
(see General Theatres Equipment (I n c .))------------------------------------ *987-988
General Theatres Equipment (I n c .): Listing application, M urray W .
.Dodge wrote to Clarke, could be pushed over by Clarke and D odge
by appearing before New Y ork Stock Exchange Com m ittee on
Stock L ist____________ __________ j ______________________________ 5978-5979
General Theatres Equipment (In c.), wrote up assets from $4,000,000
to $24,000,000, adm itted Clarke________________________________ 7602-7603
General Theatres Equipment, In c.:
Acquisition of stock in other companies fo r ________________ ______ 3418
Agent acquiring properties fo r _______ ____________3411> 3493, 3552-3553
Agreement for organization of, and purchase o f debentures of
with bankers b y --------------- -------------------------------------------------- 3417-3422
Agreement with Fox, negotiated b y _____ _________________________ 3564
Board of directors, member o f--------------------------------------- 3415, 3488, 3636
Board voted reimbursement to just before receivership._________ 38 52 3853, 3854
Com m on stock com m ittee, representative on suggested in Hagen
m em orandum ______________________________________________ 3846, 3847
Bankers option on shares relinquished for less shares_______
3538
Voting trust certificates, offer to International Projector
Corporation stockholders signed b y _______________________
3401
Debentures, trading account, second in, m em ber o f______________ 3553
Directors, didn’ t show contracts for acquisition of, t o ____________ 3557
Financing of, in consideration of, to give options on shares to
bankers___________________________________ _____________________
3205
Idea of, had by, a long tim e_________________________________ 3182, 3209
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
131
C l a r k e , H a r le y — Continued
General Theatres Equipm ent, In c.— Continued
Pa&e
Organizer, principal o f ____________________________________________ 3182
President of, m em ber o f _______________________________ 3488, 3636, 3822
N o salary as_________________________________________________
3822
Securities promised to be delivered to b y -------------------------------------- 3418
Sold to bankers_______________________ ___________________________
3395
Meetings, held often at office o f __________________________________
3853
Minutes authorizing repaym ent__________________________________
3854
Receivership of, held conferences concerning_____________________ 3834
Other stockholders------------------------------------------------ 3399-3400, 3401, 3402
Till offer withdrawn, still stands except for a few shares_________3182,
3183-3184, 3203, 3392, 3396-3398
International Projector Corporation stock basis of exchange with
bankers_________________________________________________________ 3402
Stock, agreement of not to sell---------------------------------------------- 3518-3519
Needed to maintain m arket_____________________________ 3519-3520
Exchange listing, letter from D odge concerning meeting of difficul
ties in obtaining___________________________________________ 3528-3529
Issued to Clarke__________________________________________________
3518
Option on taken from, by bankers___________________________ 3392-3393
N ot exercised________________________________________________
3395
Discrepancies in testim ony concerning__________________________
3396
Paid less shares to be released from option on m ore_______________ 3535
Repurchase agreement made with Fox fo r _______________________
3631
Fox denied________________________________________ .__________ 3677
Theatre Equipment Acceptance Corporation stock received for__ 3424
Valuation of, comparison o f _________________________________ 3424
General Theatres Equipment, Inc., voting trust of, m em ber o f _______ 3373,
3405, 3522, 3835
G old Street property, inclusion o f price of in check to Burns, can’t
explain__________________________________________________________ 3385, 3386
Explanation of attem pted_____________________________ _______ 3386,3390
Grandeur, Inc., bought stock of from Mitchell Camera Co., price paid
as shown by statem ent___________________________________ 3435, 3436, 3440
Caused to be organized______________________________________ 3437, 3449
Fox received half interest without cost______________________ 3686-3687
Interest conveyed to, b y _________________________________________
3452
Grandeur, Inc., purchase of half stock of part consideration on settle
ment of claim of projecting m achine________________________________ 3454
Communications concerning from ________________________________
3673
Chairman of boa rd ___________________________________________ 3816, 3818
Director o f ________________________________________________________ 3755
Dividend declared despite deficit_________________________________
3818
Difficulties not due to, according t o ---------------------------------------------3831
Executive head o f ____________________________________________ 3818, 3822
When dividend paid despite deficit incurred_________________ 3818
Executive head o f ____________________________________________ 3818, 3822
Fox interests, projection machine for wider screen, met with,
o n ______________________________________________________________
3672
Fox, paym ent to for purchase by of one-half Grandeur, made
b y __________ 3436, 3437, 3453, 3454, 3455, 3626, 3627, 3635, 3648, 3686
Fox Theatres, president of, after stock acquired by General
3640
Theatres Equipment, In c ___________________________________
President of, ceased to b e------------------------------------------------------- 3822
N o salary as_________________________________________________
3822
Keeser family, members on board discussed by, with D odge— 3757-3758
M anagement not disturbed by change in but by bad conditions
in industry_____________________________________________________
3837
President:
(a) Became b y General Theatres Equipment Inc., acquiring
stock o f _______________________________________________ 3636, 3640
(b) No salary as_____________________________________________
3822
When settled with Berenson_________________________________ 3752, 3754
Stock acquired through trading account and price_______________ 3825
132
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C l a r k e , H a r le y — C ontinued
Page
Grandeur, Inc., purchase o f half stock o f part consideration on settle
m ent of claim of projecting machine— Continued
Savings in operation o f____________________________________________ 3760
Voting trustee o f _________________ •________________________________ 3764
Transfer to, o f General Theatres Equipment, Inc., shares_______
3436
Halsey, Stuart & Co., banker of, previously of F ox ____________________ 3669
Ham mond, W . S. & Co., done financing for companies in which inter
ested_____________________________________________________ ____________ 3171
Insurance of interests in General Brokerage Corporation, criticized in
mem orandum from Snow to D odge_________________________________
3858
Insurance of interests in Crescent Brokerage Corporation understood
to have been organized by and hence delicate to rearrange_________ 3857
International P rojector Corporation caused to be organized_____ 3164, 3169
Ch eck, doesn’t know why price o f G old Street property included in _ 3381
Controlled_________________________________________________________
3390
3168
. D irector o f________________________________________________________
Owned stock o f____________________________________________________ 3504
President o f______ ________ ____________________________ _ 3161,3162,3390
Shares owned by, General Theatres Equipment, Inc., agreed to
b u y ______________________________________________________________ 3424
Stock, common, issued t o ____________________________________ 3162, 3391
Consideration for_____________________________________________
3162
D onated block b a ck _____________________________________ 3162, 3165
Sale to bankers, condition o f____________________________
3165
Owned by when exchanged for General Theatres Equipm ent
C o_________________________________________ ____________ 3202,3392
General Theatres Equipment Co. stock, basis o f exchange
w ith _________________________________ 3182, 3183-3184, 3396-3398
Stock, preferred, price at which sold by, contrasted with market
price________________________________________________________ 3429, 3430
Some owned b y ______________' ________________________________ 3429
Stockholder, m ajority in_______________________________ 3181, 3182, 3204
Trading account in, caused form ation o f __________________________ 3178
Financed b y _____________________________________________ 3178, 3181
M ember o f ____________________________ ____ _____________ 3180, 3199
Lam p companies:
Acquired by within 6 months o f organization o f General Theatres
Equipment, I n c _________________________________________________ 3410
Acquired from b y General Theatres Equipment, In c ____________
3625
Price at w hich________________________________________________
3625
Acquisition o f for joint account proposed to Fox b y ______________ 3673
And Grandeur, prices paid for by and at which sold to General
Theatres Equipment, In c ____________________________ 3435-34^8, 3440
Contracts for made b y ____________________________________________
3410
Names acquired b y before General Theatres Equipment, Inc.,
created__________________________________________________________
3410
Price paid fo r _____________________________________________________
3410
Stock in, method o f acquiring_____________________________________ 3410
Taken over by General Theatres Equipment, Inc., at co st_______ 3412
Lincoln Building, syndicate for financing prospective, m em ber o f . 4052, 4056
Lindley, second telephone conversation with concerning Pynchon_ 3830-3831
Lindley talked to in New Y ork from Chicago concerning P ynchon’s
difficulties_________________________________________________(__________
3825
Lindley, telephone conversation with concerning Pynchon.*_____ 3826-3829
M cAuley, J. E., M anufacturing Co., contract for acquisition of, b y ___ 3564
M itchell Camera Co., acquisition o f:
(a) Contract fo r __________ .__________________________________ 3570-3572
(b) For joint account proposed to Fox b y ___ ____________________
3673
Assets o f __________________________________________________________
3432
And lam p companies acquired b y as agent for General Theatres
Equipment, I n c ____________________________________________ 3411, 3553
Contrast between price at which acquired and sold to General
Theatres Equipment, In c___________________ ___________________
3433
Assets purchased by, not by F o x _________________________________
3552
Bill of sale to, warranted patents, etc., sold_________________ 3630-3631
Owned when taken over b y Grandeur, In c _______________________
3432
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
133
C la r k e , H a rle y — Continued
M itchell Camera Co., acquisition of— Continued
Pase
Payments for, part of personal recollection_______________________ 3634
Stock acquired from by Grandeur, I n c . , . ________________ ________ 3625
Price at w hich _______________________________________________
3625
National Theatres Supply Co., bankers’ payments agreed on b y for
purchasing securities o f _____________________________________________
3192
Caused to be organized_______ _______________________________ 3189, 3402
Owned b y _________________________________________________________ 3204
Preferred stock of bought b y _____________________________________
3190
Stock of, exchanged with General Theatres Equipment, In c. _ 3402-3403
Preferred; price at which sold by, contrasted with market
price________________________ __________________________ 3426-3427
Some of held b y _________________________________________
3425
Price at which sold _________________ 1___________________ 3426
M ajority stockholder in ____________________________ 3190, 3402
Negotiations for acquisition o f Precision M achine Co., Inc., Acm e
M. P. P. Co. and Nicholas Power Co. b y _________________________
3169
Nicholas Power Co., assets of, offer for made b y ______________________ 3369
Controlled, sole stockholder o f ___________________________________
3390
Handled details of sale o f ____________________________________ 3370-3371
Loan to, b y __________________________________________________ 3166, 3382
3167
N ot organizer for_________________________________________________
Owner o f ____________________________________________________ v.____
3385
Purchase price of received by through nominees_________________
3387
Representative o f m ajority stockholders when sold assets______
3372
Am ount paid for b y _______________________________________________ 3388
Bought entire outstanding________________________________________ 3380
Acquired by representative o f _____________ ______________________
3377
3378
Acquired before assets sold________________ ______________________
Held none until acquired for purchases of assets o f _______________ 3166,
3U69, 3379, 3380
Held all, not none o f_________________________________________ 3378, 3379
N ot all paid for before International Projector Corporation,
purchased_____ _________________________________________________ 3387
T ook few months to acquire______________________________________ .3380
Stockholders controlled before assets sold________________________
3371
Payments to by General Theatres Equipment, In c_______________ 3626, 3627
Precision M achine Co., not interested in______________________________ 3167
Price for stock of paid____________________________________________
3167
Public utility business, in_________________________________________
3162
Pynchon & Co., collateral not loaned to, b y ___________________________ 3829
Collateral promised to, in New Y ork under control o f___________
3852
Difficulty, talked to Wiggin ab ou t_______________________________
3825
D one financing for companies in which interested________________
3171
Promised help to, denied at hearing b y ________________ 3826, 3827, 3829,
Pynchon appealed for help t o ____________________________________ 3825-3826
Received 10 times equivalent in stock o f General Theatres Equipment,
Inc., for Theatre Equipm ent Acceptance Corporation stock _______
3424
Reconciliation attem pted of price paid for lamp companies and Grand
eur and price at which sold General Theatres Equipment, Inc__ 3435-3438,
3440, 3448, 3450
Shermar, negotiated with D odge and Wiggin of, for Acm e financing. _ 3171
Stock, still holds what he h ad_________________________________________
3180
Strong Electric Co., contract for acquisition of b y _____________________ 3566
Stuart, Harry, controversy with concerning management of Fox com
panies___________________________________________________________ 3618-3620
Conversation of with, disgruntled at being ignored_______________ 3582
Discussions with concerning Fox financing_______________________
3583
Testim ony, discrepancies in_______________________________________ 3386-3387
Theatres Equipm ent Acceptance Corporation, business of, credit,
extension of to companies organized b y ____________________________ 3425
R eceived 10 times equivalent in General Theatres Equipment, Inc.
for______________________________________________________________
3424
Three W ebster Securities Corporation ow ned___________________
3424
Utilities Power & Light Co., com pany o f _____________________________
3516
134
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES '
C la r k e , H a r le y — C ontinued
Pa&e
Utilities Power & Light Corporation (H arley Clarke’s com pany,) wrote
up assets to extent o f $4,500,000. _________ _____ ___________________ 7603
Van Duyn, H. E., commissions to, personal obligation o f______________ 3623
Paid t o ______________ : _________________________________ 3436,3440,3457
3457'
N ot yet effected________ «____________________________ _____________
3623
Correction of testim ony that commissions o f held in escrow _____
W ebster Securities Corporation, com m on stock o f Theatre Equipm ent
Acceptance owned by, in turn ow ned b y ___________________________
3424
W est & Co. did financing for companies in which interested__________
3171
C lark so n , R . L .:
Chase Securities Corporation, executive officer o f __________________ . _ 2937
Catlin, conversations with, concerning floating d eb t____________ _____
2654
M etpotan Securities Corporation, president o f . . _____________________
2414
C layton A c t :
Banks, interlocking management of, left open b y section 8 of 3982, 3983-3984
H olding companies, use of, to acquire stock o f com peting railroads
attacked b y Interstate Com m erce Com mission as violation of__ 1283, 1284
Sections 8 and 8a of, provisions o f________________________________ 4007-4008
Treasury regulations interpreting____________________________ 4008-4012
C l e a r , A lb ert F .: M em ber o f Hirsch, Lilienthal & C o __________________
2510
C learin g H ouse A ssociation (New Y o r k ):
Advertisements of that deposits in m em ber banks had never lost m oney 4044
Buckner, M ortimer, president_________________________________________
90
Criticized b y Samuel Untermeyer____________________ 7727-7728, 7732-7733
Harriman Bank deal, criticized by Samuel Unterm eyer___________ 7732-7733
President, Buckner, M ortim er_______________ _________________________
90
C learing H ouses :
Functions o f . ________________________________________________ 4042-4043,4044
Power of, curtailed b y Federal Reserve A c t ______________________ 4043-4044
Regulation of, no need for, Aldrich says______________________ ________
4043
C lements S a ^ ngs B a n k : People’s W ayne C ounty B ank; Reconstruction
Finance Corporation did not bail out bad loan t o __________________ 5615-5616
C lem ents , W illiam L .: B ay C ity banks that closed, ow ned b y and asso
ciates__________________________________________________ ________ __________
5569
C l e v e l a n d : Banking practices and m ethods of banks in, investigated b y
1 Frank J. M eehan__________________________________________________ 7975 et seq.
C levelan d A kron B ag C o .: Cleveland & Boston Co. organized to hold
assets o f on foreclosure________________________________________ 8121, 8136, 8711
C leveland & B oston C o .:
Banks interested in ____________________________________________________
8137
Cleveland Akron Bag Co., holding com pany for assets o f on fore
closure____________________________________________________ 8121,8136,8711
Stock, subscribers, original t o _____ ____________________________________ 8711
Union Trust Co. authorizes purchase of Cleveland-Akron Bag Co.
b y ____________________________________ ________ __________________ 8711-8712
Union Trust Co. group, one o f corporations b y __________________ 8121, 8133
Union Trust "Co. owned m ajority o f________________________ 8121, 8133, 8136
Value, liquidating, undeterminable, slow w orkout proposition accord
ing to superintendent o f banks,._____________________________________ 8145
C l e v e la n d & Y o u n g s to w n R a ilr o a d Co. (See Van Sweringen affiliate,
Cleveland & Y oungstow n R . R . Co.)
C levelan d B an k in g I n ve stig a tio n _______________________________ 7978 et seq.
Guardian Trust Co. of Cleveland. (See under Guardian Trust Co. o f
Cleveland.)
C l e v e la n d B a n k s: Closed, investigation of, com m ittee decided to m ak e. 2613
C l e v e la n d B a s e b a ll C o. (See Van Sweringen affiliate, Cleveland Base
ball Co.)
C leveland C liffs I ron C o .:
Eaton interests__________________________________________________ 8054 et seq.
Guardian Trust Co. o f Cleveland, loans by, t o _________________ 8054 et seq.
M cK inney Steel C o.:
*
Banks financed_____________________________________________ 8235-8236
Control of bought b y ____________________ 8234-8235, 9051, 9078-9079
Loan no g o o d ______________________________ _
8236, 8238, 9052-9053
Participants______________________________________ 8235, opposite 9052
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
135
C levelan d C liefs I ron C o .— C ontinued
Union Trust C o.:
Pase
Borrow ed on collateral of certificate of participation in loan t o ___ 8254
Loan further to offer original no g o o d _____________ 8236, opposite 9058
Loans, commission on ________________________________________ 8236-8237
Loans for purchase of M cK inney Steel Co., control o f ______ 8235-8237
Exhibits concerning__________________________ __________ 9052-9062
U surion______________________________________________________ 8237, 9059
Valuation o f_____________________ _________________________________ 9074
C le v e la n d I n te r u r b a n R a ilr o a d C o. ’ (See Van Sweringen affiliate,
Cleveland Interurban R. R. Co.)
C leveland R a il w a y C o .: Guardian Trust Co. of Cleveland, investment
by, in _____________________________________________________ ________________ 8470
C leveland S tock E xc h a n g e : Incom e and expenses of m em bers_______
7902
C le v e la n d T e r m in a l B u ild in g C o.: (See Van Sweringen affiliate, Cleve
land Terminal Building Co. M organ (J. P.) & Co., loan by, t o _____ 646, 647
Nickel Plate Securities Corporation sale to, of stock o f __________ 577, 580, 591
Van Sweringen Corporation, subsidiary o f_____________________________
648
C le v e la n d T r a c t io n T e r m in a l C o. (See Van Sweringen affiliate, Cleve
land T raction Terminal C o.):
Stock of, sold to Vaness Co. by Van Sweringen and associates- 604 et seq.
Vaness Co., purchase by, of stock of, from Van Sweringen and asso
ciates in exchange for own stock _____________________________ 604 et seq.
C leveland T rust C o .:
Higbee Co.:
Loan to:
Participation in ______________________________________________
8211
Trustee for banks participating in ____________ ;__________ 8211, 8911
Prosperity, prognostication of fo r ____________________ ___________ 1931, 4305
C liffw ood C orporation :
Bragg (Thom as E.) owns the corporation---------------------------------------------*472
Radio Corporation of America pool (1929), participant in. (See Radio
Corporation o f Amrica, p o o l)______ _____________________________ *470, 472
C lin g s t o n C o., In c. (See also Wiggin fam ily corporations.):
Assets on dissolution to Shermar______________________________________ 2993
Chase stock trading 1927-32, profit from ________________________ 2850, 2851
Dissolved before hearings_________________________________________ 2993, 2994
Incom e, 1928-32______________________________________________________
2997
2878
Purpose o f organization, tax saving___________________________________
Taxes, Federal income paid by 1928-32_______________________ _______
2997
___________ 2328, 2850, 2877
Wiggin fam ily corporation______________________ •
C lover L eaf R a ilro ad :
Stock of, bought by Van Sweringens__________________________________
658
T oledo, St. Louis & Western Railroad C o _________ 565, 588, 589, 590 et seq.
Van Sweringens, purchase by, of stock o f _____________________________
658
C o. A zucarera C e n t . M ir an da : Chase National Bank loan to, guaran
teed by Warner Sugar Co., officials or trustees of, interested in _______ —
2914
C o a t a le n : Indian M otorcycle Co. pool of 1930. (See Indian M otorcycle
► Co., p o o l)___________________________________________________ *460-462,588-589
C oates , F rank R .: Henry L. D oherty & Co., member of executive com
mittee o f ____________________________________________________________ 6313-6314
C obb , B. C.:
Corporate affiliations o f____________________________________ 324, 360, 414, 854
Director of:
Commonwealth & Southern Corporation_______________________ 324, 360
Colum bia Gas & Electric C orporation. _ i _________________________
M ohawk Hudson Power Corporation_____________________________
United Corporation___________________________________ 324, 360, 414. 854
Officer o f:
Allied Light & Power C o __________________________________________
360
Commonwealth & Southern Corporation__________________________
854
Public-utilities companies____________________________________ ____
414
C ochran , T heodora , wife of Williams Cochran____________________________ *536
General Asphalt Co. pool (1929-31), participant in. (See General
Asphalt Co., p o o l)___________________________________________________
*536
136
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C ochran , T hom as :
D irector o f :
Page
Alaska D evelopm ent & Mineral C o ______________________________
30
30
Alaska Steamship Co _ _ _____ __________________________ __________
American Foreign Securities C orporation_________________________
30
30
Astor Safe D eposit C o ______________________________________ ______
Bankers Trust C o _________________________________________________
24
Braden Copper C o _______ _____ _______!_____________________ ______
30
Copper River & Northwestern Railway C o ______________________
30
30
Foreign Finance Corporation-_____________________________________
General Electric C o___________________ _____________________ 30-431
International General Electric C o ________________________________
30
30
K ennecott Copper Corporation_________________ _________________
N evada Northern Railw ay C o____________________________________
30
General Asphalt Co., pool (1929-31), participant in (see General
Asphalt Co. p o o l)________________________________________ __________
*534
M organ & Co., J. R ., partner in _______________________________________
*534
C ochran , W il l ia m s : Luke, Banks & Weeks, partner o f __________________
*536
C ochrane , F. D _____________________________ _____ _______________________
*592
C offin , H ow ard E .:
D etroit citizen, well know n____________________________________________
4210
Guardian Detroit Union Group, I n c ___________________________________
4210
4600
Founder o f ___________________._____________ * _____________________
National Aviation Corporation, president o f__________________________
4210
C ohalen , M r s . D .: Radio Corporation of America, pool (1929), partici
*471
pant in (see R adio Corporation o f America, p o o l)_ _ _____________________
C o h e n : Securities Exchange A ct o f 1934, codrafter o f____ 7473, 7474, 7475, 7476
C oh en , Sim onson & C o .: Lion (D avid M .) em ployed to furnish publicity
on stock in which Cohen, Simonson & Co. was interested (see also Lion,
D avid M .)_________________________ ________________________________ _ *687,712
C o lb y , B a in b r id g e : Kreuger & T oll Co., chairman o f join t com m ittee o f
debenture holders o f ____________________________________________________
*1305
C o lb y , G uy I.: American Commercial Alcohol Corporation, director, vice
president and treasurer o f _______________________________________________
5852
C ole , H e n r y T .:
First W ayne National Bank, director o f _______________________________
5638
Loan to unsatisfactory condition of, reported_________________________
5638
H om e mortgaged b y __________ !________________________________________
5638
C oleman , J udge F ran k C .:
Fox companies:
D isplacement o f financing plan interfered w ith b y _ _ _ _ __________
3772
(a) Affidavit o f prejudice filed against, in ______ ____ ___ 3771, 3772
(b) Indicated he was unwilling to appoint receiver in, w ith
out submission to stockholders____________________________
3772
Proceedings before, with reference t o ________________________ 3770-3771
C o l e m a n , S. C .: Cutten (R uloff E.) had Coleman, statistician o f E. F.
H utton & Co., study American Com mercial Alcohol Corporation prior
to accepting options in that stock from directors and officers, says Cutten.
(See American Com mercial Alcohol Corporation, pools— options b y di
rectors and officers to C u tten)__ 5887-5888, 5895-5896, 5897-5900, 5910-5912
C o l f a x T r a d i n g C o r p o r a t i o n , fam ily corporation o f the Warner B ro s.
*648
C o l l a t e r a l Se c u r it y .
(See also Bonds.)
Bonds as________________________________________ '__________ *1165, 1166, 1169
Foreign governments bonds as____________________________ *1165, 1166, 1169
Governm ent bonds as______________________________________ *1165, 1166, 1169
Kreuger & T oll secured issue. (See under Kreuger & T oll Co.)
Bond issue.
Collateral security.
Substitution of, frequently not permitted and generally perm itted only
for securities o f equal or greater value, testifies M ax W inkler____
*1317
C o l l e g e H e i g h t s R e a l t y C o .:
Balance sheet o f_________________________________________________________
Guardian Trust Co. o f Cleveland, subsidiary o f__________________ 8596,
H istory o f _______________________________________________________________
Land D evelopm ent & Realization Co., subsidiary o f _____________ 8596,
8629
8629
8629
8629
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
137
C ollier , B aron : Brooklyn Manhattan Transit Co., advertising rights in Page
subway secured from_____________________________________________________ 3031
C ollier ’ s W eekly :
Crowell Publishing Co., control by_________ _____________________ 833 et seq.
Lamont, T . W .:
Articles of, on Henry P. Davidson, published in_______________ 833, 837
Connections of, with________________•________________________ 833 et seq.
Long, Huey P., attack on, published by______________________________
837
C ollins, N orton Co.: Electric Auto-Lite joint account of 1931, received
$7,102.44 from (see Electric Auto-Lite Co., joint account)______ *522, 753-754
C olombo, Louis J.:
Testimony of.......................... .................. ......................... 4656, 4668, 4669, 4672
Ford, E. N ., attorney for______________________________________________ 4656
C olt, S. Sloan :
Bankers Trust Co., president of__________________________________ 4732, 5038
Bankers Trust Co. of New York, present at conference preceding
Michigan bank holiday by__________________________________________
5815
Guardian Detroit Union Group, Inc., Reconstruction Finance Cor
poration loan, present at discussion on_____________________________
4732
Shorts letter to expressing objection to Second National Bank & Trust
Co. remaining unit of Guardian Detroit Union Group, Inc_________ 5038
C olumbia G as & E lectric C orporation:
Control of:
Morgan (J. P.) & Co., by__________________________ ______________
394
United Corporation, by___________________________________________
394
Debenture issue of:
Guaranty Co., floated by_________________________________________
478
Proceeds of, used to repay loan to J. P. Morgan & Co_____ 478 et seq.
Directors of______________ __________________________________ 31, 360, 361, 831
United Corporation, directors of, as______________________________
395
Gossler, P. G., president___________________________________ 360, 490, 491, 492
Guaranty Co., floating by, of debenture issue of______________________
478
Holding company____________________________________ _______ 478, 479 et seq.
395
Interlocking directorates_____________________________________ _________
Loan of J. P. Morgan & Co_________________________ 472 et seq., 478 et seq.
Paid from proceeds of debenture issue______________________ 478 et seq.
Unsecured_____ ____________________ ___________________________ 476,478
Morgan (J. P.) & Co.:
Control by________________________________________________________
394
Joint account of, trading by, in securities of_____________________
547
Loan by, to__________________________ __________ 472 et seq., 478 et seq.
394
Officers of, not indebted to J. P. Morgan & Co__ :___________________
Securities of:
Morgan, J. P. & Co., trading by joint account of, in_____________
547
United Corporation, owned by__ 317, 434 et seq.; 479, 490 et seq.; 547
Security business of, done by Guaranty C o*______ ________________ 476, 478
Stockholders of, given opportunity to exchange their holdings for
securities of United Corporation__________________________________ 480, 481
United Corporation:
Antedating of, by_________________________________________________
479
Control by________________________________________________________
394
Directors of, as directors of_______________________________________
395
Stock owned by, in_____________ 317, 434 et seq.; 479, 490 et seq.; 547
C olumbia G raphophone C o.:
Morgan, J. P. & Co.:
Deposits with_____________________________________________________
548
Trading by joint account of, in securities of__-----------------------------548
Securities of; traded in by joint account of Morgan, J. P. & Co______
548
C olumbia O il & G asoline C orporation : United Corporation, ownership
by, of voting trust certificates of_________________________________________
317
C olvin , A. J.: Detroit Trust Co., mortgage department, in_______________ 5324
C omey , G eorge P.:
Union Trust Co.:
Director________________________________________________ 8163, 8164-8166
Loan to________________ ______________________ 8163, 8166, opposite 8753
Undercollateralized_______________________________________________
8166
138
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C om mercial B anking — D ivoRdEMENT op I nvestm ent B a n k in g F r o m :
Aldrich advocates_________________________________________________ 2294-2297
Chase Harris Forbes Co., dissolution proposed__________ ________ 2295, 2296
Chase National Bank, difference in operation from Chase Securities
Corporation______________________________________________________ :___ 2426
Votes f o r __________________ _________________ :_____________________
2297
W iggin not consulted on changes____________________________ 2305, 2306
D epositor, position m ore favorable than stockholder_____________ 2426-2427
Equitable corporation in liq u id a tion ._________________________________
2381
First National Bank o f New Y ork— First Securities Co. (securities
. affiliate of) dissolved b y _____________________________________________
3029
Mechanics Securities Corporation liquidated__________________________
2368
U rged_____________________________________ 1________________ 2294,2295,3695
C om m ercia l B anks, B an k in g , an d B a n k e r s (see also Banks, banking and
bankers, Incorporated banks, Private banks, banking and bankers):
Affiliated corporations, loans to, individually which collectively exceed
lim itations fixed b y law on loans to individuals; propriety of,
questioned—
*1520, 1530 et seq., *1547 et seq., 1549 et seq., 1684 et seq.
Affiliates of. (See under Commercial banks, banking and bankers,
investm ent affiliates.)
Business financed by (consum able goods) n ot greatly decreased b y
depression, testifies Clarence D illon _________________________________
1544
Capital stock— trading and pool operations in, o f parent by affiliates. 2843
et seq.
Collateral, stock of bank m ay not be taken by it as__________________ *1996
Consumable goods financed by, and not greatly decreased b y depres
sion, testifies Clarence D illon_____________ :______ ___________________
1544
Corn Exchange Bank Trust Co. o f New Y ork, portfolio o f investments
of, published annually-----------------------------------------------------------------------1719
Definition of, by Clarence D illon________:___________ ___ __________ . . . , 1538
D epositor in, guided b y published statem ents__________ ______________
102
D eposits b y Kuhn, Loeb & Co., in, list of. banks___________________ 989, 990
Depression does not greatly decrease business financed b y ____________ 1544
D illon, Read & Co. not engaged in______________ _______ ______________
1540
D irectors of, loans to, by J. P. M organ & C o__________________ 62, 90 et seq.
Exam ination of, b y State superintendent o f banks in New Y o rk _____
859
Financing b y :
Consumable goods, of, testifies Clarence D illon__________________
1538
Short term credit, of, is primary function o f com m ercial banks,
testifies Clarence D illon ________________________________________
2109
Function of, short-term credit, financing of, is p rim a ry ' function,
testifies Clarence D illon _____________________________________________
2109
Investment affiliates o f:
C ity Bank Farmers Trust C o _____________________________________
543
National City Co. (See under National City Bank and National
City Co.)
Investm ent banking should be kept distinct from , testifies Clarence
1539
D illon __________________________________________ _____________________
Investm ent banks and, business equally divided between, testifies
Clarence D illon ______________________________________________________
1543
Investm ents o f Corn Exchange Bank Trust Co. o f New Y ork , port
folio of, published annually______________________ ____ ______________
1719
Kuhn, Loeb & Co., deposits by, in, list o f b a n k s .._________________ 989, 990
Legislation on. (See under Legislation, Com m ercial banks.)
Lim itation on am ount of loans by. (See under Com m ercial banks,
banking, and bankers, Loans by, Lim itations on am ount of.)
Loans by, lim itation on account of:
Affiliated corporations, loans to members of, as im plied violation
o f restrictions on am ount o f loan to one individual; propriety
o f considering affiliated groups as one individual______________ *1520,
1530 et seq., 1547 et seq., 1549 et seq., 1684 et seq.
Diversification principle as basis o f law lim iting loan to one indi
vidual to definite percentage of bank’ s capital and surplus____ *1532
Loans b y private banks to offices of, not im proper, testifies J. P.
M organ ______________________________________________ _______________
63
Loans to offices and directors of, by J. P. M organ & C o______ 62, 90 et seq.
M organ, J. P., & Co., loans by, to officers o f__________________ 63, 90 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
139
C ommercial B an k s , B a n k in g , and B a n k er s — Continued
Pae®
Private banks, loans by, to officers of, not improper testifies J. P.
M organ ____________________________________ _________'--------------------63
Short-term credits, financing of, primary function of, testifies Clarence
D illon ___________________________________________________________ 1538,2109
Stock of, may not be taken by some banks as collateral______________ 1996
C ommercial B a n k s , R eports and S tatements op I n ad eq u ate :
Chase National Bank, 1930:
Chase Securities Corporation net profit not substantial loss taken,
calculating shrinkage shows____________________________________
2392
Figures showing annual reserve for depreciation missing_________ 2392
Reserve for depreciation of securities not clearly shown_____ 2390-2393
Chase National Bank, 1931:
Am ount taken from capital funds and profits for depreciation not
shown___________________________________________________________ 2393
Com parison with 1930 impossible to ascertain from am ount with
drawn from Chase Securities Corporation for reserves____ 2394-2395
Conceals distribution of funds of Chase Securities Corporation to
reserve________________________________________- ____________ 2390-2393
Conceals redistribution of funds, Chase Securities C orporation. _ 2393
Chase National Bank, 1932:
Chase Securities Corporation, change in value capital stock shown,
effected the following year_________________________________ 2396-2397
Reserves set up from capital funds not shown___________________
2394
Chase Securities Corporation lien on securities not shown b y ____ 2403-2405
Reports of inadequate— Chase National Bank, 1932, capital stock
value Chase Securities Corporation, change of in 1933 reduced cap
ital increased surplus------------------------------------------------------------------------2398
C ommercial N ational B ank & T rust C o .:
General Theatres Equipment, Inc., transfer agents fo r_______________ 3574
Radio-Keith-Orpheum Corporation made call loans in 1929 th rou gh -- 63856386
Stirn (Ernest W .), charges bank acted wrongfully in respect of RadioKeith-Orpheum Corporation plan of recapitalization of 1931 in
connection with its position as transfer agent. (See Radio-K eithOrpheum Corporation, recapitalization plan)___________________ *847-849
C ommercial N a tion al B a n k , St . J oseph , M ich .: Condition precarious.. 4633
C ommissioner of I n tern al R e v e n u e : M organ, J. P., & Co., accounts of
partners of, audited b y ----------------------------------------------------------------------------35
Com missions (see also Spread)--------------------------------------------------------------- *85, 51-52
Amount, received in 1929 for stocks and bonds listed on New Y ork
Stock Exchange, etc. (table and comment by Ernest W. Stirn) .-* 8 5 9 -8 6 1
Specialists_______________________________________________________ _ 6667-6668
C om m ittee o n B a n k in g and C u r r e n c y (see also under Banking and
currency): Investigation of Murfin, im puted unfairness t o _________ 5445-5446
C om mittees :
Bondholders protective, desirability of such committees for purpose
of seeking enforcement of obligation of foreign countries ques
tioned__________________________________________________________ 1971, 1972
N ew Y ork Stock Exchange, of (see New Y ork Stock Exchange com
mittee, listing, stock list):
Business conduct committee:
Chairman— Lindley, A __________________________ ____________ *1387
Duties o f ____________________________________________ — *1387, 1395
Eastman, Dillon & Co., accounts of, investigation o f_________ *1385
Investigation of Eastman, Dillon & Co. accounts_____ _______*1385
K nowledge o f accounts of Krueger___________________________ *1389
Report to _____________________________________________________*1375
Governing committee:
Members o f___________________________ ______________________ *1328
Subcomm ittee of committee on stock list____________________*1333
Stock list committee:
Aim of, to protect investors_________________________________ *1365
Duties o f____________________________________ *1328, 1329, 1333, 1387
Governing com m ittee of New Y ork Stock Exchange is sub
com m ittee o f_______________________------------------------------------ *1333
140
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C ommittees — C ontinued
N ew Y ork Stock Exchange, of— Continued
Stock list com m ittee— Continued
Page
Investors, protection of, aim o f______________________________ *1365
Krueger & T oll debenture issue approved b y ________________ *1145
Members o f____________________________________________ .*1328, 1333
Rulings forced on listed companies b y persuasion___________ *1365
Protective:
Drexel & Co. represented o n ______________________________ 304, 305, 306
M organ (J. P.) & Co. represented on ______________________ 304, 305-306
Reorganization:
Drexel & Co. represented o n ______________________________ 304, 305-306
M organ (J. P.) & Co. represented on ______________________ 304, 305-306
Common S to ck . (See Stock, com m on.)
C ommonwealth & S outhern C orporation :
Alabam a Power Co., a subsidiary_____________________________________
853
Allied Power <fc Light Co.:
Merger w ith____________________________________________' __________
360
Subsidiary of Com monwealth & Southern Corporation__________
854
American Superpower Co., interests of, in __________________________ 414, 854
Control of:
M organ (J. P.) & Co., b y ____i ____________________________________
394
United Corporation, b y ________________________________________ 394, 853
Directors o f__________________________________________________________ 360, 361
United Corporation, directors of, as______________________________
395
Field covered b y ____________________________________________________ 414, 415
Gulf Electric Co. of Florida is subsidiary o f___________________________
853
H olding com pany______________________________ ________________________
853
Interlocking directorates_______________________________________ ' ____ _
395
Merger of, with Allied Power & Light C o ________ ___________________„
360
Mississippi Power is subsidiary o f_____________________________________
853
Morgan, J. P., & Co.:
Control b y ________________________________________________________
394
Interests acquired by, in, through Allied Power & Light C o_______
414
N o connection with, testifies George W h itn ey___________________ .
415
M uscle Shoals bill permitting Governm ent to construct transmission
lines opposed b y subsidiaries o f Com monwealth & Southern Cor
poration________ ________________________________________ _________ 853, 854
Officers of, not indebted to J. P. M organ & C o __________________________
394
Option warrants of," owned b y United C orporation___________ ________
317
President of:
Cobb, B. C ________________________________________________________
854
United Corporation, director o f______________________________ ____
854
Willkie, W endell________________________________ ___________________
853
Securities of:
Bonbright & Co.,- owned b y _______________________________________
414
Morgan (J. P.) & Co., acquired by, through Allied Power &
Light C o ________________________________________________________
414
United Corporation, owned b y ____________________________________
317
Subsidiaries o f _______________________________________________________ 853, 854
M uscle Shoals bill opposed by_______ __________ ___________________ _ 853, 854
United Corporation, interests of, in _________________________________ 317, 854
C om monw ealth C ommercial B a n k :
D etroit Bank (State) existing at tim e o f bank holiday_______________ • 4208
Individual unit, continued a s_________________________ ________________
5406
N ot plosed_____________________________________________________________
5406
C om monw ealth E dison C o .: Insull Utility Investments, Inc., form ation
of, to acquire securities o f ________________________________________________ 1398
C ommunications R e S ecu rities E xch an ge A ct op 1934:
Allen (H enry C.), critical______________________________________________
7412
American Institute of A ccountants___________________________ .___ 7207-7210
7203
Atlas Powder Co., critical_____________________________________________
Baltimore Chamber o f Commerce, protest_______________________ 7135-7136 .
Bernstein (S. L .), com m endatory_________________________________ 6892-6893
Blumenthal (Sidney), & Co., critical_____________________________ 7264-7269
B op f (S. P .), laudatory____________ ________ ___________________________
6891
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
141
C ommunications R e S ecurities E xchan ge A ct of 1934— Con.
Pa&e
Brant (Irvin g )_________________________________________________________
6892
Bundy (C. L .), critical________________________________________________
7412
Callaway (T row bridge)________________________________________________ 7586
Carlton (C. C .), critical_______________________________________________
7247
Covington, R. V _________________________________________________ ■_ 5954, 5987
Dahlbender, Grover C ______________________________________ 5953, 5985-5986
Edmands, I. R __________ l -------------------------------------------------------------- 5953, 5987
Edwards (J. R .) ______________________________________ 7247, 7258, 7260-7263
France (Jacob), critical o f discrim ination against nonm ember banks. 7578
6890
Fritts (D onald E.) com m endatory____________________________________
Gordon, William A ------------------------------------------------------------------------ 5953, 5984
Haas (M ichael S .)-------------------------------------------------------------------------- 6899, 6925
Hirst, George D ----------------------------------------------------------------------------- 5953, 5986
Investm ent Bond Club of Portland, critical__________________________
6752
Lambell (George A .), critical o f regulation of puts and calls_____ 7578, 7579
Longmire (Russell G .)___________________________________________ 7272-7273
Los Angeles Stock Exchange, critical o f prohibition o f trading by
specialists_______________________ ___________________________________
6823
Lum ley (Leslie), critical_______________________________________________
7412
M cCann (Gene), favorable_______________________________________ 7408-7409
M ercantile Trust Co. o f Baltimore, critical___________________________
7413
Merle-Smith (Van S.), memorandum, critical____________________ 6828-6831
National Association o f Building Owners and Managers, critical. 7263-7264
National Association of M utual Savings Banks, critical_________ 7273-7277
National R etail D ry Goods Association, critical_________________ 7642-7644
New Y ork Airbrake Co., critical_________________________________ 7020-7023
New Y ork Produce Exchange, critical____________________________ 7269-7272
Owen, R ob eit L., critical_________________________________________ 7277-7281
Petition on behalf of floor traders of New Y ork Stock Exchange,
critical o f restriction of floor trading by membars o f a securities
exchange_______________________________________________________ 7750-7751
Petition on behalf of specialists of New Y ork Stock Exchange, critical
of provision re specialists_______________________________________ 7748-7750
Queeny (Edgar M .), ciitical______________________________________ 6539-6540
Reyburn (Samuel W .), critical___________________________________ 7023-7024
Roosevelt, Franklin D ____________________________________________ 7577-7578
San Francisco Stock Exchange, critical of prohibition of trading by
speculators_________________________________________________________6824
Securities Dealers Association of San Francisco, critical_________ 6751-6752
Security Dealers Association of Southern California, critical_________
6752
Smith (Edw ard B.) & Co., critical of margin provisions_________ 7466, 7467
Speik (Frederick A .), critical__________________________________________
7411
Starkweather (John K .), critical__________________________________ 6889-6890
Swartwout Co., com m endatory_______________________________________
7204
Tremaine (M orris S.), New Y ork State comptroller, critical o f appli
cability of act to municipals___________________________________ 7444-7445
United Fruit Co., critical_________________________________________ 6888-6889
Van Antwerp (W . C.), critical_________________________________________ 7412
Washington State Securities Dealers Association, critical_____________ 6753
W hitney (Richard), critical___________________________________________
7479
Wickwire, Arthur M ______________________________________________ 5953, 5984
Winfield, Bernard_________________________________________________ 7205-7207
Com panies A c t. (See under England, Companies act.)
C o m p e titio n (see also Investm ent banks, C om petition ):
Investm ent bankers, am ong:
Clients once secured are not to be solicited b y other bankers
according to ethics of profession_________ 960 et seq., 964, 966 et seq.
Free participation in syndicates form ed by Kuhn, Loeb & Co.
given to com peting bankers to discourage future harmful com
petition _________________________________________________________
1235
Railroad securities, for, desirable since price of securities to public
is fixed by Interstate Commerce Commission and effect of com
petition is to reduce bankers’ spread______________________ 974 et seq.
142
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C o m p t r o lle r o f t h e C u r r e n c y : (See also Ley burn, Com ptroller.)
Page
Authority o f insufficient until after 1933 Banking A ct, Stevens’ view__ 5820
Bank examiners, chief, national letter to, from , reiterating need for
leniency___________________________________ __________________________
4644
Lenient policy for, laid down b y ____________________________ 4641-4643, 4644
National, instructions to, from ___________________________________ 4643-4644
Banks:
Officers, banks, given pow er to rem ove b y from 1933 Banking A ct- 4703,
5787
D ividends, declarations b y discouraged by:____________________________ 4307
L ord doesn’ t recall request o f ____________________________________- 4278
Insolvent, could be closed b y _____________________________________ 4704, 4705
Threatening assessment o f stockholders, restored impaired capital at
tim e___________________________________ ______________________________
5809
Violating law, could not be closed b y ____________________________ 4703-4705
Bond depreciation, policy of with reference t o __________ _________ 5830-5834
5661
Criticism of for failure to take action on bank examiners’ report,_____
Functions o f office o f___________________________________________ _______ 5829
Guardian D etroit Union Group, Inc., failure to act on unsatisfactory
examiners' report on due to “ higher ups” ___________________________
4702
Guardian National Bank of commerce, criticism o f ________ 4397, 4398-4399
5838
Independent office, generally__________________________________________
Instructions of, Ballantyne inform ed of b y W ilson _______ - __________
5119
Jurisdiction o f______________________________ _______________________ 4485-4486
National banks, supervision o f under_________________ ____________ 5822, 5823
Policy of leniency, await approved________ _______________________ 5838, 5839
Power o f :
Insufficient before Banking A ct o f 1933__________________________
5809
M ore needed, Bryan’ s opinion_______________________;____________
4722
Pressure exerted on b y higher ups to be gentle with b a n k s .- 4702, 5773-5774
5606
Right thing, Vandenberg convinced, wants to d o _____________________
Treasury, Secretary of, function perform ed under general direction
o f ___________________________ _______________________ J__________ 5837-5838
C omrades R e alty C orporation (P ease & E llim an ) : Lincoln Building,
syndicate for financing prospective, members o f interested in______ 4052, 4056
C omstock , L ouis K ., President o f M erchants’ Association o f N ew Y ork :
Testifies (Securities Exchange A ct of 1934)_________________________ 7051-7062
C omstock , W illiam A .:
Bank holiday, Michigan, present when declared______________________
4628
D etroit & Canada Tunnel C o .:
D irector o f in 1928 when bought real estate from syndicate in
which participant__________________________________________ 3970-3971
Leading spirit until January 1928_________________________________ 3964
Michigan, Governor o f _________________________________ 3957, 4628, 4747
President o f________________________________ _______________________ 3951
Real estate for:
Payments on option up to January 1, 1928, made b y _______
3949
Prom oter o f__________________________________________________
3970
C on boy , M a r t in : Counsel to Albert H. W iggin______ _
2475-2534, 3217-3376
C oncentration of W e a l t h :
C oncentration o f control o f wealth distinguished from _____________ 857, 858
Dangers o f___________________________________ ___________________ 850 et seq.
Existence of and dangers of, doubted by T . W . L am ont______ 851, 856, 857
Federal Trade Commission, figures of, on _____________________________
850
Morgan, J. P. & Co., part played by, in ---------------------------------------- 846 et seq.
United States Industrial Relations Commission, figures of, o n ___*___
850
C ongdon :
Reconstruction Finance Corporation, rep resen ted_______________ ____
4809
Union Guardian Trust C o., Reconstruction Finance Corporation loan
application, conference with concerning___ ____________________ 4809, 4810
C ongress B an k in g and C r ed it R e lief P ro g r a m : N ecessity of speeding
up by, Vandenberg letter concerning_____________________________________ 5605
C ongress C o r po r a tio n :
Assets, book value and loan value o f ---------------------------------------------------4741
Purchased from units b y _______________________________________________
5056
Am ount paid fo r ------------------ ------------ --------------------------------------------- 5047, 5056
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
143
C ongress C orporation — C ontinued
Paee
Guardian D etroit Union Group, Inc., criticized assets of unit banks
held b y ___________________________________________________ 4741,5042,5044
Liability for liquidation of units avoided bv organization
o f_ J __________________________________________________ 5043-5044,5045
Liquidated assets of units o f _________________________________ 5043-5044
Loans to for “ undesirable assets” ____________________________ 5044, 5045
Organized___________ __________________________________ 4741,4853,5042
Subsidiary o f________ _____________________________________________ 4853
Intergroup memorandum concerning proposed organization of cor
poration for liquidating purposes such as______________________ 5043-5044
Lord knew little concerning___________________________________________
5043
Losses accruing to from undesirable assets___________ ___________ 5045-5046
Union Guardian Trust Co. “ dumping ground” for bad assets o f . 4854, 4856
Loan to W ormer, replaced with cash b y ______________________________
4865
C on le y , W. L .:
Sinclair Consolidated Oil Corporation:
Vice president of (1928)_______________________________ 3126-3127, 3282
Syndicate (1928), participant in by subparticipation g ra n ted b y
Harry F. Sinclair (see Sinclair Consolidated Oil Corporation, pool
and syn dicate)_________________________________ 3126-3127, 3157, 3282
C o n n ally , J u d g e : D etroit Bankers Co., receiver fo r _____________________
5100
C onsent C a r d ___________________ _____________________________________ 6444-6445
Broker permitted by customer to lend and pledge custom er’s stock
(margin accounts o n ly )--------------------------------------- *73-80, 136, 200, 397, 405
Changed to separate docum ent April 1, 1932, by order of New Y ork
Stock Exchange, to prevent misunderstanding and be more fair,
says Richard W hitney_______________________________ *73-80, 136, 139-140
Short selling not affected, says Richard W hitney________________
*74
Supply for loans not decreased, says Richard W h itn ey________ *73, 137
Typical broker’s letter informing customer of this change— coer
cive in nature_______________________________________________ *140-141
Coercion by broker (see aho K enny, Thomas A .) _________________*140-141,
200, 201-202, 377-384, 397-398
Letters of Business C onduct Com m ittee to custom er____________
*202
Form s__________________________________________________________ *78-79, #133
C onsolidated A ircraft C orpo r a tio n : Options in stock of, granted by
Hammons & Co., Inc., to Redm ond & C o ---------------------------------------- 6281, 6290
C onsolidated C igar C orpo r a tio n : Options in stock of, granted by A.
Hecksher to Charles C. W right_______________________________ 6117-6118, 6154
C onsolidated G as & E lectric C o .: Pools in, rumored April 1932, and
investigated by New Y ork Stock E xchange_____________________________
*219
C onsolidated G as C o . of B a ltim o r e :
Control o f : •
M organ (J. P.) & Co., b y _________________________________________
395
United Corporation, b y ___________________________________________
395
M organ (J. P.) & Co., control b y _____________________________________
395
Officers of, not indebted to J. P. M organ & C o ----------------------------------395
Stock of, owned by United Corporation____________________________ 318, 319
United Corporation:
Control b y ________________________________________________________
395
Stock owned by, in _____________________________________________ 318, 319
C onsolidated G as C o. of N e w Y o r k :
Control of:
M organ (J. P.) & Co., b y -------------------------- ---------------------------------395
United Corporation, b y ----------------------------------------------------------------395
Directors o f-------------------------------------------------------------------------------------------359
H olding com pany______________________________________________________
480
Listed on New Y ork Stock Exchange_________________________________
207
Morgan (J. P.) & C o.:
Control b y ________________________________________________________
395
Joint account of, trading by, in securities o f_____________________
548
N ot connected w ith -..____________________________________________
548
New Y ork Edison is subsidiary o f _____________________________________
480
New Y ork Stock Exchange, listed on _________________________________
207
Officers of, not indebted to J. P. M organ & C o----------------------------------395
Operating com pany------------------------------------------------------------------------------480
60604— 46-------10
144’
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C onsolidated G as C o. op N e w Y ork — C ontinued
p age
Securities of, traded in, b y joint account of J. P. M organ & C o--------548
Stock of, owned by United Corporation____________________________ 318, 319
480
Subsidiaries o f _______________________________________________ *-----------Trustees o f _____________________________________________________________
30
United Corporation:
395
Control b y ________________________________________________________
Stock owned by, in _____________________________________ _______ 318, 319
C o n s o lid a t e d L a u n d rie s: Plummer (A. N ew ton), publicity man, re
tained to write material concerning Consolidated Laundries stock and
pay financial writers to publish it in newspapers, says F. H. L aG uardia.
457
C o n s o lid a t e d O il C o r p o r a tio n . (See also Sinclair Consolidated Oil
Corporation.)
Brokerage holdings o f - 1---------------------------------------------------------------- 6340, 6366
Call loans made by the com pany to brokers through banks in 1929_._ 63386341, 6367-6369
Am ount daily averaged $12,595,636---------------------------------------------6339
Am ount aggregated $211,000,000---------------------------------- 6339, 6368-6369
Am ount far exceeded any other year, partly because o f interest
rates, partly because of demand, partly because of availability
of companies’ funds, says Harry F. Sinclair----------------------------6340
Am ount outstanding largest on Oct. 9, 1929, $17,600,000------------ 6339
Banks throxigh whom m ade---------------------------- :----------------------- 6368-6369
American Exchange Irving Trust Co. of New Y o rk _________
6368
6368
Bank of America, N. A., of New Y o r k -------------------------------Blair & Co. of New Y o rk __________--------------------------- ------------- 6368
Central H anover Bank & Trust Co. of New Y o rk ___________ 6368
Chase National Bank of New Y o rk __________________________ 6368
Chatham Phenix National Bank & Trust Co. of New Y ork _ 6368
Chemical Bank & Trust Co. of New Y o rk ___________________ 6368
Continental Illinois Bank & Trust Co. of C hicago__________
6368
First National Bank of C hicago_____________________________
6368
6368
National City Bank of New Y o rk ___________________________
Call loans were made in 1928 and also after 1929________________
6340
Interest received (incomplete) $833,593.24------------------------------------ 6341
Subsidiaries’ and affiliates’ loans included_______ :-------- 6339, 6368—6369
Fitzpatrick (W illiam Samuel), vice chairman from about April 1, 1932,
down to N ovem ber 1933_________________________________ 3293, 3306, 3311
Rockefeller, Jr., largely interested in (1933)___________________________ 3353
Rockefellers interested in ______________________________________________
3323
Short sales carried forward from Sinclair Oil Corporation to Consoli
dated________________________________________________________________
*97
Sinclair Autom obile Service Corporation is subsidiary of (1929)______ 6339
Sinclair (Harry F .), chairman of executive committee of (1933)______ 3260,
3293, 6338-6339
Sinclair Consolidated Oil Corporation was form er name o f ______ 3261, 6339
Sinclair Crude Oil Purchasing Co., is subsidiary o f (1929)_______ 6339, 6367
Sinclair Oil Corporation merged to form ______________________________
*97
Sinclair Pipe Line Co. is subsidiary of (1929)____________________ 6339, 6367
Stanford (G. T .), general counsel t o ___________________________________
6339
Transfers of com m on stock, in number o f shares, was 2% times ou t
standing stock (1929)___________________________________________ 6340, 6367
Venezuelan Petroleum Co. is subsidiary of (1929)_____________________ 6339
C onsolidated S elling C o., In c.: Chase National Bank loan to, officials
or trustees of, interested in ______________________________________________
2914
C o n s o lid a t e d T e x t i l e : P ool: Publicity boosting stock. (See also Lion,
D avid M .)________________________________________________________________ *684
C o n s t it u t io n o f t h e N ew Y o r k S t o c k E x c h a n g e (see N ew Y ork Stock
Exchange C onstitution)_______________ _________________________________ *21-43
C on su m a b le G oods. (See also U nem ploym ent and Consum able G oods.)
Commercial banking, function of, to finance production of, testifies
Clarence D illon ______________________________________________________
1538
Depression, effect of, on production of, not material, testifies Clarence
D illon ________ _____________________ _________________________________
1543
Production of, not materially affected by depression, testifies Clarence
D illon_____________ __________________________________________________
1543
Unemploym ent not great even in depression in industries engaged in
production o f ________________________________________________________
1544
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
145
C ontent , H., m em ber of H. Content & C o.:
Pa£0
Testifies_____________________________________________________ _______*596-601
(Indian M otocycle Co. pool.)
Indian M otocycle Co. pool of 1930, participant in (see Indian
M otocycle Co., p o o l)----------------------------------------------------- *459, 586-587
M em ber of H. Content & C o______________________________________ *590, 596
C ontent (H.) & Co.:
Content (Harry), member o f______________________________________ *590, 596
Indian M otocycle Co. (see Indian M otocycle Co., pool), New Y ork
Stock Exchange m em ber------------------------------------------------------------------*596
C ontinental and C ommercial T rust and Savings B a n k :
Brazilian bonds, syndicate form ed by Dillon, Read & Co. to sell;
member o f______________________________________________________ 1959, 1960
Dillon, Read & Co., associations w ith __________________ ____ 1924, 1959, 1960
R io de Janeiro bond issue, associated with Dillon, Read & Co. in
connection w ith ---------------------------------------------------------------------------------- 1924
Syndicate form ed by Dillon, Read & Co. to sell Brazilian bonds,
member o f_____________________________ _________________________ 1959, 1960
C ontin en tal B ank of C hicago : Directors o f ________________ ___________
90
C ontinental B ank of I l lin o is : R eynolds (A rthur), ex-president o f____ 3119
C ontinental C an C o r po r a tio n : Conway (Carle C .), president o f______
6038
C on tin en tal C ommercial N ation al B ank of C h icago : D etroit Trust
Cfwfunds deposited in ___________________________________________________
5334
CoNllsrENTAL C o .: Kreuger, frauds of, handled largely through, testifies
George O. M ay ------------------------------------------------------------------------------------------ *1269
C ontinental I llinois B ank & Trust Co. of C hicago (see Cuban Loans,
Continental Illinois Bank & Trust Co. of Chicago).
Chase stock, trading accounts in, participant in _________»____________
2859
Consolidated Oil Corporation made call loans in 1929 through____ 6368-6369
D etroit Bankers Co. borrowed from __________________ 5124, 5125, 5139, 5141
Letter to, with reference to loan______________________________________
5125
Loan from, authorized to pay Chase National Bank w ith ______ 5139, 5141
General Theatres Equipment, Inc., registrar for com m on stock, one o f . 3574
Guardian D etroit Union Group, In c.:
Loan t o ___________________________________________________________
4679
Management of, supervision over given t o _______________________
4679
Insull companies:
Debentures of (containing provision that loans must not exceed
50 percent of assets) sold by security affiliate of, at time bank
knew that all assets of Insull companies were pledged to secure
bank loans______________________________________________ *1741 et seq.
Loans to, by, and collateral securing them _______________ *1729 et seq.
Stilwell, Abner, Jr., as vice president o f _______________________________ *1728
Union Guardian Trust Co. A funds, part deposited in ________________ 4818
A ccount No. 2 in _________i ____________________________________________ 4828
C ontinental I nvestment C o .:
International M atch Corporation, subsidiary o f ______________________ *1176
C on tin en tal N ation al B ank of C h ica go : Continental National Co. is
affiliate o f ___________________________________________________________ 3108, 3119
C ontinental N ation al C o . (see Cuban loans, Continental National C o.):
Continental National Bank of Chicago is affiliate o f____________ 3108, 3119
Sinclair Consolidated Oil Corporation pool and syndicate (1928), par
ticipant in (see Sinclair Consolidated Oil Corporation, pool and syn
d ica te)____________________________ 3093, 3094, 3108, 3119, 3253, 3326, 3331
C on tin en tal N ation al C o . of C h ica go :
C ontinental Illinois Bank & Trust Co. of Chicago, securities affil
iate! o f__________________________________________________________ 2661, 2689
Lincoln Building, bankers, original for_____________________ 4064, 4068,4072
C on tin en tal O il C o .:
Directors o f___________________________________________________________ 30, 31
Form ation of, merger of Marland Oil Co. and Continental Oil Co. of
M aine_______________________________________________________________
207
Great Lakes Pipe Line Co. is subsidiary o f___________________________
31
Lam ent, T. S., sale by, of stock of, consideration for____________ 781 et seq.
Listed on New York Stock E xchange_________________________________
207
146
INDEX tfO HEARINGS ON STOCK EXCHANGE PRACTICES
C o n t i n e n t a l O il C o.— Continued
, Page
M arland Oil Co. succeeded b y ______________ __________________________
207
New Y ork Stock Exchange, listed on __________________________________
207
Stock of, sold b y T. S. Lam ont, consideration f o r .______________ 781 et seq.
Subsidiaries o f: Great Lakes Pipe Line’ C o ________ _____ _____________
31
C on tin en tal O il Co. of M a in e : Continental Oil Co. as successor o f ___
207
C on tin en tal P aper B ag M il l s : Chase National Bank loan t o _________ 2918
C ontin en tal S hares (I n c .), investment trust:
Additional listing application to New Y ork Stock Exchange for
990,000 shares, O ctober 1930----------------------------------- ------------------ *935-951
Bishop (George T .), president of (June 15, 1 9 3 2 ),--------------------- --------*900
Blue-sky law violation (Colorado) suit was reported to have been
threatened,by some Continental stockholders because o f Continen
ta l’s failure to make known the contents o f its portfolio prior to sale
of its stock and a refund was reported to have been made b y Con
tinental, says A. M . Gushee_______________________________________ *1127
Burwell (W . R .), nephew of Cyrus S. Eaton, president o f_________*957-958
D irectors were dumm y directors put in office and maintained b y Cyrus
S. E aton; indicated by facts that not once in the 5,years o f the com
pany’s operations did any director object to action taken b y the
com pany and that although said directors subscribed to large
amounts o f Continental stock, they never paid for the stock bu t
those shares were taken by Eaton in his own name and voted b y A
him, says D avid S tock ----------------------------------------- ---------*902, 906, 907; 933
D irectors at form ation of the com pany (1926) were F. H. H obson, vice
president; W . R. Burwell, president; Philip W ick, m em ber of execu
tive com m ittee; L. G. Watson, director for short time, but secretary
and treasurer at all times; R . V. M itchell, says D avid Stock.-_____
*903
D irectors were superseded in April 25, 1931, by another lot of directors
put in b y Cyrus S. Eaton, says George L. Gugle___ _______________
*933
D istribution o f stock o f com pany b y Otis & Co., banking and broker
age firm and member of New Y ork Stock Exchange, through
various branch offices country-wide was accom plished by highpressure selling methods, says D avid S t o c k ._ *900, 903, 908-911, 923, 924
Otis & Co. manipulated Continental stock on N ew Y ork Stock
Exchange to further the sale o f the stock to the public and
charged back against the Continental com pany certain losses
resulting from that manipulation, says D avid Stock___*903, 909-911
Eaton (Cyrus S.), one o f the directors and principal partner of Otis
& Co., controlled Continental, says D avid Stock___________________
*901
D irectors were dum m y directors put in office and m aintained by
Eaton; indicated by facts that not once in the 5 years o f the com
p a n y’s operations did any director object to action taken by the
com pany, and that although said directors subscribed to large
amounts of Continental stock, they never paid for the stock, bu t
those shares were taken by Eaton in his own name and voted by
him, says D avid S tock _____________________________ ___ *902, 906, 907, 933
Eaton (Cyrus S.) and his associates so handled Continental as to
*901
further their personal ventures, says D avid Stock __________________
E aton’s (Cyrus S.) personally sponsored and controlled (through
Otis & Co.) syndicates in rubber, steel, and utilities were financed
and furthered with the moneys o f Continental by having Con
tinental buy the shares in those syndicates or by having Conti
nental loan m oney to the syndicates or by having Continental
guarantee or endorse the notes of the syndicates or b y having
Continental put up the collateral for loans to the syndicates, says
D avid Stock ___________________ *902, 905-906, 928-930, 932, 957-958, 977
Eaton (Cyrus S.) abstracted securities, with subsequent ratification
by directors, from portfolio o f Continental in am ount o f $16,000,000
from time to time during 1927-30 to pledge them as collateral for
his various syndicates, says George L. Gugle____________________ *928-930
Inland Steel Syndicate, controlled by Eaton and Otis & C o., sold
to Continental on Novem ber 10, 1928, 66,960 shares of Inland
Steel at 70, for which the syndicate had paid 35 on an option,
says D avid Stock__________________________________ *995-906, 957, 977
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
147
C o n t i n e n t a l S h a r e s ( I n c .) , investm ent trust— Continued
E a ton (Cyrus S.) abstracted securities, etc.— Continued
p *ge
N o note or other evidence o f obligation was given by Eaton to
Continental when securities were taken for these purposes
from Continental’s portfolios, says George L. G ugle__- *929-930,932
Numerous syndicates included Industrial Shares (In c.), Utilities
Syndicate,’ Steel Syndicate, Ohio Industry Syndicate, Rubber
Syndicate, Cleveland Cliffs Preferred Syndicate, Cliffs Corpo
ration, International Share Corporation, G oodyear Shares
(In c.), says D avid Stock_______________________________ *905, 957-958
Eaton (Cyrus S.), obtained personal loans from Continental, says
George L. Gugle____________________________________________________
*932
Eaton (Cyrus S.), involved in litigation, concerning YoungstownBethlehem merger which he wanted to, and did, prevent; used
Continental’s m oney to purchase large amounts o f Youngstown
stock to obtain control o f Youngstown and block the merger, and
then charged the entire cost o f litigation to Continental and a sub
sidiary o f Continental, says D avid Stock___ ;_______________________
*903
Eaton (Cyrus S.), subpenaed to hearings bu t failed to ap p ear.__ *873-874,
899-900, 901, 958-960, 974, 977-978
Eaton interests________________________________________________ 18-8054,8055
Financial statements o f the com pany were altered at Cyrus S. Eaton’s
direction, to conceal items from the public, in order to maintain
the confidence o f the public, says D avid S tock _____________*902, 900-910
Founders’ shares were taken b y the founders o f the com pany, Cyrus
S. Eaton and his associates, which shares were to receive dividends
o f 25 percent o f all profits on ly after the cum ulative dividend o f $1
was paid on the com m on stock ; y e t in 1929 in order to make such
cash dividends to founders’ shares, a stock dividend was paid on
the com m on stock, which was in direct violation o f com pany’s
charter and laws o f M aryland, State o f incorporation, says D avid
S tock _________________________________________ *901-902,903-904, 924-925
Consideration for the 10,000 founders’ shares issued was $10,000— *903
D ividends paid on founders’ shares in 1929, although com pany
had deficit o f $3,000,000, says D avid Stock-___________________
*904
D ividends paid on founders’ shares 2 years; Cyrus S. Eaton
through Foreign U tilities received $164,324.61; Otis & C o.,
$108,454.23; F. H . H obson, $13,145.96; W . R . Burwell,
$9,859.47; Philip W ick, $9,859.47; L. G. W atson, $9,859.47;
R . V. M itchell, $3,286.49; John S. Brooks, $6,572.98; F. H.
Blackburne, $2,356.49__________________________________________ *904
Eaton (Cyrus S.) received 5,000 o f the 10,000 founders’ shares
issued and turned them over to Foreign Utilities, his personal
holding com pany___________________________________________ *903-904
Return on original investm ent on founders’ shares was 1,600
percent per annum in 1928 and 1929. whereas public received
return o f only 2 percent, says D avid S tock _____________________ *925
Underwriting fee in the am ount of $4,600 was paid to Otis & Co.
in connection with distribution o f stock dividend, being 10
percent o f the stated value o f the com m on stock distributed,
says D avid Stock_______________________________________________ *904
Guardian Trust Co. o f Cleveland, loans by, t o ____________ *18-8022 et seq.
Gugle (George L.) sued Continental Shares (In c.), for receivership
in B a ltim o r e .._____ ___________________________________ *905, 928, 958, 974
Interlocking between tw o members o f Otis & Co. and the board of
Continental, viz, Cyrus S. Eaton and Inglis________________________
*973
Litigation pending in Ohio and M aryland during Senate hearings____ * 8 7 3 874, 899-900, 905, 928, 958, 974
Bishop (George T .), president o f the com pany, objected to Senate
hearings on financial and business transactions o f the com pany
pending outcom e o f the litigation___________________________ ___
*900
Gugle (George L.) versus Continental Shares (In c.), in Baltimore
Circuit Court N o. 2 for receiver__________________ *905, 928, 958, 974
148
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C o n t i n e n t a l S h a r e s (In c.), investm ent trust — Continued
Organized in early 1926 by Cyrus S. Eaton and associates for purpose
Page
of buying and selling and holding securities; public investm ent was
about $150,000,000, says D avid Stock___________________________ *900, 901
Founders’ shares to Cyrus S. Eaton and associates (see Founders’
shares, an te)_____________________ j. _____________________________
*901
Otis & Co. distributed stock of com pany by high-pressure selling
methods, says D avid Stock (see Distribution of stock , a n te)______ *900,
90 3 ,9 0 8 -9 1 1 ,9 2 3 ,9 2 4
Otis & Co., Cyrus S. Eaton, and Foreign Utilities, E aton’s personal
holding com pany, being heavily in debt and the banks having
called some loans and there being the necessity of obtaining
$20,000,000 immediately, a transaction was put through in O ctober
1930, which in effect resulted in Continental’s obtaining a $30,000,000 loan at various banks, putting up the collateral and the proceeds
of the loan being used to pay off the obligations of Otis & Co.,
Eaton, and Foreign Utilities, says D avid S tock _____________________ *903,
911-927, 930-935, 951-953, 963-977
Balance of $27,000,000 owed by Continental on loan from Chase
National Bank at date of hearings (June 16, 1932), says
George L. G ugle________________________________________________ *927
Banks involved were Chase National B ank; Guaranty Trust C o.;
Chemical Bank & Trust C o.; Bankers Trust C o.; Public
National Bank & Trust Co., all of New Y ork ; and Union
Trust Co. of Cleveland, says D avid S tock ____ _____________ *913-914
Carrying charges, interest charges, on this loan, obtained b y
Continental mainly for benefit of Otis & Co., cost Continen
tal $800,000 in incom e the first year and $2,000,000 the sec
ond, the interest charges b y the banks being very high, says
S tock ________________________________________________________ *916-917
Chase National Bank aware of all the details in this transaction,
says Stock____________________________________ *919-923, 930-933, 969
Continental in effect bought $57,000,000 worth o f securities,
which were really up as collateral at various banks, says S to ck , *915
Continental put up o f its own portfolio as collateral, securities of
value of $28,240,000, says Stock____________________________*915-916
Eberstadt (Ferdinand), partner of Otis & Co., and not connected
with Continental, negotiated the loan from Chase National
Bank to Continental, his action later being ratified b y Con
tinental’s directors, say William A. Gray and George L.
G ugle______ _______________________________________ * 9 5 1-9 53,9 63-9 69
Eberstadt was asked by Burwell, president o f Continental,
to negotiate and Burwell handled the matter practically
in its entirety, says Eberstadt_________________________ 1 *963-969
Foreign Utilities, E aton’s personal holding com pany, Eaton or
Otis & Co. m ay have been guilty of incom e-tax evasion am ount
ing to over $2,000,000 b y means of an alleged delivery in
Canada in this connection, says S t o c k . . ___ *919-923, 926, 930-933
New Y ork Stock Exchange perm itted Continental to put through
listing o f 990,000 additional stock 6 days after the loan was
put through, although it had made an extensive audit of Otis
& Co. and knew all about their affairs, and that Otis & C o.’s
obligations were to be paid through loan obtained b v Con
tinental, says D avid Stock________*911-913, 925-926, *927, 935-951
Result of these loans incurred by Continental was that at date
o f hearing Continental was insolvent to extent of $23,000,000,
says D avid S tock _____________________________________________ _ *924
Stock price of the com m on fell from 21 to 10 before the deal was
consummated, says D avid S tock ___________________________ *923-924
W recking o f Continental more the result of this transaction
than any other, says D avid S tock ________________________
*903
Otis & Co. office in Denver sold Miss Gushee stock in Continental
Shares (In c.), 12 shares at 70 on April 29, 1929, and 23 shares at
83 on June 1, 1929, at times when stock was not yet listed on ex
change and the stock was first listed on exchange at 70 and never
rose above 78, says Miss Gushee______________________________ *1124-1127
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
149
C ontinental Shares (Inc.), investment trust— Continued
Otis & Co. office in Denver, etc.— Continued.
Pa&e
Continental stock price was never high enough thereafter so that
Miss Gushee could sell at a profit, the stock going down until
at date of hearings (June 23, 1932) the stock was quoted at
less than $1 per share, says Miss Gushee________________ *1126-1127
Otis & Co., when asked by Miss Gushee about Continental’s
portfolio, advised it was not available and said it contained
very high-grade securities but when portfolio was made public
the stocks therein were such that Miss Gushee would not have
invested in Continental, says Miss Gushee____________________ *1125
Otis & Co. stock of, purchased by Mather and associate______ 8179-8180,
8820, opposite 8820, 8823, 8824
Otis & Co., which had taken underwriting fees of about $2,500,000
for underwriting and marketing Continental common stock, sold
back a great deal of the stock to Continental at a price more than
twice the then market, thereby causing a $3,600,000 loss to Con
tinental, says David Stock__________________ *902, *904-905, 956-957, 977
Testimony stated to be false by William A. Daley______ *956-957, 977
Stock fluctuations of Apr. 15, 1931, to June 30, 1931____________ 8821, 8822
Stock price (common) dropped from peak of 78 in 1929 to
showing
loss of about $150,000,000 investment, says David Stock___*900, 923, 924
Stock subscriptions unpaid by directors, officers, and employees
amounted to $1,197,781 for 41,394 shares and are carried on books
as accounts receivable, says David Stock_______________________ *906, 907
C ontrollers I nstitute of A merica _________ ________________ 7082-7083,7491
C onw ay & Co.: Radio Corporation of America pool (1929), participant
in (see Radio Corporation of America, pool)_____________________________ *468
C onw ay , C arle C.:
American Commercial Alcohol Corporation pool and syndicate man
aged by Thomas E. Bragg, participant in (see American Commer
cial Alcohol Corporation, pools— options by directors and officers
to Bragg)_____________ _____________________________ 5953, 6038, 6043, 6045
Continental Can Corporation, president of____________________________ 6038
C onw ay , W . P.:
Guaranty Co., director of______________________________________________*1150
Guaranty Trust Co. of New York, officer of---------------------------------------90
Loan to, from Morgan & Co__________________________________________
90
Morgan, J. P., & Co., loan by, to _____________________________________
90
Officers of Guaranty Trust Co. of New York-------------------------------------90
C ook , A lfred : Chicago, Rock Island & Pacific Railway Co., member of
board of__ ________ ______________ .________________________________________ 4183
Cook, George R.: Guardian Detroit Union Group, Inc. board of directors
meeting (December 14, 1931), present at________________________________ 4682
C ooksey : Reconstruction Finance Corporation board meeting (February
22, 1933), secretary of___________________________________________________
4747
C ooke , Ja y :
Pennroad Corporation:
Director of________________________________________________________ 1333
Trustee of voting trust for stock of___________________________ —
1337
Pennsylvania Railroad Co., director of________________________________ 1337
C oolidge , C alvin :
Morgan, J. P. & Co., preferred list,of, member of__________________ 190, 417
National Transportation Committee, member of--------------------------------417
C oolidge, Senator : Present at hearings--------------- ---------- ------------------------59
C opeland , Senator : Present at hearings_________________________________
105
C opper:
Anaconda Copper Mining Co. is producer of 55 percent of, in United
States..— . _________________________________________________________*1860
Competition for foreign trade avoided by price fixing by Copper
Exporters, Inc., a company organized by American copper com
panies pursuant to Webb-Pomerene Act--------- ----------------------*1856 et seq.
Foreign market, statement on, by Copper Exporters, Inc------------------- *1857
Foreign trade, competition in, avoided by price fixing by Copper
Exporters, Inc., a company organized by American copper com
panies pursuant to Webb-Pomerene Act------------------------------- *1856 et seq.
150
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C opper — C ontinued
Labor costs:
Page
, Chile, cost in, cheaper than in United States_____ ________ _______*1861
M exico, cost in, cheaper than in United States___________________*1861
Low prices caused by overproduction in ______________________________ *1861
O verproduction in, as cause o f low prices___________________ _________ *1861
Prices for foreign sales fixed by Copper Exporters, Inc., a com pany
organized by copper companies pursuant to W ebb-Pom erene
A ct------------------------,-------------------------------------------------- -------------- *1856 et seq.
W ebb-Pom erene Act, prices in copper for foreign trade fixed by
Copper Exporters, Inc., a com pany organized under provisions
o f -------------------------------------------------- ----------------- ----------------------- *1856 et seq.
C opper E xp o r ter s , I nc .:
Anaconda Copper M ining Co. and its subsidiaries as members o f . *1855, 1856
Association form ed under W ebb-Pom erene A ct of which all copper
producers are members and which handles all the foreign sales o f
practically all the American producers, says John D . R y a n _______
*807
Com petition for foreign trade am ong American copper companies
avoided by price-fixing pursuant to W ebb-Pom erene A c t_____ T__ *1856
Copper:
Com panies in Am erica all connected with Copper Exporters,
In c----------------------------------------------------------------------------------- *1856 et seq.
M arket, foreign statement on, b y _________________________________ *1857
Prices of, for foreign trade, fixed b y ______________________ *1856 et seq.
Foreign trade prices to be demanded of, by Am erican copper com
panies, fixed b y __________________________________ ____________________ *1856
Price fixing by, for American copper companies in foreign trade
pursuant to W ebb-Pom erene Act, in order to avoid, com petition of
copper companies for foreign m arkets_______________________________ *1856
W ebb-Pom erene Act, organized under____________ ____________________ *1856
C opper R iv er and N orthw estern R a il w a y C o .:
Directors o f___ : ________________ :________________________ _____________30, 31
K ennecott Copper Corporation, subsidiary o f _________________________
30
C o p p e r S to c k s S y n d ic a te o r P o o l (1929). (See Anaconda Copper
M ining Co.; pool, large, March to M ay 1929).
C orcoran , T homas G a rd in e r , in the office of counsel for Reconstruction
Finance Corporation.:
Testifies (Securities Exchange A ct of 1934)_______________________ 6463-6506,
6506-6541, 6543-6581
Reconstruction Finance Corporation, connected w ith_________________
6463
Securities Exchange A ct of 1934, co-drafter o f __________________ 6463, 6465,
6500, 7473, 7474, 7475, 7476
C ord , E. L.: Manning, L. B., associate o f ____________________________ 6038, 6060
C o r e y , L e w is : Author of House of M organ____________________________ 847, 849
C orliss , C. A.: Orba Corporation owned b y ____________ _________ :________ *535
C orn E xchange B a n k op N ew Y o r k :
3727
Fox, letter from concerning extension of F ox Co. n otes________________
Investments of, portfolio of, published a n n u a lly ._____________________
1719
Merger of, with National C ity Bank:
Failure o f______________ ___________________________________________ *1948
Project o f ____________________ , ________________________ 111, 112, 113, 114
National City Bank, projected merger w ith ______________ 111 et seq., *1948
Portfolio of securities held b y _______ •___________________________ 1764 et seq.
Security offer to prevent application for receivership____________ 3729-3730
Statement of condition of, indicating portfolio o f securities held by
it ______________________________________________________________ 1764 et seq.
Trading account form ed for trading in capital stock o f __________ 2828, 2830
Underwriting and subscription to new capital_________________________ 2828
W hitney, Richard, officer o f _____________________________ ______________
92
C o rn ell , R . J., connected with New Y ork Bureau of Securities in depart
ment of law (1931)_____________________________ *________________ *606, 617
Testifies (trader’ s activities)_______________________________ _______ r *606-618
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
151
C ornell , R. J.— Continued
Pa*e
Investigated transactions whereby Raleigh T. Curtis made profits of
$19,063.44 during 1929-30 in accounts opened and guaranteed by
John J. Levenson and in which Curtis put up no money; at the
same time Curtis in his “ Trader” column in the New York Daily
News boosted 8 stocks in which Levenson operated at a profit of
$1,136, 322.41 (see also “ Trader” ) ___________________________ 606, 610-617
C orners :
Floating supply of stock must not get down below certain point lest
New York Stock Exchange rule it off the board________________ *3 J4-315
J. I. Case Co. stock never cornered, says Richard Whitney__________ ‘*241
Wheeling-Lake Erie________________________________________________ *133-134
Corporate O fficers. (See Directors and officers.)
C orporation Securities Co. of C hicago :
Analysis of changes in capital surplus supporting Form 1120, calendar
year 1931____________________________________________________ *1526 et seq.
Balance sheet of-------------------------- *1446 et seq., *1458 et seq., 1527 et seq.
Banks, loans by, to_____________________________________ *1545 et seq., *1760
Capital surplus, analysis of changes in________________________ *1526 et seq.
Central Hanover Bank & Trust Co., loan by, to, history of_ *1545 et seq.,*1760
Certificate of incorporation of, concealment in, of ownership by
Halsey, Stuart & Co. of large number of shares of stock of Corpora
tion Securities Co. by method of listing nominee of Halsey, Stuart
& Co as owner thereof______________________________________ *1646 et seq.
Committee on Banking and Currency, investigation by Tyler Stovall
& Co. on behalf of, report of results of___________________ _ *1692 et seq.
Debentures of:
Agreement for, forbidding pledge of more than 50 percent of
assets of company violated by pledge of all assets of company
to secure bank loans______________________________ *1686,1741 et seq.
Public, sale to, by Halsey, Stuart & Co_________________ *1646 et seq.
Sale of, to public by Halsey, Stuart & Co. who owned large num
ber of shares of stock of the company which fact was concealed
from investors, the stock being recorded in certificate of incor
poration as owned by dummy____________ ___________ _ *1646 et seq.
Earned surplus of, for period of January 1, 1931, to November 30,
1931________________
__________________________ *1527 et seq.
. Expenses, income and earned surplus of, for period January 1,1931, to
November 30,1931____________ _____________________________ *1527 et seq.
Formation of, to place control of Insull operating companies in hands
of Samuel Insull_____________________________________________ *1439 et seq.
General Electric Co., loan by, to, and collateral securing the loan___ *1509
Halsey, Stuart & Co.:
Acquisition by, of common stock of______________________ *1597 et seq.,
*1602 et seq., 1631, 1646 et seq.
Customers of, sale to, of common stock of, conveying impression
that customers being let in “ on ground floor” __________ *1633 et seq.
Ownership by, of large number of shares of, concealed in certifi
cate of incorporation of latter by recording ownership of shares
in nominee______________________________________________ *1646 et seq.
Public, sale to, by, of debentures of______________________ *1646 et seq..
Receipt by, of common stock of, in consideration of transfer to it
of common stock of Insull Utility Investments, Inc., which
had been acquired by Halsey, Stuart & Co. at value of $10 a
share as commission on debenture issue of Insull Utility In
vestments, Inc., such common stock of Insull Utility Invest
ments, Inc., being accepted by Corporation Securities Co. at
value of $100 a share____________ _____ *1597 et seq., *1602 et seq.
Sale by, of shares of common stock of, to customers of Halsey,
Stuart & Co., latter conveying impression that customers being
let in “ on ground floor” _________________________________*1633 et seq.
152
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C orporation Secu rities C o. of C hicago — C ontinued
Page
Incom e, expenses and earned surplus of, for period January 1, 1931, to
N ovem ber 30, 1931___________ _____________________________ *1527 et seq.
Incom e reported to investors in years in which large losses reported
for incom e tax purposes_____________________________________ *1443 et seq.
Insull investment trust_____________ *1398, 1436, 1440, et seq., *1602 et seq.
Insull, Samuel, form ation by, as investm ent trust for purpose of
maintaining Insull’s control over Insull operating com panies_____ *1439,
*1602 et seq.
Insull Utility Investments, Inc.:
Control over, sought to be maintained by Samuel Insull by for
m ation o f________________________________________________ *1602 £t seq.
Exchange of securities w ith_______________________________ *1441 et seq.
Investigation of, by Tyler Stovall & Co. for Com m ittee on Banking
and Currency, report of result o f ____________________________ *1692 et seq.
Investm ent com pany created by Halsey, Stuart & Co., and Insull___ 3696
Investments of, summary of, D ecem ber 31, 1931, and 19 30 ..^ *1449-1460 '
Investm ent trust controlled b y Insulls__________ *1398, *1436, *1440 et seq.,
*1602 et seq.
Acquisition by, of stock ownership of Insull operating utility
companies________________________________________ *1436, *1440 et seq.
Formation of, by Samuel Insull to maintain his control over
Insull Utility Investments, In c _________________________ *1602 et seq.
Investors, statements to, by, large incom e reported in, ,in years in
which losses were reported for incom e-tax purposes’________ *1443 et seq.
Loans to : '
Banks, b y -----------------------------------------------------------------*1545 et seq., *1760
Central Hanover Bank & Trust C o., by history o f_______ *1545 et seq.
General Electric Co., by, and collateral securing the loan ________*1509
Loans to officers and directors of, b y J. P. M organ & Co. and Drexel
& C o ------------------------------------------------------------------------------------------- 533 et seq.
M aintaining of market in com m on and preferred stock o f____ *1659 et seq.
M arket in its preferred stock agreed to be maintained by, under agree
ment with Utilities Securities Co. that it would maintain m arket in
form er’s com m on stock ______________________________________ *1659 et seq.
M organ, J. P. & Co. and Drexel & Co., loans by, to officers and di
rectors o f ________ ____________________________ ________________ *533 et seq.
Officers o f ______________________________________________________________ *1632
Pledge of all assets of, to secure bank loans in violation of debenture
agreement forbidding pledge of more than 50 percent of com pany’s
assets__________________________________________________ *1686, 1741 et seq.
Securities of, purchases and sales of, statement o f_____________________*1417
Statement of:
Annual, for years 1931, 1930_______________ *1444 et seq., *1455 et seq.
Incom e expenses and earned surplus for period January 1, 1931N ovem ber 30, 1931__________ __________________________ *1527 et seq.
Investors and stockholders, large incom e reported to, in years
in which incom e tax returns of t com pany indicated large
losses------------------------------ --------------- -------------------------------- * 1443 et seq.
Stock, com m on, of:
Halsey, Stuart & Co. (see also Corporation Securities Co. o f Chi
cago, Halsey, Stuart & C o .):
Acquisition by, of_ *1597 et seq., *1602 et seq., *1631, *1646 et seq.
M arket in, agreed to be maintained by Utilities Securities Co.
under agreement that the preferred stock to be maintained
by Corporation Securities Co. of C hicago______________*1659 et seq.
Sale of, by Halsey, Stuart & Co., to its customers cohveying to
them impression they were being let in “ on ground floor” . *1633 et seq.
Voting trust fo r ------------------------------------------------------------------- *1642 et seq.
Stock, preferred, of, market in, agreed to be maintained by Corpora
tion Securities Co. of Chicago under agreement with Utilities Se
curities Co. that latter maintain market in the com m on stocft. *1659 et seq.
Taxes not paid by, in years in which statements of com pany to stock
holders and investors showed large profits_______ -__________ *1443 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
153
C orporation S ecu rities C o. of C hicago — Continued
Pa£e
T ax returns of, for years 1931, 1930____________ *1450 et seq., *1462 et seq.
Tyler Stovall & Co., investigation by, of, for Com mittee on Banking
and Currency, report of, results o f_________________________
*1692 et seq.
Utilities Securities Co., agreement with, to maintain market in its
preferred stock while market in its com m on stock to be maintained
by Utilities Securities C o____________________________________ *1659 et seq.
Voting trustees for com m on stock o f__________________________ *1642 et seq.
Voting trust, form ation of, for com m on stock of, sold to pu blic. *1642 et seq.
C o r po r a tio n s :
Bankers as directors of, legislation prohibiting, regretted by J. P.
M organ_______________ ______________________________________________
5
Brokers loans made by, as cause of speculative mania in years prior
to 1929 in opinion of Otto H . K ah n ________________________________
1010
Com m on stockholder ordinarily takes no interest in affairs of, testifies
_______________________
848
T. W. L am on t____________________________
Com petitive bidding not resorted to by bankers for issues of industrial
com panies______________________________________________________ 1035, 1036
Control of:
Legal control in ownership of m ajority stock, testifies George H.
H ow ard_________________________________________________________
316
Lost by management only when public (stockholders) unusually
aroused____________________________________________________ 1545, 1546
Management or stock ownership, control in public, because of
potential power to rem ove management, testifies Clarence
D illon ___________________________________________________ ______
1545
M anagement with m inority stock interests, in _____________ 1545, 1546
M inority interests, b y __________________ 392, 393, 397, 398, 848, 849, 857
Practical control may be effected by ownership of much less than
m ajority of capital stock of corporation so controlled, testifies
George H. H ow ard_____________________________________________
316
Public, rarely in, though their investm ent large__________________
1598
Small stockholders can rarely unite to oust management because
unaware o f names o f fellow stockholders and difficulty in getting
lists of nam es___________________________________________________
1547
Country club memberships usually provided for directors and officers
b y ___________________________________________________________________
1343
Deposits of, with Kuhn, Loeb & C o _____________________________ 987 et seq.
Dillon, Read & Co., members of, as directors o f___________ 1549 et seq., 2152
Directors. (See also under Directors.)
*
Dillon, Read & Co., members of, as_________________ 1549 et seq., 2152
D ual directorships, propriety .of, questioned________________ 1885, 1886
Exem ption from liability incurred in transactions with other cor
porations of which they are also directors disapproved by
Clarence D illon ____________________________________________ 1883, 1884
Interlocking directorships, propriety of, questioned_______ _ 1885, 1886
Kuhn, Loeb & Co., partners of, as_________________________ 1____
1319
Liability w ithout fault for false statement in prospectus_________1311,
1320, 1888, 1889
Loans to officers and, by J. P. M organ & C o ________________ 533 et seq.
Loans to officers and, by Kuhn, Loeb & C o --------------------------- 1320 et seq.
M organ (J. P.) & Co., partners of, as directors o f___________ 33, 56-58,
326, 360, 361, 543, 550, 552, 904-946
Secret profits of, in financing operations of, propriety of not dis
closing to stockholders questioned_______________________ *2281, 2282
W indow dressing, frequently used as________________________ 1208, 1209
Dividends (see under D ividends)____________________ ______________ ___
1885
Drexel & Co.:
Fiscal agents___________________________________________________ 287-303
Partners of, as directors o f _______________________________________
906
' Ethics. (See under Ethics.)
Federal Trade Commission, regulation b y ____________________ •
________
852
Financial policies of, determined by investment banking firm partners
of which directors of corporation___________________________________
56
Financing of, m ethod of, com petitive bidding for issues of industrial
corporations not resorted to by bankers_______________________ 1035, 1036
Fiscal agents for, Drexel & Co. and J. P. M organ & Co. acted as___ 287-303
154
IN D jEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C orporations — C ontinued
Industrial:
p age
Com petitive bidding for issues of, n ot resorted to b y bankers. 1035, 1036
Drexel & Co., partners of, as directors o f ____ ____________________
906
Financing m ethod of, com petitive bidding for issues of, n ot re
sorted to by bankers_____________ _________________________ 1035, 1036
Morgan (J. P .) & Co., partners of, as directors o f_______ ________
906
Interstate commerce, engaged in ____ 29 et seq, 49, 50 et seq, 987 et seq.
Investm ent bankers as directors o f_______________________________ ____
33,
56-58, 326, 360, 361, 543, 550-552, 904-946
Investm ent trusts. (See under Investment trusts.)
Legislation regulating, reports to stockholders b y management should
be required at intervals, testifies Clarence D illon ____________ 1887,1888
Listed on stock exchange; should be required to make frequent reports
to stockholders, testifies Clarence D illon _____________________ 1633 et seq.
Lists of stockholders, difficulty in obtaining, as reason for inability of
1547
small stockholders uniting to oust managem ent____________________
Loans to officers and directors of, b y J. P. M organ & Co. and Drexel
. & C o____ ___ __________________________________________________ 533 et seq.
Management of:
Control b y __________________________________________________ 1545 et seq.
Ownership, usually severed from ____________________ _ 1545, 1546, 1886
Reports by, to stockholders should be required at intervals. 1633 et seq.
1887, 1888
W holesom e in United States, testifies T. W . Lam ont____________
851
M inority interests, control b y ______ ______392, 393, 397, 398* 848, 849, 857
M organ (J. P.) & C o.:
Fiscal agents______________________________ ______________________ 287-303
Loans bv, to:
Companies com pelled to leave funds on deposit w ith M organ
& C o__________________________________________________ 195 et seq.
Directors of such companies were partners o f J. P. M organ
& C o _______________________________ : ______________________ 3 3 ,60
Loans by, to officers and directors o f _______________________ 533 et seq.
Partners of, as directors o f___________________________________ 33, 60, 906
Officers of, salaries of, regulation of, suggested_______________________ *1778
Ownership usually severed from m anagem ent______________ 1545, 1546, 1886
Policies of, determined by investm ent banking firm partners o f w hich
56
were directors o f com pa n y________________________________________
Public, Control by, rare, though investm ent large________________ ____
1598
Public ownership and control of, believed b y Clarence D illon to be
1545
fact not m y th _____________________ ,_________________________________
Reorganization of. (See under Reorganizations.)
Reports to stockholders should be m ade b y management, testifies
Clarence D illon ____________________________________ 1163 et seq 1887, 1888
Salaries o f officers of, regulation of, suggested________________________ *1778
Securities o f which listed on stock exchange: R eports on should be
frequently made to stockholders b y issuing corporation, testifies
Clarence D illon _______________________ _________ _______________ 1633 et seq
Stockholder, owning 10 to 15 peroent o f the stock, w ould have quite
a weight in the management of the corporation, bu t not control,
control would depend on the standing o f the person and on who
voted »their proxies, says Bertam Cutler____________________________
3354
Stockholders can rarely unite to oust management because unaware
o f names o f fellow stockholders and difficulty in getting list o f
nam es_________________________________ ______________________________
1547
C orrigan , J ames W .:
Corrigan M cK inney Steel Co., principal stockholder:
Stock, disposition o f ---------------------------------- 8231, 9036, 8234, 8235, 9046
Probate papers concerned with holdings in _____________________ 90469050, 8234, 8233, 9046, 9047, 9049, 9081
C orrigan M cK in n e y Ste el C o.:
Financial report of, and subsidiary com panies____ ______________ 9071-9072
Union Trust Co. trustees under will o f _______________________________ 8235,
9046-9048, 9049, 9050, 9052, 9055, 9078, 9079
(See also M cK in ney Steel Co., M cK in ney Steel H olding Co., N u tt—
Corrigan M cK inney Steel Co., M cK in ney Steel H olding Co.)
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
155
C orrigan M cK in n e y Ste el C o .— C ontinued
Pa&e
H istory o f________________________________________________________ 8230-8231
Ownership o f __________________________________________________________
8231
C orsalles , M. A.:
Engineer of bureau of roads and bridges o f Cuban Governm ent may
be same man, Shepard testified___________________________________
3651
Letter to Graves, inscription on indicating status as engineer------------2651
Letter to Stewart concerning Cuban public w orks_____________________ 2658
C ostello , R .:
Secretary to G. T . Stanford, general counsel to Sinclair Consolidated
Oil Corporation_____________________________________ :----------------------- 3127
Sinclair Consolidated Oil Corporation syndicate (1928), participant in
by subparticipation granted by Harry F. Sinclair (see Sinclair
Consolidated Oil Corporation, pool and syn dicate)--------------- 3127, 3157
C ostigan , E dw ard P., Senate Com m ittee on Banking and Currency,
and subcom m ittee on stock exchange practices.
C o t t e r , A., em ployee of M. J. Meehan & Co.: Radio Corporation of
America pool (1929), received $5,000 from, though not a partici
pant of record (see Radio Corporation of America, p o o l)__________ *475
C ottin g , C harles E.:
Lee, Higginson & Co.:
D irector o f _______________________________________________________ *1150
Partner o f ________________________________________________________ *1224
C otton , H. H., representing Investment Bank of Los Angeles: Testifies
(Securities Exchange A ct of 1934)_________________________________ 7413-7414
C otton E xc h a n ge : Fluctuation controlled by fixing limit of price range
during a single d a y __________________________________________________ _ 404-405
C ouch & M oses :
Chase National Bank, join t loan t o ________ ;__________________ 4158-4160
Criticized by national bank examiners_________________________________ 4161
Purpose of— taking up afoligations on Seaboard Air Line syndicate___ 4160
C ouch , H arvey C .:
Arkansas Power & Light Co., president o f ____________________________
4143
Chase National Bank, connection with severed when appointed to
Reconstruction Finance Corporation_______________________________
4172
D irector o f ___________________________________________________________ _ 4149
Indulgence towards in connection with loan______________________4161-4162
Loan account w ith___________________________________________ 4158, 4159
Loan to and Moses day after paid o ff_______________________ 4159, 4160
National Park Bank loan carried by after consolidation_________
4158
Paid o ff___________________________________________________________
4159
Paym ent to, from loan increase to M cC ain ______________________
4165
Fletcher, letter to, explaining letter to M cC ain __________________ 4171-4172
Louisiana & Arkansas Railway Co., president o f-------------------- -----------4150
Syndicate to purchaser member and manager o f ______ 4141, 4142, 4143
Louisiana & Arkansas Railway Co., president of syndicate to purchase
member and manager of subparticipant in _________________________
4145
Vice president then president o f __________________________________ 4150
M cCain, eulogy of and relationship with described___________________
4155
Letter to:
(a) Concerning management of Insull proportion proposi
tion _____________________ ______________________ _______ 4167
(b) Statement by for press concerning______________________
4172
Suggested by as operating man for Insull properties after bankers
met m aturities_________________________________________________
4168
National Park Bank, director o f______________________________________
4149
Reconstruction Finance Corporation Board, member o f ____ 772, 4167, 4171
D ate when becam e_______________________________________________
4171
Meeting, February 22, 1933, present at__________________________
4747
Seaboard Air Line Railway Co. syndicate, manager of while loan
outstanding_________________________ ________________________________ 4188
Syndicates manager— Seaboard Air Line securities m ostly____________ 4191
Testim ony, offers to give before com m ittee___________________________
4172
156
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C oughlin , F a t h e r :
Page
Criticism of bankers, not constructive, bankers fe lt________________ _
5552
D etroit bankers, dishonest methods im puted to b y ___________________
5551
First National Bank, concern over effect of broadcasts on depositors. _ 5551
M emorandum concerning____________________________________ 5551-5552
Private banks, elimination of by Governm ent advocated_______ _____
5552
Revaluation of gold ounces supported b y ________________________ 5551, 5552
C oulton , G. A .:
Compensation to from Union Trust C o___________________________8122, 8162
8159
Union Cleveland Corporation, director________________ _______________
Union Trust C o.:
Board of directors, chairman o f ___________________________________ 9228
Officials positions in and in other concerns_______________________
8226
Policies, member o f group dom inating_______________________ 8122, 8138
Vice chairman o f _______________________ __________________________
8158
Vice president o f _____________________________________________ 8122, 8158
Van Sweringen loans, approved b y _______________________________
8208
C ou n ty , A. J.:
Corporate affiliations o f _____________________________________ 1333, 1516, 1524
Pennroad Corporation, director o f ________________ _______________ 1333,1516
Pennsylvania Co., vice president and director o f______________________
1524
Pennsylvania Railroad Co., director o f ________________________________ 1516
Pittsburgh & W est Virginia Railway C o., negotiations for purchase of
stock of, for Pennroad C orporation___________________________ 1518 et seq.
Testim ony o f ----------------------------------------------------------„_______ -_____ 1516 et seq.
C ounty T rust C o. :
’
*
English, acting president______________________________________________
3045
Raskob, chairman of the board________________________ _______________
3045
Run on, effort to prevent_________________________ ____________________
3045
Syndicate agreement:
(o) Original_______________________________ & ________________ 3051-3053
(b) Supplemental agreement t o ___________________________________ 3047
For purchase of stock o f_____________________________________ 3045, 3053
(a) Managers, English & R askob____________________________ 3044,
3045, 3047, 3048, 3051, 3052, 3053, 3054, 3055
(b) Members o f _______________________ 30 46 ,3 04 7-30 48 ,3 05 1,30 53
(c) Organized_________________________ 30 45 -3046,3049,3051-3053
Syndicate N o. 1, statement o f______________________________ 3048-3049, 3055
Syndicate N o. 2, form ed_______________________________________________
3049
Syndicate No. 2, statement o f____________________________________ 3050-3051
C ouzens , S enator J a m e s :
Banks, commercial, trust capacity, acting in, restriction of, suggested
b y _____________________________________ _________________________ 3995-3996
Bank examiners:
Error in having same examiner, same banks, pointed ou t________ 4199
National, disapproval of em ploym ent by private banks__________ 4721
W ithout Com ptroller’s permission, bill favored b y _______________
5848
Bank examiners’ reports, difference between Com ptroller’s and banks’ ,
explained b y _________________________________________________________ 5464
Testified before D etroit grand jury to confidential report for
Com ptroller and another for bank_____________________________ 5463
Bank loans on unim proved farm lands d isa p p rov ed -_________________
5657
Banking and Currency Com mittee, Vandenberg expected to go o n ___ 5606
Banking situation, meeting with W oodin, Ballantine and A w ait o n __ 5802
M ills wrote to concerning_________________________________________ 5561
Banks, bankruptcies o f would not have occurred except for secrecy in
operation_______ _____________________________________________________ 5660
M ills disagrees w ith_______________________________________________ 5660
Banks, Com ptroller should have pow er to close or take other necessary
steps__________________________________________________________
5787-5788
Banks’ bills payable, tem porary taking up o f regarded as fraud b y . 4614-4615
Banks, loans to directors and em ployees______________________________
2920
Publication o f approved b y _______________________________________
5849
Banks:
Meetings of board of directors, discussion should appear in_ 5788-5789
Ley burn approves____________________________________________ 5788
Chase National Bank stock, employees o f asked to b u y _____ 2922
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
157
C ouzens , Senator J ames — C ontinued
Banks— Continued
Page
Publicity as to condition of recom m ended_______________________
5789
Pyramiding o f deposits criticized____________________________ 5824-5825
Urged opening o f---------------------------------------------------------------------------5840
Withdrawals by insiders from _______________________________ 5610, 5611
Citizens Savings Bank:
Clearing out best assets of by First National Bank (First
W ayne National Bank) criticized b y _________________
5611
Loans to facilitated withdrawals by insiders, criticism o f5611
Comparison of Fox & Clarke situation plain to the com m ittee_______
3780
3813
Corporations paying dividends should not be in current d eb t________
Cuban loan— newspapers report in favor of inquiry in to_____________
2451
D etroit Bankers Co. units, consolidation o f caused closing___________
5406
D etroit National Bank, board of directors, member of when con
5406
solidated____________________________________________________________
Dillon, Read & C o.’s use of funds available for dividends on stock of
one investment trust to create another investment trust with object
of obtaining further control of public m oney is reprehensible stated
b y ___________________________________________________________________
1603
First National Bank, capital not increased by consolidation according
t o _________________________________________________________ __________
5403
Deficiency in reserves in Federal Reserve Bank, June 30, 1932_______
5827
First Wayne National Bank, deficiency in reserves in Federal Reserve
Bank June 30, 1932_________________________________________________
5519
Deficiency of reserves in Federal Reserve Bank, June 30, 1932, situa
tion concerning described b y ________________________________________
5520
Loans to directors, balances of not taken into account by directors
report or receiver, pointed out b y ______________________________ 5638, 5639
W indow dressing b y ___________________________________________________
5520
3814
Fox Film, surplus wiped out if current debts paid____________________
•
General Theatres Equipment, Inc., obligations to meet when Fox Film
dividends declared, close affiliation between________________________
3813
Guardian D etroit Union Group, Inc., director o f_____________________
3906
Founder o f ________________________________________________________
4600
Reconstruction Finance Corporation loan to opposed____________ !____
4627
Stock purchase group, not member o f _________________________________
4625
Hom e loan bill, protested form o f_____________________________________
5567
Industrial system, units of getting too big according t o _______________
5477
Installment buying, abhorrence o f ____________________________________
2924
Mills letter to Leyburn put into one-man grand jury record in D e
tro it_______________ _____________________________________________ 5654-5655
M itchell, Charles E., better as salesman than as financier in opinion of
Couzens_____________________________________________________________
*1775
Stock, market, not free if trading account groups ready to pick up
shares_______________________________________________________________
3555
Union Guardian Trust Co., statements made to representatives
o f ______________________________________________________ ________ 4826-4827
Union Industrial Bank of Flint, window dressing by testim ony sum
marizing facts concerning, given b y _________________________________
5742
Vandenberg’s banking program, more sym pathy for by, Vandenberg’s
opinion______________________________________________________________
5606
C overdale & C olpitts :
Dillon, Read & Co. and Pennsylvania Railroad Co. underwriting syn
dicate in connection with reorganization of Seaboard Air Line Rail
way Co. joined b y ___________________________________________________
1841
Engineers_________________________________________________________ 1340, 1732
Engineers after reporting on railroad conditions speculated in stock of _ 2928
Frisco & R ock Island stock recommended to Dillon, Read b y ________
2928
Unloaded on syndicate____________________________________________
2928
W orthless_________________________________________________________
2928
Louisiana & Arkansas Railway Co., engineers report on, made b y _____
4145
Favorable_________________________________________________________
4145
Syndicate to purchase, member o f ____________________________ 4142, 4145
158
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C oveedale & C olpitts — C ontinued
Fage
Railroad engineers________________________________________________ 1340, 1732
Railroad stocks, reports and recommendations on, for United States
and Foreign Securities Corporation and United States and Inter
national Securities Corporation_________________________ 1732, 1849 et seq.
Seaboard Air Line Railw ay C o .:
Prospects o f , reported on b y _______________________________________ 1841
Reorganization of, underwriting syndicate of D illon, Read & Co.
and Pennsylvania Railroad Co. in connection with, joined by__ 1841
Survey of, made by, for Dillon, Read & C o________________________
1869
Seaboard Air Line Railw ay Co. syndicate:
D irector of while loan to outstanding_______________ _____ ________
4188
M anager o f ______ ____________________________________________ 4188, 4191
Underwriting syndicate for Seaboard Air Line Railway Co., member
o f ______________________________________ ______________________________ 1841
United States & Foreign Securities Corporation, report on railroad
stocks submitted t o ___________________________________________ 1849 et seq.
United States & International Securities Corporation, railroad stocks,
reports and recommendations on, made to, b y ___________ 1732, 1849 et seq.
C o v in g to n , H a r r y S. (see also M ott, C ov in gton ):
Testim ony o f __________________________________________ 4904-4924, 4962-4963
Bank holiday, M ichigan, present when declared___ __________ ________
4628
Banking experience o f _________________________________________________
4916
D ebts o f___________________________________________________________ 4917, 4918
Earning capacity o f-------------------------------------------------------------- 4912, 4913, 4916
Flint Bank, director o f_________________________________________________ 4906
Goldman Sachs & Co., interest in purchasing block o f stock, pre
liminary arrangements with Union Com m erce Corporation made
b y ___________________________________________________ 4788, 4794, 4918, 4925
Goldman Sachs & Co. repurchase o f Union Com merce Co. stock from
(a) b y _ ----------------------------------------------------------------------------------------------4922
Compensation agreed upon__________________________________ 4958-4960
Asked for b y ------------------------------------------------------ ------------- 6961-6962
4962
Assigned by to Union C o ____________________________________
Corporations against which claims ran _______________________ 4963
Payable out of profit on resale____________________ 4958, 4959, 4960
D ifferent understanding testified t o __________________________ 4960
N ot p a id ______________1______________________________
4959, 4960
For negotiation promised t o __________________________________ 4923
N ot p a id ________________________________________________
4924
Goldman Sachs & Co., Union Com merce Co. stock, repurchase of,
negotiated b y ___________________________ 4946, 4948, 4950, 4951, 4953, 4959
Guardian D etroit Union Group, Inc., board of directors meeting
Decem ber 14, 1931, present a t______________________________________
4682
D irector o f -------------- ---------------------------------------------------------------- 4879, 4905
Executive committee, member o f _______ _________________________
4906
G ood work done by, Leyburn testified____________:_______________ 4629
Officer w ithout salary and inactive in early stages o f ____________
4905
Operating committee, member o f _________________________________ 4905
Stock certificate issued to for stock transferred b y M o tt____ ____
4888
Statutory liability, would not have purchased if had known o f . 4915-4916
Stockholder, becam e o f______________________________________ 4906, 4907
(guardian National Bank of Commerce:
Capably administered b y _________________________________________
4638
D irector o f _________ _________________________________ _____________
4906
Executive vice president o f ________________ 4509, 4619, 4638, 4879, 4906
Lord, friction w ith ________________________________________________ 4509, 4515
M ott, purchase of Guardian D etroit Union Group, Inc., stock from ,
indebted to Union Guardian Trust Co. at tim e_____________________ 4900
National bank examiners, cooperating w ith ___________________________
4515
National Bank o f Commerce, executive vice president, third o f ______
4906
Governing board, mem ber of, at meeting (June 1932) w ith bank
exam iner________________________________________________________ 4619
Kean, H igbie & Co. furnishing Union Com m erce Co. stock to
Goldm an Sachs & Co., evidence o f agreement, word o f ________ 4939
Leyburn meeting with directors of, present a t____________________ 4647
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
159
C ovington , H a rr y S.— Continued
Page
Reconstruction Finance Corporation loan application for Union
Guardian Trust Co., participated in conferences o n ___________ 4626, 4910
4915
Statutory liability,, could not respond t o ______________________________
Union Bank of Commerce, director o f___________________ _____________ 4906
Union Com merce Co. stock— selling syndicate in, member o f____ 4950, 4953
Profits, am ount of participation in_______________________________
4951
United States Sugar Corporation, vice president o f___________________ 4904
C ovington , J. H .: Testim ony o f------------------------------------------------------ *2043 et seq.
C ovington , R. V .:
Com munications re Securities Exchange A ct of 1934_________________
5987
5987
Suggested restriction of broker’s right to lend and pledge stock ______
C ow din , J. C h e e v e k : Blair & Co., Inc., and Blair & Co., m em ber of
(1928)___________________________ _________ _______________________________ 3341
C ow le s :
Reconstruction Finance Corporation:
Board meeting (February 22, 1933) present a t __________________
4747
772
M em ber of board of - _ _____ ___________ _________ ________________
C ox , O scar L .:
Banks, special deputy superintendent of in charge of liquidation of
Union Trust Co__ Opposite p. 8738, 8747, 8748, 8749, 8755, 8756, 8777,
8778, 8779, 8780, 8783, 8799, 8931, 8935, 8937, 8940, 8944, 8945, 8947,
8949, 8954.
Union Trust Co. conservator__________________________ ;________________ 8195
8749, 8753, 8757, 8787, 8799, 8876, 8889, 8934
C r aig :
Burns, letter from , concerning t e m p o r a r y purchase of U n it e d
States Treasury certificates by Ford M otor C o _____________________ 4671
Ford M otor Co., assistant treasurer o f ........................... 4667, 4670, 4671, 4672
Secretary o f __________________________ ____________________ 4670, 4671, 4672
C raig -C urtiss C o.:
Balance sheet o f_________ _______________________________________ 8496 et seq.
Condition of, b a d _____________________________ ____________ 8496 et seq., 8499
Directors o f____________________________________________________________ 8496
Guardian Trust Co. of Cleveland, loan by, t o ........... .......... 8496 et seq., 8499
8496
Officers o f _______________ ______________________________________________
Stock of, of no value for loaning purposes___________ '__________ 8496 et seq.
C ram er , Stirlin g V .:
Continental Illinois Bank & Trust Co., vice president o f _____________
5125
Wilson, letter to concerning Continental Illinois Bank & Trust Co.
loan to D etroit Bankers C o_________________________________________
5125
C ramp B rass & I ron F oundry C o . :
Baldwin Locom otive Works, subsidiary o f ____________________________
31
Directors o f____________________________________________________________
31
C ram ’ s A utomotive S e r v ic e : Publicity organization em ployed by Hansell & Co. to restore morale of Indian M otocycle Co. dealers___________
*595
C r a n e , R alph T .: Brown Bros. & Co., director o f _______________________ *1150
C rash:
First, O ctober 26, 1929________________________________________________
2983
Public and bankers equally responsible for, Lord says________________
5053
C ra s h o f O c t o b e r 1929 (see also Speculation)___________________ * 83-85, 96-97
C r a v a th , D e G e r s d o r f f , S w a in e & W o o d : Sinclair Consolidated Oil
Corporation pool and syndicate, connection with (see Sinclair Consol
idated Oil Corporation, pool and syndicate)___ 3226, 3267, 3300, 3302-3303
C r av a th , W illiam B., trader on market (retired)------------------------------------*361
Short selling; differs with Richard W hitney as to effect of short selling,
says Cravath_________________________ _______________________________
362
Testifies: (Stock exchange practices)......... .......... - _________________ * 361-375
C r a v e n , T homas J .:
First National Bank o f New Y ork representative o f__________________ 5621
Verhelle, letter from , concerning policy o f New Y ork banks with
reference to officers and em ployees’ loans___________________________ 5621
Answering____________________________________________________ 5621-5622
60604— 46-------11
160
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICE#
Page
C r aw for d , G eorge W .: Union Trust Co., director o f _____________________ *1151
C r aw ford , R . W ,:
Union Trust C o.:
Official positions in and in other concern__________________•______
8226
Van Sweringen loans approved b y ___________________________ 8198, 8199
Vice president__________________ _________________________________ _ 8198
C raw fo r d , W . J., J r .:
Union Trust Co.':
D ire cto r._______________________________________________ 8163,8164-8167
Loan t o ___________________________________________ 8163,8167, 8752-8753
Under collateralized________ „ ___________ ________ _______ 8167, 8752-8753
C r a w l e y , E u g e n e : Sinclair Consolidated Oil Corporation, director and
vice president of (1928)_______________________________________ 3127, 3280-3281
C r a w l e y , N ellie K l in e :
Crawley (Eugene), vice president of Sinclair Consolidated Oil Cor
poration, is husband o f ______________________________________________
3127
Sinclair Consolidated Oil Corporation syndicate (1928), participant
in, by subparticipation granted b y Harry F. Sinclair (see Sinclair
Consolidated Oil Corporation, pool and syndicate) ____________ 3127, 3157
C red it . ...________________ _________________________________ 7024-7028, 7030-7032
Control by banks is proper, says Richard W hitney__________________ _
*51
C r ed it A n sta d t :
Failure o f ______________________________________________________________
4996
Banking difficulties started w ith__________________________________
4996
C redit L oan s : Credit furnished, drawings from ___________________________
2698
C rescent B rokerage C orporation :
3858
Business, started doing before license issued.'______________ '__________
Clarke’ s interests insured by, claimed to be uneconom ic______________ 3858
Insurance premiums on his interests cut $300,000 by, Clarke stated. _ 3858
Officers- of Utilities Power & Light Co. and Fox Film Co. connected
w ith in official capacity according to Rogers’ affidavit______________ 3858
Rogers denied m aking____________________ :__________________ ____
3859
C r e s sin g e r :
Bonds, depreciation of, instructions to bank examiners to charge off__ 5830
M odified to include only defaulted and undesirable issues. ______
5831
Com ptroller of the Currency__________________________________________
5830
C ross -T ran sac tio n : D efined__________________________ ;__________ ,________ 6789
C r o w d e r , Gen. E n o c h (see Cuban loans, subhead, Crowder, General
E n och )_______ ________________________________________ *__________________
2553
American A m bassador to Cuba 1926-27______________________________
2553
D eath o f _______________________________________________ :_______________
2563
Resignation o f ________________ _________________ >______________________
2563
C row ell P u blishing C o.:
Collier’s W eekly, Control of, in __________________________________ 833 et seq.
D irectors o f __________________________________________________________ 29; 833
T. W . L am ont____________________________________________________
833
M agazines published b y ____________________________________ __________
836
Cuba:
Banca Internationale w ith branches in failed 1920_____ _____________
2781
Econom ic, financial and political conditions D ecem ber, 1931, b a d ____ 277/
W orse steadily_________________ __________________________________
277
, M achado governm ent in, National C ity Bank, no attem pt by, to
sustain, testifies Charles E. M itchell__________ _____________________ *179
M organ, J. P., & Co. public utilities interests of, in_____________ 469 et se -<
National C ity Bank:
Loans by, to sugar, industries______________ *1289 et seq., 1829 et seq
M achado governm ent n ot sustained b y , testifies Charles E.
M itc h e ll__________________________ - ____________________________ *1793
President of:
M achado’ s predecessor Z a y a ______________________________________ 2647,
Zaya’s predecessor M enocal______________________________ ;________ 264
Public utilities interests of J. P. M organ & Co. in _______________ 469 et seq
Sugar industry in, history of, and history and extent o f collapse
o f ____________________ ___________________*1792, 1798 et seq., *1828 et sec
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
161
C u ba C ane S ugar C o . :
Pas®
Chase National Bank loans t o ________________________________________
2917
Officials or trustees of interested in ______________________________
2914
Chase Securities Corporation trading account, participation in option
warrants o f _____________________________________________________ 2336, 2859
C uban A m bassad or :
Chase officials:
D id not com e to for instructions_________________________________
2792
Offer assistance t o _________________________ :______________________
2792
C uban D e b t :
Am ount o f______ _____ ________________________________________________
2633
Floating:
Catlin consulted concerning purchase of some o f_________________ 2654
Clarkson-Catlin, talks with concerning syndicate for purchase o f _ 2654
Pathan memorandum concerning_______________________ _________ 2654
2648
M enocal opposition to M achado’s policies____________________________
2648
Wiggin, mem orandum to concerning____ ________________________
Official conversations concerning______________________________________ 2648
Paid to pu blic___________ 2673, 2680, 2684, 2692, 2699, 2703, 2762, 2780, 2798
Payment of D ecem ber 1932 installment on expected by M organ. 2780-2781
Revenue to meet, insufficient___________________ 2777-2778, 2814-2816, 2782
C u ban D om in ican S u g a r C o. (See under National City Co., Cuban
Dominican Sugar Co.)
C uban F in an ces :
Anderson, C. P., memorandum concerning____________________________ 2706
Bonds, long term, proposal, tentative, for issuance of, to substitute
for serial certificates____________________________________________ 2706-2707
Budget balanced, pressure fo r_________________________________________ 2765
Insufficient to m eet--------------- ------------------------------------------------ 2770,2772
Necessity of reducing________________________________________ 2770, 2772
Cash balance, small___________________________________________________
2633
Statement of not representative__________________________________ 2633
Chase interest— Guggenheim told necessity of discussion concerning
with M achado______________________________________________________
2772
Silver, purchase and handling o f by proposed_______________ 2776-2778
Chase National Bank— loan accounts of Cuban Governm ent officials
w ith _______________________________________________ _____________ 2645-2647
Cuban officials describe to American Ambassador____________________
2792
. Condition of, ba d ____________ _____ ___________________________________
2772
D ebt, funded o f __________________________________________________ 2755-2758
D eficit shown in Geiger mem orandum ___________________________ 2666, 2739
Funds to meet. (See Cuban loans, revenues to meet.)
M ach ado:
Chase National Bank silver arrangement proposed to for addi
tional funds__ _________________________________________________
2632
Consolidation of national debt hoped for b y _____________________
2633
M oving need for__________________________________________________ 2632
Short term treasury notes, power to sell under tax la w __________
2633
Bad fo r ______________________________________________________
2633
Trust funds depleted b y _______________________________ 2632-2633, 2809
1929— expenditures and revenues__________________________ 2716-2717, 2739
Short-term treasury notes, issuance o f would vitiate currency________ 2633
Stock exchange listing application, statement of in, later revision
altered figures__________________________________________________ 2739-2740
C uban L oan s (see also Cuban finances):
Additional— Chase interests and associates refused___________________
2771
Inadvisable according to Bruce m em o_______________________ 2764-2765
Aezcorbe, Louis, proposals made by, to care f o r .1_____________________ 2785
Agreement for— bank advances to pay, between Chase interests and
Cuban Governm ent_______________________________ _____ _______ 2813-2817
M atter of public record in Cuba_________________________________
2702
Provisions of June 27, 1933, sum m arized. ............ 2793-2795, 2817-2819
Second bank advance (summary of) between Chase interests and
Cuban Governm ent_______ _____________________________ _ 2817-2819
Attorneys, Cartaya extolled over Bustamente as Chase adviser o n . 2642-2643
Connection, prior of, immaterial, Williams testified______________ 2641
Fees of in connection w ith___________ 2602, 2607, 2634, 2637, 2638, 2639
162
IN D EX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C uban L oans— Continued
A verhoff and Chase interests oppose moratorium on__________________ 2789
Interview with, covering, disappointing------------------------------ --------------2790
2785
Secretary of Treasury, Chase interests not to discuss w ith .__________
Bancamerica Blair Corporation— prospectus on bond issue, one of
2717
issuers of______________________________________________ ______________
Bank credit advanced for_________________ 2798, 2803, 2809, 2794, 2817, 2818
Carried at face value______________________________________________ 2799
Extension of________________________ _________ . __________ ____ 2794,2818
Reduction of, provision f o r . . ________________________________ 2795, 2819
*Rfi/n k pTS *
Bonds sold to at 95_____ _____________ 2715, 2733, 2734, 2737, 2962, 2803
Commission, conversion to, on refunding agreement of_____ 2715-2716,
2738
Serial certificates held by, refunding of before those held by pub
lic with later maturities at par. 2688-2689, 2712, 2713, 2733, 2735, 2740
Banks:
Group of assisted in furnishing small credit_____ _________________ 2542
Obligations in connection with in portfolios of—
(а) Not “outstanding” Morgan says____________________ 2744^2747
(б) Course “ outstanding,” Williams says____________________ 2748
(c) “ Outstanding” but not “outstanding funded” debt,
Batchelder says________________:________:__________ 2756-2759
'Payment of, temporary advance towards, commission on________ 2778
Serial certificates and deferred public works certificates, held
by----------------- --------------------------------------------------------------------- --------- 2673,
2677, 2688, 2744, 2747, 2749, 2750, 2752, 2753, 2754, 2756,
2757, 2759, 2762, 2768, 2798, 2803.
Carried at face value_________________________________________
2798
Barr:
Catlin letter to, concerning refunding of_______________„__________
2708
Refunding arrangement by, long-term bonds provided in . _ :____
2711
Should more properly have referred to “subordinates” than “ inter
mediaries” in effecting, Geigeif says____________________________
2602
Bidders for to be handled by Institute________________________________
2582
Blair & Co. and Chase Securities Corporation withdrew from negotia
tions________________________________________________________________ _ 2657
Meeting concerning__________________________________________ 2705-2707
Participation in by_____________________________________ 2661, 2663, 2689
Underwriting group to finance public-works program, one of_____
2657
Bond issue, agreement concerning between Cuban Government
and group of bankers--------------------------------------------------------- 2713-2714
Butler (Chas. Henry) letter to Rushmore, Bisbee & Stern con
cerning State Department’s view of____________________________ 2617
Callahan memorandum of Geiger to, concerning._____________________
2596
Memorandum of May 21, 1929, concerning financial embarrass
ment in meeting, probably prepared by________ _______________
2690
Went to Habana to discuss in behalf of Chase National Bank or
Chase Securities Cprporation___________________________________ 2580
Cartaya, Enrique Hernandez, compensation of in connection
with___________ _________ ________________ __________________ 2638,2639
Consultation with Machado and concerning______________________ 2609
Cuban Government, Secretary of Treasury in at time of first
of___________________________________________________ _______ 2639,2642
Counsel for Chase in connection with________________________ 2638, 2639
Dual role of in protecting Chase and Cuban interests____________ 2643
Legal opinion concerning, Platt amendment, not mentioned in
Machado’s confidential** man recommended to Chase interests
as___________________________________________________________ 2643, 2650
Reported bids not satisfactory, advanced own plan______________
2582
Bustamante’s opinion on, satisfactory to_______________ _________
2633
Services of, used by Chase in connection with_______________ 2639-2640
Who is and connection with______________________________________
2638
Catlin, Henry— Chase interests, utility of to _ _ _ ______________________
2634
Compensation of in connection w ith .. 2602, 2607, 2634, 2637, 2638, 2639
Period for which p a id .,.............. ................................ 2602, 2607, 2634-2635
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
163
C u ba n L oans — C ontinued
Catlin, H enry— Chase interests, utility of to — Continued
Pa£®
Chase paid during overdraft______________________________________ 2637
Charged against expenses____________________________________ 2602
Com plicated situation with reference to, according to Bruce,
reason fo r __________________________________________________ 2605, 2632
Intermediary, n ot one, according to G eiger_______;_______________ 2634
Legal services, rendered none in connection with Chase obtaining
finances_______________________________________________ _________
2603
President M achado reported by as desperately in need o f G ov
ernment fu nds_____________________________________________ 2605, 2632
Repeats in parlance what told, frankness with im possible___ 2605, 2632
Services:
(a) Character* of rendered Chase interests in connection
w ith ______________________________________________ 2634, 2635
(b) N o statement o f ____________________ _____________________ 2635
(c) T o Chase in connection w ith _______________________ 2640-2641
Statement concerning prepared by M organ, Williams & G eiger. _ 2603
Cespedes, Chase National Bank financing proposition addressed t o ____ 2610
Consultation of with M achado and Cartava concerning_________ _ 2609
Crowder, project for supposed to be presented to b y ________ 2554, 2608
Extravagance o f_____ _____________________________________________ 2764
Chase interests, option on, not exercised b y __________ 2765-2766, 2767, 2786
$80,000,000 of bonds provided for b y ____________________________
2763
2715
First, all distributed to pu blic______________ _________ ___________
2763
$40,000,000 of bonds never issued under_________________________
Dillon, Read & Co. participation in, given special_______________
2715
Option on $40,000,000; bank credit, guaranty of paym ent o f ____ 2803
Participants in, managers o f selling group or subparticipants_ 2715, 2761
Price:
(а) Spread between to public and to banking grou p___ 2715, 2737
(б) T o banking grou p___________ 27 15 ,2 733,2735,2737,2762,2803
(c) T o p u b lic .________________________ 27 15,2733,2737,2739,2762
Provisions fo r _____________________________________________________
2803
Subparticipants in, selling group of more than 600 bankers______ 2715
B onds— depreciation in value o f ____________ _____________________ 2574
90-percent lien on revenues__________ _____ _________________ 2575, 2812
Prospectus of, issuers o f _____________ ____________________________
2717
Surplus over lien into bu dget_________ ________________ __________
2575
Bruce, James, mem o of concluding additional inadvisable___ 2764-2765
Bustamante, Antonia S. de— Chase National Bank right in
taking, opinion o f ______________________________________________
2633
Compensating of in connection w ith ______________ 2637, 2638, 2639
Legal details to be under supervision o f __________________________ 2611
Legality of approved b y _____________________________________ 2593, 2799
- Platt amendment, considered in _______________________ 2592, 2593, 2624
Legality of, opinion concerning Platt am endment n ot men
tioned in _____________________________________________ 2591, 2593, 2623
Present at negotiations concerning____________________ __________
2609
Services to Chase in connection w ith _____________________________ 2640
Chase interests:
Bank advances by, agreements fo r ________ ________ ________ ______ 2763,
2778, 2813-2817, 2782-2783, 2793-2795, 2817-2819, 2787
Cuban Government after meeting obligation to, to get balance of
public works revenues__________________________________________ 2705
Coroalles letter to Graves— in files o f____________________________
2651
M organ testified to reason fo r ____________________________________
2651
2771
Additional credit refused by and associates______________________
Associates in financing o f _________________________________________ 2661
Blair & Co., successful bidders for firs^ of_________________________ 2649
Account financing of done b y _____________________________________ 2575
Collaborated with B lair & Co. in bidding o n _____________________ 2650
Commissions o n __________________________________ 2795-2796, 2797-2798
Compensation to Bustamente and Rushmore, Bisbee & Stern for
services on ______________________________________________________ 2602
164
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C u ba n L oans — C ontinued
Page
Chase interests— Continued
Credit, additional, extended b y ______________________________ 2766-2767
Guaranty for, unissued bonds________________________________ 2767
2768
Purpose— to prevent issuing further bonds__________________
Effected without intermediaries, according to G eiger_____________ 2600
First credit, half furnished b y _ _ __________________________________
2661
2659
First of am ount ot bought in b y _ . ______ _________________________
M eeting concerning_______________________________ __________ 2705-2707
Never wrote disapproval of paying newspapers for propaganda
favorable to, in connection w ith ________________________________ 2645
Option on $40,000,000 of bon ds________________________ 2765-2766, 2767
N ot exercised_________________________________________________ 2768
Participation in ____________________________ •___________ 2661, 2663, 2689
Persons best qualified to describe part played by in _____________
2695
Prospectus, not responsible for statements in ______ ^______________ 2813
Representation of who went to H abana to discuss persons included
in _______________________________________________________________
2580
Seeking business as early as 1926____ ________________ ____________ 2649
Chase National Bank— bank credit, am ount of held b y __________ 2799, 2803
Bernard of, consulted with Graves concerning____________________ 2557
Blair & Co., bid with successfully to finance $10,000,000 of public
w orks___________________________________________________________
2552
Campaign to secure____________ __________________________________
2568
Compensation to for services and obligations in connection w ith - 2611
Contract between Cuban Government, Blair & C o., and entered
in to__________________________ __________________________________
2552
Couzens states for record no agreement ever reached not to
investigate___ __________________________________________________
2746
Finance Com mittee report, United States Senate, contains all
agreements o f_ __________ _______________________________________
2543
Financing proposition by, fo r ___ _________ ___________________ 2610-2612
First series made by, date o f -------- ------------------------------------------ 2542, 2543
Fiscal agent in United States for paying interest on bonds * _____
2674
Habana branch established January 1925________________________
2555
Lent or participated in public works fund to extent o f $61,250,000- 2544
M ade by, am ount in volved_______________________________________
2543
2543
Three major, three m inor____________________________________
M em o of, Mar. 22,1926, to Tinker by Graves, about transaction:
(а) N ot com pleted, M organ testifies________________ ________
2555
2555
(б) Related to public-w orks program ______________ :_________
1926, as far back as, sought financing agreement w ith C u ba_____ 2553
N o commission paid b y __________________- ___________________ 2597,2606
Obligation of Governm ent to pay public-w orks certificates paid to
contractor__________________________________________________ 2610-2611
Prospects of participating in_____ ____________________________ 2568-2569
Public-works certificates, am ount issued under contract w ith ____ 2552
Second made by, am ount and date____________________________ j_ 2543
Serial certificates held b y _________________ ___________________ 2799, 2803
Third lien, no connection w ith ____________________________________ 2575
Third made by, amount and date________________________________
2543
Tinker of, consulted with Graves concerning_____ _______________
2557
Waste of proceeds, press report on ________________________ 1______ 2451
Chase Securities Corporation:
Financing interests, no one to look out for in M arch 1926_______ 2578
Intermediaries, em ploym ent of by, referred to in:
Batehelder letter_______________________ _____ ^______________
2595
Reference b y Bathelder to was to G overnm ent officers,
Geiger testified________ _______ _______________________ 2601-2602
Loan proposed by, and g la ir & Co. different from loan made later,
Morgan testifies_________________________________________________ 2559
P olicy of statement by, to be used before Senate Finance Com
2596
m ittee___________________________ _________________________ _____
Prospectus for bond issue, one o f issuers o f __________ _____________ 2717
Sept Batehelder, Strahan, and Williams to .work o n ____________
2582
Size resulted in arrangement for public sale b y o f part o f public
works certificates:______________________________________________
2591
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
165
C u ban L oans — C ontinued
Pase
Chase Securities Corporation-— Continued
Underwriting group to finance public works program, one o f ____ 2657
Commissions, banks, o n __________________________________________ 2794-2797
Paym ent of for, question not brought up, necessary to be pre
pared for_______________________________________________________
2599
Com petition for am ong American bankers____________________________
2590
Conditions, general surrounding_______________________________________ 2569
Continental Illinois Co., Inc., prospectus bond issue, one of issuers of__ 2717
Continental Illinois National Bank & Trust Co. o f Chicago, one of
group which participated in bankers credit o n _____________________ 2542
Meeting concerning__________________________________________ 2705-2707
Continental National C o.:
Participation in ______________________________________________ 2661, 2689
Second credit, participated in ________________________________ 2661, 2663
Contractors— debt to, third lien on public works debt__________ 2544-2545
Credit, additional:
(a) Extended by banks______________________________________ 2766-2767
(b) Guaranty for unissued bon d s. ________________________________ 2767
(c) Note, secured by long term bonds, obligation proposed for.__ 2771
(d) Refused______ ________________________________________________
2771
Credit extended by bankers:
(a) N ot repaid_____________ _____ ___________________________ 2772-2773
2773
(b) Past due, carried as__________________________________________
2772
(c) Repayable in 1 year__________________________________________
(d) Tim e for paym ent of extended__________________________ 2772-2773
Credit furnished (see also Cuban loans, financial em barrassm ent):
Drawings against____________________________________________ 2696, 2698
Chase interests paid against certified documents, didn’t go
behind_____________________________________________________ 2698, 2810
M oney drawn down faster perhaps than contemplated, Williams
testified_________________________________________________________ 2697
N o time limit for drawing against________________________________ 2697
2698
On certificates of Secretary of Public W orks_____________________
Credit of $10,000,000 arrangement entered into fo r ______________ 2588
2589
February 19, 1927___________________________________________
Crowder, Gen. Enoch:
Bankers that did refunding operation entitled to external financ
2594
ing felt by, agcord in g to M organ________ ______________________
Chase National Bank memorandum of, M arch 22, 1926, to Tinker
from Graves, recommends maintaining cordial relations with,
but making no statements to he could easily learn were untrue. _ 2556,
2558, 2610
Consulted frequently im mediately preceding first o f ____________
2614
Credit reported to February 19, 1927_____________________ _______ 2586
Disturbed over possibility of, in 1926, b y Blair & Co. and Chase
Securities Corporation_______________________________ 2554, 2556, 2608
Econom ic conditions deplorable according to _____________________ 2554,
2562, 2566, 2567, 2608
Failure of Blair & Co. to call on him concerning projected, com
plained of b y - __________________________________ _____ ____ 2557, 2609
Final proposal for first of, delivered to after submission to G ov
ernm ent_________________________________________________________ 2614
Graves’ memorandum stated:
(a) Assumption that no plan would run counter to Cuban
court and Platt am endment_____________________ 2557, 2608
(b) H e’ d inquire about situation and communicate with,
when in a position to do so_____________ ________ _ 2557, 2609
(c) In view of what was known by, foolish to pretend either
lack of knowledge of public works program t o ___ 2557, 2609
M udge, conferences with concerning application o f Platt amend
ment t o _________________________________________________________ 2618
N ot taken into Chase National Bank’s confidence concerning
p rojected __________________________________________________ 2556, 2610
166
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C uban L oans— Continued
pag®
Crowder, Gen. Enoch— Continued
Objection to under Platt amendment, not communicated to
Mudge__________ ________ _______________ ____ _________ _________
2619
Platt amendment:
(a) Prevented Opinion of____________________ 2554, 2563-2564, 2608
(b) Regarded by as insufficiently understood by American
lawyers__________________ ___ ____ ___________ 2554,2563,2608
Position of, United States under Platt amendment, article 3,
must interest itself in___________________________________________ 2621
President of Cuba asked by to suspend final action till United
2615
States Department investigation________ ♦______ _______________
Protest to Washington, on negotiation for, responsibility for
taken by____________________ _______*_______________________ 2554,2608
Williams discussed financial questions with a hundred times____ 2594
Currier, Guy, underwriting group to finance public works program,
one of________________________________________________________________ 2657
Debt obligations from payment of by Cuba____________ ______________ 2673,
2680, 2684, 2692, 2699, 2703, 2762, 2765, 2775, 2777, 2781, 2782, 2798
Through borrowing money________________________________________ 2673,
2762, 2763, 2775, 2777, 2781, 2782, 2809, 2814-2815, 2817-2818
Debt situation— details of revenues and expenditures set forth in
2678
memo on_________________ _________ _________________________________
Debt situation:
(a) Political situation, effect of on________ ___________________ 2670, 2676
(b) Suggestions for meeting._ _ _ _____________________________ 2677-2678
Deferred payments, public works certificates. (See also Public works
certificates, infra.)
Deferred payment public works certificates:
(a) First lien upon public works fund________________________ 2611, 2809
(b) Method of financing first of___________________________________
2620
(c) Obligations of the Cuban Government_____________ 2620, 2622, 2623
(d) Provision for in Chase National Bank______________ ________2611
(e) Serial certificates, to replace___________________________________; 2660
Direct, distinguished from indirect___________________________ .________ 2569
Economic conditions:
(а) Acute depression, Batchelder says__________ __________________ 2569
(б) Deplorable, Crowder says____ _____________________ 2562, 2566, 2567
Equitable Corporation— prospectus bond fbsue, one of issuers of____ 2717
Equitable Trust C o.:
(а) Meeting concerning______________________________________ 2706-2707
(б) Participation in by_________________________________ 2661, 2663, 2689
Estimate of cost made by Stewart & Co_________________________ 2724-2725
Expenditures, governmental, decrease in, reason for__________________
2574
Financial embarrassments (see also Revenues to meet, infra):
Bond issue smoothed over__________________________________ ______ 2788
In meeting, due to:
(a) Acceleration of public works program, Morgan testified. _ 2694
Shown by drawings.under credit______________________ 2696
(b) Heavy maturities, according to Morgan____ _____________
2693
(c) Mentioned in memorandum of May 21, 1939____________
2690
(d) Money drawn against credit more rapidly than contem
plated (no acceleration as term ordinarily understood).. 2697
Moratorium on, threatened because of____ ____ ______________ _
2790
Public works revenue, Government’s desire to use for budgetary
requirements does not indicate need, to Morgan. 2691, 2692, 2740, 2774
Findlay Biggerman, letter to, concerning expenses in connection with. 2644
Letter from:
To Morgan, concerning conference with Ambassador
Guggenheim ____________ __________________________________
2791
To Rosenthal, concerning situation of_____ _____________ 2784-2785
Machado seen by, with Lopez* in reference to_________________. . .
2784
Telegram to, from Morgan, concerning avoidance of moratorium
on_______________________________________________________________ 2789
M emorandum to Freeman, from Wiggin, concerning Barr re
funding arrangement for________________________________________ 2711
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
167
C u ban L oans — Continued
Pflse
Geiger, A. K .:
Agreement, summary of, for second bank advance to pay m a
turities___________________ :________________________________ 2817-2819
Letter to Rosenthal concerning silver coinage to help p a y . .. 2776-2777
M emorandum, deficit shown b y _____________________________ 2666, 2739
Discussing debt situation______________________-------------- 2666-2678
H ypothesis in, that situation must be dealt with without
Governm ent aid______________________________________ 2666, 2669
2596
Inquires if correct approach________________________ _________
Prom pted to write so as to be ready for testim ony before
Senate Finance Com m ittee________________________________ 2599
T o Callahan and M cK ee____________________________________
2596
W ritten by entirely on own initiative_______________________
2599
Senate Finance Com mittee— Schmidlapp statement to, denied
Chase interests paid commissions for or worked through inter
mediaries, recollection o f ------------------- ---------------------------------------- 2600
Statement accom panying memorandum to Callahan, M cK ee,
Morgan, has no recollections o f________________________________
2597
Government aid in collecting, possibility of considered______________ 2666,
2669, 2670-2672
Guarantee discussed______________________________________________
2570
N ot in market for January 1928----------- ---------------------------------------- 2642
Salaries unpaid------------------------------- ----------------------------------------------- 2790
Group arrangement for underwriting revolving credit to finance_____
2657
Guggenheim, Ambassador, did not fully approve past transactions on_ 2791
Incom e public works funds 1925-26 to 1932-33, inclusive, am ount of_ 2575
Indebtedness, Cuban actual, and as stated in prospectus for 1930
bond issue fo r ----------------------------------------------------------------------------- 2744-2761
External, June 30, 1926________________________________________ _
2547
2544
Increased with public works debt 1927-33____________________________
Internal, amount of 1933, 1927________________________________________ 2545
Public works debt, 1927, none____________________________________ 2544
Sugar stabilization decreased______ _______________________________ 2544
T otal external:
(a) M ay 1, 1933_________________________________ ___________
2545
2544
(b) Reduced 1927-33_____________________ ________ __________
(c) When m ade______________________________________________
2545
Indirect, distinguished from direct____________________________________
2569
Institute plan_________________________ _______________:___________ 2582-2585
Idea of banks_____________________________________________________
2570
Never went through_________ _____________________________________ 2585
Operation, proposed, described___________________________________
2569
Platt amendment not designed to circum vent____________________ 2570
Suggestion considered____________________________________________
2568
Intermediaries, Chase interests used none according to Geiger:_____ 2634
Chase Securities Corporation, reliance on to effect, reference to
Governm ent officials, Geiger testified_____________________ 2601-2602
Jones, Grosvenor, testim ony of before Senate Finance Com mittee,
concerning_________________________________________________ 2590-2591
Legality of, passed on by lawyers_____________________ 2588, 2799, 2800
M achado, Gerardo:
Chase interests, obligation of towards, stated b y _________________ 2784
Consulting with Cespedes and Cartaya concerning______________
2609
D efault on threatened b y ________________________________________ 2784
Elected on pledge not to increase Cuban public d eb t____________
2548
Government, in com m and o f_____________________________________
2764
Plan for handling, discussed w ith ____________________________ 2784-2785
President, 1927, when first loan extended________________________
2547
Position with reference to described_________________________ 2568-2569
Public debt, pledged not to increase_________________________ 2547, 2548
Public Works Program initiated and adopted after became Presi
dent_______________ _____________________________________________
2548
Marketing of securities for financing by banks________________________ 2573
M cK ee memorandum to Geiger_________________________________ ______
2596
168
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C u ban L oans — C ontinued
M oratorium law, Guggenheim upset b y _________ ______________________ 2791
2790
Threatened________________________________________ ________________
M organ bank, direct, probably expected to get in own nam e_________ 2569
2569
Indirect interest in only through National C ity B ank____________
2583
Morgan, Geiger & Williams, statement o n ____________________________
M organ, J. P., & Co., $50,000,000 (1 9 2 2 ).___________________________ 2618
M organ, letter to from :
(a) Findlay concerning conference with Am bassador Guggenheim.. 2791
(b) Rosenthal concerning funds to m eet paym ents o n ___________
2701
2541
M organ, Shepard— counsel states best prepared witness o n ___________
M organ, telegram to Findlay on avoidance o f m oratorium _____ ______ 2789
M udge, Alfred E .:
D rafted final proposal to Governm ent for first o f ____ ______________
2614
Platt amendment, legal under, opinion o f _______________ 2619, 2624-2627
State Departm ent, consultation with officials o f _____ ___________
2615
National C ity Bank unpopular in connection w ith _____________ _____
2655
Efforts to secure_________________________________________________
2569
Newspapers paid for propaganda favorable to Chase interests____ 2643, 2644
Obregon:
Expenses detailed b y _____________________________________________ 2644
Inform ed governm ent not in market for, January 1928______ _____ 2642 .
N ot censured for paying newspapers for propaganda favorable to
Chase interests_____________________________________ __________ * 2645
Paid newspapers for propaganda favorable to Chase interests in
connection w ith _______________________ ___________ _______ i 2643, 2644
Option, Chase interests had on $40,000,000 bonds fo r ________ 2765-2766, 2767
N ot exercised_______________________________________ ; -------------------- 2768
Paym ent of, banks m ade tem porary advance tow ard------------------- . 27772778, 2782, 2814-2816
Press com m ents on favorable______________________________ 2778-2780
Cuba able to m ake__________ _______________________________ ______ 2765
Regarded hopefully________________________________________ 2779-2780
Serial certificates_______________________ 2673, 2680, 2684) 2692, 2699,
2703, 2762, 2765, 2775, 2777, 2781, 2782, 2798
Funds from which paid_________________ 2673, 2762, 2763, 2775, 2777,
2781, 2782, 2798, 2809, 2814^2815, 2817-2818
Platt amendment:
Crow der’s opinion proposed, contrary t o ________ 2554, 2559, 2560, 2608
Attorneys for Chase and Blair & Co. inform ed o f ________________
2560
Crowder regarded as preventing_________________________________ 2554
Legal opinion, none furnished discussing legality o f u nder____ 2591,
2593, 2623, 2799, 2800
Loan of Chase N ational Bank carefully scrutinized with refer
ence t o _________________________ . _______________________________
2559
Rushmore, Bisbee & Stern, no written opinion concerning
legality o f under________________________ ________________________
2618
Platt amendment:
State Departm ent raising no objection to under__________________
2617
Com m unicated in letter o f D ecem ber 13, 1926_______________ 2617
United States’ policy under, to act as fiscal adviser to C u ba ... 2614-2615
Press com m ent favorable on payments o f _______________ ___ 2778-2780
Equitable Corporation of New Y ork, one o f issuers o f ___________
2717
N o.m en tion of revenues and expenditures_____ _____ _______ 2716, 2739
Reason for, unknown to M organ____ ________________________
2716
Prospectus for bond issue, 1930:
Bancam erica Blair Corporation, one of issuers o f _________________
2717
Batchelder & Bisbee prepared_____________________________ ____ _ 2755
Chase interests n ot responsible for statements re________________
2813
2717
Chase Securities C o., one of issuers o f ____________________________
Continental Illinois Co., Inc., one of issuers of____________________
2717
Cuban debt, funded, stated in:
Banks:
Obligations in hands of* not included in indebtedness. 2744, 2761
Obligation in hands of, riot outstanding, M organ says. 2744-2747
Figures for obtained from Cuban Secretary o f Treasury
2744
Checked b y Batchelder___________________ ____ _________
2744
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
169
C u ban L oans— C ontinued
Pa£e
Prospectus for bon d issue, 1930— Continued
Cuban debt, funded, stated in— Continued
M ight have been better expressed in, Williams says_________ 2747
Reduction, Morgan would have show n_____________________ 2718
Funded, stated in ____________________________________________ 2744
Reduction shown____________________________________________
2718
Prospectus:
Cuban deficit of revenues against expenditures not material to
2717
mention in_____________________ _______________________________
Reasons for not showing in _____________________________ 2717, 2718
N ot clear_____________________________________________________ 2744-2761
Public could not be misled b y :
Williams says___________________________________________ 2748, 2752
M organ says___________________ _____________________________
2750
Batehelder says_________________________________________ 2758, 2760
Refunding purpose explained in _____ 2744, 2747, 2750, 2760-2761, 2813
Statements in concealed Cuban debt situation______________ 2744-2761
Prospectus, sale of serial certificates_________________________ _____ ___
2661
Issued_____________________________________________________________ 2661
Morgan believes statements in to be truthful and accurate. _ 2686-2687
Does not know by w hom sources of inform ation checked___ 2688
Revenues and expenditures m entioned in not comparable to
figures in Geiger report, M organ testified______________________ 2687
Prospectus, hearings 1932, printed in, not reprinted in investigation. _ 2662
Public debt, M udge distinguishes from private debt_____________ 2625-2626
Public, serial certificates issued to:
(a) Revenues to meet. (See Cuban loans, revenues to meet.)
(b) Security fo r ______________________________________________ 2661, 2680
Second issue:
(a) D a te _____________________________________________________ 2662
(b) Price t o __________________________________________________
2662
2660,
(c) Sold t o - ____________ J__________________________________
2661-2662, 2663, 2665, 2667, 2673, 2674, 2680, 2682, 2744, 2746,
2750, 2754, 2756, 2757, 2762, 2766, 2798, 2803
Public works:
2731
Agreement for sharing in _________________________________________
Blair & Co., expense of estimating on to be shared by__ 2725,.2730, 2731
British Consul, Acting, report on need for:
(a) Morgan quoted_______________.___________________________ 2549
(b) M organ uncertain if Chase knew of when suit_________
2550
(c) Reported to M organ 2 weeks before testified______ 2549-2550
Catlin interested in Stewart & C o’s getting contract fo r ____ 2726, 2728
Central Highway, linking up, effect______________________________
2590
Provinces, running through each necessary for political
reasons_____________________ _______________________________ 2590
Certificates (see also this title, deferred payment public works
certificates):
Bank discount, arrangement o f______________________________ 2591
Idea conceived_____________________________ !_________________
2590
Interest secured by first lien on special revenue created_____ 2553
Segregation not required________________________________ 2693,
2786, 2805, 2806, 2807, 2808-2809, 2810
2728
Cespedes, Stewart discussed w ith________________________________
Chase interests, expense of estimating on, shared b y _____________
2725
Profits from, to share in______________________________________ 2730
Coralles, Stewart correspondence with concerning___ 2650, 2652, 2658
Currier, expense of estimating on shared b y ____________________ _ 2725
Profits from, to share in______________________________________ 2730
Estimates of cost____________________________________________ 2550-2551
Expenditures for Platt amendment, legality of under, Rushmore,
Bisbee & Stone opinion on Shephard M organ were read______
2592
Expenses not checked b y Chase interests_______ ____________ 2698, 2810
Extravagance o f__________________________________________________
2591
Financial credit expansion made necessary b y _______________ 2591
Graft in________________________________________________ 2765, 2810-2811
Never investigated______________ _________________ 2698, 2810-2811
170
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C uban L oans— Continued
Page
Public works— Continued
Law, adopted_____________________________________________________
2548
Revenues created by:
(a) Account set aside for servicing. _______ _____________ 2548-2549
(b) Deposited in Treasury commingled with other funds. _ 2807
(c) Estimate of______________________ ________________________ 2548
(d) Figures for and debt service, 1925-33____________________
2811
(e) Government servicing indebtedness______._______________ 2548
.(/) Reduction shown__________________________________ _____
2772
(<?) Segregation provided for____________________________ 2699-2700
(h) Special for highway construction, mounted rapidly
at first___________________ ______________________________ 2590
Situation— Batchelder letter to Tinker considers_________________
2568
Stewart, James C.:
Bankers discussed with__________________ •____________________ 2727
Catlin, Coroalles letters concerning_________ 2650, 2652, 2725, 2726
2652
Coroalles correspondence with concerning___________________
Discussed proposal with Catlin______________________________
2727
Codwin_____________________________________ ________________ _ 2721
Hunter___________________________________________________ 2721,2729
Lockhart______________ ____________________________ ______ 2721,2729
Machado, breakfasted with__________ ____________________ ___
2724
Palace, entertained in while estimating on________________ _
2724
Statement concerning construction o f _ _________________ 2720-2721
Tinker, letter to, enclosing Coroalles letters___________: _ 2652-2653
Stewart & Co.:
Blair & Co. acknowledgment to, for expenses in estimating on. 2731
Check from for expenses in estimating on_______________ 2731
Expenses in estimating on___________________________________
2731
How covered________________ _______________ ____________ 2725
Proposal, cost, plus basis_________________________________ 2721, 2722
Warren Bros, of Boston:
(a) Contractors asking financial changes_______________
2772
(b) Got construction of__________________________________ 2729
(c) Proposal for, submitted by_________________________ _ 2722
Refunding operation:
(а) Described by—
(1) Pecora___________________ __________ ________________ 2736-2739
(2) Williams______________________________ ______2736,2738-2739
(б) Proposals___________________________________________ 2708-2709,2711
Revenues and expenditures— Cuban 1927-33_________________________
2546
Revenues, Cuban:
2546
(а) Deficit, 1927-33_______________________________________________
(б) Estimated and collected from public works, 1927-33_________
2545
(c) Exclusive of public works, 1927-33___________________________
2545
To meet (see also this heading, financial embarrassment):
Account fund set up in accord with loan agreement, Morgan
2701
testified _ .:______________________ _____________________ _____
Balance dangerously low, according to Geiger memorandum. 2666
Bank advances of............................ 2777-2778, 2782, 2787, 2814-2816
Bright prospect for______________________________________ 2779-2781
Budget revenue distinguished from public works revenue___ 2681
Chase National Bank deposited______________________________ 2807
Cuban gold and salaries necessary for_______________________
2701
Data for prospectus showing excess, and Geiger memoran
dum showing deficit from same source___________________
2667
Debt service and public works, 1925-33 figures..___________
2828
Deficit in budget for five years from public works fund. 2666, 2683
Deposit of, discontinuance threatened__________________ 2784, 2786
Voluntary . . . . ________________ _____________________ 2784, 2786
Difficulties of securing described_____________________________
27ol
"Earmarked” when accounting fund set up, Morgan testi
fied____________________________________________________ 2701-2702
Excess of expenditures over, stock exchange listing appli
cation of bonds showed_______________________________ 2664-2665
Explained__________ :____________________________________
2681
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
171
C uban L oans — C ontinued
Revenues— Continued
T o m eet— Continued
Pase
Excess of over-expenditures, figures for statem ent___________ 2665
N ot presently available__________________________ _
2665-2666
Shown in prospectus (a) for sale of serial certificates. 2664, 2680
Secretary of Treasury’s letter, source o f ___________ 2682-2683
Secretary of Treasury source of inform ation_______ 2664, 2665
2681
Letter o f ___ _•_______________________________________
Expenditures exceeded revenues for fiscal year ended June
30, 1929____________________________________________ - 2716, 2739
Half anticipated_________________________________ ___________
2788
Hardship on people_______________________________ 2569, 2571-2572
Insufficient______________________ ____________________________
2782
M organ explanation of discrepancies in, between prospectus to
public and stock exchange listing application.'_______ 2680-2681
N o confirmation of Cuban Secretary of Labor’s figures. 2683-2685
Prospectus, reference to setting aside in a special account per
centage of collections from public-works revenues________
2702
Public-works revenues, withdrawal of to aid budget per
m itted under new la w ____________________________________
2705
Refunding operation proposal__________________________ 2706-2707
Segregated in a special a c c o u n t.. 2693, 2806, 2807, 2808-2809, 2910
Beginning in 1932_____ ___________ _________ ___________
2693
Segregated public works fund behind serial certificates sold
pu blic______________________________________________________ 2680
Segregation not required_______________________________ 2693, 2786,
2805, 2806, 2807, 2808-2809, 2810
Segregation of contem plated_________________________________ 2795
N ot carried o u t_________________________________________
2701
2704
Weakness of agreement_________________________________
Rosenthall:
Bad situation with reference to telephoned E ddy b y _____________ 2772
Letter of to M organ concerning paym ent___________________ 2774-2775
Letter to from Findlay concerning__________________________ 2784-2785
Segregation of funds to meet, active to effect____________________
2705
Rushmore, Bisbee & Stern:
Com pensation of in connection with th ird___ ____________________
2639
Platt amendment, legality of under examined b y ________________ 2580,
2582, 2591, 2592
Opinion certifying___________________________________________
2799
State D epartm ent correspondence with concerning______________ 2800-2801
Schmidlapp, Carl:
Chase National Bank officer best qualified to be examined on by
Finance Com mittee, United States Senate_____________________ 2537
N o personal knowledge o f ________________________________________
2538
Senate Finance Com mittee, principal witness before_____________
2539
Statement to concerning__________________________________________
2600
Geiger helped prepare________________________________________ 2600
Witness, only, from Chase National Bank available to testify
concerning______________________________________________________
2538
Second of, agreement fo r ________ _________________________________ 2659-2660
Delivered to State Departm ent; to American Ambassador in
C u ba___________________________________________________________
2659
D ate o f ___________________________________________________________
2641
Security for, public works revenue, Government could alter__________ 2662
Inadequate because not segregated_________________________ 2693, 2786,
2805, 2806, 2807, 2808-2809, 2810
Senate Finance Com m ittee, testim ony before concerning....... .............. .. 25902591, 2596, 2597
t Senate investigation, newspaper article concerning, suppression o f ------- 2451
Reports Senators in favor of inquiry_____________________________ 2451
Serial certificates, active market for, reported by Barr_______________
2709
Bankers, remainder in hands o f _______ ____ __________ _______ 2663, 2688
Banks:
A dvanced part o f m oney for, maturing D ecem ber 31,
1932_________
____________ _ 2781, 2782, 2787, 2817-2818
Advanced part of m oney for, June 30, 1932______ 2777-2778, 2845
172
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
C uban L oans — Continued
Serial certificates, active market for, reported b y Barr— Continued
Banks— Continued
Page
Advanced part of m oney for, Decem ber 31, 1931_______ 2773, 2775
A dvanced no m oney fo r _________ ________________ _______ 2773, 2775
Maturities:
(a) D ate____________________________________ 2661, 2663, 2688, 2740
( b) Except for, those held b y bankers and public id e n tica l._ 2735
(c) Propriety o f refunding to bankers those with later______ 2689
(d) Refunding to bankers o f those With later, before those
with earlier held by p u b lic.____ 2688-2689, 2712, 2713, 2762
(e) Reversal of contrary to representation at sale___________ 2741
M oney for purchase, how provided____ _______________________
2689
P aid--------------------------------------------------------------------- 2673, 2680, 2684, 2692,
2699, 2703, 2762, 2775, 2777-2778, 2781, 2782, 2798, 2814-2816
Funds from w hich________________________________ 2673, 2762, 2763,
,
2765, 2775, 2777, 2781, 2782, 2798, 2814-2815, 2817-2818
Security fo r __________________ ___ ______________________________________
2741
First lien on public works revenue____________________ 2553, 2611, 2676,
2680, 2693, 2736, 2741, 2786, 2793, 2805, 2808, 2817
Small credits:
Group of banks helped to carry Cuban G overnm ent over emer
gency b y --------------------------------------rc------ -------------------------------------2542
2542
Later, purpose of!_________________________________________________
State Departm ent:
Arrangements for subm itted t o ___________________________________
2586
Bruce letter to concerning________________ _•__________________ 2803-2804
Letter to Rushmore, Bisbee & Stern suggesting delay in exe
cuting definitive agreement until inform ation received and
passed u pon _____________________________________________________ 2802
Chase National Bank, letter to of February 21, 1937, concern in g. 2587
D ated after arrangement entered in to_______________________
2589
Form acquiescence, approval not intended________________ j ______ 2562
O bjection not made by t o __________________ 2560, 2562, 2587, 2802, 2804
Rushmore, Bisbee & Stern, correspondence with, concerning. 2800—2801
Stewart, James C., bid on but did not g e t________________________ 2656
Catlin contacted b y in estimating on _____________________________
2723
Exploratory plan made with Blair & C o_____________________ 2650
Exploratory investigation, lptter of to Blair & Co. and Chase
Securities Corporation concerning reimbursement of ex
penses o f . _____________________________________________ 2656-2657
Tinker, consultation w ith _____ ___________________________________ 2653
Stewart, James & C o.’s, Chase interests, keeping inform ed
friendly m atter______________________________________________ ._ _ 2658
Sent to Cuba b y Blair & C o ________________________________ _ 2657
Underwriting group to finance public works program , one o f _ _ 2657
Stock Exchange listing application, small surplus shown by_ 2664^2665, 2733
Serial certificates not listed o n _________________________________________ 2664
Later bonds for listed o n _________________________________________
2664
Tarafa, Colonel, statements o f and conversations with Graves con
cerning______________________________________________________________
2609
Tinker, E. R., mem orandum to from Graves:
' (a) Caused continued stu d y_________________________________ 2579-2580
(6) M arch 22, 1936, concerning_____ ______________________ _ 2553-2559
Treasury Departm ent, no plans for handling situation______________ 2790
Special account to care for advantages o f discussed by Rosenthall___ 2701
United States policy to assume jurisdiction and investigate Cuban
financial arrangements with reference to Platt am endm ent________ 2623
• Willis, Sumner, Ambassador— Chase officials explain situation o f t o . 2792
Wiggin— Refunding arrangements for com m unicated t o ______________ 2711
Williams, segregation of funds to meet, ignorant had n ot been made__ 2705
Zapata swamp concession, controversy under gave rise to corre
spondence between United States and C u ba _______________________
2621
C u llm an , H ow ard S.: Country Trust Co., syndicate N o. 2, for purchase
o f stock of, m em ber o f_________________ _________________________________
3051
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
173
C urrency :
Issue of:
Pa«e
National banks, by______________I _____________-__________________
100
New York State banks, by_______________________________________
100
Private banks, not permitted by__________________________________
100
100
National banks, issue by ______________________________________________
New York State banks, issue by_______________________________________
100
Private banks not permitted to issue__________________________________
100
C urrier, Guy. See Cuban loans, and also subhead Public Works, Currier,
Guy , attorney in Boston________________ ___________________________ 2723, 2725
Steward advised to contact Catlin_________________________________
2723
C urtis & Sanger : Chase National Bank trading account in shares of,
managed by Dominick & Dominick, participant in_______________ _____
2451
C urtis, C yrus K .:
Lamont, T. W ., connections with------------------------------------------------- 834 et seq.
Publisher of:
Saturday Evening Post-----------------------------------------------------------------834
New York Evening Post__________________________________________
834
C urtis, L ouis : Brown Bros. & Co., director of____________________________ *1150
C urtis, R aleigh T .: Columnist in the New York Daily News who wrote
financial column under name “ Trader” ; Curtis made profit of $19,063.44
during 1929-30 in accounts opened and guaranteed by John J. Levenson
and in which Curtis put up no money; at the same time Curtis, in his
“ Trader” column boosted 8 stocks in which Levenson operated at a
profit of $1,136,322.41 (see also Trader)________________ ______________*601-620
C urtiss-W righ t Corporation (see Aviation stocks)_____________________ 7759
Option in stock of, granted by Bancamerica-Blair Corporation to
George F. Breen who assigned same to Charles C. Wright------ 6111-6112,
6137-6138, 6159-6160
Prices of common, closing quotations on New York Stock Exchange
first and last days of December 1933 and January, February 1934.
High and low prices in December 1933, January, and February 1-9,
10, 13-28, year 1934.............. ................................ ......................................... 7763
Prices of class A stock, closing quotations on New York Stock Ex
change first and last aays of December 1933, January and February
1934. High and low prices in December 1933, January, and Febru
ary 1-9, 10, 13-28, year 1934_____ ___________________________________ 7763
Sales and purchases of, by persons connected with aircraft com
panies, December 1,1933, to February 9,1934 (common stock) 7776-7796
Sales and purchases of, by persons connected with aircraft companies
December 1, 1933, to February 9, 1934 (class A stock)-------------- 7796-7803
Sales of stock just prior to cancelation of air-mail contracts, by______
7760
Morgan, A. T __________ _________ ______ - ......................................... 7760
National Air Transport, Inc______________________________________ 7760
Sperry Corporation_______________________________________________
7760
Short selling in------------------------ ------------------------------------------------------- 77^6-7803
Short selling, December 29, 1933, to January 31, 1934, compared with
stock prices and total reported sales January 2, 1934, to February
15, 1934 (graph)............................................................................. 6844r-6850, 6851
C urtus, Louis, Jr .:
Brown Bros. & Co., director of________________________________________ *1150
Director of Brown Bros. & Co________________________________________ *1150
C ustomers’ A greement :
Broker permitted by customer to lend and pledge customer’s stock
(margin accounts only)-------------------------------------------------------------*73-80,136
Changed to separate document April 1, 1932, by order of New York
Stock Exchange, to prevent misunderstanding and be more fair,
says Richard Whitney...................... ...............*73-80,137, *139-140,132-133
Short selling not affected, says Richard Whitney------------------------*74
Supply for loans not decreased, says Richard Whitney.....................
*74
Typical broker’s letter informing customer of this change,
coercive in nature-_________________________________________ *140-141
Forms.....................................................................................................*77-78,123-133
174
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
Page
C ustomers’ M an ___________ __________ ________________ ____ _________ 6871-6872
Defined— __ ________________________________ ______________ ____________ *593
C utler, B ertram, Rockefeller financial adviser------------- ------------- ------------ 3349
Testifies (Sinclair Consolidated Oil Corporation pool and syndicate
(1928))__________________ _____ ___________ __________ __________ 3349-3357
Sinclair Consolidated Oil Corporation pool and syndicate (1928),
connection with (see Sinclair Consolidated Oil Corporation, pool
and syndicate (1928), Fitzpatrick)---------------------------------------------------- 3309,
3310, 3311, 3316, 3317, 3333, 3335, 3336, 3349-3359
C utten , A rthur W ., broker ana grain trader------------------------------------------3055
Testifies (Sinclair Consolidated Oil Corporation pool and syndicate
(1928))_________________________________________________________ 3055-3120
Baldwin Locomotive Co., director of (1928)___________________________ 3111
Cutten’s testimony on Sinclair Consolidated Oil Corporation pool
and syndicate (1928) is considered a joke by Harry F. Sincliar__ 3297-3298
Cutten (Ruloff E.) cousin of____________________ 3056, 3060, 3061, 3063, 3070
Cutten & Co., Ltd., is a family corporation, incorporated in Canada
in 1926 or 1927 by Arthur W . Cutten and/or his brothers and
sisters, the stock of which was owned by his brothers and sisters and
no interest was owned by him in 1928, says Arthur W . Cutten____ 30763077, 3098-3099, 3100-3101, 5894, 5906, 6611
Investor—_______ _________ _____ _________________________________ 2933
Kolster Radio Co. pool of 1928, participant in (see Kolster Radio Co.,
pool)_______ __________________________________________ ^_____________
*555
Market operator_______________ 1_______________ ;______________________
2902
Market operator on a pretty large scale, but never was a member of
the exchange, says Cutten_________________________ 3084, 3086, 3088, 3117
Member of Chicago Board of Trade and Chicago Stock Exchange___ 3117
Sinclair Consolidated Oil Corporation:
Party to underwriting of stock of_________________________________ 2932
Trading account in, manager of___ ,___ ___________________________
2902
2901
Participant in________________________________________________
Sinclair Consolidated Oil Corporation pool and syndicate (1928):
Manager of and participant in (see Sinclair Consolidated Oil
Corporation, pool and syndicate)______ .1______________________ *681,
2997, 3000-3002, 3006-3008, 3094, 3102, 3107, 3268
Participation in syndicate to full extent was transferred by Cutten
by verbal communication for no consideration to Cutten & Co.,
Ltd., Canadian family corporation, the stock of which was
owned by Cutten’s brothers and sisters, with provision that
Cutten & Co., Ltd., finance the participation____________ 3076-3077,
3093, 3098-3102
Date of transfer was right away— on Oct. 24, 1928, says
3099
Arthur W. Cutten______________________________ __________
Income tax to Federal Government on profit derived out of
its participation was not paid, no return being filed because
Cutten & Co., Ltd., had a $169,000 net loss for 1929 due to
other transactions, says Arthur W . Cutten.___ 3098, 3100-3101
No other participations in syndicates were turned over by
him to Cutten & Co., Ltd., says Arthur W . Cutten______
3098
Reason for transfer was because he thought Cutten & Co.,
Ltd., could finance the participation while he could not
except in a pinch and because he wanted them to make
some money; does not know the reason, says Arthur W .
Cutten____________________________________ ____________ 3098-3102
Syndicates do influence the market more or less, says Arthur W .
Cutten_________________________________________________ ___________ _ 3119
Syndicates he participated in in 1928, number of, and names of,
unknown to Cutten____________ _______________ ______________ _ 3114-3116
Syndicates he participated in in 1929, number of, unknown to Cutten. 3115
Wash sale— Cutten has an idea what term “ wash sale” means, viz,
“ to try to make a market” . ________________ ____ __________________
3Q86
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
175
C u tten , A rthur W .— Continued
Pase
Wash sales— “ the buying and selling o f stock at the same time is often
done,” which he knows from fact that he personally often bought
stocks and had to sell them right out again, but he does not know
for what purpose such transactions are made except possibly to
stimulate the stock, says Cutten____________________________________ 3086
C u tten , J oseph E .:
Cutten’ s (Ruloff E.) father____________________________________________ 3114
Sinclair Consolidated Oil Corporation pool (1928), participant in (see
Sinclair Consolidated Oil Corporation, pool and syndicate)____:____ 3094,
3114, 3254
C utten , R uloff E., member o f E. F. H utton & C o.:
Testifies (American Commercial Alcohol P ools)--------------------------- 5895-5911
(Sinclair Consolidated Oil Corporation, pool and syndicate (1928) ) _ . 32173260
American Commercial A lcohol Corporation pool maintained by (see
American Commercial Alcohol Corporation, pools, options by
directors and officers to C u tten)___________________ 5858-5884, 6609-6611
Cutten (Arthur W .) cousin o f __________________ 3056, 3060, 3061, 3063, 3070
3102
H utton (E. F.) & Co., floor member o f _______________________________
H utton (E. F.) & Co., member o f __________________________ 3217, 5888, 5895
Lion (D avid M .), em ployed to furnish publicity on various stocks in
which Cutten or E. F. H utton & Co. was interested (see also Lion,
D avid M .) ____________________________________________ *678-679, *681-685
New Y ork Stock Exchange mem ber__________________ 3218, 5858, 5888, 5895
Recom m endation to customer by broker o f stock held by broker on
option has been the practice but is unethical, says Ruloff E. C utten. 59035904, 5909-5910
Sinclair Consolidated Oil Corporation pool and syndicate, connections
with formation of (see Sinclair Consolidated Oil Corporation, pool
and syndicate)____________________________________ 3056-3076, 3218 et seq.
Sinclair Consolidated Oil Corporation pool and syndicate, Arthur W.
Cutten managed trading account through Ruloff for (see Sinclair
Consolidated Oil Corporation, pool and syndicate)________________ *681,
3082-3083, 3218 et seq.
Wash sales or m atched sales must involve the same quotation or the
same price, says Ruloff E. Cutten_____________________________ 3236-3237
Wash sales never made in anything with which he or his firm, E. F.
H utton & Co., was connected, says Ruloff E. Cutten_________ 3236-3237
C u tten & C o., L td .: American Commercial Alcohol Corporation pool,
participant in (see American Commercial Alcohol Corporation, pools,
options by directors and officers to Ruloff E. Cutten) __ 5894, 5905-5907, 6611
Business always done at a loss b y the com pany since its organization,
says Arthur W. Cutten_________________________________________ 3100-3101
Cutten (Arthur W .) transferred his participation in syndicate in
Sinclair Consolidated Oil Corporation stock (1928) b y verbal com
munication, for no consideration, with provision that Cutten & Co.,
Ltd., finance the participation (see Sinclair Consolidated Oil Cor
poration, pool and syn dicate)________________ 3076-3077, 3093, 3098-3102
D ate o f transfer was right away, on October 24, 1928, says
Arthur W . Cutten______________________________________________ 3099
Incom e tax to Federal Governm ent on profit derived ou t of its
participation was not paid, no return being filed because
Cutten & Co., Ltd., had a $169,000 net loss for 1929 due to
other transactions, says Arthur W . Cutten__________ 3098, 3100-3101
N o other participations in syndicate were turned over b y him to
Cutten & Co., L td., says Arthur W . Cutten___________________
3098
Reason for transfer was because he thought Cutten & Co., Ltd.,
could finance the participation while he could not except in a
pinch, and because he wanted them to make some m oney; does
not know the reason, says Arthur W . Cutten____________ 3098-3102
Fam ily corporation, incorporated in Canada in 1926 or 1927 by
Arthur W . Cutten and/or his brothers and sisters, the stock of
which was owned solely b y Arthur W . Cutten’s brothers and sisters
and no interest was owned b y him in 1928, says Arthur W .
C utten_____ __________ 3076-3077, 3098-3099, 3100-3101, 5894, 5906, 6611
60604— 46- ----- 12
176
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D a h l , G erhard M .:
Page
B rooklyn M anhattan Transit Co., chairman board o f directors of_ 2893, 3023
Loan to b y Chase National Bank for purchase o f stock o f______________
3033
Stock of, held as collateral on loan to, sold b y Chase National
B ank_______________________________________ _________ 3023,3025,3888
Price average at which Chase sold for account o f _ ______ _______ 3026
Sale influenced b y inside inform ation__ : ____________________ 3027-3028
Sold at about time Wiggin d id _________ __________________________
3025
W ithout consent o f ________________________ !______________________
3888
Chase National Bank— borrowed from _________ 2326-2327, 2893, 3031-3033
D irector of (a) ceased to be January 1933________________________ 3033
When Donaldson letter written t o ___________________________ 3893-3894
2893
Director of Shermar Corporation, borrowed from, w hile__________
Loan to (b) account w ith aggregating over $3,000,000________ 3031, 3032
Collateral o f _____________________________________________ :_________
3033
M argin adequate when m ade_____________ ___ ____________________ 3033
2328-2329
Under water October 1, 1933__________________________ _
Undercollateralized_______________________________________________
2893
Chase National Bank loaned m oney on endorsement o f_ .:___________ _
3031
(c) For benefit of and fam ily_________ ____________________ _______ 3032
(d} When Waubesa p a id _____________„ _________ ___ __________ ___
3032
(■e) Aggregating mbre than $4,000,000_______________________ 3032-3033
(/) Barron Collier, endorsement o f _______________________________
3032
Chase official interested in—
American "Ship & Com merce C orporation_______________________ _ 2916
Brooklyn-M anhattan Transit C o . _______ j ___________________ ___
2917
Cuba Cane Sugar_____________________________________________ ___
2917
D onaldson letter to O ctober 19, 1927, re:
D etroit tunnel_______________________________________________ 3892-3893
Pierce Arrow Finance C orporation ..'_____ ___________________ 2918-2919
Shermar Corporation, borrowed from ___ _ ! __________________ 2330,2893
D ah lben der , G rover C.: Communication re ^Securities Exchange A ct
o f 1934, commended Senate Com m ittee on Banking and Currency_____ ■_ 5985
D a isy H i l l Co. (See Van Sweringen' affiliate, D aisy H ill Co.)
D a l e y , W illiam R., president of Otis & C o ___ ________________ *901, *903, *954
XfistifiGs *
(Continental Shares (Inc.) and Cyrus S. E a to n )___ *954, *960, *977, 979
Eaton (Cyrus S.), attorney fo r _______________________________ *958-959
D alton , H. G .:
Union Cleveland C orporation:
8159
D irector______________________________________________________ ____
Voting trustee__________________________________ __________________ 8136
Union Trust Co.:
D irector______________________________________ ____________________
8159
Official position in, an d in other concerns________________________
8226
D a n b u r y -B ethel G as & E lectric C o .: Cities Service Pow er & Light
Co. is parent o f __________________________________________________________
6312
D ann felt , C. J.:
Kreuger & T oll C o.:
D irector o f _____________________________ __________________________ *1345
Vice chairman o f __________________________________________________*1345
D an v ille Structu ral Ste el C o., I nc (Pennsylvania): Chase N ational
Bank loan to, officials or trustees of interested in _______________________
2914
D assow , J o h n : New Y ork Stock Exchange accoun tant_____________ _ 6612-6613
D a u g h er ty , E dw in M ., California Commissioner o f Corporations: C om
plaints against exchange members are few, says statement o f_______ ___
6770
D a v id so n : Reconstruction Finance Corporation, D etroit A dvisory Coun
cil, m em ber o f___________________________________________________________
5600
D avid son , F. J., dealer in securities__________________________ ^_________ *592-593
D a vis , A r th ur V .: Union Trust Co., director o f_ ____ _______________ ____ *1151
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
177
D a v is , C. R o y :
Page
C i'cum stances in connection with transactions of, indicate no irregu5263
arities______________________________________________________________
Circumstances are high repute, according to Verhelle_________________ 5263
Letter from, concerning Verhelle testim ony___________________________ 5288
Lc ans, commercial and mortgage, indebted on --------- --------------------------- 5264
M ay not have been for benefit of, Verhelle testified_________________ _ 5232
M ortgages, 42 involved in ____________________________________________
5232
M ortgage, payments on principal, seven had none_________ 1931-1932, 5232
5263
Repute, man of high__________________________________________________
Savings account River Rouge, unable to locate though on credit card__ 3232
Sweeney, address, care o f_____________________________________________
5232
Fiiend o f____________________________________ ___________________________ 5232
Sweeney carried accounts for benefit o f_______ __________________ 5444-5445
Com munication that attendance at hearings of, dangerous to health,
received from _______________________________________________________
5271
Explanation of overdrawing account as trustee o f____________________
5680
G ranted loan to, items in arrears_____________________________________
5232
Handling affairs o f____________________________________________________
5263
Tolegram from asking that whole truth be told ----------- ----------------------5263
D a v is . E. K .: Chase National Bank stock borrowed by D om inick & D om i
nick on which option not exercised, agreement by Chase Securities
Corporation to receive dividends__________________________t_____ ____ J__ 2457
2510
K ember of D om inick & D om inick____________________________________
D avis J ohn W .:
Attorney for J. P. Morgan & C o ______________________________________
1,
307, 359, 397, 407, 443, 527, 563, 619, 657
Guaranty Trust Co. of New York, officer o f__________________________
90
90
Loan to, from J. P. Morgan & C o ____________________________________
M emorandum of law on incom e tax deductions on account of losses
sustained on sales of securities_____________________ ,________________
800
Morgan, J. P. & C o.:
Attorney for_____________ 1, 2-307, 359, 397, 407, 443, 527, 563, 619, 657
90
Loan by, t o _______________________________________________________
Tax deductions, losses sustained on sale of securities, memorandum
of law o n ____________________________________________________________
800
D a v is , N orman H .:
American National Bank, brother of president of Nashville, Tenn.,
came from ______________________________________________________ ____
4188
90
Bank of New Y ork & Trust Co., officer o f ____________________________
Finders fee paid to, by Guaranty Co. for finding Mortgage Bank -of
Chile bond issue________________________________ 1013 et seq., 1127 et seq.
Guaranty Co. paid finders fee to, for finding bond issue of M ortgage
Bank of Chile________ '_________________________ 1013 et seq., 1127 et seq.
Laan to, from J. P. M organ & C o ___________________________________ 90, 204
M organ, (J. P.) & /C 0 .:
Loan by, to ______________________________________________________ 90, 204
Preferred lists of members o f_____________________________________
192
M ortgage Bank of Chile, finders fee paid by Guaranty Co. to Davis
for finding issue o f______________________________ 1013 et seq., 1127 et seq.
Officer of Bank of New York & Trust C o_____________________________
90
Seaboard Air Line Railway Co., syndicate manager of, named by,
*
and served in place of S. Z. M itchell___________________________4187, 4188
Participant in________________________________________________ 4187-4188
D a vis , P aul H .:
Testim ony o f__________________________________________________ *1566 et seq.
C hicago Stock Exchange, president and member o f__________________ *1566
D a v is
P o lk ,
W a r d w e ll, G a r d in e r ,
&
R eed:
Attorneys aiding in form ation of United Corporation______________ 408, 496
United Corporation, form ation of, aided b y ________________________ 408, 496
D a v i s o n , H e n r y P.:
D irector of:
M ontgom ery W ard & C o_________________________________________
31
New York Trust C o _______________ ______________________________
24
Standard Brands, In c____________________________________________
31
178
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D avison , H e n r y P .— Continued
rage
Lamont, T . W ., articles written in Collier’s W eekly by, o n _ _____ 837 et seq.
M organ (J. P.) & Co., partner o f ______ ____ __________________________ 8, 837
D avison , G eorge W .:
Central Hanover Bank & Trust Co., officer o f_________________ *1759, *1760
Testim ony o f , -------------------------------------------- ------------- ---------------- *1759 et seq.
D avisson & M a u r ic e : Attorneys for bankers o f International P rojector
Corporation______________ :___________________________________ ___________
3212
D awes B a n k :
Insull securities carried in portfolio of, as collateral for loans of______ 4168
Reconstruction Finance Corporation, l6an to, necessary because o f
shrinkage in value o f securities________ ________________ ___________
4168
D a w e s , C h arles G a t e s :
Ambassador to Great Britain__________________________________________
415
Central Republic Bank & Trust Co. o f Chicago, form erly chairman
of board o f . '________________ ________________________________________ *1529
Central Trust Co. o f Illinois, president o f____________________ _______90, 415
90
Loan to, from J. P. M organ & C o _________________________ ________ :___
M organ (J. P.) & Co.:
Loan by, t o ----------- -------------- --------------------------- -----------------------------90
Preferred lists of, member o f ------------------- _________________________
415
President o f Central Trust Co. of Illinois____ _______________ _______ _ 90, 415
Recenstruction Finance Corporation, m em ber o f board o f __________ 415, 772
T estim ony o f ------------------- ---------- ---------_---------------------------------- *1529 et seq.
United States, form erly vice president o f ------------------------------ ---------------*1529
D a w e s . L e w is C.: M organ (J. P.) & Co., preferred lists of, m em ber o f ____
442
D awes P lan:
German bonds* sale of, financed by J. P. M organ & C o., pursuant to_ _
167
406
Gilbert, S. P., connections of, w ith____________________________________
D ay & Z im merman :
Public utilities interests of, sold to United Gas Im provem ent C or
poration________________________________ _________ ___________________
479
United Corporation, option warrants of, issued t o _________ _____ 504 et seq.
United Gas Im provem ent Corporation, sale to, o f public utilities
interests o f ----------------------- -----------------------------------------------------------------.479
D a y , H enry M ason :
Barnsdall Oil Co., form erly connected w ith ___________________________ 6220
National Distillers Products Corporation:
Joint account maintained by W m. E. Lewis, participant in (see
National Distillers Products Corporation, op tion s)______ 6276-6281
Options obtained b y R edm ond & Co. from the com pany in 1932,
active party in procuring (see National Distillers Products
Corporation, options granted to R edm ond & C o .)________ ____
6252
National Distillers T fo d u cts Corporation p o o l___________________ 6279-6282
Redm ond & Co., member o f ________________________________ 6117, 6219, 6807
Sinclair Consolidated Oil Corporation syndicate (1928), participant
in by participation granted by Harry F. Sinclair (see* Sinclair
Consolidated Oil Corporation, pool and syn dicate)___________ 3127,3157
Sinclair Oil Co., ex-executive o f __________________________________ 6219-6220
Testifies Libby-O w ens-Ford Glass Co. p o o l___________ 6218-6240, 6242-6246
D a y L oa n s (see also Brokers loa n s):
Am ount of, determination of:
Am ount of quick assets o f broker, b y __________ _ ________________ *1990
Credit standing and integrity of brokers to w hom banks extend
loans, b y ________________________________________________________ *1983
Banks, b y :
A m ount_______________________________ - _______________ 7923, 7925-7926
Credit diverted from industry to stock m arket. _________________ *1984
Questioned as diverting credit from industry to stock m arket___*1984
Safest loans o f banks, a s . ____________________________ - ____________*1985
Speculation in stocks aided b y loans to brokers, question raised as
to whether such is effect_____ __________________________ *1990 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
179
D ay L oans — C ontinued
Brokers (see also Brokers’ loa n s):
Pa2®
Credit standing and integrity of, determinative of am ount of line
o f day loan credit extended b y banks_________________________ *1983
Paym ent by, of, made daily_____________________________________ *1983
Purpose o f loans, to enable brokers to make daily deliveries of se- '
curities__________________________________________________ *1982, *1983
Quick assets of, am ount of, as determinative o f am ount o f day
loan line o f credit extended b y banks_________________ ________ *1990
Credit diverted from industry to stock market b y ___________________ *1984
Definition o f ______________________ ________ ________________ _
*1982 et seq.
Forms o f agreements______________________________________________ #147-153
Gambling, not la form of, testifies Charles E. M itchell________________ *1990
Interest on, 1 percent per annum _____________________________________ *1983
Operation of, explained by Charles E. M itchell_______________________ *1983
Origin of, after Civil W ar with passage o f National Banking A c t_____ *1982
Paym ent of, to banks, made daily b y brokers________________________ *1983
Purpose of, to enable broketrs to make daily deliveries of
securities________________________________________ _____________*1982, *1983
Security not required for, banks relying on net worth and integrity of
broker to whom they extend loans___________________________ *1982 et seq.
Speculation in stocks not aided by day loans made by bankers to
brokers, testifies Charles E. M itchell. ______________________________ *1990
Unsecured_____________________________________________________________ *1983
D eacon , E. L .:
Union Guardian Trust Co., loan account w ith___________________ 4863-4864
4864
Liquidation on, none_____________________________________________
T o secure em ploym ent o f ___________________________________ 4863-4864
Vice president o f __________________________________________________ 4863
D ead Season L o a n s : Sugar crop, loans made on and secured by, in ad
vance of harvest_________________________________________________________ *1828
D e a l e r s in S e c u r it ie s (see also under Taxation, Dealers in Securities):
Banking, use of word, in connection with, objectionable, testifies Clar
ence D illon __________________________________________________________
1540
Definition of : T ax purposes, fo r __________________________________ 1485, 1486
Taxation (see also under Taxation, Dealers in securities):
Capital gains and losses provision o f revenue law, not entitled to
benefit o f __________________________________________________ 1485, 1486
Greater rights accorded to dealer than to ordinary investor by
revenue laws____________________________________________________ 1482
D e an , A rth ur W .:
Enos Coal M ining Co., treasurer o f___________________ 18-8048, 8050 et seq.
Guardian Trust Co. of Cleveland:
D irector o f______________________________ 18-8048, 8050 et seq., 19-8501
Loan by, to _________________ 18-8048 et seq., 19-8500, 8505, 8508 et seq
D e b e n t u r e s (see also Bonds; Issues; Securities):
Bond compared t o _____________________________________ _______________ *1149
Definition of:
Durant, D onald, b y ______________________________________________ *1449
Redm ond, Roland, by, as unsecured obligation___________ _______*1247
Winkler, Max, by, as practically identical with b on d ____________ *1306
Drexel & Co., issue or participation by. (See under Drexel & Co.,
Bonds, Debentures, Issues.)
Kreuger & T oll Co., of. (See under Kreuger & T oll Co., American
certificates, Debenture issue, Participating certificates.)
M organ (J. P.) & Co., issue participation by. (See under M organ
(J. P.) & Co., Bonds, Debentures, Issues.)
Participating. (See under Kreuger & T oll Co., Debentures, Par
ticipating debentures.)
R oy al M ail Steamship Co. debenture issue___________________________ *1325
Sealed instrument, testifies M ax W inkler_____________________________ *1306
Secured: Defined b y Winkler as evidence o f debt secured by specific
pledge of collateral or specific lien on certain assets or incom e____ *1306
Trustee bound b y debenture agreement_______________________________*1236
Unsecured obligation__________________________________________________ *1247
180
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
Page
D e b e v o ise : Wiggin pension discussed with before m eeting_______________ 5306
D e B oo st : Lincoln Forty-second Street Corporation, votin g trustee of__ 4086
D e B ordeleben C oal C orporation : Directors o f _ _ _ ____________________
32
D e C am p , G e o r g e :
Federal Reserve agent_______________________________________ 18-8048 et seq.
Guardian Trust Co. o f Cleveland, loans by, t o ____ 18-8048 et seq., 19-8511.
D eck er , E dward W .:
Loan application by, to Chase B a n k .______ _________ ________________
2991
Northwestern National Bank of M inneapolis:
Executive officer o f _______ ;______________________________________
2987
President o f___________________________________________________ _ _ _ 2988
D eeds , E. A .:
General Sugar Corporation, president o f______ _______________ ________ *1827
National City Bank, director o f _______________________________________ *1827
D efau lt:
Bond or debenture issues participated in:
Kuhn, Loeb & Co., participated in b v _______ 1398 et seq., 1400 et seq.
Morgan, J. P., & Co. and Drexel & Co. participated in b y _ . _ . 304-305
Bond or debenture issues of which J. P. M organ & Co. or Drexel & Co.
was syndicate manager________________________ ___________________ 303-304
Bond or debenture issues of which Kuhn, Loeb & Co. was syndicate
manager_____________________ ___________________________ _______ 1398 et seq.
Issues participated in by :
J. P. M organ & Co. or Drexel & Co., on_______ __________ ____ 304-305
Kuhn, Loeb & C o ____________________________ 1398 et seq., 1400 et seq.
Kuhn, Loeb & Co., participation b y , in issues in__ 1398 et seq., 1400 et seq.
M organ, J. P., & Co. and Drexel & Co. participation by, in issues o f . 303-305
D efinition s :
“ Air pock et” ___________________________________________________________ *256
Balancing of budget defined kp Charles E. M itchell__________ *1986 et seq.
1540
Banking defined b y Clarence T )illon _________________________ _________
Banking syndicate defined b y Clarence D illon ________________________
1624
Bear Raid (by Richard W h itn ey)________________;___ __________ *9, *33, *218
Bear raids defined by O tto H . Kahn as com bination t o depress stock
prices b y circulation o f false rum ors______________ __________________ 1208
"B eating the G un,” o f _________________ __________ _____________ *2081 et seq.
Bonds, convertible, defined by Senator Kean as perpetual option to
337
buy stock_________ _______________________________________________ _
Bond, o f __________ _____________________________________ *1136, *1149, *1247
“ B ook ,” T h e________________________________ _________ 6074-6075,6094-6097
B ook value________________________________________ ____________________ 3266
B ook value defined b y Ernest B. T r a c y _______________________________ 1716
“ B ootleg” loans___________________________________________________ 6344-6345
C all_________ _________ ____________________________________________ *404,7063
Churning____________________ ____________________________________ *277-*278
Commercial banking defined b y Clarence D illon _________________ _
1538
Control, legal, defined b y George H . H ow ard_________________________
316
Cross transactions________________________ _______».____________________
6789
Customers’ m an____________________________________ ________ __________
*593
D ay loans, o f __________________________________________________ *1982 et seq.
Dealer in securities defined as one who sells securities to custom ers
prim arily______________________________________ T____ ______________
85
Dealer in securities, definition of, for tax purposes_________ ______ 1485,1486
Discretionary order_________________________________________ ______ 6092, 6669
Finders defined as persons who discover financial operations for
bankers_______________________ ______________________________________
1013
Fiscal agent, defined b y George W hitney_________ ____________________
558
, “ Flat loan” ________________ _______________________________________ *128, *393
Floating supply (of sto ck )____ ,___ __________ , _________ ________ ._______ *153
*258
Floor trader______________ ._____________________________________________
Gambling (by Richard W h itn ey )______________________ *9 9 -* 101, *18 4-* 185
“ House stoc^ ” _________ .______________________________ ________________ *1128
*186
In-and-out short sales (sold and covered same d a y )__________________
“ Intrinsic value” (by Richard W h itn ey)_________________________ *222-*225
. Cannot define, says W hitney_____________________________________
*238
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
181
D efinitions — C ontinued .
Page
Investm ent (by Richard W h itn e y ).----------------------------------- *27-28, *99 -* 100
Investm ent banking defined by Clarence D illon _________________ 1537,1538
Investm ent business________________ '---------------------------------------------*406-*407
Investm ent trust defined b y Clarence D illon -------------------------------- 1553, 1554
“ Jiggling” ________________________ ________________________________ 6225-6226
Joint accou n t_______________________________________________ 1849, 2487, 2492
“ Lend” or “ sell” letters____________________________________ 6285, 6287-6288
Lim ited orders______________________ *255, 5907-5908, 6091-6092, 6660, 6783
Liquidation of securities (by Richard W h itn ey)----------------------------------*9
“ Loans for others” ____________________________________________ ________
6310
“ Maintaining m arket” defined________________________________ *2001 et seq.
M anipulation (by Thom as E. B ragg)______________________________*416-417
M arket:
M aintaining of, defined____________________________________ *2001 et seq.
Quoting a, defined__________________________________________ 2001 et seq.
M arket order_____________________________________________________ 6092, 6782
M atched orders____________________________________________________ *58, *277
“ M oney broker” _____________________________ _________________________ 6316
“ M organ com panies,” defined_________________________________________ *318
O dd-lot houses____________ ________________________________________ *373-374
Odd lots_______________________________________________________________
7871
Option warrant defined b y George Whitney as contract to issue share
of stock ________________________________________ •-------------------------------389
O ptions________________________________________________________________ *252
“ Original terms” group defined by Clarence D illon____________1 _____
1624
Over-the-counter m arket______________________________________________
584
“ Pegging” __________________________________________________________*166—167
P ools____________________________ ________ 1849, 1850, *2487, 2491, 2492, 7867
Christie, R obert E., Jr., b y __________________________________ 1659, 1660
1309
Kahn, O tto H., b y ________ _______________________________________
P u t_______________________________________________________________ *404,7063
Quoting a market defined---------------------------------------------------------------- — *2001
“ Rights” defined by George H . H ow ard______________________________ _
330
“ R ival b ook s” _________________________________________________________ 6075
Sales against the b o x ______________________________________________ *46, *161
D avis, Paul H., b y _______________________________________________ *1584
Lam ont, T. W., b y _______________________________________________
872
Scale orders__________________________________________________ *249, *251-252
“ Selling syndicate” defined by Clarence D illon _______________________
1624
Short sale defined by William Ewing---------------------------------------------------805
Specialist______________________________________________________ *254-256, 259
“ Speculation” (by Richard W h itn ey)---------------------------- *99-*101, *184-185
Stop-loss order________________________ *386-387, *509-511, 6098, 6783-6784
Stop orders______________________________________________ *489-492, *509-511
“ Street certificate” . _______________________________________________ *210-211
“ Strong opening” ______________________________________________________ *280
Syndicate_________________________________________________________ 2487, 2492
Syndicate account defined__________________________________ __________ *1849
Term settlem ent____________________________________________________ *233-236
Trading defined by George W hitney__________________________________
*208
Wash sale___________________________________________________ 3087, 3236-3237
Wash sale defined b y Richard Whitney as sale without change in
ownership___________________________________________________________ *2216
D e flatio n : Description of, by J. P. M organ_______________________ 948 et seq.
D e G ersdorf , C arl A.: Kuhn, Loeb & Co., attorney fo r ________________
959
D e H a tes , L outs H.:
Jefferson Savings Bank, Ferry believes presidency of would be ac
cepted b y ___________________________________________________ ________
5037
Jefferson Savings Bank, Guardian D etroit Union Group, Inc., hoped
to have president o f ______________________________________ 5035, 5036, 5037
Jefferson Savings Bank, intergroup memorandum disapproving de
livery to of group stock for directors’ share on resignation_________ 5035
Jefferson Savings Bank, resignation as director o f_______________ 5035, 5036
182
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D e H a t e s , L ouis H .— Continued
Page
Jefferson Savings Bank, resignation as director of, Guardian D etroit
Union Group, Inc., disapproval of acceptance of, intergroup m em
orandum concerning_________________ ______________________________
5035
D elan o , M oIie au : Brown Bros. & Co., director o f_______________________ *1150
D elaw are:
364
Option warrants without time lim it authorized in _____________________
United Corporation organized under laws o f_______________________ 308, 315
D emand D eposits :
Interest rate on, paid by J. P. M organ & C o.:
Norm ally 2 percent_____________________________ __________________
23
Same as that of clearing house___________________________________ 20, 23
D enn ison , H e n r y : .
Industrial Advisory Board o f the N. R . A., connected w ith___________
6467
6467
Tw entieth Century Fund, member o f _________________________________
D epartm en t of J u stice :
Fox Theaters, Loew ’s stock, acquisition o f by—
(a) Changed attitude on, o f_________________---------------- 3664,3705-3706
(b) Forbidden by, unless Param ount disassociated__________ ____
3670
3705
«
(c) N o written opinion on b y ____________________________ ________
(d) Opposed b y ___________________________________________________
3664
(e) Records of, disapproved, Fox testified_______ ________________
3664
( / ) Representatives of, investigated_______________________________ 3663
Silent on, Rogers testified— -'______________________________
3706
D e p o s it G u a r a n t e e . (See Banking A ct o f 1933, deposit guarantee pro
visions of.)
D epository for P ublic F u n ds :
National banks as_______________________________________ „ _■
__________ _
100
100
N ew Y ork State banks as_______ _____ ________________________________
Private banks not perm itted to b e ____________________________________
100
D e p o s it o r s . (See under Banks, banking, and bankers; depositors;
deposits.)
D eposits :
Advertisement of, n ot perm itted to private banks in N ew Y o rk ______
5
Banks (see also under Banks, deposits; D eposits: Com merical banks,
Incorporated banks, National banks, N ew Y ork State banks,
Private banks).
Commercial banks: D epositor guided b y published statem ents______
102
Demand. (See D em and deposits.)
D illon, Read & C o.:
B y _________________________ ________________________________ 2152 et seq.
' W ith _____________________________________________ 1539, 1542, 2168, 2169
Drexel & Co., w ith __________________________________ _____ _____ _______
50
Federal Reserve System, o f; reserve fo r _____________ __________________
116
Incorporated banks, in; kept b y J. P. M organ & C o _____ _________ 128, 129
Interest not paid by J. P. M organ & Co. on deposits under $7,500____
26
Interest on dem and:
(а) Aldrich views as proper under guidance o f Federal Reserve
B oa rd__________________________________________________ 4044-4045
(б) Prohibition o f under Banking A ct o f 1933, criticism of by
A ldrich _____________________________________________________
4045
Effect o f________________ ____________________________ 4045-4046
Interest on demand, unfortunate reaction in small banks,
Senator Adam s’ v ie w ______________ '__________________
4045
R ight place, need for attracting t o _ _ _ ______________ 4044-4045
Interest rate o f J. P. M organ & Co., same as th at o f clearing house. _ 20, 23
Kuhn, Loeb & Co. (See under Kuhn, Loeb & Co., deposits.)
Legal reserve for:
Federal Reserve System __________________________________________
116
M organ (J. P.) & Co. not required to h ave______________________
19
Legislation on _________________________________________________________ 5, 100
M organ, Grenfell & Co., w ith ____________ ____________________________ 35, 36
M organ (J. P.) & Co., by, with banks and trust com panies______ 128, 129
M organ (J. P.) & Co., w ith________________ ________ 11, 19, 20, 23, 26, 35, 36,
39, 49, 50, 51, 52, 105, 195 et seq., 547 et seq., 550, 555, 557, 558
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
183
D eposits — C ontinued
Pa£®
National banks, receipt by, o f— ______ ________________ ______________
100
New Y ork legislation on _______________________________________________5, 100
New Y ork State banks, receipt by, o f _________________________________
100
Private banks, in:
Advertisement of, not permitted in New Y ork ____ ______________
5
Average required to avoid State regulation______________________
100
D epositor guided by faith, testifies J. P. M organ________________
102
Existence of private banks during depression possible because of,
testifies J. P. M organ________________________________________5
Interest not payable on deposits under $7,500 in New Y ork --------5, 100
New Y ork legislation o n _ ._ ______________________________________ 5, 100
5
Permissible in New York under certain restrictions______________
116
Reserves against, of Federal Reserve System ________________________
Reserves, legal, for____________________________________________________
19
D e p re s sio n s (see also Speculation):
Agriculture, effect on, o f______________________________________________ *1993
Bankers:
Aid by, in creation of, by lending to brokers_______________ 1009 et seq
Knew prior to its occurrence in 1929 that crash would come but
were powerless to prevent it, testifies Otto H. K ahn_____ 1007, 1008
N ot foreseen b y __________________________________________ ________*1818
Prevention by, possible, testifies Otto H. K ah n _________________
1008
4804
Blair underestimated___________________ .______________________________
Brokers’ loans:
Aid of, in creation of, b y bankers__________________________ 1009 et seq.
Bankers, made b y ; aid in creation of depression.__________ 1009 et seq.
Causation b y _________ *1817 et seq., *1990 et seq., *2241, 1009 et seq.
Corporations, made b y : Cause of speculative mania in years
prior to 1929, testifies O tto H. K ahn__________________________
1010
Index of speculation_________________________________ 1009, *1815, *2241
Speculation:
Encouraging of, b y ____________________________________ 1009 et seq.
Index o f _______ _________________________ ______ *1815, *2241, 1009
Mania of, in years prior to 1929 created b y brokers’ loans
made bv corporations, testifies O tto H. K ahn____________
1010
Budget of United States, balancing of, essential to elimination of,
testifies Richard W hitney____________________________________*2235 et seq.
Buying mania of public as cause o f ___*1817 et seq., 726 et seq., 1008, 1215
Capital does not flow into industry in time of, testifies J. P. M organ .
5
Commercial banks not greatly affected by, testifies Clarence D illon . 1544
Consumable goods, industries engaged in production of, not greatly
affected by, testifies Clarence D illon __________________________ 1543, 1544
Corner, prosperity just around_______________________ •________________ 5081
Credit structure, abnormal expansion of, by stock speculation and
withdrawal of credit from industry because of brokers’ loans as
one of causes o f______________________________________________ *1817 et seq.
Deposits enable private banks to continue in business during, testifies
J. P. M organ_______________________________________________________
5
D etroit Bankers Co., started about the same time as________________
5234
D etroit suffered from _____________________________________________ 5242, 5388
Real estate values cu t______________ _____________________________
5242
W orse than average in ___________________________________________
5486
D urable goods, industries engaged in production of, greatly affected
by, testifies Clarence D illon ____________________________________ 1543, 1544
England: Bank of England, “ moral influence” of, discourages specula
tion and depressions in, testifies O tto H. K ah n __________ 1009, 1010, 1011
Farmers, remedying conditions of, as cure for_________________ *1930 et seq.
Federal Reserve Board is proper G overnm ent agency to prevent, by
dissemination of inform ation on m oney conditions, testifies O tto H.
K ah n ___________________________________________________________ 1008, 1009
Financiers, judgm ent of, with reference to, probability of, cannot be
trusted_______________________________________________________ . ______*1813
H olding companies helpful in times of, testifies O. P. Van Sweringen.
726
Industry deprived of flow of capital during, testifies J. P. M organ ----5
Investm ent banks, business of, hard hit by, testifies Clarence D illon . 1544
184
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D epressions — C ontinued
Page
“ M ania” for buying stock as contributing cause o f___________ * 1 8 l7 e t seq.,
726 et seq., 1008, 1215.
“ M ania,” years 1926-29 referred to b y O tto H . K ahn as years o f ____ 1005
M arket prices not equal to true value in times of, testifies O. P. Van
S w erin gen .________________________________________________________ 729,730
“ M egalom ania” o f United States as one o f causes of, testifies O tto H.
K a h n __________________________________________ _____________________
1215
Private banks enabled to continue in business during, because o f de
posits, testifies J. P. M organ______________________________ *_________
5
Public, stock buying mania of, cause o f________________________ 1817 et seq.,
726 et seq., 1008, 1215
Securities, effect on, o f_ _ _______________________________________ *1926 et seq.
Speculation:
Bankers’ loans to brokers, encouraged b y __________________ ; 1009 et seq.
Brokers’ loans as index of and cause o f ____________________ 1009 et seq.,
*1815 et seq., *1990 et seq., *2241
Corporations’ loans to brokers, encouraged by, testifies O tto H .
K a h n ____ _ _____________________________________ ________________
1010
Stock speculation and withdrawal o f credit from industry causing
abnormal expansion of credit structure as cause of R epression . *1817
et seq., 726 et seq., 1008, 1215
Stock speculation as cause o f ________ _ *1817 et seq., 726 et seq., 1008. 1215
U nem ploym ent increases intensity o f ____________________ _____________ *1862
D e sv e rn in e , R . E .: Counsel to Association o f Stock Exchange F irm s. 6895-7202
D e t r o it :
Autom obile industry, dependent o n __________________;________________
4210
Banking facilities, ranked ninth in, while fourth in m anufactured
products_________________________________________________________ ___
4209
Banks:
Bank holiday, remaining at tim e of six o n l y . . . . . ____________ . . .
4208
Closed, investigation of, Com m ittee decided to m ake___________ _ 2613
D ividend, cash paym ents by!____________________________________ _ 5548
Growth, m ushroom o f ________________________ ____________________
5484
N*timber in ______________ T_______________________________ ____ 5058-5059
Largest:
First National Bank o f D etroit_________________________ 4742-4743
Guardian N ational Bank o f C om m erce_________________ 4742-4743
One only at tim e o f hearings______________________________________ 4208
Part played b y in growth o f_____________________ ;________________
5485
Reconstruction Finance Corporation loan applications, special
com m ittee to examine__________________________________________
4749
Reconstruction Finance Corporation loan to, largest plans fo r ___ 4747
Reconstruction Finance Corporation loans, valuation o f collateral
for, banks furnished_____________ ________ ______________________
4750
C ity of, notes, value o f________________________________________________
4742
Credit, serious condition o f ____________________________________________ 4742
Econom ic tie-up with other com m unities____________________ _________ _ 4209
Ferries: •
Abandonm ent o f W indsor, engineers contem plated_______________ 3912
Receivership, n ot in ___________________________ _________ , ________
3912
Traffic to and from carried b y _________ _______________ 3892, 3907, 3909
Growth o f ______________________________________________ 3892, 3907, 4209
Autom obile industry due m ostly t o __________________________ 4209
Script, suggestion o f paym ent by after holiday_______________________
5548
N ot carried o u t____________________________ ______________________
5549
Real estate market in serious condition_______________________________
5353
D e t r o i t & C anada T u n n e l C o. (see also D etroit T u n n el):
Agreement, formal, entered into M ay 1928 fo r _____________
3896, 3899
M em orandum for proposed:
(o) B y bankers_________________________ __________ 3900, 3937-3940
(b) Signed M arch 26, 1928.________ ___________________ _ 3896, 3900
Chase Securities Corporation a party t o ________________ 3900, 3940
Bankers:
,
(a) Bought Bertles, Rawles & D onaldson’s shares o f com m on
stock _______________________________________________________
3920
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
185
D etroit & C anada T un nel C o .— C ontinued
Bankers— Continued
,
Pa^e
(6) R eceived stock o f ________________________________________ 3917, 3939
Bond issue of, proportion taken over by each o f ____________ 3916, 3938-?
Debentures o f________________________________________________ 3916, 3939
Selling group of form ed by to distribute bonds of to pu blic--------3926
Price of bonds and debentures to 92 to cover finders profits. 3939
Price to public 100 and interest_____________________________
3927
T ook over bond issue at 97_______________________________________ 3916
$170,000 taken b y ___________________________________________
3920
3920
Price less than 50 cents a share_________________________
■'
Debentures at 95%________________________________________ _
3916
At 90 ___________________________________ 3916, 3926, 3939, 3964
At 90 (Harris Trust & Savings Bank of Illinois not
participating)____________________________________ 3916, 3939
Trading account as usual formed b y __________________________________
3929
Stock, common, 355,000 shares and debentures at $170,000 taken b y . 3920
Price less than 50 cents a share__________________________________
3920
Bertles, Rawls & Donaldson, shares acquired by bankers from held in
escrow________________ .*_____________________________________________
3921
T o facilitate marketing o f stock issue to pu blic__________________
3921
Stock purchased by as part of financing__________________________ 3917
Price $3.25 a share________________________________________________ 3917
Bonds:
Default o f____________________________________________________ 3927
First mortgage, interest charges on for first 4 m onths_______
3933
N ot paid________________________________________________
3934
Principal amount $8,500,000____________________________ 3890, 3937
Prospectus fo r___________________________________________ 3940, 3941
Sinking fund issuance_____________________________ 3890, 3908, 3915
Mortgage security fo r ________________________________________ 3938
Underwritten by group of bankers headed by Harris
Trust & Savings Bank of Chicago_____________________ 3908
Issuance_____________________________________ 3890, 3908, 3915, 3937
Underwritten by group o f bankers headed by Chase
Securities Corporation________________________________
3908
N o bid for at time of hearing________________________________
3917
Public offered at 99%________________________________________
3916
20-year convertible, principal amount $8,500,000______ 3890, 3938
Trading account in ______________________________________ 3928, 3929
D ate form ed_________________________________________________
3929
Losses sustained by Chase interests in __________________ 3928, 3929
Members of, interest in ____________________________________3929
Bonds, proceeds from 'sale o f portion of set aside to pay interest to
bondholders and debenture holders_________________________________
3927
N ot used for construction________________________________________
3927
Prospectus doesn’t m ention______________________________________
3928
Sum set aside_____________________________ _______________________
3927
Bondholders com m ittee form ed to protect interests o f ________________ 3934
Plan to be subm itted to bondholders by, letter concerning______
3935
Bridge under way brought to attention of Snow ______________________ 3901
Capital structure o f___________________________________________________
3915
Bonds $8,500,000; debentures $8,500,000_______________________ _ 3815
Convertible features o f __________________________________ 3815-3816
Stock, com m on, 3,100,000 shares______________________ 3875, 3937-3940
Capitalization o f ____________________________________________ 3918, 3919, 3937
Chapin, answer to, concerning, shows figures using fallen off enor, mously due to unem ployment, not immigration restriction---------- 3931
Charter amended so as to validate agreements in which directors are
interested..,____________________________________ ________________ 3955-3956
M ade day after agreement with Raw les__________________________ 3956
Chase Securities Corporation approached by Donaldson through Dahl
3895
concerning__________________________________________________________
Asked Chase to participate in financing o f _______________________
3891
186
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D e tro it & C anada T u n nel C o .— C ontinued
Page
Conference o f with reference to financing o f proposed r6sum6 o f - 3896-3901
D etroit bankers group, members of, conferences w ith concerning
financing o f proposed_______________________ ^______________________
3896
Donaldson insisted on opportunity to investigate and participate in
financing o f__________________________________________________________
3900
Effort o f to secure place in financing of___ _________________ 3897-3898, 3900
Interested, Snow advised D onaldson_____ ____________________________
3895
Invited form ally to participate in financing, M arch 1928________
3891
Possible interest o f in proposed touched on in Donaldson letter to
D ahl_____________________ ____________________ _____________ 3893,3894
- Profit to from participation in debentures and first mortgage
bonds o f________________________________________________________
3928
Costs of preorganization and administration paid b y _________________
4005
Dahl, letter to from Donaldson concerning proposed____________ 3892-3893
D ebentures— authorized $8,500,000________________________ 3937, 3938, 3939
3938, 3939
Bankers, allotm ent a m o n g !______________________________ _
(a) C om m ittee form ed to protect interest o f ________________
3934
(b) N othing left over for holders____________________________ . 3935
D efault o f ____________________________________________________
3927
D etroit & Windsor Subway Co., expenses o f paid b y _______________ _
4005
Directors o f :
(a) M ajority interested in syndicate selling real estate to___ 3970, 3971
(b) Voting to pay for real estate selected by largely bankers______
3951
D onaldson brought proposal to Snow’s attention_________ ____________ 3901
Donaldson, letter from, to Snow, concerning syndicate o f trustees
receipts for com m on stock o f_______ ___________________________ 3922, 3923
Chase Securities Corp. refused offer in ___________________________
3923
Earnings for first 4 m onths__________________________ •_________________
3934
3933
Gross, for first 4 months of op era tion .___________________________
Available for bondholders’ interest charges_______________________
3933
Eighteenth amendment m ight affect______________ ____________________
3932
Engineers for:
(a) Estim ated on traffic likely to use_____________________________
3911
(b) Paroons, K lapp, Brinkerhoff & D ouglas______________________
3901
Expense to of engineering appraisals and traffic report and adminis
tration___________ ____________________________________________________
4005
Falling off of traffic, shown in reply to Chapin________________________
3931
Figures of those using:
(a) Necessity for full disclosure of stressed b y Chapin___________
3930
Promised im m ediately___________________________________ 3931
(b) Securities sold without full disclosure o f______________________ 3930
Financing o f agreement preliminary between bankers fo r ________ 3937, 3940
Cash proceeds from _________________________ ^ ____________________ 3908
Details of in preliminary agreement fo r ______________________ 3937, 3940
General plan of, outlined___________________________________ 3899, 3937-3940
R ecord o f negotiations fo r ____________________________ ____________ 3936, 3937
Sales letter concerning, issued b y Lingle o f Harris Trust & Savings
Bank o f C hicago________________________________________________ 3906-3908
Guardian Co. interested in proposed_____________________ _____________ 3895
Guardian D etroit Bank— directors o f supporting__________________ _
3906
Hearings on __________________i ______________________ _ 3889-3975, 3997-4014
History, early o f______________________________________ 3891-3892, 3936, 3948
Huston, Rawles and associates received ajnount paid for stock of, by
first mortgage bon d purchasing sy n d ica te.__________________________ 3920
Incorporated under laws of M ichigan____ ___________ ____________ 3917, 3948
Interest charges for first 4 m onths____________________________________
3934
Legal fees, am ount of, provided___________________________ ____________ 3954
Legal fees due from^____________________________ 3960, 3964, 3965, 4003, 4005
Loss net operating, for 1931___________________________________________ 3934
M ortgage bond issue o f :
(a) Bid 6, offered 10 at time o f hearing________________________ 3917
\b) Public offered, at 100______________________ ______________ 3916,3964
Negotiation for financing of, record o f______________ _____________ 3936, 3937
Organized 1927 in M ichigan___________________________________________ 3897
Organizers services paid for by stock o f_______________________________
3917
Premiums on bonds paid b y ________________________________ __________
4006
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
187
D e tro it & C anada T u n nel C o .— C ontinued
Pase
Prospectus for first mortgage bonds, no mention in of sum set aside for
3928
interest rather than construction___________________________________
Securities law requires such m ention_____________________________
3928
Purpose: Construction o f vehicular tunnel under D etroit River to
border cities in Canada____________________________________________
3890
Rawls agreement with, for issuance of stock to “ Huston, Rawls and
associates” for real estate___________________________________________
3905
Payment to for real estate by, money for secured from sale of
bonds, debentures and stock ___________________________________
3956
Real Estate for, agreement for puchase of, b y _________ 3954, 4001-4002
(a) Cash payments, additional provided b y ______ 3954-3955, 4002
(b) Stock, shares issued as consideration f o r . ____ 3954, 3955, 4002
3968
Am ount expended for b y ____________________________________
Am ount paid for various pieces, b j ____________________ 4003-4004
Agreement for purchase of, b y ___________________ 3954, 4001-4002
Assembling of left to brokers________________________________
3949
Canadian, profit to Martin who assembled in stock _________ 3969
Deeds for, name to which made out in _________________ 3952-3953
3948
D uring summer of 1927_____________________________________
Options on acquired_________________________________________
3901
M oney spent for_____________________________________________
3902
Syndicate acquiring given 35 percent profit in cash, no undis
closed profit, received in com m on stock o f ___________ 3902-3903
Price, total for options o n ___________________________________
3950
Profit to for assembling to be in stock o f _______________ 3950, 3951
Profit to syndicate o n _______ :_______________ 3904, 3968, 3969, 3970
Reinvested except $30,000 in com m on stock o f ___ 3904, 3968, 3970
Prom oters____________________________________________________ 3970
• Rawls, agreement b y to turn over t o _______ 3953-3954, 4001-4003
Syndicate:
(a) Agreement for acquisition o f_______ 3997-4001, 3947-3948
Payment for, am ount_____________________ 3948, 3998
(b) Am ount received b y _____________________ 3950-3951, 3968
(c) Loss on carrying of property_______________________
3964
(d) Paym ent of in cash because stock sold, Bradway
testified___________________________________________ 3973
(e) Payments t o ___________________________________ 3951, 3952
(/) Profit to in stock o f . ____________________ ______ 3968, 3969
Sold for account of so later realized cash profit. 3969
3974
(g) W hat done b y ______________________________________
Title taken in names o f dummies______________
3949
Receiver in hands o f ______________________________________________ 3911, 3934
April 1932 appointed_____________________________________________
3946
Sales letter for, bridge and tunnel will both have adequate traffic,
statement in ________________________________________________________
3907
Tunnel, location and advantages of, described in _____ ____ 3907-3908
Statements in Snow has no exception t o ____________________ 3908-3909
Snow, financing of proposed, looked attractive t o _______________ 3897, 3898
Memorandum, N ovem ber 1, 1927, concerning Donaldson approach
to Chase Securities Corporation re financing of proposed______
3895
S tock __________________________________________________________________
3917
Am ount o f and to w hom issued________________________ 3919, 3938, 3939
Am ount realized from, b y __________________________________________ 3917
“ Bonus,” referred to as by Harris Forbes & C o _____________ 3924, 3926
N ot such. Snow testified______________ ________ ______________ 3926
Chase Securities Corporation, granted option on some of, refused
later request fo r ________________________________________________
3925
D istribution o f _____________________________________ 3938, 3961, 4006 (?)
Division of:
(a) Between Rawls and associates, schedule o f ________ 3961, 4006
(b) Prom otion shares between Huston, Rawls and associates. 4006
Free m arket fo r ______________________________________________ 3920, 3921
Issue of to Rawls and associates authorized and requested. _ 3960, 4003
As bonus for prom otion services_____________________________ 3962
Letter from Donaldson to Snow concerning market fo r . ______ 3923-3924
M arket, none for com m on _____ _____________________________ 3925-3926
Optioning of b y owners to protect m arket in, arrangement fo r ____ 3925
188
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D etroit & C anada T u n nel C o .— C ontinued
Stock— Continued
'
Paee
Speculation "represents frau d________________________________________3931
Purchased from Huston, Rawls and associates and effort o f to
3925
secure option on ______ _______________ J____ __________________
Subject to an agreement to prevent sale o f______ 3925, 3962, 3973, 3974
Valuation o f __________________________________________________ 3919-3920
B ook, based on Public U tility Commission valuation, _ 3919, 3920
W hen issued $3.25 a share_____ 3950, 3951, 3955, 3956, 3962, 3968, 3969
Traffic surveys made b y engineers o f_____________________________ 3902, 3907
D e tro it & O n tario S u bw ays C o .: D etroit & Canada Tunnel Co. be
came organized originally in summer o f 1927 under name o f . ___________ 3948
D e t r o i t & S e c u r it y T r u s t C o .:
t
Changes in capital stock, number, or qualification of directors, or
classes o f stock forbidden w ithout tw o-thirds vote o f com m on and
trustees shares__________________________________________________ 5060, 5128
D etroit Bankers C o .:
Exchange of stock for recom mended b y circular o f _ _ ,____ _ 5069-5071
Unit o f __________________________________________________ 5065,5235
Lim ited in selling or mortgaging property of, but directors m ay
consolidate with other subsidiaries_______________________ _ 5062, 5130
Letter from Connely, vice president of, questioning soundness of
D etroit tunnel p roject__________________________________________ 3910-3911
D etro it B ank ers C o .:
Advantages expected b y unit banks from becom ing associated in _ ___ 5381
Affiliated banks of, set forth in annual report (1932)_________________
5452
Articles o f Association o f ____________________________ ____ ________5127-5131
Assets, charge-offs o f_______________________________________ 5174, 5196-5198
P ublicity concerning__________'______________________________ 5196-5197
Assets, 1931, worth substantially less than in 1930_____________ « ____
5181
Balance sheet:
D etroit Co. not included (because owned b y and included in assets
of D etroit Trust C o .)___________________________________________ 5085
First National Co. not included (because w orthless)________ 5084, 5085
Bank of Michigan, Livingstone acted for in form ing__________________ 5080
Bank stock, purchase by, from First National C o.:
Reichert advises caution in _________________ ________________ 5731-5732
__________________________ 5731
W ilson asks advice on ______________ ___ >
Banks, Michigan, m inority stock interest in, held b y __________________ 5762
B ay C ity banks, tie up with, created bad impression on closing o f ___ 5571
Borrow ed heavily to acquire ownership o f seven small banks in
W ayne C ou n ty___________ ______________________________________ 5474,,5497
Branches, 200__________________________________________________________ 5484
Burns letter to concerning note o f trustees authorized b y ____________
5673
Capital assets, reduction of from 1930 to 1931_______ 5167, 5174, 5178, 5179
Newspapers published____________________________________________
5196
Principal items o f__________ ______________________________________
5167
Capital:
Authorized and issued____________________________________________
5341
Paid in_______________________________________________________ 5061, 5129
Set-up o f _________________________________________________ _
5076,5077
Sole, trustees shares______________________________________ ________
5067
Surplus and undivided profits_________________________ 5069, 5077, 5078
Charge-offs b y _____ ______________________________________________ 5174, 5180
5180
Reasons for_______________________________________________________
First National Co. account (1932)___________________________ 5771-5772
N ot shown in 1931 report to stockholders___________________ 5200-5202
Chase National Bank:
Paym ent to on note representing loan t o _________________________ 5138
Resolution concerning indebtedness to o f ________________________
5139
Claims Departm ent, Consolidated:
First National Bank manifested resistance to turning over items
t o _______________________________________________________________ 5726
. Functioning o f inadequate________________________________________ 5728
Set-up in ___________ ___________ ’______________________:___________
5725
People’s W ayne County Bank:
5729
(a) Cooperation, discontinuance suggested unless__________
(b) Item s turned over to b y ___________________;______ _ 5725-5726
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
189
D etro it B an k er s C o .— C ontinued
,
Pa^e
Collateral, heavy concentration of stock of on loans_________________
5336
B y unit banks_______________________________________________ 5283-5284
5077
Com m on stock outstanding at time of receivership___________________
Statutory liability, provision with reference to printed on back
o f . . . : _________________________________________________________
5076
Condition of, worse at close of—
(а) 1932 than of 1931____________________________________________
5470
(б) 1931 than of 1930____________________________________________
5179
Disastrous to tell stockholders, Verhelle testified-__________ 5179, 5180
Consolidated statement of creditors of unit banks at the close of
business, 1930 and 1931 com pared_____________________________ 5166-5167
Continental Illinois Bank & Trust Co. loan from to pay:
Chase National Bank________________ ___________ 5124, 5125, 5139, 5141
Paid with depositors’ m on ey_____________________________________
5772
D ebt of $7,200,000 assumed to acquire outlying banks, principal cause
of difficulties o f_____________________________________________________
5745
Declaration of trust o f ___________________________________________ 5131-5133
Depositors, number of in unit banks o f____________________ 5070, 5077-5078
Deposits to help_______________________________________________________ 5760
Detroit banking facilities, 60 percent o f all controlled b y ___________
5078
Confining of operations to metropolitan district of:
(a) Com mended by Reichert________________________________
5732
(b) N ot recommended by P ole_________________________ 5733-5734
D etroit Trust Co., affiliated w ith ____ ____________________________ 5762-5763
Concentration of stock of on loan t o _____________________________ 5339
Elimination of, recommended by bank examiner_________________ 5336
Promise of with exception________________________________________ 5339
Directors:
Activities of, determination to curtail__________ ____________ 5717-5718
Authorized to vote on contracts with companies of which they
are directors_______________________________________________'5062, 5129
Cut in dividend of, views of individual concerning__________ 5720, 5723
5322
D etroit Trust Co., those also directors o f ________________________
Hostile to Ballantyne, in control_________________________________
5718
Increase in number o f_________________•__________________________
5332
List in 1932 annual report, together with corporate position o f . 5453-5454
Stockholders, large in ____________________________________________
5082
Trustees shares, holders of selected__________________________ 5075, 5076
In fall of 1929_______________________________________________
5705
Trustees shares, to be issued to, according to circular addressed
to stockholders of unit banks form ing_________________________
5070
Trustees shares to 12 members of, to hold for 5 years. _ 5062, 5063, 5130
Unchanged to remain 5 years according to circular addressed to
stockholders o f unit banks form ing____________________________
5070
Unit banks:
(a) Practically all directors o f__________________________ 5088-5089
(b) Slates of officers and, m ade up b y ____________ •_____ 5089-5090
(c) Stockholders of, no power to elect for 5 years___________
5075
D ividend of, cu t_____________ _________________________________________
5722
Dividend, rate 17 percent:
Cut_____________________ __________________ 5082,5120,5241,5385,5722
N o t________________ _________________________________________
5241
Determined on before organization o f____________ __________ 5234, 5235
D ividend, special, paid to, by First National Bank of D etroit______ 5146,
5149, 5150, 5385
Dividends, bank examiners:
(a) Criticized as too liberal__________________________________ 5240-5241
(b) N ot to be paid, instructions o f____________________ 5528-5529, 5530
Except w ith Com ptroller’s permission______________ 5524, 5527
(c) Pointed out danger to unit banks in not paying_____________
5527
(d) Report, adverse t o ___________________________________________
5465
Dividends, payable only from unit bank dividends___________________
5235
Earnings warranted paym ent of, Stair testified_______ 5385, 5386, 5387
Explanation o f b y W ilson____________________________________ 5744-5745
Fixed before depression___________________________________________ 5235
Fixed in letter to stockholders of unit banks______ _________ 5234, 5382
190
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
/
D e tro it B a n k e r s C o .— C ontinued
Page
Dividends, payable only from unit bank dividends— Continued
Fixed to m atch existing unit bank dividends__________ 5071, 5082, 5233
P a i d . , . . _____ _____________________________ 5082, 5120, 5241, 5380, 5388
Persons who determined_______ 5070, 5071, 5072, 5079, 5080, 5081, 5382
Em ployees, loans to, too large unsecured, cash or securities handling
forbidden t o __________________________________________________:______
5271
Expenses, reduction in, transferred to increase in o f First N ational
Bank of D etroit_____________________________________________________
5743
First D etroit Co. shares surrendered for cancelation b y ____________ 5139, 5333
Liquidating dividend by, stock of f o r .________________________________
5139
First National Bank of D etroit and First N ational Co. taken over
b y ___________________________________________________________________
5096
D ividends paid by to :
(a) As stockholder_______________ ___________ 51 46,5149,5150,5385
(b) Liquidating of loans out of, bank examiners’ suggestions. 5530
Loans collateralized with stock o f______:__ :_________ _____________ 5414
Blessed & Leitner loan ______________________________________ _ 5670
5756
Purchase of bank stocks b y not approved b y directors o f __________
Special dividend by t o _______________________ _________ 5143-5144, 5150
First National C o.:
Assets, shrinkage of, protection because of sought b y ______ _ _ 5098, 5099
Assumed obligations o f____________ - ______________ __________ 5102, 5103
D eposits in, liquidated__________________ _________________________ 5759
Directors of, agreement by to hold harmless on bank stock pur
chases---------------- ------------ ---------------------------------------------------- 5756, 5758
Financial burdens im posed by acquisition of, on, reduction in,
purpose of First National Bank of D etroit, declaring
dividen d____________________________________________ _______5143-5144
Indebtedness in acquiring, incurred b y __________ 5095-5097, 5100, 5103
Indebtedness, m ethod of handling____________________: ___ _ 5105-5126
Never got rid o f______________________________________________
5105
M oney loaned to, borrowed b y . . ________________________ ________
5103
(a) M et through borrowing b y _______________ 5101-5102, 5102-5103
(b) Obligations of taken over b y _____________ 5102,5330,5331,5333
Purchase of minority stock interests in State banks by, to becom e
units of, should have been approved b y ___________________ 5704, 5706
Funds in hands of (January 1, 1932)______ ______________________ 5136, 5137
Hamtramck, six banks in, acquired b y ____________________________ ___
5233
Hentschell, replies to inquiries by, concerning 1931 annual report
o f ___________ •_______________________ ___________________________ 5210-5216
Incom e, net, operating of (1931):
(a) Break-down o f________________________________________________
5173
(b) Explanation o f _____________________________________ 5169-5171, 5173
Incorporation of postponed__________________ __________ :_________ 5098-5099
Indebtedness of, reduction o f________________________ __________________ 5152
Investment committee, subcommittee, need for appointment o f_______
5282
Investments, decrease in value o f 1931___________________________ 5183-5184
Newspapers published__________________ :_____________________ 5196-5197
Judges, stockholders o f_______ _________ _______________________________ 5416
Lansing bank, tie-up with, created bad impression on closing o f ________
5571
Letters to stockholders o f concerning consolidation o f People’s W ayne
C ounty Bank and First National Bank o f D etroit_____________5176-5177
Loaning facilities, increase in, no factor in organization of, Wilson
view ________________________ _____ ________________________________ _
5733
Loans to :
(a) Officers and directors, table o f ___________________________ 5681-5697
(b) Officers and employees, adjustm ent o f recom m ended as im
m ediately necessary___________________________________ 5728, 5731
(c) Unit banks, collateral on, unlisted securities as_________ 5282-5283
Losses, question if sustained b y __________________________________ 5216-5217
Sustained in O ctober 1931_____________________________ 5188-5189, 5217
In 1931_______________________________________________________ 5181
M eeting, directors, authorizing representatives to be present at
annual meetings o f unit banks and vote stock o f___________________
5087
Meetings, prospective directors o f ________________ ___ 5097, 5098-5099, 5099
M ichigan banking situation, seriousness o f attributed in part t o ____ 5571
INDEX TO HEARINGS ON (STOCK EXCHANGE PRACTICES
191
D etro it B ankers C o .— Continued
Page
M oney, balance in hands of, used to reduce indebtedness of__ 5138, 5141, 5142
Nominal holding com pany, becam e___________________________________
5583
Obligation of to pay debt of subsidiary__________________________ 5484, 5497
Obligations, special dividend, units declared, to make possible m eeting. 5178
Officers and directors, names and addresses for first years. _____ 5061, 5129
Officers:
Highly paid, criticized for having too m any by Leyburn_________ 5385
Responsibilities, need to inform o f __________________________ 5281, 5313
Senior, no specific duties or responsibilities__________________ 5281, 5313
Operating costs:
(a) Reduction of, necessity fo r ___________________________________
5728
(b) Salary roll, high though inactive_____________________________
5432
Organization of, January 8, 1930_______________ 5058, 5065, 5077, 5097, 5289
Discussed prior t o _____________________________________ 5058, 5069, 5382
5058
Michigan, under laws o f______ ___________________________________
M emorandum from Verhelle to Ballantyne discussing______ 5312-5315
Unit banks, circular letter concerning written stockholders o f. 5234, 5382
Outlying banks, dividend payments resisted b y _______________________ 5745
People’s Wayne County Bank, stock of owned b y ____________________ 5762
Profit, undivided, reduction o f _____________________________ 5171, 5172-5173
Publicity, adverse to, published_______________________________________ 5196
Purpose of:
(a) Com petition, elimination of unwise, according to Ballan
tyn e_________________________________ 5058, 5059, 5064, 5068, 5073
(b) Creating banking facilities in proportion to Detroit needs. _ 5068
(c) Economies, effecting o f _______________________________________ 5068
Purposes of set forth in articles of association— bank holding com
pany____________________________________________________________ 5060, 5127
Receivership in________________________________________________________
5077
Records of, missing from files____________________________________ 5185-5186
Report, annual (1931):
(a) Charge-offs not shown in ________________________________ 5200-5202
(b) D etroit Trust C o.’s depletion of assets not shown in____ 5112-5113,
5114-5115
(c) Earnings shown in higher than in previous_______ 5157, 5195, 5196
(d) Figures for furnished to Ballantyne_________ 5158, 5159, 5160, 5163
(e) Filed with M ichigan Securites Commission_____________ 5182, 5183
Report, annual, contrast between that filed with M ichigan Securi
ties Commission and for stockholders______________________________ 5575
Reason for, counteracting adverse publicity________________ 5196-5197
Report, annual (1932), filed with Michigan Securities Commission:
(a) Charge-offs shown b y __________________________!_________ 5577, 5578
Stair knows nothing o f _____________________________ 5435-5456
(b) Financial condition shown b y ___________________________ 5575, 5576
(c) Nonbanking units, figures for included in ____________________ 5434
(d) Surplus, reduction in shown in_______________________________
5436
Report, annual (1932) for sto ck h o ld e rs ______________ __________ 5449-5454
(a) D ividends reduced more than earnings, according t o _______
5450
(b) First National Co., no mention of in _________________________ 5435
5435
Newberry ap proved_____________________________________
(c) Nonbanking units, reports of not included in ___________ 5430-5431
(d) Prepared by auditor__________________________________________ 5429
B y Verhelle_________________________________________ 5194, 5195
(e) Stair never discussed with anyone___________________________
5435
Report, annual (1931) for stockholders:
(a) Better showing than previously, impression from ____________ 5165
(b) B ook value of stock in__________________________________ 5286-5287
(c) Charge-offs not shown in _____________________________________ 5198
(d) Issued, January 16, 1932_____________________________________ 5157
(e) Net operating incom e figure, how derived_______________5169-5170
(/) Nonbanking units, condition of not shown in ________________ 5209
(g) Inform ation concerning asked by stockholders__________ 5209-5210
Report, annual (1930) for stockholders: First National Co., report
of om itted from ________________________________________________ 5206, 5207
Report, semiannual to stockholders (June 30, 1931)_________________
5170
Net operating figure, explanation of in ___________________________
5171
60604— 46-------13
192
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D etroit B a nkers C o .— Continued
p age
Resignations of officers and directors o f____________________ _____ 5267, 55&J
R e s o u r c e s .________________ ____ _______________________ ____ 5070, 5077, 5078
Savings expected from ____________________________________________ 5235, 5381
Service contract entered into b y with unit banks________________ 5091-5092
Profit accrued to fr o m _______________________________________ 5094-5095
5093
Services rendered under_________________ _____________________ ___
“ Sm art” m oney went out o f with Ballantyne’s resignation___________
5724
State banks, m inority stock interests in, owned b y First N ational Co.,
n ot acquired b y ______________________ ___ __________ ____ ____ _ 5710-5711
Stock:
Depreciation in would reduce collateral on loans secured b y _ ._ _ 5339,
5340, 5342
D irectors of authorized to exchange for stock o f companies held
b y _______________________________ r _____________________ 5062, 5129
First National Bank loaned m oney to officers and em ployees of to
bu y __________________________ ________________ _________________
5395
Held as collateral on one loan transferred to another. _ 5668, 5669, 5671
H eld as collateral by units, careless transfer o f _____________ 5284, 5315
Issued in exchange for capital stock o f unit banks____ _ _ ________
5341
Listed on D etroit Stock Exchange_____ :________ _____________ 5341, 5530
Par value o f---------- ----------------------- ------------------------------------------ 5398, 5341
Price, drop in ------------------------------ -------------------------------------------- 5397, 5341
Stock, authorized classification of, number o f shares paid in, privileges
attached to set forth jn articles o f association_____ .5060-5061, 5127-5128
Bank examiner placed no value on First National Bank holdings
of as collateral________________________________________ _________
5465
B ook value of, given in 1931 report for stockholders______ 5286-5287
5287
Higher than market in 1931_________ ;_________________________ _
N ot previously given_________________________ _____________ _______ 5287
Collateral, am ount of held b y First National at time o f closing,
M ills’ estimate o f _____________________________ ________________
5618
5673
Collateral on Bodde and Eckert note____________ ________________
Stock, concentration o f as collateral in First National Bank_________ 5396,
5397, 5418, 5484, 5494-5495, 5764
Blessed & Leitner loan*___________________________ 5664, 5668, 5669, 5670
Increased by relief collateral----------------------------------------- 5485, 5495, 5497
Problem presented b y _____________________________ ______________ _
5496
In Peoples W ayne City Bank disapproved b y bank exam iner____ 5674
In unit banks______________________________________5339, 5340, 5342
Unit bank stock held had been exchanged fo r ____ _____ 5484, 5494-5495
Proceeds invested in from sale of W ayne B ody Corporation loan
b y Blessed & Leitner as trustees to First National B a n k . 5664-5665,
5666, 5667, 5668, 5670
Public confidence in strengthened by dividend paym ents t o _____
5530
Purchases and sales o f b y Stair, January 9, 1930, to February 11,
1932____________________________________________________________
5428
Quotations, latest, nothing______________ _________________________ 5341
Unit banks loans on not tantam ount to loaning on own stock,
M ills’ opinion_________________________ ____________________ 5495-5496
Value of affected b y dividends paid b y ______________________ 5339, 5342
Stockholders, com m on, liability of for corporation’ s, statutory lia
bility for ownership of bank stock _________________ _____ 5061-5062, 5129
Stockholders, inform ation to concerning charge-offs, sources of:
Annual reports (1930 and 1931), comparison o f __________________
5199
N ewspapers____________ ___________________________ _______________
5198
N ot shown in letter to concerning consolidation, charge-offs___ 51765177, 5198, 5200
Stockholders, 9,000 o f _______________________________________ 5476, 5477, 5478
Stockholders, worsening conditions of not mentioned in letter t o ____ 5177
M ention would have been out o f order, Verhelle testified. _ 5177-5178,
5179
Subsidiary o f had acquired part ownership of 10 small M ichigan
banks___________________________________________________________ 5484, 5497
Surplus and undivided profits of 1930, 1931, and 1932________________
5479
Surplus, reduction in during 1932_____________________________________
5436
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
193
D etroit B ankers C o.— Continued
Pase
Trouble, root of, D etroit B ank________________________________________ 5397
Trust agreement:
(а) Participants in_______________________________________________
5066
(б) Purpose of, holding stock of unit banks o f----------------------------5065
(c) “ Spirit o f” to perpetuate proportional representation of unit
banks in _______________________________________________ 5064, 5132
(d) W ith reference t o ________________________________________ 5131-5133
Trustees, founders o f_____________________________________________ 5079, 5234
5744
Increase in number o f____________________________________________
Letter, circular, to stockholders of prospective units of, written
b y _________________________________________________________ 5234,5382
Trustees shares:
(a) Am ount paid in on ----------------------------------------------------------- 5061, 5128
(b) Control over large banking enterprise on insignificant
investm ent________________________________ ____________ 5078, 5082
(c) Explanation o f by W ilson------------------------------------------------ 5743-5744
(d) Holders o f _________________________________ ______________ 5061, 5128
(e) Number and price o f ______ 5060, 5061, 5066-5067, 5127, 5128, 5131
5076
(/) Powers of printed on stock certificate o f _____________________
(ig) Rights o f ___________________________________ ______ 5060,5068,5128
Voting control of by Haass______________________________ 5744
Voting rights, exclusive in for 5 years______________ 5060, 5128
5068
(h) Perpetuation in office, purpose o f ____________________________
Unit banks, acquisition of by exchange of stock w ith_________________ 5069
Im perfect coordination o f________________ _______________________
5484
In D etroit_________________________________________________ ______
5065
Intention to have them “ run as is” ______________________________
5064
Liquidity, insufficient o f__________________________________________
5484
Loans, secured by stock of became undercollateralized__________
5340
Officers and directors, control of elections b y --------------- 5089-5090, 5091
Operation o f changed after consolidation________________________
5086
Owned stock o f except directors qualifying shares_______________
5662
Special dividend declared by to enable meeting obligations o f ___
5178
5248
Service fee paid by for auditing b y _______ _______________________
Services contracts entered into w ith_________________________ 5091-5092
Profit from to _ __________________________________________ 5094-5095
Services rendered_________________________________________________
5093
Stock of, all but qualifying shares acquired b y exchange o f
4
shares__________________________________________________________
5077
T o be maintained as organized, according to circular to stock
holders o f____________________________________________ 5070, 5075, 5083
Done, according to Ballantyne______________________________
5086
N ot done__________________________________________ 5083, 5086, 5087
Units, nonbanking owned b y _____________________________________ 5208, 5209
D etroit B ankers Safe D eposit C o .: D etroit Bankers C o _________ 5208-5209
D etroit C learing H ouse A ssociation :
American State Bank, taking over of, voted b y __________________ 5485, 5522
Bank holiday, formal request for, from _______________________________
5815
M ichigan extension of, approved b y ______________________________ 4747
Inconvenience from , to be minimized by^_____________________________ 4747
M embers of, agreed to pay 5 percent of deposit balances after h oliday. 5359
Real estate received through foreclosure, agreement by, to withhold
from market to increase value___________________________________*___ 5242
Reconstruction Finance Corporation, D etroit Advisory Council, mem
bers of, connected w ith---------------------------------------------------------------------- 5600
D e t r o i t Co. (see First D etroit C o .)_______________________________________ 5730
D etroit Bankers Co. unit, nonbanking________________________________
5208
D etroit Trust Co. bond business outside of Michigan transacted by__ 5337
Owned_____________________________________ 5337, 5084, 5085, 5208, 5209
Nom inee, acts as, for D etroit Bankers Co. units___________ 5284, 5285, 5315
Leaks stopped b y -------------------------------------------------------------------- 5284, 5315
Statutory liability to D etroit Bankers Co. prevented b y _________ 5284,
5285, 5286, 5315
194
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D etroit C o. (see First D etroit C o.)— Continued
Page
Offices______________________________________ ___________________________ 5337
Purposes for which used; (1) .insuring collection o f dividends on col
lateral, (2) avoiding statutory liability for holding bank stock _____ 5284,
5285, 5286, 5315
5286
• Security Co., organized as_____________________________________________
D etroit E dison C o .:
Customer-Ownership C o_______________________________________________
489
Control of, never sought b y United Corporation, testifies George
W hitney------------------------------------------------------------------------------------------ 489, 490
First W ayne National Bank, balance in, fluctuation over year en d___ 5557
D etro it S avings B a n k :
Bank holiday, Michigan, opposition to, b y _____ ___ ___________________ 4742
Bank of Michigan, later becam e____________ __________________________
5490
D etroit Bank, existing at time o f bank h oliday_______________________
4208
D etroit Trust Co., fiduciary account, carried in _______________________ 5359
Issued certificates of deposit for, t o ______________ 5335, 5344-5345, 5348
Funds deposited in ________________________________________________ 5334
N o payments bv, on certificates of deposits o f___________________
5358
Offset against, claimed by, in paying percent o f fiduciary account
to, after bank holiday declared___________ ._____________________
5359
D etroit Trust Co., reciprocal deposit arrangements w ith ___ 5344; 5354, 5356
Individual bank continued as_________________________________ ________
5406
N ot closed________________________________________------------------------5406
Survived_______________________________________________________________
4400
D etroit S tock E x c h a n g e : Incom e and expenses of m em bers_________
7904
D etro it , T oledo & I ronton R ailroad C o.:
Ford, Henry, purchase from , b y Pennroad Corporation o f stock of_ 1249, 1250
Pennroad Corporation, purchase by, o f m ajority of stock o f . 1249, 1250, 1334
D etro it T rust C o .:
Bank examiner’s letter to concerning condition of_ ______ ________ 5354-5355
R eply of to, from , concerning condition o f_ _ ..........__________ 5355-5356
Objections to conditions o f___________________ _______________ 5336-5337
Answer t o ___________________________________________________ _ 5354-5355
5290
Capital o f _______________________________________________ ______________
Cash on deposit D ecem ber 31, 1932___________________________________
5362
Fiduciary department, proportion of belonging t o ___________ !___
5362
Clients, securities, sold to at price above that at w hich secured from
D etroit Bankers Co, or units where trust instrument perm itted. _ 5293,
5295-5296
Conflicting relationships of seller and buyer assumed b y ______ 5300-5303
D etroit Bankers Co. acquired January 8, 1930________________________ 5289
Affiliate, wholly owned b y ___________________________________ 5107, 5304
Directors, num ber o f also____________________________________ 5332-5333
5385
Dividend, special paid to b y . _ _______________________ ___________
Loan from _______________________ _________________________________
5107
Secured by First National Co. and stock o f State banks 5339
bought b y ------------------------------ -------------------------------------- 5107-5108
Undercollateralized_________ __________ ________'_______________ 5108
Stock, concentration o f as collateral on loans o f . ____________ 5336, 5338
Elimination of recom m ended b y bank examiner_____________ 5336
Stock, concentration o f as collateral on loans____________ _______
5539
Discontinuance of promised and reduction except for loans
to officers and em ployees_______________________ ___________ 5339
T w o million dollars turned over to by on surrender o f First
Detroit Co. stock ________________________________ ____ _______ _
5137
D etroit Bankers C o.:
Unit bank o f_______ __________________________ ____________________
5289
Depositors, assets t o that extent becam e unavailable t o ________ _ 511.1
D ividend o f stock o f First D etroit declared b y _______________________ 5109,
51 11 ,5 11 3,51 14,5 330 ,5 33 1,53 33
D epositors, assets to that extent unavailable t o ____________ 5111, 5333
Fair to stockholders of, according to Stone__________________ 5333-5334
D isposition of indebtedness o f D etroit Bankers Co. to be taken
care of by ____________________________________________ 5109, 5330-5331
Explanation of by Stone_____________________________________ 5328-5333
First National C o.’s indebtedness for acquiring bank’s reason
for_________________________________________________________ 5330-5331
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
195
D etroit T rust C o.— Continued
p age
D ividend rate, stepped up after D etroit Bankers Co. took over_, 5744-5745
Examination of, bank examiner’s letter concerning________ ______ 5336-5337
Fees and commissions, charged by, those authorized by Michigan
law s_________________________________________________________________ 5294
Fiduciary account, D etroit Savings Bank claimed off set against in pay
ing percent of, after bank holiday declared_________________________
5359
Fiduciary accounts in other banks:
(a) And certificates of deposit to balance same, items carried on
books o f____________________________________________________ 5351
(b) Preferences, none attached to ________________________________
5352
Fiduciary funds of:
(a) December 29, 1932___________________________________________
5363
(b) Segregation of b y ____________________________________________
5335
None prior to August 1931____________________________ 5334-5335
First Detroit Co., interests owning, ow ned___________________________
5297
Investment affiliate of, organized as______________________________ 5305
Ownership of transferred by to Detroit Bankers C o ------------- 5114-5115
Securities, purchase of, from , for trust accounts_____________ 5304, 5308
Stock dividend of declared b y _ ----------------------------------------------------5137
Cost of investments to, comparison with cost to, tabulation
o f __________________________________________________________ 5315-5316
M . J. Gallagher gold notes, comparison of cost to tw o companies and
to trust clients o f__________________________________________ 5300, 5316
Rex Clark collateral gold notes, comparison of cost to tw o com
panies and to trust clients o f ______________________________ 5300, 5316
First National Bank in D etroit, certificate of deposits held by, o f____ 5377
Reduction o f _________________________________________________ 5357, 5377
First W ayne National Bank, balance of, in fluctuation over year end- 5557
Ford M otor Co., certificates of deposit:
(a) Cashing of would have stripped_______ _______________ _
5362, 5363
(b) Questionable if could have been paid by w ithout deposit of
same am ount by First National Bank of D etroit__________ 5373
Cash deposits paid by from funds received same day from First
National Bank of D etroit_________________________________ 5372-5373
Funds of, banks in which deposited___________________________________
5334
Investments:
Bought b y from affiliates at prices lower than sold to trusts by__ 5296,
5298, 5300-5302, 5316
Character o f sold to trust estate__________________________________ 5293
Defaulted, taken off the hands o f____________________________ 5301
Fees and commissions on as well as profits___________ _______
5298
Persons purchasing not inform ed of price at which bought
b y __________________________________________________________ 5297
Represented purchaser and seller in selling to trust clients._ 5300,
5302
Kelsey v., opinion (a) decision in, (b) excerpt from concerning trustee’s
d u ty _________________________________________________________________
5311
Loans and discounts, condition of revealed by bank exam ination_____
5336
Mortgages, participating certificates in _______________ 5327-5328, 5375-5376
Am ount sold to, as trustee for trust accounts___ ___________ _ 5321, 5322
Defaults in _______________________________________________________
5323
Differential in interest rate between, and mortgages, kept as
servicing cost b y _____________________ __________________________
5323
Fee charged trust estate (where entitled to charge) by_ _ 5322, 5323, 5383
Fees and commission, statutory on, charged by (in addition to
charges to m ortgagor and investment fe e )_____________________
5322
Interest rate o n ___________________________________________________ 5320
Loans on made b y ________________________________________________
5321
Fee charged to mortgagor b y ___________________________ 5321, 5323
N o market fo r ___________________________________ ________________
5327
M ortgages, participating certificates in:
Past "due amount o f_______________________________________________ 5324
Pooled, issuance and sale of bj^______________________________ 5319-5320
Sale of to trust accounts as late as M arch 2, 1932_______________
5353
Series, number of issued_____________________________________ 5320. 5321
196
INDEX TO HEARINGS ON STOCK. EXCHANGE PRACTICES
D etro it T rust C o .— C ontinued
M ortgages, participating certificates in— Continued
Sold to :
Page
(o) P u blic____________ •_______________________________________
5322
Interest rate and price_____________________________________ 5323
(b) Trust accounts of, when underlying mortgages in de
f a u lt ..___________________ ___________ ___________ _ 5325-5326
Profit realized b y in representing both sides of sale o f investm ents to
trust clients____________ _____ ______________ ______________ 5301, 5302-5303
Real estate as collateral on loans o f________________________ 5336, 5352-5353
Losses on _________________________________________ ______ 5336, 5352-5353
Reserve for, recom mended by bank exam iner____________________
5336
Reciprocal deposit arrangem ent_________________ __________ 5344-5346, 5348
Corresponding in am ount not reciprocal, according to S tone. 5344-5345,
5348, 5356
C riticized by bank exam iner.________________________________ 5354, 5355
Discontinuance of, bank examiner’s recom m endation. _ 5336, 5344, 5355
Arranged for__________________________________________________ 5356
M ade to segregate fiduciary balances_____________________________
5336
Prevented necessity o f selling depreciated assets to segregate
fiduciary balances______________________________________________
5350
Term used in:
(a) Bank examiner’s letter, not objected t o ____________ 5349, 5356
(b) Letter o f______________________________ ___________________
5356
Reserves set up to take care of bank examiner’s objection, letter from
stating______________________________ _____ _______________ 5338,5348,5349
Stocks as collateral on loans o f __________________________________ _____
5336
T aylor letter to concerning condition o f __________ _______________ 5354-5356
Securities, table com paring unit cost o f to First D etroit Co. and t o . 5315-5316
Clients o f__________________________________________ __________ 5316-5317
Stock, num ber and par value o f shares________________________________ 5290
Stone authorized in D etroit Bankers Co. minutes to nom inate specified
directors fo r ________:_________________________________________________ 5089
Trust business done b y — no com m ercial or savings bank business____ 5289
Trust clients, depression prevented making good losses t o ____________
5309
Prices at which sold same security to varied_____________________
5303
Securities, some of sold to in default_____________ ._______________ 5304
Trust instrument, clause in authorizing purchase o f investm ents from ,
5297
at market p r ic e ..___________________________________ ________________
Trust investm ent trust:
Effective'January 31, 1931________________________________________ 5306
Fee, investm ent charged under plan o f __________ 5307, 5308-5309, 5310
M aking good losses to trust clients, furnished excuse for n o t . 5309-5310
Provisions regulating_____________________________________ ________ 5305
Securities, character of, in ------------------------------------------------------ 5307-5308
Set up with funds o f - _____ _______________________________________
5309
Resolution establishing_____________________________ _________ 5305-5307
W atson Realty Co. m ortgage bonds, spread, am ount o f f r o m . . . . 5295, 5297
Purchase of from First D etroit Co. to sale to trusts____ _________
5295
D e t r o i t T u n n e l (see also D etroit & Canada Tunnel C o .):
Am bassador Bridge opened a year before_______________________ ______ 3901
Surveys indicated both could be operated at a profit____________
3902
Bodm an, letter o f concerning prospective facilities o f for handling
traffic being insufficient___________________________________________ _ 3958
Bridge com petition raised question whether proposition could be made
to p a y ------------------------------------------------------------------------- ----------------------- 3911
Com petition direct with bridge, no com parable situation known b y
Snow ________________________________________________________________
3915
Com pleted N ovem ber 3, 1910____________ _____________________________ 3912
C ost o f_________________________________________________________________
3917
Customs inspection, space for, inadequate:____________________________
3T913
Engineers reported enough traffic to support with bridge and ferries. _ 3959
Engineers reporting on:
(a) H ow paid for__________________________________________________ 3971
(b) Investigated---------------------------------------------------------------------- 3958-3959
Freeman, memorandum to from Snow concerning, and objections to
proposition-------------- -------------------------------------------------------------------- 3913-3914
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
197
D etroi t T un nel — C ontinued
Pa^e
Imm igration restrictions affecting, inquiry concerning from C h a p in .._ 3930
M iller originally proposed____________________________________________ _ 3948
O bjections to in engineers’ report checked by Snow and found ground
less__________________________________________________________________
3914
3913
Traffic lanes, higher cost of than on bridge-----------------------------------------D etro it U nion G u ar d ia n , I nc .: D etroit Bankers Co., founders of did not
know of existence o f __________________________________________ i -------------5065
D etro it -W indsor F e rr y C o .: First W ayne National Bank, balance in of,
5557
fluctuation over year en d________________________________________________
D ew h u rst , J. F r e d e r ic : Twentieth Centurv Fund. Inc.. econom ist o f__ 6936
D e W itt H otels C o .:
Balance sheet of (1931)________________________________________________ 8108
Balance sheet D ec. 31, 1932---------------------------------------------------------------- 8625
Balance sheet of (1933)_______________________________________________
8111
De W itt Theodore, offer of, for purchase of, accepted by liquidator
with provision that Neil House bonds be refunded and D e W itt
Hotels Co. note due Guardian Trust Co. be partially liquidated_____
8112
Form ation of, by Theodore D e W itt and Guardian Trust C o________
8106
et seq., 8107 et seq.
Guardian Trust Co. of Cleveland:
Loan by, t o _____________________________________________ _________
7992
Loans by, to ($475,000 exclusive o f interest in H otel Hollenden
C o .)____________________________________________________________
8111
Subsidiary o f_______________ _________________________________ 8597, 8625
History o f _________________________________________________________ 8597, 8625
H olding com pany for hotels_________________ 8090, 8106 et seq., 8107 et seq.
H otel Hollenden Co., investment in___________ _________________8108 et seq.
Investments o f________________________ __________________________ 8108 et seq.
Loan of Guardian Trust Co. of Cleveland t o _________________________
7992
Main State Holding Co., investment in ________________________ 8108 et seq.
Profit and loss statem ent_______________________________________ 8625 et seq.
Neil House H otel Co., investm ent in__________________________ 8108 et seq.
New England C o.:
Form ation by, for purpose of owning and operating h otels_______ 7991
et seq.
Ownership by, of most of stock o f ___________________________ 7978, 8090
Subsidiary o f________________________________ . . . 7991 et seq., 8597, 8625
Prospectus letter of D e W itt to officers of Guardian Trust C o ________ 8110
et seq.
Stock o f :
All of, subscribed for by New England C o _________________ 7991 et seq.
Guardian Trust Co., subscription b y officers and directors of.
fo r __________________________________________________ _____________ 8108
New England Co., subscription by, for all o f______________ 7991 et seq.
Owned principally b y New England C o _____________________ 7978, 8090
Subscribed for by D e W itt and officers and directors o f Guardian
Trust C o ______________________________________________________ 8108
Subsidiaries of (operating hotel companies), in financial difficulties___ 8111
Subsidiary of New England C o _________________________ _______ 7991 et seq.
D e W it t , T h e odo re :
D e W itt H otels Co., purchase of, sought b y ___________________________8112
Guardian Trust Co. of Cleveland, officers of, connection w ith _________ 8103
et seq., 8105 et seq.
H otel Hollenden C o .:
D eficits of, increased over $699,000 under charge o f_____________
8110
Receiver o f _____________________________________________ 8098, 8103, 8107
H otel Hollenden, new manager o f __________________ 8098, 8103, 8105 et seq.
M anagement contracts o f_______________________________________ 8106 et seq.
M anagement fees from various hotels retained by, since closing of
Guardian Trust Co. of Cleveland and due to financial embarassment of. D e W itt Hotels C o _________________________________________ 8112
Prosecution and conviction for violation of National Prohibition
A c t__________________ ____________________•_________________ 8103 et seq.
Salary of, at H otel Hollenden C o________________________8098, 8105 et seq.
D iamond States T elephone C o .: Directors o f __________________________
30
198
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
Page
D ic k e y , C harles D en sto n :
Brown Bros. & Co., director o f . _____________ ________ _____________ _
*1150
D irector o f :
32
American Pulley C o ________________ ____________________________ _
Beaver Coal Corporation_________________________________________
32
Brown Bros. & C o________________________________________________ *1150
24
City Bank Farmers Trust C o _________ ___________________________
Fire Association of Philadelphia__________ ‘__________ ____________
32
24
Indem nity Trust Co., Philadelphia—_____ ________________________
Reliance Insurance C o ____________________________________________
32
Sharp & Dohm e I n c ____________ _________ :______________ ___ ______
32
Stonega Coke & Coal C o _ ________________ ________________________
32
32
United Gas Im provem ent Co ________ :_____________ ______________
V ictory Insurance C o ______________________ ______________________
32
24
Western Savings Fund Society___________________ ____ , _________
Partner o f :
Brown B ros__________________________________________ ____________
543
14
Drexel & C o ________________________________ ______________________
M organ, J. P., & C o _________________________________________ ____ 8, 543
Philadelphia, resident o f_____ _________________________________ ____ ^ _
14
D ickinson R eport _______________________ ____________________________ 7035, 7278
O ver-the-counter m arket regulation by Federal G overnm ent deem ed
. inadvisable_______________________________________________ 6919, 6746-6747
Segregation of broker and dealer should await study__ 6743, 6751, 6864, 6869
D id ie n , P asc e o : M organ & Co., Paris, partner o f___________ ___ _________
34
D illo n , C la r e n c e :
Brazilian Traction Light & Power Co., L td., form er director o f . _____
1950
Chase National Bank, director o f_________________ _______________ 3736, 4149
D illon, Read & C o.:
D irector o f - _______________________________________________________ *1151
President o f_______________________________ ________________________
1536
Stock of, m ajority of, held b y ________________________________ 1537,1538
Dillon, R ead & Co., Inc., stock of, w holly owned b y ____ _____ _______ 1542
D irector o f :
Brazilian Traction Light & Power C o ____________________________
1950
D illon, Read & C o ___________________________________ *1151, 1537, 1538
D illon, Read & Co., In c_________________________________-------------- 1542
1577
United States & Foreign Securities C orporation _______ ___________
F ox advised by to give up voting shares to secure financing__________ 3736
Fox voting trustees proposed b y _______________________________________ 3749
Plan refused b y F o x ________________ __________ __________ ________
3749
Influential person to w hom shares American Express Bank & Trust
Co. allotted________________________________ ________________ ________ 2333
Kennedy & C o.:
45 percent o f stock of, held b y ___________________________________
2333
Interests in, o f fam ily o f________________________________ _ ___ 1908, 2133
M em ber D illon, R ead & C o_______________ ___________________________
2333
Securities Act, principle of, favored b y _____________________ 2111, 2115, 2116
Stockholder o f D illon, R ead & C o _________________ ______________ 1537, 1538
Testim ony o f___________________________________________________ 1535 et seq.
1573 et seq., 1617 et seq,, 1857 et seq., 2097 et seq.
Banking, use of w ord in reference to dealers in investm ent se
curities objectionable____ ______________________________________
1540
Banks and banking, investments of, legislation should require
publication o f____________________________ !____________ _________
1631
Com mercial banking is financing o f consum able goods b y shorttim e credits__________________________________ _________ ____ 1538,2109
Commercial banks, business financed b y (consum able goods),
n ot greatly affected b y depression______________________ _______
1544
Corporations:
Control of, not in management since public (stockholders)
have potential power to rem ove them _____________________
1545
D irectors’ exemption from liability for losses incurred in
transactions with other corporations o f which they are
also directors disapproved_____________________ _______ 1883,1884
Reports from, to stockholders should be required at frequent
intervals by legislation__________________ 1633 et seq., 1887, 1888
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
199
D illon , C larence — C ontinued
Fa2®
Testim ony of— Continued
Dealers in investment securities, use of w ord banking in reference
to, objectionable________________________________________________ 1540
Depression does nojt greatly affect business of commercial banks
which is financing of consumable goods by short time
credits_____________________________________________________ 1538, 1544
Dillon, Read & Co.:
History and operations o f_____________________________ 2108 et seq.
1600
Investors’ protection only sought b y ________________________
United States & Foreign Securities Corporation purchase of
stock of, by, through dum m y because of “ legal formali
ties” ___________________________________________ 1563, 1564 et seq.
Directors:
Exemption of, from liability for losses incurred in transac
tions with other corporations of which they are also direc
tors disapproved______________________________________ 1883, 1884
Liability of, without fault for errors in prospectus considered
too harsh______________________________________________ 1888, 1889
Investment banks, banking, and bankers___________________ 1888, 1889
Business financed by (durable goods), hard hit by depression. 1544
Definition of, as long-term financing of durable goods______
1538
Function of, to spread ownership of industry from families
to general public______________________________________ 1544, 1545
Securities of new industries, handling of, by, is great service. 1630
Security, soundness of, rather than selling commission
should determine issuance of securities___________________
1629
Spread of, in sales of securities should be disclosed to inves
tors________________________________________________________
1590
Investm ent securities, use of word “ banking” in reference to
dealers in, objectionable_______________________________________
1540
Investment trusts:
Legislation by Federal and State governments for regula
tion of, desirable______________________________________2112, 2113
Portfolios of, disclosure of contents of, should be made period
ically__________________________ _______________________ 1632, 1633
Investors entitled to know “ spread” obtained by investment
banks in sales of securities_____________________________________
1590
Pennroad Corporation, voting trust certificates issued to public
giving control to trustees for 15 years declared to be “ unusual” - 1638
Production o f durable and consumable goods equal in value so
that business o f commercial and investment banking is fairly
divided_________________________________________________________
1543
Securities:
Banking use of word in reference to dealers in, objection
able__ _____________________________________________________
1540
Soundness of, rather than selling commission of banker
should determine issuance_________________________________
1629
Securities A c t:
Changes in, suggested___________________________________ 1887,1888
D irectors’ liability without fault for errors in prospectus
considered too harsh a rule_______________________ . . . 1888, 1889
Reports by corporations to stockholders should be required
b y _____________________________________________________ 1887, 1888
2113
Sinking fund to retire bonds at maturity desirable________________
“ Spread” of investment banks in sales of securities, investors
entitled to know ________________________________________________ 1590
Unemploym ent greatest in industries producing durable goods. _ 1544
United States & Foreign Securities Corporation:
Senior preferred stock of, 25,000 shares of, purchased by
Dillon fam ily because of faith in investm ent______________ 1591
Stock of, purchased by, through dummy because of legal for
malities” ____________________________________________ 1563 et seq.
Voting trust certificate; reasons peculiar to corporation issuing,
may justify issuance to public____________________________ 1637, 1638
Director o f ________________________________________________________ 1577
Statement of operations of, b y _____________________________ 1851 et seq.
200
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D illo n , C la ren ce — C ontinued
Page
United States & International Securities C orp.: Statement o f opera
tions of, b y _____— ----------------------------------------------------------------- 1851 et seq.
Voting shares in D odge Co. retained b y _____________________________ _ 3706
D illon , J ohn R ___ ,_____________________________________________ __________ *1033
D i l l o n , R ea d & C o. (see also Fox and Fox companies, Dillon, Read &
C o .):
Agreement of, with United States & Foreign Securities Corporation
for purchase and sale o f its s t o c k s ________________ 1560, 1561, 1569, 1570
Attorneys fo r _ _ _ _ _______________. . . ____________ 1535, 1565, 1617, 1892, 1893
2159
Balance sheet, consolidated_____________ T___ ________ ________________
Bancamerica-Blair group, member o f__________________________________ 3602
Bankers:
Brazil, exclusive bankers fo r _______________________ _________ 1974, 1975
744
Missouri Pacific Railroad Co., for______________________ _________
N ot obligated to take Brazil bond issue o f 1927 unless able to
form syndicate and market issue__________________________ 2002, 2003
Seaboard Air Line Railway Co., for refinancing o f _________ 1868 et seq.,
2107,2108
Spread o f________________________________________ 1563, 1626, 1901, 1959,
1960, 1965,1971, 1976, 1977, 1994, 2008 et seq., 2012, 2122
Syndicates o f___________ ____________. . . _______
1959, 1960, 2012, 2122
Banks and trust companies:
Deposits in, b y ---------------------------------------------------------------------- 2152 et seq.
Directors and officers of, loans to, b y ________________ _____________ 2154
Directors of, as members o f__________________________________ 2103, 2152
Loans to directors and officers of, b y ________________________ ._____
2154
Beekman Co. Ltd., stock o f United States & Foreign Securities
Corporation sold to, by James V. Forrestal; resold to D illon, Read
& Co. and D om inick & D om inick________________ 2055 et seq., 2092 et seq.
B olivia bond issue:
Bankers groups:
Dillon, Read & Co. m em ber o f all selling groups______________ 2122
2122
Originating group_____________________ ______________________
Selling group_________________________________________________ 2122
Special group_________________________________________________ 2122
Bankers, originating:
2013
Profit to, on 1927 issue______________________________________
Spread o f 8% points on 1927 issue______ __________________ _
2012
Commission, “ finders” : paid b y Dillon, Read & C o., to Leonard
K ennedy for engineering services___*_________________________
2013
Credit rating o f country not stated in prospectus. ___________ 2131, 2132
D efault on, and no steps taken to remedy situation_________2124 et seq.
D efault on 1927 issue_______________________ _________ ___________
2012
Dillon, Read & Co. had never issued bonds o f Bolivia prior to
1927____________________________________________________________
2009
Equitable Trust Co., dispute of, with Dillon, Read & Co. as to
relative rights ,of bondholders of, in taxes pledged as security for
issues put out by both banking houses__________________ 2015 et seq.
“ Finders” commission paid by Dillon, Read & Co. to Leonard
Kennedy for engineering services______________________________
2013
First issue handled by Dillon, Read & Co. in 1927________________
2009
Hayward, R obt. O., negotiated fo r ----------------------------------------------- 2009
H istory o f negotiations of, b y ______________________________ 2009 et seq.
Investors not informed of poor credit rating o f cou n try_____ 2131, 2132
K ennedy & Carey, friends of D illon, R ead & Co., awarded rail
2011
road contract_______ ________________ _____ ____________________
K ennedy & C o.:
Contract for building railroad procured by, after com petitive
bidding--------------------------------------------------------------------------------- 2134
“ Steering fee” paid to, for procuring issue for D illon, R ead &
C o _________________ J_______________________________________ 2134
Kennedy, Leonard, “ finders” com.mission received by, from
Dillon, Read & Co. for aid in procuring________________________
2013
N egotiations for contract to issue: history o f _______________ 2009 et seq.
Proceeds of, to be used in building railroad------------- -------------- 2009 et seq.
Profit to Dillon, Read & C o ________________________________________
2122
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
201
D illo n , R ead & C o.— Continued
Pase
Bolivia bond issue— Continued
Profit to originating bankers on 1927 issue------------------------------------2013
Prospectus for:
Investors not inform ed by, of poor credit rating of
coun try______________________________________________ 2050 et seq.
Newspaper advertisements and_______________ ________ 2050 et seq.
Prospectus for 1927 issue: Statements in, derived from Bolivian
governm ent by Dillon, Read & Co. and disclaimed as repre
sentations of Dillon, Read & C o _________________________ 2016 et seq.
Purpose of 1927 issue: building o f railroad________________ 2009 et seq.
R ailroad:
Building of, purpose of issue of 1927__________________ 2009 et seq.
Com petitive cost plus basis for awarding o f contract for
building o f____________________________________________ 2012, 2134
C ontract awarded to K ennedy & Carey, with which firm
Dillon, Read & Co. had friendly relations_________________ 2011
K ennedy & Co., award to, o f contract for building o f _______ 2134
Partially built at time of default on bonds proceeds of which
used to build__________________________________________ 2012, 2014
Security for issue of 1927, taxes set apart as:
Conflicting interests of bondholders purchasing prior issue
put out by Equitable Trust Co. and secured by same
taxes______________________ __________________________ 2015 et seq.
Used to pay other loans________ »_________________ 2125 et seq.
Spread to bankers____________________________________________ 2012, 2122
Taxes as security for 1922 and 1927 issues_________________ 2015 et seq.
Use of, to pay other loans_____________________________ 2125 et seq.
Bollard, Ralph H., vice-president_____________________________________
1536
Bond issues floated by or participated in by (see also under Dillon,
Read & Co.— Bolivia, Brazil, M ontevideo, R io de Janeiro, Securities,
issuance o f ) :
Credit record of obligors never stated in prospectus o f issue, if
credit p o o r _______________________________________________ 2130 et seq.
Defaults on: statement of proportion of, to total amount of bond
issues put out by firm__________________________________________
2109
Foreign (see under Dillon, Read & Co.— Bolivia, Brazil, M onte
video, R io de Janeiro).
Kreuger & Toll bond issue__________________________________*1149, 1150
M ontevideo (see under Dillon, Read & Co., M ontevideo).
R io de Janeiro (see under Dillon, Read & Co., R io de Janeiro).
Seaboard Air Line Railway Co. (see under Dillon, Read & Co.,
Seaboard Air Line R y. C o.).
United States & Foreign Securities Corporation (see under United
States & Foreign Securities Corporation).
United States & International Securities Corporation (see under
United States & International Securities Corporation).
Brazil bond issue:
Am ount o f________________________________ _______________________
1994
Bankers not obligated to take issue of 1927 unless able to form
syndicate and market issue___________ ____________________ 2002, 2003
Bankers, originating: profit to, on issue of 1927________ _ 2008 et seq.
Bankers’ syndicate issuing first series of bonds:
Members o f__________________________________________________
1959
Spread of 7 j4 points__________________________________________ 1959
Trading account formed by, to support market for 60 days
after first offering to pu blic_______________________________
1961
Bankers’ syndicate issuing second series of bonds:
Members o f__________________________________________________
1960
Spread of 8% points____________ _____________________________
1959
D efault on _______________________________________ 1954, 1955, 1970-1971
Funding bonds, issue of, to bondholders in lieu o f p a v m en t-- 1954,
1955, 1970, 2005 et seq.
Funding plan set up b y which taxes segregated to meet
obligations under funding bonds______________________ 1970-1971
In 1931 (after 10 years)_____________________________________
1970
Taxes which were security for bond issue were to be specially
set aside to fulfill obligations only on happening o f ______
1959
202
INDEX TO HEARINGS ON STOCK EXCH ANGE PRACTICES
D illo n , R ead & C o .— Continued
Page
Brazil bon d issue— Continued
D illon, Read & Co. not obligated to take issue o f 1927 unless it
could form syndicate and could dispose o f issu e.____ . ____ 2002, 2003
England, price to public in, less than in U. S. because o f cheapness
of distribution o f securities---------------------- ---------------------------------- 2000
Entire issue sold before loan agreement actually entered in to . 1967, 1968
Exchange rates make it impossible to forward funds to meet
obligations tinder its bon d s. _______________________________ 1970, 1971
Financing of, b y -------------------------------------------------------------------- 1949 et seq.
Funding bonds, issue of, to bondholders in lieu o f paym ent on
defaulted issue. _•----------------------------------- 1954, 1955, 1970, 2005 et seq.
Taxes segregated to m eet obligations under funding plan ___ 1970
Halsey, Stuart & Co. as m em ber of syndicate for sale of, found
b y _________________________________________________________ 1959,1960
Haste in putting out 1927 issue in order to avoid possible unfa
vorable market if com peting foreign issues were put out first. 1998, 1999
Im brie & Co. inform ed D illon, Read & Co. that loan being
sought by Brazil_________________________________________ 1951 et seq.
Interest on American bonds could n ot be paid unless interest on
European bonds could be p a id --------------------------------------------------- 2008
Interest on bonds o f 1927 issue paid in Europe by Rothschild
from proceeds o f sinking fund received from Dillon, Read
& C o____________________________________________ _______________ 2008
International sale o f issue o f 1927--------- ------------- ------------------------ 1993
Investigation o f conditions in Brazil made b y R obert.O . H ayw ard
before Dillon, Read & Co. brought ou t the issue. ..... .............
1950
Investors:
Bonds offered to, prior to actual execution o f loan agreement___.------------- ------------------------- ----------------------------- ----------- 1954
Spread to bankers not disclosed t o ---------------------------------- 1967, 1971
T2021 et seq.
Loan agreements for______ i_________________________________ < 2027 et seq.
12045 et seq.
Bankers n ot obligated to pay for issue o f 1927 under terms
of, unless syndicate could be form ed and bonds disposed
o f . . _____ _________ - __________ _______________________ 2002,2003
Bonds offered to public prior to actual execution o f ______ 1954,
1967, 1968
D ated as o f M ay, though form ally executed in June and
September------------------- ------------------------ ---------------- ------------1954
Entire issue sold before execution o f . _________ _________ 1967, 1968
Taxes n ot set apart as security as required b y agreement
for 1927 issue________________________ ____ _____________ 2005, 2006
M ackenzie, Alexander, Sir, agent for D illon, R ead &• Co. in ne
gotiations for loans to Brazil________________________ 1950, 1951, 1995
M arketability of, enhanced by making bonds n oncallable. 1963 et seq.
M arket for: if issue o f 1927 could n ot be m arketed or if no syndi
cate could be form ed to market the bonds, bankers n ot obli
gated to take issue_________________________________________ 2002, 2003
M arket supported b y trading account o f bankers’ syndicate
issuing first series o f bon d s__________________ _________________
1961
N on-callable in order to enhance m arketability____________ 1963 et seq.
Price to public o f 1927 issue:
Less in England than in United States because o f cheapness
there o f distribution of securities__________________________
2000
M ethod o f fixing__________________________ .______________ 1996,1997
Proceeds of:
Stated in prospectus to be used for purchase o f materials in
United States______________________________________________
1973
- Use of, for any purpose possible though prospectus stated
purpose o f issue to be purchase o f materials in United
States__________________ _______________________________1973
r 1959, 1960,
Profit on, to bankers............................................ .......................... <
^1994 ’
[ 2008 et seq.
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
203
D illon , R ead & C o .— Continued
Page
Brazil bond issue— Continued
Prospectus for:
Investors not inform ed by, o f spread to bankers_______ 1967, 1971
Purpose of issue stated to be purchase of materials in United
States_________________________ ____________________________
1973
Prospectus for second series of bon d s---------------------------------- 2034 et seq.
Prospectus of 1921------------------- ------------------------------------------- 2033 et seq.
Public, bonds offered to, prior to actual execution o f loan agree
m ent------------------------------------------------------------------------------------------1954
Purpose of:
Indefinite--------------------------------------------------------------------------------- 1972
Liquidation o f existing government obligations pursuant to
currency stabilization plan___________________________ 1997, 1998
Stated in prospectus to be purchase o f materials in United
States______________________________________________________
1973
Redem ption of, at m aturity not provided for in loan agreem ent. _ 1956
Retirement of, b y purchases from m oney in sinking fund as pro
vided in loan agreement_________________________________. ______ 1956
Rothschild, Baring Bros, and Schroeder, London; bankers jointly
with Dillon, Read & Co., for Brazil____________________________ 1952
N egotiations by, for issue in 1927, in association with Dillon,
Read & C o ________________________________________________
1995
Rothschild, N. M .:
European portion of issue of 1927 handled by, and American
portion of same sold by Dillon, Read & C o ________________ 1993
Issue of 1927 negotiated by, Dillon, Read & Co. invited to
participate in sam e___________________________________ 1993, 1995
Security for:
Sinking fund payments required to be made semiannually
to bankers____________________________________________ 1973, 1974
Taxes against which debt to be first charge required to be
set up in special accou n t_____________________________ 1957, 1958
Taxes not set apart as, as required by loan agreem en t-. 2005, 2006
Taxes set up as, could not be charged with obligations under
other bond issues of Brazil________________________________
2005
Taxes to be set up as, and used to fulfill obligations only on
happening o f default_________________ ________________ 1959, 2005
Taxes which government convenanted to do no act to
2004
diminish___________________________________________________
Sinking fund:
Payments required to be made to bankers sem iannually. 1973, 1974
Portions not used to retire bonds, returned to Brazil accord
ing to loan agreement_____________________________________
1974
Retirement of bonds by purchase by use of funds o f ___ 1956, 1974
Use of, according to loan agreement to purchase bonds for
retirem ent_____ l ______________________________________ 1956, 1974
Use of, to redeem bonds at m aturity not provided for in loan
agreem ent_________________________________________________
1956
Sinking fund for issue of 1927: interest on European bonds paid
b y Rothschild from proceeds of, received from Dillon, Read &
C o ___ __________________________________________________________ 2008
Spread of bankers o n _______ 1959, 1960, 1965 et seq., 1994, 2008 et seq.
Investors would have bought bonds with knowledge of, testi
fies Hayward, Robert. O __________________________________
1971
Prospectus, non-disclosure in, o f________________________ 1967, 1971
Syndicate, in case of inability to form, to purchase bonds of
2003
Brazil, Dillon, Read & Co. not bound to purchase bon ds______
Taxes as security fo r ___________________ _______ 1957 et seq. 2004 et seq.
Taxes segregated to meet obligations under funding plan on
default_________________________________________________________
1970
Trading account form ed by bankers’ syndicate issuing first series
of bonds; to support market for 60 days after first offering to
pu blic___________________________________________ *______________
1961
Treasury of Brazil: general requirements of, were to be fulfilled
b y _________________________________________________________ 1972, 1973
204
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D illo n , R ead & C o.— Continued
Page
Brazil bond issue— Continued
T w o series o f bonds issued because of doubt whether United
States market would absorb total m ount of required lo a n . 1952 et seq.
United States, first issue in _____________________ __________________ 1952
Brazil Central Railway Electrification bonds:
Advertisement of, misleading______________ . . . . _____________ 1979, 1980
D efault on deposit required to be maintained with bankers by
Brazil------------------------------------------------------------------------ 1987, 1988 et seq.
Default o n :
Funding plan utilizing funding bonds devised to fulfill
obligations after____________________________________________ 1979
Statement o f Dillon, Read & Co. that interest would be paid
boosted price but investors not inform ed of default o f
Brazil and that special deposit w ould thereby be ex
hausted and default created in obligations of Brazil. _ 1989 et seq.
Deposit, special:
Dillon, Read & Co. not bound to use to pay interest, but
nevertheless did so w ithout inform ing bondholders of
actual default of B r a z il.._________________ ________ . . . 1990 et seq.
Exhausted in interest paym ent and not replaced______ 1986 et seq.
Replenishment of, from sinking fu n d .___________ ____________
1990
Required to be maintained with bankers by Brazil; ex
hausted in interest paym ent and not replaced______ 1986 et seq.
Funding plan devised to fulfill obligations after default_________ 1979
G overnm ent' owned and operated railroad for which loan o b
tained______________________________________________ 1978, 1985 et seq.
Interest on:
Paym ent of, from special deposit, which was not replaced
creating default in obligations of Brazil_____________ 1987 et seq.
Seven percent_________________ __________________________ ____
1975
Investors led to believe bonds sound by announcement of bankers
that interest woild be paid; uninformed that paym ent would
be made from special deposit which therby becam e exhausted
and constituted default in obligations of Brazil__ _ 1989, 1990 et seq.
Investors misled by statements in prospectus that proceeds to be
used for electrification when in fact bulk o f proceeds o f loan
to be used for “ general im provem ents” on the railroad__ 1981 et seq.
Loan agreement for__ ________ ______________________ _______ 2038 et seq.
Execution of, after sale of bonds to pu blic_______________________
1986
Loss: G overnm ent-owned railway for which loan obtained
always operated a t_________________________________________ 1985, 1986
Negotiations for issue of, with, started by R obert O. H ay w ard. 1980, 1981
Newspaper advertisements stated proceeds to be used for electri
fication o f railway though prospectus stated purpose to be “ in
part” electrification o f railw ay_______________ _____________ 1979, 1980
Proceeds o f loan used for general im provem ent though purpose of
loan stated to public in prospectus to be for electrification of
railroad_________________________________________ __________ 1981, 1984
Profit on issue o f______________________^------------------------------- 1976 et seq.
Prospectus o f issue_________________________________________ 2036 et seq.
Advance proof for_____________________________________ 2037 et seq.
Investors not inform ed by, that bulk o f loan to be used fo r
general im provements bu t told only o f electrification aspurpose of loan _______________________________________ 1981, 1982
Purpose of issue stated to be in part electrification o f railway
without mention that bulk o f proceeds o f loan to be used for
general im provem ent.:______________________ ________ 1981 et seq.
Purpose stated to be “ in part” electrification of railway,
though newspaper advertisements stated all proceeds to be
so used______ __________ _______________________________ 1979,1980
Purpose of loan :
Electrification o f railroad which was never even begun. 1978 et seq.,
2000, 2001
Im provem ent and electrification o f Governm ent-owned
railway------------------------------------------------- 1978 et seq., 2000 et seq.
INDEX TO.HEARINGS ON STOCK EXCHANGE PRACTICES
205
D illon , R ead & C o.— Continued
Page
Brazil Central Railw ay Electrification bonds— Continued
Security for: Gross receipts of Governm ent-owned ra ilw a y ._ 1978, 1979
Sinking fund used to replenish depleted special deposit required
under loan agreement to be maintained by Brazil with Dillon,
1990
Read & C o _____________________________________________________
Spread of 5 ^ points to bankers______________________________ 1976, 1977
Brazilian Traction, Light & Power Co., Ltd., bond issue of, financed
b y ______________________________________________________________
1950
Brazil, political subdivision of: not bankers fo r _______________________
1975
Brighton Corp.
Form ation of, by, purpose o f: to segregate to com pany assets
not necessary for use by D illon, Read & Co., in its business
testifies Clarence D illon______________________________ 2104 et seq.
Subsidiary of D illon, Read & C o _________ _________________ ______ 2104
Taxation, avoidance of, on dividends, purpose of (formation
o f---------------------------------------------------------------------------------------2104 et seq.
Business of, statement of, by Clarence D illon ________________________
1543
Central H anover Bank & Trust C o.; directors of, as members o f______ 2103
Charnley, William S., vice president__________________________________
1536
Chase National Bank o f City of New York, directors of, as members of_ 2103
Chase National Bank:
Borrowed from as syndicate managers of account in Seaboard Air
Line Railroad Co. securities____________________________________ 4153
Dillon, direrctor in, m em ber o f______________ _____________________ 2840
Chase stock— trading account in:
(a) Desirable associates in ________________________________________ 2840
2845
(b) Of August, 1930 withdrawal from ____________________________
Participant in_________________________ _________________ 2843, 2844
(c) Of M ay, 1930, participation in given t o ___________ 2839, 2840, 2841
Christie, R obert E., secretary and treasurer__________________________
1536
Commercial banking, not engaged in_____________________________ 1540, 1543
Commercial banks, directors of, not members of (with one exception) _ 1549
Commission of, for sale of stock of United States & Foreign Securities
Corporation ($1,000,000)_______________________________________ 1561, 1562
Com mittee on banking and currency:
Cooperation w ith_________________________________________________
1535
Questionnaire of, and answers of firm thereto_______________ 2098, 2099
Continental Commercial Trust & Savings Bank associated with, in
sales of bonds of R io de Janeiro_________________________ 1924, 1959, 1960
Control b y :
Corporation, o f__________________________________________________
2166
Keswick Corporation, o f_____________________________________ 1723, 1725
United States & Foreign Securities Corporation and United
States & International Securities Corporation, o f: obtained by
investing $5,000,000; public had invested over $90,000,000 but
had no control_________________________________________________
1598
C orporations:
Control of, b y ____________________________________________________
2166
Deposits of, with_.___________________________________________ 2168, 2169
Directorships of, held by members o f__________________ 1550, 1551, 2152
Financial interest in, o f______________________________________ ____
2166
Form ation of, b y : pool operations in stock of, by members of
Dillon, Read & Co. (see under United States & Foreign Securities
Corporation Pools).
2166
M anagement interest in, o f ___________ ___________________________
P ool operations in stock of, by (see under United States & Foreign
Securities Corporation Pool).
Refinancing of, b y ________________________________________________
1548
Stock control of, in ________________________________________ :_______ 2166
Couzens, Senator, believes the use by, of funds available for dividends
on stock of one investm ent trust to create another investm ent trust
with object of obtaining further control of public m oney is repre
hensible_____________________________________________________________
1603
Coverdale & Colpitts, survey made by, of Seaboard Air Line R y. Co.
for______________________________ _____________________ _____ _________
1869
206
INDEX TO HEARINGS ON STOCK EXCH AN GE PRACTICES
D illo n , R ead & C o .— Continued
’ Page
Credit record o f obligors of bonds never stated in prospectus o f issue,
if credit p oor__________________________________________ _______ 2130 et seq.
Cuban bond issue— participation in, special, given t o ________________ 2715
Default:
Bolivia bonds in __________________________ ______ 2012, 2014, 2024 et seq.
Brazil bonds________________________ 1954, 1955, 1970-1971, 2005 et seq.
Funding bonds issue of, to bondholders in lieu o f paym ent______ 1954,
1955, 1970-1971, 2005 et seq.
2238
Issues o f which firm was syndicate manager now in _____________
et seq., 2242 et seq.
2127
M ontevideo bon d issue, on ____________, ___ ;_______ ______________
Proportion of, to total am ount o f bond issues put out b y firm ___ 2109
R io de Janeiro bonds issued by Dillon, Read & Co. in___________
1894
Securities issues now in, o f which firm was syndicate manager___ 2238
et seq., 2242 et seq.
Securities issues participated in by firm now in, list o f ____ 2245 et seq.
Taxes which were security for bond issue o f Brazil were to be
specially set aside to fulfill obligations only in happening o f
default------ -------------------------------------------------------------------------------1959
Departm ental division of, statement o n _______________________________ 2102
Deposit, special, required to be maintained by Brazil in connection
with Central Railway electric bon ds________________ _________ 1986 et seq.
D eposits accepted by:
Commercial, discouraged and discontinued because firm had no
use for th e n u ___________________________________________________ 1542
Corporations engaged in interstate commerce, deposits by, in
excess o f------------------------------------------------------------------------------- 2168, 2169
Fiscal purposes, only as fiscal agents and f o r . ___________________
1539
None subject to withdrawal by c h e c k .___________________________
1539
Deposits o f-------------------------------------------------- ------------- 1539, 1542, 2152 et seq.
Banks and trust companies, w ith__________________________ 2152 et seq.
Dillon, Clarence:
M ajority stockholder______________ __________________________ 1537, 1538
President__________________________________________________________
1536
Dillon, Read Corporation conducts European business o f ____________
1542
Directors and officers o f banks and trust companies, loans t o _________ 2154
Directorships held b y partners o f___ . . . 1549 et seq., 2103, 2107, 2108, 2152
Corporations dealing w ith the firm, directors of, as___ 1550, 1551, 2152
Investm ent trusts, directors of, a s _ ____________ _________________
2155
List o f ____ _____________________________________________ 1151,1537,1538
Directors o f investment trusts, exemption of, from liability for loss in
transactions with other corporations o f which they were also
directors; provision for, inserted b y Dillon, Read & Co. in charters
o f trusts it created____________________________________________ 1883 et seq.
Dividends, surtax on, avoided by creation o f corporations to which
firm conveyed part o f its assets______________________________ 2104 et seq.
D om inick & Dom inick:
Brokers em ployed b y members o f Dillon, Read & C o _____ 1640 et seq.
Joint account w ith . 1646 et seq., 1675 et seq., 2060 et seq., 2072 et seq.
Options on com m on stock o f United States &- Foreign Securities
Corporation given to, to purchase shares held b y mem bers of
_______________________________________1____ 1642 et seq., 1670 et seq.
Earning power as basis o f purchase price o f corporations purchased for
refinancing__________________________________________________________
1548
Eastern Trust Co. is subsidiary o f ________________________________ 1966, 1978
Ecker, Frederick H. (see under Ecker, F. H .).
Egly, Harry H ., vice president_________________________ ______________
1536
Empire Trust Co., directors of, as members o f________________________
2103
Ethics:
Investm ent trust, placing funds of, in reorganization, propriety of,
questioned.------------------------------------- -------------------------- 1874,1875, 1880
Issuing house, participation of, in pools on securities, propriety of,
questioned------------------------------------------------------- ---------- 1680," 1684, 1685
Pool operations, participation in, of investm ent trusts, propriety
of, questioned------------------------------------------------ ------------ 1702, 1703, 1736
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
207
D illon , R ead & Co.— Continued
Page
Ethics— Continued
Security dealers, appointment of, as directors of investment trusts;
propriety of, questioned___________________________________ 1702,1703
Exhibits (see under Exhibits): Index of_______________________________
2156
Fee of $1,000,000 received for selling shares of United States & Foreign
Securities Corporation______________________________________________
1566
Fee received for handling investments of United States & Foreign
1594
Securities Corporation_________________ _______ _____________________
Financing by (see under Dillon, Read & Co., bond issues).
Fiscal agents: Governments, States, municipalities and corporations
for which firm acted as___________________________ ________ ____ 2150 etseq.
Fiske, W . M . L., vice president-----------------------------------------------------------1536
Foreign bonds (see under Dillon, Read & Co.— Bolivia bond issue;
Bonds,foreign; Brazil bond issue; Brazil Central Railway electrifica
tion roads; Montevideo bond issue; Rio de Janeiro bond issue).
Foreign exchange not engaged in by___________________________________ 1542
Foreign interests: Robert O. Hayward in charge of_________________ _ 1892
Forrestal, James V. (see also Forrestal, James V .):
Beekman Co., Ltd., sale to, by, of stock of United States & For
eign Securities Corporation; resale to Dominick & Dominick
and Dillon, Read & Co__________ 2055, 2056, 2060, 2061, 2092 et seq.
1536
Vice president and shareholder of Dillon, Read & Co_______ ___
Fox Companies financing:
(а) Invited to participate in_____________________________________ 3748
(б) Loan to, refused except on exorbitant collateral........... .. 3740-3741
(c) Members of bankers group interested in one plan for______
3584
3741
(d) Plan for not on the level________________*____________________
Refused to participate in loan necessary for at exorbitant
interest with adequate collateral____ _________________ 3748, 3749
Fox, double cross, attempted to---------------------------------------------------- 3740-3741
Fox enemy, purposely informed of steps in financing__________________
3748
3617
Fox Film, debentures, purchase group for, member of________________
Waived interest to avoid receivership____________________________ 3809
Fox, luncheon with, to arrange for financing_________________________
3736
Fox, not friends of___________________________________________________ _ 3741
Halsey, Stuart & Co., as member of syndicate formed by, to sell
Brazilian bonds________________________________________________ 1959,1960
Hayward, Robert O .:
Bolivian bond issue negotiated by, for____________________________ 2009
Vice president_______________ _______________________________ 1536,1891
History and operations of, stated by Clarence Dillon__________ 2108 et seq.
Imbrie & Co.:
Information given by, to, that loan being sought by Brazil. 1951 et seq.
Irrevocable option for financing of Rio de Janeiro bond issue
purchased from bankrupt estate of_____________________________
1893
Interstate condmerce, corporations engaged in, having deposits of
more than $250,000 with---------------------------------------------------------- 2168,2169
1538
“ Investment Banking” house____________________________ ____________
Corporations purchased aad refinanced; purchase price of cor
poration bought based on earning power___________ ___________
1548
Investment, engaged in business of___________________________________ 1543
Investment trusts (see also under United States & Foreign Securities
Corporation); United States & International Securities Corporation. 1543
Control of, by bankers on very small investment deemed justi
fiable by___________________________________________ 1598. 2117 et seq.
Dillon, Read & Co., sold to parent trust securities it purchases
through joint account with subsidiary trust____________ 1786 et seq.
Directors exempt from all liability for loss in transactions with
other corporations of which they were also directors; provision
for, inserted by Dillon, Read & Co., in charter of trusts it
created___________________________________________________ 1883 et seq.
Directors of, as directors of Dillon, Read & Co__________________
2155
Earning power of, maximum as 5 percent,_______________________
1604
60604— 46-------14
208
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D illon , R ead & C o .— Continued
Page
Investm ent trusts— Continued
English set-up deviated from in creation of, b y ; b y creating tw o
preferred and a com m on stock in the investment trusts with
public opportunity to participate in com m on stock b y purchase
1608
of preferred____________________ _______________ ________________
Ethics in regard t o . . 1680, 1684, 1685, 1702, 1703, 1736, 1874, 1875, 1880
H istory and operations o f _____________________ 1606 et seq., 2119 et seq.
Investments b y :
Railroad stocks, permitted b y Dillon, Read & Co. though it
knew railroads to be in bad financial condition__________
1871
Reorganization, in, propriety of, questioned______ 1874, 1875, 1880
Stock o f corporations in which Dillon, Read & Co. members
are directors sold to trusts created b y Dillon, Read &
C o ------------------------------------------------------------------------------ 1836 et seq.
Joint trading accounts w ith ________________________________ 1734 et seq.
Losses to trusts created by Dillon, Read & Co. occurred, in every
investment in which Dillon, Read & Co. or its members asso
ciated____________________________________________________ 1882 et seq.
Operations in and exploitation o f pubUc by, on part of, re
view ed______________________________________ 1606 et seq., 2119 et seq.
Pool operations, participation in, ethics o f ____________ 1702, 1703, 1736
Portfolios of, disclosure of contents of, required_____________ 1632, 1633
Purchase by trusts created by Dillon, R ead & Co. of stock of
railroad, financial condition of which known to Dillon, Read &
Co. to be bad perm itted by Dillon, Read & C o ________________
1871
Reorganization, investment in, o f funds of, propriety of, ques
tion ed_______________ ________________________________ 1874, 1875, 1880
Reorganization o f old corporations financed b y ______ ______ 1874 et seq.
Security dealers as directors of, propriety of, questioned_________ 1680,
1684, 1685
Statement of history o f and operations with__ 1606 et seq., 2119 et seq.
Stocks sold to, at loss but if sold on market would have resulted
________________________________
1800
in greater loss__________________ •
Investors:
Bulk of, purchasing from , are professional investors w ho investi
1630
gate securities they purchase___________________________________
Misleading of, b y _________ 1820, 1920 et seq., 1989 et seq., 2130 et seq.
Never inform ed that part of proceeds of R io de Janeiro bon d
»
issue were to be used to retire existing debts of c ity ____ 1920 et seq.
Nondisclosure to, o f charter provision of United States and For
eign Securities Corporation exempting directors from liability
for loss in transactions with other corporations in which direc
tors were interested___________ ;________________ *________________
1820
Prospectus did not reveal bad credit record o f obligor, though
D illon Read knew it_____________________________________ 2129 et seq.
Protection of, only sought by, testifies Clarence D illon __________
1600
Spread to bankers not disclosed t o ___________________________ 1967, 1971
Issuing house, participation of, in pools on securities, propriety
of q u estion ed .__________________________1________________ 1680,1684,1685
Joint account with (see also Dillon, Read & C o .): Pools.
Bankers syndicates________________ __________________ 1961, 2129 et seq.
D om inick & D om inick________________________ 2060 et seq., 2072 et seq.
Investm ent trusts, o f _ _ _____ _____ _________________________ 1764 et seq.
Joint stock association under laws of New Y o rk ___________ __________
1536
Joint trading account:
Bankers syndicates issuing Brazil bon d s_________________________
1961
Investm ent trusts with_____________________________________ 1734 et seq.
K ennedy & Co. (see also under K ennedy & C o .) :
“ Steering fee” paid to, for procuring B olivia bond issue fo r ______
2134
Stock of, 45 percent of. held by Clarence D illon ______ 1907 et seq., 2133
Kennedy, Leonard, “ finder” fee paid to, by, for aid in procuring B oliv
ian bond issue________________________________ _______________________ 2013
Keswick Corporation (see also under K eswick C orporation):
Control of, b y _______________________________________________ 1723, 1725
Officers of, as employees o f_______________________________________
1725
Kreuger & Toll bond issue, flotation of, b y ------------------------------------ 1149, 1150
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
209
D illo n , R ead & C o.— Continued
Pase
Lee, Higginson & Co., associated with, in sale of bonds of R io de Janeiro 1924
Legal status of firm ____________________________________________________ 2102
Loan agreement w ith Brazil (see also Dillon, Read & C o.; Brazil
bond issue)___________________________________________________- 1954 et seq.
Loans by (see also under Dillon, Read & C o.; bond issues b y ) :
Collateral for securities in which Dillon, Read & Co. participated
as member of original terms groups, bankers’ group, wholesale
group, distributors’ group, e tc __________________________________ 2166
2154
Directors and officers of banks and trust companies, t o ___________
Louisiana & Arkansas Railway Co., syndicate to purchase managers,
one o f___________________________________________________________4141, 4142
M ember o f _____________________________________________ 4142-4143, 4145
Louisiana Land & Exploration Co., active in _________________________
4160
Mackenzie, Alexander, Sir, agent for Dillon, Read & Co. in negotia
tions for Brazil bond issue_______________________________ 1950, 1951, 1995
Management personnel of, statement as t o ____________________________ 2102
M arket supported by trading account of bankers’ syndicate headed
b y _______________________________________________________ 1961, 2127 et seq.
M athey, D ., vice president___________________________________________
1536
M cA doo, Cotton & Franklin as attorneys for, in connection with Rio
de Janeiro bond issue_______________________________________________
1893
Members of:
Banks and trust companies, as directors o f__________________ 2103, 2152
1549
Commercial banks, not directors of (with one excep tion )_______
Corporations dealing with the firm, as directors o f _____ 1550, 1551, 2152
Seaboard Air Line Railway Co., as directors o f_____________ 2107, 2108
Missouri Pacific Railroad Co., bankers fo r ____________________________
744
M ontevideo bond issue:
Bankers’ trading syndicate supported market for, for 60
days______________________________________________________ 2127 et seq.
Credit of M ontevideo known to Dillon, Read & Co. to be poor but
public not inform ed of credit rating of M ontevideo______ 2129 et seq.
Default on -------------------------------------------------------------------------------------- 2127
Investors not inform ed of bad credit record o f M ontevideo, though
Dillon, Read & Co. knew of it ____________________________2129 et seq.
M arket for, supported for 60 days by bankers’ trading syndi
cate______________________________________________________ 2127 et seq.
Prospectus did not reveal bad credit record o f M ontevideo
though it was known to Dillon, Read & C o _____________ 2129 et seq.
Spread on _______ ____________________________________________ 1994, 2126
New Eastern Corporation:
Formation of, by, purpose of: to segregate to com pany assets not
necessary for use by Dillon, R ead & Co. in its business, testifies
Clarence D illon __________________________________________ 2104 et seq.
Subsidiary of Dillon, Read & C o _________________________________
2104
Taxation, avoidance of, on dividends, purpose of form ation
o f ________________________________________________________ 2104 et seq.
New Y ork Stock Exchange, not member o f _________________ _________
1693
O akmont Corporation:
Form ation of, by, purpose o f : to segregate to com pany assets not
necessary for use by Dillon, Read & Co. in its business, testifies
Clarence D illon _________________________________________ 2104 et seq.
Subsidiary of Dillon, Read & C o _________________________________
2104
Taxation, avoidance of, on dividends, purpose of form ation
o f _______ .________________________________________________ 2104 et seq.
Option given b y R io de Janeiro on its bonds to R obert O. H ayw ard—
1892
Options given by members of, to D om inick & D om inick on shares of
United States & Foreign Securities Corporation com m on stock ____
1642
et seq., 1661, 1670 et seq.
Organization of, in 1922_______________________________________________
1536
Originating or underlying groups, participants in, for issues of secur
ities of which Dillon, Read & Co. was syndicate manager____ 2249 et seq.
Participations of, in issuance of securities (see also Dillon, Read & C o.;
B on d s)_________________________________________ 2170 et seq., 2194 et seq.,
2238 et seq., 2242 et seq., 2245 et seq., 2249 et seq., 2261 et seq.
210
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D illo n , R ead & C o.— Continued
Page
Partners o f (see also Dillon Read & C o.; Members o f) ___________ 2102, 2103
D irectors o f banks and trust companies, as_________________ 2103, 2152
United States & Foreign Securities Corporation, officers of, as___ 1561
Pennroad Corporation (see also under Pennroad Corporation; D illon,
Read & Co.) :•
,
• .■
.
Agreement of, with, to purchase Seaboard Air Line R ailw ay Co.
stock issued on reorganization through D illon, R ead & Co. if
not taken by Seaboard stockholders_______ 1340 et seq., 1508 et seq.
Seaboard Air Line Railw ay Co., contract for purchase o f stock of,
obtained from, b y syndicate headed b y . — m 1340, 1341, 1508 et seq.,
Phillips, Wm. A., vice president_______________________________________
1636
P ool agreement with D om inick & D om in ick __________________________ 1646,
1647, 1675, 1676, 1677, 1688, 1689
P ool operations o f m em ber o f : (see also under United States & Foreign
Securities C orporation; P o o ls ):
D om inick & D om inick, with, aided by further options given to
D om inick & D om inick by members o f D illon, R ead & Co. on
com m on stock o f United States & Foreign Securities Corpora
tio n _______________________________________ _______________ 1670 et seq.
Pools, join t accounts, syndicates, and/or trading accounts in stocks in
which firm participated_________________________ 1642 et seq., 2224 et seq.
Pools, join t accounts, syndicates, and/or trading accounts in stocks in
i
which firm participated bu t which were managed b y oth ers. _ 2234 et seq.
Predecessors, Read, W m . A., & C o _____________ _____________________ _
1536
President, Clarence D illon _____ _______________________________________
15$6
Profit:
Bolivia bond issue, on ________________________ ____________________
2122
Bolivian bon d issue o f 1927, on _.____________________________ - ___
2013
Brazilian bond issue, o n ____ 1959, 1960, 1965 et seq., 1994, 2008 et seq.
Brazil Central Railw ay electrification bond issue, on ______ 1976 et seq.
1901
R io de Janeiro bon d issue (8 points spread)______________________
Profits to originating bankers on Brazil bon d issue o f 1927_____ 2008 et seq.
Prospectuses distributed b y :
Credit record of obligor, nondisclosure of badness o f ______ 2130 et seq.
Representation o f a non-revenue-producing slaughterhouse to be
erected from proceeds o f bond issue to be revenue p rodu cin g. _ 1899
P rotective and reorganization committees, mem bers of, as members
o f D illon, Read & C o ____ _______________________ ______________ ____
2157
Public (see also Dillon, Read & C o .; In vestors):
Bonds offered to, prior to actual execution o f loan agreem ent- 1900, 1954
R io de Janeiro bonds offered to, at tim e loan contract w ith city
was only option which did n ot state purpose for which pro
ceeds of loan to be used___________________________________ 1900, 1901
Reaid, W m . A., & C o. as predecessor o f____________ ___________________ 1536
Refinancing o f corporations b y __ j.______________ _________ 1548, 1874 et seq.
R io de Janeiro bond issue:
' Attorneys for Dillon Read & Co. in connection w it h .___________
1893
Com petitive bidding not used in selection o f contractors to level
mountains, one of purposes o f bond is s u e .________ ________ 1906 et seq.
Com pletion of leveling o f mountain, principal purpose o f issue;
no date ever set fo r ________________ _________________ _
1910, 1911
Continental Com mercial Trust & Savings Bank associated with
Dillon, Read & Co. in sale o f bonds o f ____ _____________. . . ___
1924
Contract for leveling o f mountain awarded to K ennedy & Co.
in which Clarence Dillon largely interested, w ithout com
petitive bidding and on cost-plus basis___________ _=______ 1906 et seq.
Cost-plus basis for awarding to K ennedy & Co. contract for level
ing m ountain__________ __________________________________ 1907 et seq.
Credit standing of, m ethod of determination of, b y Dillon, Read
& C o______________________________________________ _
1909, 1910
D ate never set for completion of leveling o f mountain, principal
purpose of issue_______________________________ ____________ 1910, 1911
Default on bonds of, issued b y __________________ _________ _______ 1894
Caused by poor exchange conditions and not inability to pay,
testifies R obt. O. H ayw ard_____ 1___________________ 1934 et seq.
Investors not informed o f_______________________________ 1935, 1936
Occurrence of, when Dillon, Read & Co. paid part o f special
account into sinking fund_____________________________ 1935, 1936
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
211
D il l o n , R ead & C o .— Continued
Pase
R io de Janeiro bond issue— Continued
Deposit of $250,000 to be maintained with Dillon, Read & Co. to
meet current obligations on the bonds______ 1918 et seq., 1931 et seq.
Hayward, R obt. O., personally negotiated b y ____________________
1894
Imbrie & Co., irrevocable option for financing of issue purchased
from bankrupt estate o f ________________________________________
1893
Investors in:
Default occurring when Dillon, Read & Co. paid part of
special account into sinking fund not disclosed t o _____ 1935, 1936
Nondisclosure to, that part of proceeds of issue to be used
to refund prior debts o f c ity . 1920 et seq., 1923, 1924, 1926, 1927
Irrevocable option for financing of, purchased from bankrupt
estate of Im brie & C o _____ ______________________________________ 1893
K ennedy & C o .:
Com petitive bidding not used in awarding contract to, for
leveling m ountain___________________________________ 1907 et seq.
Contract for leveling hill awarded to and profit made thereon
b y _____________________________ ____________________________
2136
Cost-plus basis for awarding contract to, for leveling moun
ta in ____________________ f ____________________________ 1907 et seq.
Dillon, Clarence, largely interested in _________________ 1907 et ^eq.
M ountain leveling contract awarded to, without com peti
tive bidding and on cost-plus basis_________________ 1907 et seq.
Lee, Higginson & Co., associated with Dillon, Read & Co. in
sale o f bonds___________________________________________________
1924
Loan agreement fo r________________________________________ 1938 et seq.
Purpose of issue set forth in, could have been disregarded by
city and Dillon, Read & Co. would have been required to
pay over proceeds to be used for any purpose. *____________
1925
Proceeds of sales of lots created by leveling of mountain
might be used for municipal purposes rather than retire
ment of bonds o f c ity _____________________________________
1896
Sale to public of bonds of city commenced prior to signing of,
by Dillon, Read & C o_____________________________________
1900
Loan to R io de Janeiro, purpose of:
Erection o f slaughterhouse b y c ity ______________________ 1898 (1899)
Leveling of mountain in city and sale of lots thereby created. 1895
Lots created by leveling of mountain, sales of, pursuant to loan
agreement b y which proceeds might be used for retirement pur
poses inhibited b y depression________________________ 1897, 1898, 1913
M cA doo, Cotton & Franklin attorneys for firm in connection
w ith _________________________________________ ___________________ 1893
M cAdoo, Wm. G., attorney for firm in connection w ith ___________
1893
Option on bonds given by city to R obt. O. H ayw ard____________
1892
Options, irrevocable, for financing of city:
N ot taken by Dillon, Read & Co. because it did not wish to
tie up c ity _________________________________________________
1893
Purchased by Dillon, Read & Co. from bankrupt estate of
Im brie & Co. not insisted upon by Dillon, Read & C o ___ 1893
Proceeds o f lots created by leveling of mountain as security for
R io de Janeiro bonds:
Am ounts not used for city purposes to be used as security. _ 1898
Rem ittance of, to Dillon, Read & Co. for use in retiring
bonds required____________________________________________
1896
Trust, set aside in, as security__________________ 1913, 1918 et seq.
Use of, for municipal purposes instead of retirement of bonds
possible under terms of loan agreement___________________
1896
Proceeds o f:
Intended to be used for building of slaughterhouse by city;
never so used but added to amounts used to level m oun
tain__________________________ _____________________________
1920
Intended to be used in part to refund prior debts of city;
Dillon, Read & Co. failed to inform investors of this in
tended use___________________ 1920 et seq., 1923, 1924, 1926, 1927
Investors not informed that proceeds to be used in part to
refund prior debts of city ___ 1920 et seq., 1923, 1924, 1926, 1927
212
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D illo n , R ead & C o .— Continued
Page
R io de Janeiro bon d issue— Continued
Proceeds of— Continued
Purpose set forth in loan agreement, need n ot have been
used for, and Dillon, R ead & Co. would have been re
quired to pay over proceeds to be used for any pu rpose. _ 1925
Redem ption of existing obligations o f city, set aside for;
proceeds returned to city because o f failure to. purchase
any prior obligations o f c i t y . _______________________ 1927 et seq.
Prospectus fo r _______________________________ ................... ...... 1946 et seq.
Distribution of, by Dillon, Read & C o . . ____________________ 1899
Representations in, that non-revenue-producing slaughter
house (to be erected from proceeds of bond issue) was
revenue producing_____________________________ __________ _ 1899
Public im provements as purpose o f: D illon, R ead & C o. made
no attem pt to ascertain whether m oney actually used for_____ 1912
Public (see also Dillon, Read & C o.; Investors):
Nondisclosure to, of real facts________________________ 1920 et seq.,
1923, 1924, 1926, 1927, 1935, 1936
Offered to, at time when loan contract with city was only
option which did not state purposes for which proceeds of
loan to be used_________________________________ ___ _______
1901
Sale to, o f bonds of, com m enced prior to signing o f loan
agreement b y _________________________________________ 1900, 1923
Purchase of, by, and sale to pu blic__________ 1900 et seq., 1923 et seq.
Purposes of:
. Loan agreement, as set forth in; could have been disregarded
by city and Dillon, Read & Co. would have been required
to pay over proceeds to be used for any purpose__________
1925
M ountain leveling in city and sale o f lots created th ereby. _ 1896,
1898, 1899, 1910, 1911
M unicipal im provem ents____ _________________ ______________
1895
Security for:
D ate at which proceeds of land sales w ould be available as,
unknown since no date set for com pletion o f project by
which land would be created____ ___________ .*________ 1910,1911
D eposit o f $250,000 to be maintained w ith Dillon, Read &
Co. to meet current obligations on the bonds_____ : _ _ 1918 et seq.,
1931 et seq.
Exhausted by sinking fund paym ents therefrom in 1931
and not replaced____________________________ ____ 1936, 1937
Special deposit and n ot subject to check_____________ 1932
Existing obligations o f city authorized to be purchased with
part o f proceeds o f issue were to be retained as_________ 1926, 1927
Lots, proceeds of sale of, were to be security, but lots could
not be sold during depression____________ _____ 1897, 1898, 1913
Prior obligations o f city could be redeemed and retained as,
but funds provided for this purpose used to retire at ma
turity preexisting loans so that no actual security to
investors resulted_________________ _______ __________ 1928 et seq.
Proceeds of sales o f lots created b y leveling o f m ountain to be,
and to be used in retiring bonds o f . ___ _ 1896, 1898, 1910 et seq.
Proceeds o f sales o f lots set aside in special deposit as______ 1913,
1918 et seq.
Sale o f lots as per loan agreement attem pted but n ot profit
able becasue of depression_________ ___ _________ 1897, 1898, 1913
Taxes, proceeds o f which under loan agreement were to be
allocated for, could be repealed and no new taxes sub
stituted___________________________________________________ _ 1919
Tax receipts of city as: Efforts o f Dillon, Read & Co. to
ascertain whether taxes were being “ allocated” as se
curity__________________________________________ 1914, 1915 et seq.
Ta£ receipts not segregated by city at tim e o f hearing, but
plan in preparation to facilitate segregation___________
1917
Tax receipts to be segregated as, only on default___________
1917
Sprea,d o f 8 points on sale of bonds o f____________________________
1901
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
213
D illon , R ead & C o .— Continued
Pa£e
R io de Janeiro b on d issue— Continued
Taxes of city proceeds of which were to be allocated to secure,
1919
could be repealed and no new taxes substituted_______________
Tax receipts of city to be set aside as security fo r _________1914 et seq.
Underwritten by Dillon, Read & C o _______________________ 1891 et seq.
Reorganization, committees in, members of, as members of Dillon,
Read & C o __________________________________________________________
SM57
1536
Riter, Henry G., 3d, vice president___________ _______________________
Rothschild, Baring Bros, and Schroeder, London, w ith; joint bankers
for Brazil------------------------------------------------------------------------------------------1952
St. Louis & San Francisco Railway Co., sydnicate managers of trading
in shares o f __________________________________________________ 4174, 4186
Seaboard Air Line Railway Co. (see also Seaboard Air Line R y C o .):
Bankers for refinancing o f_____________________ 1868 et seq., 2107, 2108
Coverdale & Colpitts member of underwriting syndicate for re
organization o f _____________________________________________ 1841, 1842
Directors of, as members o f__________________________________2107, 2108
Pennroad Corporation:
Agreement of, to purchase stock of, issued in recapitalization
scheme if not taken by Seaboard stockholders___ 1340 et seq.,
1508 et seq., 1842
Syndicate for underwriting in connection with reorganiza
tion of Seaboard Air Line Railw ay Co., member o f ____ 1841, 1842
Syndicate headed b y Dillon, Read & Co. obtained contract
from, to purchase portion of stock of, which syndicate
could not dispose o f _______________ 1340, 1341, 1508 et seq., 1842
Reorganization of:
Bankers for______________________________ 1868 et seq., 2107 et seq.
Bonds of, sold to United States & International Securities
Corporation and United States & Foreign Securities
C orporation_______________________________ _________ 1840 et seq.
Underwriting syndicate for members o f_________________ 1841, 1842
Syndicate, manager o f_________________________ ________ 4186, 4188, 4191
Syndicate, partner of director while loan to outstanding_________ 4188
Underwriting syndicate in connection with reorganization of,
members o f___________ •____________________________________ 1841, 1842
United States & Foreign Securities Corporation, sale to, o f bonds
o f ________________________________________________________ 1840 et seq.
United States & International Securities Corporation, sale to, of
bonds o f _________________________________________________ 1840 et seq.
Valuation placed on property of, by Interstate Commerce C om
mission, known to Dillon, Read & Co. at time latter engaged in
refinancing of com pany________________________________________
2107
Secretary and treasurer: R obert E. Christie, Jr________________ ______ 1536
Securities, issuance of (see also Dillon, Read & C o .; B on d s):
Default, issues participated in by Dillon, Read & Co. and now
in _______________ _____________________ 2238 et seq., 2242, 2245 et seq.
M anaged by Dillon, Read & C o.; list of issues___________ 2170 et seq.,
2261 et seq.
Participated in and managed b y D illon, Read & C o.; list of
issues_____________________ _________________ 2170 et seq., 2261 et seq..
Participated in but not managed by Dillon, Read & C o.; list of
issues____________________________________ ________________ 2194 et seq.
Syndicate manager of, Dillon, Read & Co. as; list of issues; now
in default__________________________________________ 2238 et seq., 2242
Syndicate manager of, Dillon, Read & Co. as; list of issues; par
ticipants in originating or underlying groups____________ 2249 et seq.
Security for issues floated b y _______ 1897 et seq., 1910 et seq., 1917 et seq.,
1928
et seq., 1957 et seq., 1978 et seq., 2004 et seq., 2015 et seq.
“ Spread” (see also Dillon, Read & C o.; Profit):
Bolivia bond issue___________________________________________ 2012, 2122
Brazil bond issue of 1927____________________________ 1994, 2008 et seq.
Brazil b o n is :
1959
First series of (7% poin ts)___________________________________
Second series of (8}<j points)_________________________________
1960
214
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D illo n , R ead & C o .— Continued
“ Spread” — Continued
Brazil Central Railway electrification bond issue____________ 1976, 1977
Determination of, with issuer prior to sale to public_____________
1626
Investors not informed o f____________________________________ 1967, 1971
’
M ontevideo bond issue (6}£ poin ts)__________________________ 1994, 2126
R io de 'Janeiro bond issue (8 p oin ts)_____________________________
1901
United States & Foreign Securities Corporation stock (4 p oin ts). 1563
Statement of, that interest would be paid on Brazil Central R ailw ay
electrification bonds boosted price bu t investors not inform ed that
special deposit would thereby be exhausted creating default in obli
gations of Brazil______________________________________________ 1989 et seq.
Stock exchanges, not member of any_________________ ^__________ 2108, 2155
Stockholders o f_________________________ __________________________ 1537, 1538
Liability of, for debts o f; unlimited______________________________
1541
Stock of, m ajority of, held b y Clarence D illon___________________ 1537, 1538
Strieffler, Paul M ., em ployee of, attached to J. V. Forrestal, becam e
president of Beekman Co., Ltd., though owned no beneficial interest
therein_________________________________________ ________ _____________ 2057
Subsidiaries o f_________i _____________________ _____________ 1978, 2104 et seq.
Form ation of, for purpose of segregating to it assets not necessary
•for use b y Dillon, Read & Co. in its business, testifies Clarence
D illon ____________ _________________________________ 1966, 2104 et seq.
Syndicates:
Participations in, o f_______________________________________________ 1959,
1960, 2224 et seq., 2234 et seq., 2249 et seq.
Underwriting, organized b y ________________________________ 1873 et seq.
Taylor, Roland L., vice president_____________________________________
1536
Taxation:
Avoidance o f: ^Surtax on dividends avoided b y creation o f corpo
ration to which firm conveyed part o f its assets_________ 2104 et seq.*
D ividends, surtax on, avoided b y form ation o f corporations to
which assets of firm were conveyed______________________ 2104 et seq.
Excess-profits ta x : Profits on sale of Brazilian bonds taken in part
in name o f subsidiary to avoid profits tax in higher brack ets. _ 1966
Loss realized in sales by United States & Foreign Securities C or
poration to its subsidiary United States & International Se
curities C orporation______________________ _____________________
1867
Surtax on dividends, avoidance of, by creation o f corporation to
which firm conveyed part o f its assets_______ ___________ 2104 et seq.
United States & International Securities Corporation purchased
stock from its parent com pany, United States & Foreign Se
curities Corporation, to enable latter to realize loss_____ 1807 et seq.
Trading account form ed by bankers’ syndicate headed by, to support
m arket__________ ______________________________________
1961, 2127 et seq.
Trading accounts in stocks participated in by__1961, 2224, et seq. 2234 et seq.
Underwriters o f bonds o f R io de Janeiro________________________ 1891 et seq.
Underwriting svndicate in connection with reorganization of Seaboard
Air Line Railw ay C o ______ ____________________________ 1841, 1873 et seq.
Union Trust Co. of Cleveland as m em ber of syndicate form ed b y
Dillon, Read & Co. to sell Brazilian bonds_____________________ 1959, 1960
United States & Foreign Securities Corporation (see under United
States & Foreign Securities Corporation):
Investment trust: formation of, b y ________________________ 1554 et seq.
United States & Foreign Securities Corporation, investm ent trust,
management control o f______________________________________________ 4182
Prom otion helped b y ______________________________________________ 4151
United States & International Securities Corporation. (See under
United States & International Securities C orporation).
United States & International Corporation, investm ent trust, man
agement control o f ___________________________________________________ 4182
Vice presidents of:
. Bollard, Ralph H _________________________________________________
1536
Charnley, W m. S_________________________________________________
1536
Egly, Harry H ____________________________________________________
1536
Fiske, W . M . L ________________ __________________________________
1536
Forrestal, James V _________________________________ ___ ________ 1536
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
215
D illon , B ead & Co.— Continued
Pase
Vice presidents of— Continued
Hayward, Robert O________________________________ ______________
1536
Mathey, Dean____________________________________________________
1536
Phillips, Wm. A __________________________________________________
1536
Riter, Henry G. 3d__________ _____________________________________ 1536
1536
Taylor, Roland L_________________________________________________
West States Corporation:
Formation of, by, purpose of: to segregate to company assets not
necessary for use by Dillon, Read & Co. in its business, testifies
Clarence Dillon__________________________________________ 2104 et seq.
Subsidiary of Dillon, Read & Co___________________________2104 et seq.
Taxation, avoidance of, on dividends, purpose of formation of 2104 et seq.
D illon , R ead & Co., I nc .:
Dillon, Clarence, a stockholder________________________________________ 1542
Maryland Corporation___________ _____ _______________________________ 1542
D illon , R ead C orporation, Dillon, Read & Co., European business of,
conducted by________________________ ___________________________________
1542
D illon , W illiam M .:
5639
First Wayne National Bank, director of______________________________
Loans by to, unsatisfactory condition of____ .________________ 5639-5640
Resignation of and loans afterward handled through regular
channels___________________________________________________ 5639-5640
5233
D ime Savings B ank op H amtramck : Detroit Bankers Co. acquired______
Dingman, W . E .: Bank of Hamtramck, cashier of (see also Bank of Ham
tramck)
_______________________ _____ ___________ _____________________
5033
D irec to rs (see also Corporations, Directors; Directors and officers):
Aetna Insurance Co. of Hartford, of__________________________________
29
Alaska Development & Mineral Co., of_______________________________
30
Alaska Steamship Co., of______________________________________________30, 31
All American Cables, Inc_____________________________________________
30
Alleghany Corporation, of__________________ __________________________
706
American Foreign Securities Co., of___________________________________
30
American Radiator & Standard Security Corporation, of_____________
30
American Securities Investment Corporation, of______________________
29
Anderson, Arthur M . (See under Anderson, Arthur M.)
Astor Safe Deposit Co., of____________________________________________
30
29
Atchison Topeka & Santa Fe Railway Co., of________________________
Atlas Corporation, o f _ _ ______ ________________ _______________________
327
Baldwin Locomotive Securities Corporation, of_______________________
31
Baldwin Locomotive Works, of_______________________________________
31
Baldwin Southwark Corporation, of__________________________________
31
Bankers as------ — — ---------- ---------------- 5, 33, 59, 555 et seq., 1551,1S36 et seq.
Conflict of interest none though corporation seeks loan from
59
bank, testifies J. P. Morgan______________________ _________ _
Legislation on______ .___________________________________ 5, 555 et seq.
Morgan, J. P., regrets prohibition of bankers to be directors.
5
Private bankers act as, because corporations need financial
experts and only on request of client testifies J. P. Morgan____
5
Stock of corporations sold-by bankers to investment trusts they
created_________________ _______________________________ 1836 et seq.
Bankers Trust Co., of__________________________________________ ___ 24, 543
Bank for Savings of New York, of_____ ___________ a_________ ______24
Beaver Coal Corporation, of__________________________________________
29
Bee Line Transportation Co., of______________________________________
32
Bellevue-Stratford Hotel Co., of_____________________________ _________
29
Bell Telephone Co., of Pennsylvania, of..................................__1________
30
Bethlehem Steel Corporation, of______________________________________
547
Braden Copper Co., of________________________________________________ 30, 31
Brazilian Traction Light & Power Co., Ltd., of_______________________ 1950
Brooks Bros., of_______________________________________________________
327
Brown Bros. & Co., of________________________________________________ *1150
Business, directors of__________________________________________________ 1190
Century Indemnify Co., of____________________________________________
29
Cerro de Pasco Copper Corporation, of_______________________________
29
Charles E. Hires Co., of_______________________________________________
32
Chesapeake & Ohio Railroad Co., of__________________ ________ _______
703
216
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D irectors — C ontinued
Page
Chesapeake Corporation, o f___________________ ________________________
750
Chicago & Erie Railroad Co., o f_____________________________________ 1
29
City Bank Farmers Trust Co., o f_____ ________________________________
24
Clark D odge & Co., o f ____ _________________________ _ __________________*1150
Colum bia Gas & Electric Corporation, o f______ __________ 360, 361, 395, 831
Com m onwealth & Southern Corporation, o f ___________________ 360, 361, 395
Consolidated Gas Co. of New Y ork, o f ________________________________
359
Continental Bank o f Chicago, o f__________ ___________________________
90
.725
Control b y ___________________________________ _________________________
Copper River & Northwestern Railway Co., o f_________________ _____ 30, 31
Corporations engaged in Interstate Commerce, of, partners o f M organ
& Co. as__________ -__________________________________________ 29 et seq., 52
C ountry club memberships usually provided for b y corporations_____
1343
29
Croweli Publishing Co., o f____________________________ ________________
D e Bardeleben Coal Corporation, o f _______________________ __________
32
30
D iam ond States Telephone Co., o f____________________________________
D ickey, Charles D. (See under Dickey, Charles D .)
Dillon, Read & Co., o f ________________ ___________________________ 11.51, 2152
D iscount Corporation o f New Y ork, o f _____ - _________________________
29
Drexel & C o.:
Loans by, t o _____________________________________ ____________533 et seq.
Partners of, as__________________________________________________ 904-946
Dual directorships_____ __________________________________ 62, 395, 1885, 1886
D uty of:
Business, directors of, testifies D urant__________________________
*1190
English companies act on ______________ •________________ _ *1326, *1327
German legislation on ___________________________________________
*1327
M anagement, guarding of, testifies D urant__ ____________________ 1190
Management, to insure efficiency of, testifies George W h itn ey . _
488
Meetings, attendance of, when possible________________________ _ *1190
N ot to run com pany, testifies J. P. M organ______________________
55
Policy, determination of, and to let executive officers run business,
testifies J. P. M organ ____________________________ ______________
55
E lectric Bond & Share Co., o f_________________________________________
327
English companies act on duty o f________________________________ 1326, 1327
Erie Railroad Co., o f___________________ •__________________ ___________
612
Ethics of having security dealers as directors o f investm ent trusts
questioned_____________________ ________________ _______________ 1702, 1703
Ethics of serving as, in m ore than one corporation, questioned. _ 1885, 1886
Exemption from liability in transactions with other corporations of
which they are also directors disapproved b y Clarence D illo n . 1883, 1884
Federal Steel Foundry Co., o f_______ _________________________________
31
Fidelity Philadelphia Trust Co., o f____________________________________
24
Financial policy of com pany determined b y investm ent banking firm
partners of which were directors o f corporation_________________ x__
56
First Security Co., o f ____ ___ __________________________________________
29
Foreign Finance Corporation, o f____________ ______________________ . . . 29, 30
Frankford & Southwark Philadelphia C ity Passenger Railw ay Co., o f .
31
Franklin County Coal Corporation, o f__ _____________________________
32
Fraud of: K ylsant. Rex v ______________________________________ *1325, *1327
Frontier Corporation, o f_______________________________________________
327
*1234
Fulton Trust Co. df New Y ork, o f ___________________________________
General Asphalt Co., o f _________________ ___________________________ 30
General Electric Co., o f __________ _________________ __________________ 30,431
General Electric Co., Inc., of..^.___________________ . . . ________________
30
General Steel Castings Corporation o f________________________________
31
German legislation on duty o f________________________________________ *1327
Germantown Trust Co., o f____________________________________________
24
Girard Trust Co., Philadelphia, o f ___________ .________________________
24
Guaranty Co. o f New Y ork, o f _______________________________ ________
1150
G uaranty Trust Co., o f____________ 24, 90, 91, 92, 543, 547, 858, 859, 865, 866
Hazle Brook Coal Co., o f________________________________ ________ _____
32
Highland Coal Co., o f_________________________ _____ i _______________ _
29
Hires, Charles E. Co., o f ______________________________________________
32
H om e Life Insurance Co., o f __________________________________________
31
Indem nity Trust Co., Philadelphia, o f ________________________________
24
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
217
D irectors — C ontinued
Page
Interlocking directorates__________________ 62, 390, 391, 395, 1318, 1885, 1886
Public utility field, in _____________________________________ 390, 391, 395
29
International Agricultural Corporation, o f ----------------------- -------------------International General Electric Co., o f -------------------------------------------------31
International Telephone & Telegraph Co., o f------------- -----------------------30
Investm ent banks:
Partners of, as___. 33, 56-58, 326, 360, 361, 543, 550-552, 904-946; 1551
Secret profits of directors by reason of association with, in
financing operations of corporations; propriety of not revealing
to stockholders such connections and profits questioned— 2281, 2282
Investment trusts:
Association with, in financing o f corporations, propriety o f not
revealing to stockholders such connections and secret profits
thereof_____________________________________________________ 2281, 2282
Security dealers as directors of, ethics of, questioned_______ 1702, 1703
Investors. (See under Investors; Directors.)
Jeddo-Highland Coal Co., o f __________________________________________
32
Johns-Manville Co., o f ______________________________ 30, 177, 549, 813 et seq.
Kennecott Copper Corporation, o f____________________________________ 30, 31
Keystone Watchcase Corporation, o f-------------------- -----------------------------31
Kreuger & Toll Co., o f___________________________________________ 1190, 1345
Kuhn, Loeb & C o.:
Loans.by, t o ________________________________________________ 1320 et seq.
Partners of, as____________________________________________________
1319
Lam ont Corliss & Co., o f______________________________________________
29
Lam ont, Thom as S. (See under Lam ont, Thomas S.)
Lee, Higginson & Co., o f_____________________________________________
1150
Lee, Higginson Trust Co., o f _________________________________________
1241
Lehigh & Hudson River Railway Co., o f_____________________ ________
29
Lehigh Valley Coal Corporation, o f ___________________________________
32
Lehigh Valley Coal Sales Co., o f______________________________________
32
Liability of—
English Companies A ct imposes liability for statements made or
which should be made in prospectus______________________ 1311, 1324
Lim itation of, to own negligence and not extended as under pres
ent Securities A ct to negligence of subordinates, testifies Clarence
D illon____________________________________________________ 2111 et seq.
Losses incurred in transactions with other corporations of which
they are also directors; charter provision for exemption from,
disapproved by Clarence D illon___________ ____ __________ 1883, 1884
Prospectus, for statements in ____________ 1311, 1320, 1888, 1889 et seq.
Loans to—
Dillon, Read & Co., b y __________________________________________
2154
Drexel & Co., b y ____________________________________________ 533 et seq.
Morgan, J. P., & Co., b y ____________________________________ 533 et seq.
Loss in transactions with other corporations in which directors inter
ested, nonliability for, even though they voted in favor of the trans
action approved b y E. B. T racy____________________________ _ 1818 et seq.
Main Line Trust Co., o f _______________________________________________
24
Main Line Trust Co., Philadelphia, o f________________________________
24
Management control flows from _____ _____ ___________________________
725
Management, guarding of, as duty o f _____________________________ 488, 1190
Markle Corporation, o f____________ '___________________________________
32
Meetings, attendance of, when possible, duty o f ___________________ 54, 1190
Mercantile Insurance Co. of America, o f______________________________
30
M idvale Co., o f _______________________________________________________
31
Missouri Pacific Railroad Co., o f ___________________________________ 703, 722
M ohawk Hudson Power Corporation, o f_______________________ 327, 360, 361
M ontgom ery W ard & Co., o f__________________________________________
31
Morgan, J. P., & C o.:
Loans by, t o ____________________________________ 533 et seq.; 904 et seq.
Partners of, as_________ _ 33, 56-58, 326, 360, 361, 543, 550-552, 904-946
Conflict of interest__________________________________________ 56-58
Corporations compelled to borrow of J. P. M organ & Co. and
leave funds on deposit for J. P. M organ & Co. to use on
call loans________________________________________________ 196-197
218
INDEX TO HEARINGS ON S^TOCK EXCHANGE PRACTICES
D ibectors — Continued
Page
M organ, J. P., & C o.— Continued
Partners of, as— Continued
Corporations doing business w ith each oth er_________________
62
Corporations engaged in interstate com m erce.______ 29 et seq., 52
D uty to corporation and to J. P. M organ & Co., conflicting
interest_________________________________________________ 56, 57, 58
Financial policies of corporations deterihined________________
56
Meetings of corporations attended as regularly as possible,
testifies J. P. M organ______________________________________
54
Policies o f corporations discussed __________________________
55
6
Reluctance to permit partners to becom e directors_________
Morgan, J. S. (See under M organ, J. S.)
Morris, I. P., and de la Vergne, Inc., o f __________ •_____________________
31
National City Co., o f _________ ___ _____________________________________
1150
National Railways o f Mexico, o f_________________________ _____________
29
29
National Storage Co., o f______________________________ ________________
Nevada Northern Railway Co., o f ________________________ ________ _
30
N ew Y ork & Long Branch Railway Co., o f ___________________________
29
29
New Y ork & M iddle Coal Field Railroad Co., o f _______________ ______
N ew Y ork, New H aven & H artford Railroad Co., o f _____ ____________
520
N ew Y ork Power & Light Co., o f___________________________________ 327, 360
New Y ork Trust Co., o f_______________________________________________
24
New Y ork United Corporation, o f _____ ____________________ -31; 327, 360, 361
Nickel Plate Railroad Co., o f _______________ _______________ ________ 635, 704
Niagara Hudson Power Co., o f_________________ _ 327, 359, 360, 361, 395, 831
N onliability of, for loss in transactions with other corporations in w hich
directors interested even though they voted in favor of the trans
action, approved by E. B. T ra cy ___________ ___ - _____________ 1818 et seq.
North British & Mercantile Insurance Co., Ltd., o f London and Edin
burgh, o f _____________ :______________________ ______________ _________
30
Northern Pacific Railroad Corporation, o f ____ ______________ _________ 29, 32
24
Northern Trust Co. of Philadelphia, o f ________________________________
Pennroad Corporation, o f _____________________ ________________________ 1516
1524
Pennsylvania Co., o f______________________________ ____________________
Pennsylvania Co. for Insurance of Lives, o f___________________________
24
Pennsylvania Fire Insurance Co., o f __________________________________
31
Pennsvlvania Railroad Co., o f ____________ _______ _____________________
1516
Pere M arquette Railroad Co., o f____________________________________ 703, 704
Philadelphia & New tow n & New Y ork Railroad Co., o f ______________
29
Philadelphia & Reading Coal & Iron Corporation, o f __________ _______31, 32
Philadelphia & Reading Terminal Railroad Co., o f . ___________ .____
29
Philadelphia Flectric Co., o f _________________________________ 30, 31; 327, 361
Philadelphia Electric Power Co., o f ___________ _____ _________________ 30, 31
Philadelphia Savings Fund Society, o f________________________________
24
Philadelphia Steel & Wire Corporation, o f ____ ______________ :________
32
55
Policies of, carried out by executive officers, testifies J. P. M organ ___
Policies of com pany, determined by investment banking firm partners
of which were directors of com pany_____________ ___________________
56
Postal Telegraph & Cable Corporation, o f ____ ________________________
30
Powers of, outside of meetings, testified to, b y D onald D uran t_____ *1184
President of corporation is generally one of, testifies J. P. M organ___
55
Profits, secret. (See under D irectors; Secret profits.)
Prospectus, liability for false statements in__ *1311, 1320, 1888, 1889 et seq.
Public Service Corporation of New Jersey, o f _____ 31, 32; 327, 360, 361, 395
Public utilities companies, o f _________________________ ______________ 395, 407
Interlocking directorates in field o f_____________________________ 391, 395
Pullman Co., o f _____ _______________ _______________ ___________________
29
Pullman, Inc., o f ____________________1____ - _________ __________________ ‘ 29
Purchase of stock for com panj' during panic is not breach o f trust to
stockholders, testifies E. B. T racy __________________________________ *1799
Railroad corporations, of, bankers as: Legislation on _____^______ 555 e t seq.
Reading Co., o f ____________________________________________*___________
29
Riverside M etal Co., o f ________________________________________________
31
R oyal M ail Steamship Packet C o., o f: K ylsant, L ord _________ *1325, *1327
Seaboard Air Line Railway Co., o f____________________________________ 2107
Second & Third Street Passenger Railw ay Co., o f ____________________ 29, 31
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
219
D irectors — C ontinued
Pa£e
Secret profits of, in financing operations of corporations; propriety of
not disclosing to stockholders questioned------ 1----------------------- *2281, 2282
Security Act. (See under Security A ct; Directors.)
Security dealers as directors of investment trusts, ethics of, questioned. 1702,
1703
Sharp & Doehme, Inc., o f --------------------------------------------------------------------31
Short sales by, of stock of own corporations should be prohibited,
testifies O tto H. K ah n ----------------------------------------------------------------------- 1209
550
Southern Railway Co., o f_____________________________________________
Southwark Foundry & M achinery Co., o f-------------------------------------------31
Southwestern Construction Co., o f____________________________________
29
Standard Brands, Inc., o f_____________________________________________
31
Standard Steel W orks Co., o f ------------------------------------------------------------- 31
327
St. Lawrence Securities, o f--------- ---------------------------------------------------------Stockholders, nondisclosure to, of secret profits of, in financing opera
tions of corporations; propriety of, questioned_________________ 2281, 2282
Susquehanna Electric Co., o f__________________________________________
31
Susquehanna Power Co., o f -----------------------------------------------------------------31
Trading by, in stock of corporations of which they are directors. 208 et seq.
Transamerica Corporation, o f _________________________________________ *1234
Transportation M utual Insurance Co., o f_____________________________
29
Trustees for corporation to limited extent, testifies J. P. M organ ____
55
Union Pacific Railway Co., o f_________________________________________
30
Union Trust Co., o f_____________ ■_____________________________________ *1151
United Corporation, o f _________________ 30, 313, 314, 324, 326, 327, 359, 360,
361, 395, 408, 414, 491, 495, 514, 831, 853, 854
United Electric Securities Co., o f ------------- ------------------------------------------30
United Engineers & Constructors, o f_______________________________ 327, 361
United Gas Im provem ent Co., o f _________________ 31, 327, 360, 361, 395, 831
United States & Foreign Securities Corporation, o f . 1576, 1577, 1771 et seq.
United States & International Securities Corporation, of, list o f. 1769 et seq.
United States Steel Corporation, o f __________________ ______ 29, 551-552, 870
Utah Copper Co., o f __________________________________________________
31
Utility corporations, of, bankers as______________________________ 555 et seq.
Western Savings Fund Society, o f _ _ ---------------------------------------------------24
W hitcom b Locom otive Co., o f-------------------------------------------------------------31
W hitney, George. (See under Whitney, George.)
Wilkes-Barre Corporation, o f_________________________________________
32
W illow Corporation, o f________________________________________________
31
“ W indow dressing,” frequently used as____________________ 1208, 1209, 1885
W orld Fire & Marine Insurance Co., o f_______________________________
29
29
W yom ing Valley W ater Supply Co., o f_______________________________
D irectors and O f fic e r s :
Free-lance traders are em ployed by directors and officers o f corpora
tions to buy stocks to support the market when price seems to be
wavering, says George F. Breen_________________________________ *550-553
N onactivity o f ____________________________________________________ 7029-7030
Options granted b y _______________________________________________ 7019-7020
Options granted by, in American Com mercial Corporation stock.
(See American Com mercial Alcohol Corporations; options by
directors and officers.)
P ool participation in American Com mercial A lcohol Corporation
stock. (See American Com mercial Alcohol Corporation, Pools.)
Pool participation in National Distillers Products Corporation (July
1932) (see National Distillers Products Corporation, P o o ls )___ 6259-6261
P ool participation in Sinclair Consolidated Oil Corporation, pool and
syndicate.
Publicity should be required periodically o f directors and president to
show stockholdings in the corporations, says William Z. R ip ley . *886, 891
Rockefeller’s (Percy A.) testim ony, at hearings, construed as showing
that his m ajor interest in corporations of which he was a director
was buying and selling stocks, called “ outrageous” b y William Z.
R ip ley ______________________________________________________________
*891
Sales against the box by,__________________ '------------------------------------------*67
New Y ork Statute____________ ______________________ _____________
*87
Proper, says Richard W hitney___________________________________
*267
220
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D irectors and O fficers — C ontinued
Page
Trading by director in stock o f corporation, or dealing indirectly
through pool, except to a limited capacity, requires some drastic
action and should be made a criminal offense or som ething along
that line, says J. Cookm an B o y d ___________________________________
*869
Trading b y directors and officers in stock of corporation by buying
and selling at different times, not for purpose of raising or lowering
the stock, is ethical and helpful, says Harry M . W arner_____ _ *649, 653
Trading in securites b y Harry M . Warner. (See Warner, H arry M .,
Trading.)
,
Trading in own stock b y directors and officers is “ possibly” a general
practice, says Harry M . W arner______ __________________________ *650-651
D iscount C orporation of N ew Y o r k : Directors o f___________________
29
D iscretio n ary O r d e r _____________________________ i _________________ 6092-6093
D efined_______________________ _____ _______________________________6669
D istille r s C orpo r a tio n : National Distillers Products Corporation
ow ned_______ — ---------------------------------------------------------------------------------------- 6248
D iv id en d s :
Agent for paying o f :
303
Drexel & Co. as_____ _____________________ ;________________________
Morgan, J. P & Co. as_______________ _____________ ___________ 288, 289
Capital, paym ent out of, in Kreuger & T oll case_______________ 1271, 1354
565
Chesapeake & Ohio Railroad Co., o f _________ _ _____________i _________
United Corporation, o f (see under United Corporation, dividends)..
United Corporation, paid b y _______ ____________________ ______________
425
Standard Brands Inc, paid by, throughout depression________________
191
D odge , J oseph M .:
D etroit Bankers Co., report, annual (1932) for stockholders, presented
to Stair b y -------------- ------------ -------------------------------------------- --------- 5429,5430
First National Bank, vice president o f _____________ ______________ 5435, 5541
Mills, memorandum to from, concerning adverse publicity about
Grosse Point Bank note transaction........................................................... 5547
Mills, memorandum to, from, concerning contribution b y First
National Bank to State Dem ocratic P a r ty .____________ ______ 5541-5542'
Humorous, might, have been, Mills testified___________ 5542, 5545, 5546
Read to governing com m ittee_____________ _____________ ____ 5542, 5545
D odge , M u rray W .:
. Testim ony o f ___________ 3203-3210, 3433, 3462-3494, 3503-3622, 3789-3805
Chase Harris Forbes, executive vice president of, severed relations
w ith -------- ------------------------------------------------------------------------------------- ;___
3203
Chase interests, connection with, Clark knew o f_____________________ 3171
Term inated___________________________________________________ 3462-3463
. Chase Securities Corporation, connection with terminated____________
3203
Officer o f ____________ ________ 2892, 2937, 3203, 3462, 3492, 3591-3592
W hen International Projector Corporation incorporated_________ 3207
Officer of, as—
(a) General Theatre Equipment, Inc., participated in
organization o f _____________ ___ _________ ________ 3462-3463
(b) Sherman’ s interests, devoted time t o ____________________
3492
Vice president of (and director of Wiggin Fam ily C orporations):
(a) Borrowed from ____________ _______ ______________________
2892
(b) General Theatres Equipment, Inc., organization, during. 3462
Clarke discussed with (a) Chase Securities Co. participatng in
financing, (6) utility companies’ financing, (c) Shermar financing
of his (?) interests___________________________________________________ 3171
F ox financing, telegraphic com m unication with, concerning___________ 3599
F ox companies financing, memorandum to Wiggin concerning. _ 3618-3620
F ox Film :
(a) D irector o f____________________________________________________ 3759
(b) Interest from A syndicate t o _________________________________
3603
General Theatres Equipm ent, Inc:
D irector of, when:
(a) 'E xch an ged stock with International Projector Corpora
t i o n . _______________________ :_____ _________ __________ _ 3205
(b) W hen F ox Film stock purchase warrants repurchased. _ 3 8 03 3804
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
221
D odge , M u rr a y W .— Continued
Pase
General Ih eatres Equipm ent, In c.— Continued
D irector of, when— Continued
(c) Sold debentures to Chase Securities Corporation of which
officer__________________________________________________ 3592
(d) T ook interest in Fox Film A syndicate headed by
Pynchon & C o______ __________________________________
3603
Dissociated himself from when negotiating w ith _________________
3592
Financing, participated in conferences on before Chase Securities
Corporation interested_________________________________________
3491
Represented Shermar though no officer in___________________
3492
Listing application, D odge wrote Harley L. Clarke, could be
pushed over by Clarke and D odge by appearing before New
Y ork Stock Exchange Com m ittee on Stock L ist__________ 5978-5979
M em orandum to Wiggin:
(a) Concerning_______________________________ ________________
3517
(b) Concerning financing. _ 32 05-3206,3490,3543-3544,3547-3548
(c) Concerning loan to purchase stock o f ___________________
3525
(d) Concerning reclassification of stock _________________ 3792-3794
(e) Expressing belief distribution would be accom plished___ 3507
(f) Stating debentures oversubscribed and stock going w ell. 3509
Receivership of, concerning w ith_________________________________
3834
Stock exchange listing:
(a) Clarke, letter to concerning meeting difficulties_________ 3530
(b) Com mittee could not influence_____________________ 3530, 3531
(c) Gibson referred to as “ hard nut to crack” in statement
concerning_____________________________________________ 3531
(d) Sargent’s help, with, possible to put through. _ 3528, 3530, 3531
Negotiating with, not acting as director w hen_______________ 3592
N ot in touch with third syndicate in ________________________
3528
Stock market:
(a) Free and open ___________________________________________
3554
(b) Quotation, public demand influenced primarily according
t o ___________________________________________________ 3554
(c) Rise due to “ public dem and” ____________________________ 3554
Stock, value (intrinsic) o f____________________________________ 3520, 3521
Stockholders agreed to voting trust agreement b y buying stock . 3523
General Theatres Equipment, Inc., organization of discussed by
3422
Clarke with in behalf of Chase Securities Corporation_____________
3480
Grandeur, Inc., stock, none in________________________________________
3467,
Ignorance concerning various m atters________________________________
3468, 3469, 3485, 3486,3552, 3557, 3615
International Projector Corporation:
Director o f _______________________________________________________
3204
Representing Shermar’s interest while_______________________ 3492
Profit from manufacture o f projectors greater than from m onthly
payments for use o f____________________________________________
3486
Stock, acquisition of b y ______________________________________ 3480, 3483
N o payment for made b y _______________________________ 3483-3484
Stock, com m on:
Exchanged for General Theatres Equipment, Inc., on basis
of one share for l } i ___ _____________________________________ 3480
Profit from subparticipation in Shermar interest____________
3480
Stockholder of, interest in as__________________________________. . .
3204
Trading account in, member o f___________________________________ 3177
Kuser fam ily, members of on Fox Film board memorandum to W ig
gin concerning__________________________________________________ 3757-3758
Lincoln Building:
Syndicate for financing prospective, member o f_______ 4052, 4056, 4058
3204
National Theatre Supply Co., knew o f _______________________________
Securities Act, publicity provisions of, approved b y __________________
3516
3492
Shermar, not officer in ________________________________________________
Trading account, organization of usual, to stabilize market, accordin g t o _______________________________________________________________
3554
During distribution of securities_____________________________ 3596-3598
Valuation, ratio of earnings to corporate_________________________
3505
222
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D oh erty , H e n r y L.
Page
Cities Service C o.:
President and director o f _________________________________________
6311
D istribution o f stock April 1927 to Decem ber 1930 resulted in
the marketing o f D oherty’s shares at a profit to him o f $19,000,000, say R obert E. H ealy__________________________________
7591
Control o f Cities Service Co. was maintained by D oherty, for
directly afterward the com pany issued 1,000,000 shares with full
voting rights at $1 per share, all o f which were purchased b y D oherty,
says H ealy-------------- -------------------------------------------------------------------------7591
H enry L. D oherty & Co. (See D oherty (Henry L.) & Co.)
D oherty was individual conducting business under firm name
since 1922____________________________________________________ 6311
D oherty had no part in firm as of "February 23, 1934, says Ernest
H. Johnston_______________________________________ _____________ 6311
D oherty (H e n r y L.) & C o .:
Cities Service Co., fiscal agents for________________________ ____________ 6311
Financial advisers and operating departments maintained by
H enry L. D oherty & Co _________ ____________________________
6311
Funds of Cities Service Co. and some subsidiaries form erly de
posited with H enry L. D oherty & C o __________________________ 6311
Funds of Cities Service Co. and subsidiaries no longer deposited
with H enry L. D oherty & Co., February 23, 1934____________
6321
Service rendered gratis, says Ernest H. Johnston________________
6321
D oherty (H enry L.) was the individual doing business under such
name from 1922________________________ ____________________________
6311
D oherty (Henry L.) no longer had part in com pany February 23,
1934, says Ernest H. Johnston___________________________ ____ _____
6311
Executive committee maintained in com pany’s capacity as fiscal
agents for Cities Service Co. and subsidiaries (Caster, H. O.;
Coates, Frank R .; Griswold, R. G.; Ham ilton, F. C .; Jones, Paul R.;
. Jones, W. Alton; Kennedy, T. F.; M cM illan, John M .; Musil,
Lewis F .) ______________________________________________________ 6313-6314
Guardian Trust Co. of Cleveland, aid to, by, in window-dressing
schemes______________________________________________________ 8062 et seq.
Individual doing business under firm name___________________________
6311
D om inick & D o m in ic k :
Beekman Co., Ltd., stock of United States & Foreign Securities Corp.
sold to, by James V. Forrestal: resold to Dillon, Read & Co. and
D om inick & D om in ick___________________________ 2055 et seq, 2092 et seq.
Brokers for members o f Dillon, Read & C o ______________________ 1640 et seq.
Character o f ___________________________ ________________________ _______ 2433
Chase National Bank, shares of:
(a) D istribution of, unknown to W iggin_______ __________________ 2442
(b) Option on given __________ _________ _____ __________ _________
2456
Letter concerning_____________________ ________________________ 2457
(c) On which option secured______________________ ___________ ___
2466
Shares o f :
(a) M anaged b y ____________________________ 2433,2465-2466,4184
Agreement with Chase Securities concerning___________
2466
Continuance o f__________________________________________
2434
Participated in___________________ _________________ 2451,2973
Profit from ----------------------- --------------------------------------- 2461-2463
•Sales m ostly ____ ________________________________________
2973
(b) Participants original as______ ____ ______________________
2436
Chase Securities Corporation, option agreement with concerning pur
chase of Chase shares_______________ _______________ 2440, 2441, 2443-2444
Provision for borrowing stock ____________________________________
2467
Stock covered not owned b y _______________ ______________________
2468
Realloting participation in trading account n ot known t o ___ 2438
Chase stock, inform ed o f second trading account in option on, reason
for owners not giving__________________________ ________ _____________ 2438
Davis (Edward K .) member o f __________- ____________________________
2510
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D
223
& D ominick — C ontinued
Pa&e
Dillon, Read & C o.:
Em ployed by members of, to sell their stock in United States &
Foreign Securities Corporation on the m arket___________ 1640 et seq.
Joint account w ith __________________________ 2060 et seq., 2072 et seq.
Options granted by members of, for resale of com m on stock of
United States & Foreign Securities Corporation held by
them ______ __________________________ 1642 et seq., 1661, 1670 et seq.
Dom inick (Gayer G .), member o f----------------------------------------------2478, 2510
Forrestal, J. V., sale by, to Beekman Co., Ltd., of stock of United
States & Foreign Securities Corporation; resale to Dillon, Read &
Co. and Dom inick & D om in ick _______________________________ 2092 et seq.
Joint account with Dillon, Read & C o . _ 1646 et seq., 1675 et seq., 2060 et seq.,
2072 et seq.
Knowledge of arrangement between Chase Securities Corporation
and Shermar Corporation not ? t o __________________________________
2436
National City Bank stock, options for purchase of, below market
price given to, by National City C o _________________ *1949 et seq., 2002
National City Co. (See under National City C o.; Dominick &
Dominick.)
New York Curb Exchange, member o f _______________________________
1643
New Y ork Stock Exchange, member o f____________________ 1640, 1641, 1643
Options given to, by members of Dillon, Read & Co. on common
stock of United States & Foreign Securities Corporation. . 1642 et seq.,.
1661, 1670 et seq.
Options given to, by National City Co. for purchase of National City
Bank stock below market price______________________ *1949 et seq.. *2002
Pool:
Dillon, Read & Co., w ith _________________________________________ 1646,
1647, 1675, 1676, 1677, 1688, 1689, 2060 et seq., 2072 et seq.
United States & Foreign Securities Corporation, operations in com
mon stock o f _____ __
____________________________________ . . 1642 et seq.
United States & Foreign Securities Corporation:
Options of common stock of, given to, to purchase shares held by
members of Dinon, Read & C o______ 1642 et seq., 1661, 1670 et seq.
Pool operations in stock o f _________________________________ 1642 et seq.
Stock of, sold by Forrestal to Beekman Co., Ltd., and resold to
Dillon, Read & Co., and D om inick & D om inick______ 2055 et seq.,
2092 et seq.
D om inick , G a y e r , member of Dominick & D om inick________________ 2478, 2510
D onaldson , C h ase :
Testimony o f ------------ -------- ----------- ------ --------------- ------------ 3904, 3966-3972
Bertles, Rawls & Donaldson, formerly Donaldson o f ____________
3967
Officer o f _____________________________________________________ 3891
Detroit & Canada Tunnel Co. stock issued for prom otion costs
prospectus statement, later shown to be incorrect_______________ 3973
3967
D istributors’ Group, banker connected w ith_____________________
Hayden-Stone & Co., formerly w ith______________________________ 3894
Investment banker_______________ ________________________________
3966
Snow, personal friend o f__________________________________________ 3891
D onaldson , T. A.: Preliminary report on Union Trust Co. loans to direc
tors— Mather - made in part b y _________________________________________ 8181
D onovan , W illiam J.:
Attorney general, assistant____________________________________________
3656
In charge of Clayton Act and Sherman law situations in D epart
ment of Justice______________ 1---------------------------------------------------- 3703
N ot appointed to be by H oover__________________________________
3662
Fox consulted w ith ____________________________________________________
3703
3656
On legality of Fox companies acquiring Loew ’s stock-----------------Inquiry to concerning acquisition of Loew ’s stock — .------ -----------3656
D oran , G e or ge : H utton (E. F.) & Co., floor member o f----------------------------- 3102
ominick
224
INDEX TO HEARINGS ON STOCK EXCH ANGE PRACTICES
Page
D ouglas A ircraft C o ., In c. (see Aviation stocks)_________________________
7759
Options in stock of, granted by Bancam erica-Blair Corporation and
E. A. Pierce & Co. to Sam Pass who assigned same to Charles C.
W right_________________________________________ _
6119-6123,6155-6156
Prices: Closing quotations on New Y ork Stock Exchange first and
last days of Decem ber 1933, January and February 1934; high and
low prices in D ecem ber 1933, January and February 1-9, 10, 13-28,
year 1934____________________________________________________________
7764
Short selling in__________________ ._________________________________ 6729-6731
Short selling, D ecem ber 29,' 1933, to January 31, 1934, com pared with
stock prices and total reported sales January 2, 1934, to February 15,
1934 (graph)______________________________________________ 6844-6850, 6852
D ouglas , D . D w ig h t :
Bank examiner criticized lack of executive ability o f _________________
5388
Bank stock purchases b y First National Bank, knew o f_____..________
5757
D etroit Bankers C o.:
Articles of association signed b y _____________________________ 5063, 5130
D irector o f . !______________ ___________________________________ 5061,5129
Resigned___________________________ __________________________
5267
D irectors’ meeting, present at when resolution adopted giving
5087
authority to vote stock o f unit banks__________________________
Organization of, Ballantyne discussed w ith_______________________ 5058
Trust agreement, participant in _______________________ 5066, 5131, 5132
Trustees shares, holder o f____________________________________ 5061, 5128
Vice president of, resignation as_____________________________ 5267, 5583
5332
D etroit Trust Co., director o f _________________________________________
First National Bank in D etroit, president o f _________ 5069, 5070, 5071, 5757
Circular addressed to stockholders of unit banks later form ing
D etroit Bankers Co., signed b y ________ i ___________ 5069, 5070, 5071
Purchase of m inority stock in State banks handled b y ___________ 5100
When First National Co. organized_______________________________ 5330
First National Co., signed agreement to furnish credit t o _____________ 5758
M ills, report to, concerning directors and officers loans and affiliated
borrowings b y First W ayne National Bank__ 5627, 5628, 5629, 5681-5697
Duplicatings, none in ________________________________________ 5629-5630
Resignation o f because nothing to d o __________________________________ 5409
State banks, Michigan, in charge o f those First National Co. invested
in _____________________________________________________ ______________ 5716
D ouglass , G eo r g e ______________________________ _______________ 6115-6116,6127
D ow din g , Sidn ey J .: First W ayne National Bank, concerned in unethical
practices with__________________________________ ____ _____________________
5221
D ow lin g , E ddie , actor: R adio Corporation o f Am erica pool (1929), re
ceived $19,000 from, though not participant of record (see R adio Cor
poration of Am erica; P o o l)__________________________________________ *475, *476
D ow lin g , N oel T .: M em orandum on Constitutionality o f Regulating
Securities Exchanges, author o f_____________________________________ 7625, 7634
D ow lin g , R o b e r t : Real-estate operator, high reputation as______________ 4094
D ow n in g , W. W .: M etpotan Securities Corporation, secretary o f ________ 2414
D oy le , A lexa n de r V .:
New Y ork Stock Exchange m em ber___________________________________
6074
1 W right & Sexton, m em ber o f__________________________________________
6074
D r a k e , J. W a l t e r :
Union Guardian Trust Co., director o f ________________________________
4862
Loan account w ith________________________________________________
4862
Collateral o n _________________________ * ______________________
4862
D r e n n e n : First National Bank of D etroit real-estate com m ittee, under
jurisdiction of H olden and_________________________________________ ______ 5243
D ue v e r s : M em ber of Eric & D revers______ _______________________________
2478
D r e x e l & C o.:
Alleghany Corporation, preferred lists in connection w it h .:.______ _
531533, 822, 823, 835
Articles of copartnership o f__________________________________ 478, 521 et seq.
Balanoe sheet o f_____________________________________________________ 946-948
Bonds, issues and underwritings of, participated in, b y __________ 240 et seq.
264-269, 304-305
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
225
D b e x e l & C o.— Continued
Pa£e
Books and capital distinct from those o f J. P. M organ & C o ______ 14, 18, 19
Business of, done in Philadelphia_____________________________________
13
Capital of, distinct from that of J. P. M organ & C o — ---------------------- 18, 19
Consolidated statement of condition of J. P. M organ & Co. and of__
22
Control of corporations b y __________________________________________ 904-946
Corporate relations o f ___________________________________________ 904 et seq.
Corporations maintaining deposits with, of $1,000,000 or over and
engaged in interstate com m erce_____________________________________
50
Coupon agent, as______________________________________________________
303
Defaulted issues participated in b y _________________________________ 304-305
Default in bonds of which firm was syndicate manger________________
304
Deposits w ith__________________________________________________________
50
Corporations engaged in interstate commerce maintaing deposits
of $1,000,000 or over___________________________________________
50
Directorships held b y _______________________________________ 326, 904 et seq.
Directors loans to, b y ____________________________________________ 533 et seq.
Dividend paying agent, as____________________________________________
303
Exhibits. (See under Exhibits.)
Fiscal agents for governments, States, municipalities, and corpora
tions______________________________ ■_______________________________ 287, 303
Foreign governments, loans to, b y ____________________________________
255
Foreign loans made b y ________________________________________________
255
Formation of United Corporation b y __________________________ 310, 408, 409
Holding companies, directors of, as partners o f_______________________
905
Governments, foreign, loans to, b y ____________________________________
255
Insurance companies, directors of, as partners o f _____________________
907
Issues and underwritings of stocks and bonds participated in by_ _ 240 et seq.,
264-269, 304-305
Joint accounts partcipated in b y ___ _________________________________ 269-287
Liability of partners of, for debts of M organ & Co. o f Paris________ _
34
Liability of partners of J. P. M organ & Co. for obligations o f ________
18
Loans b y _________________________________________________________ 904 et seq.
Directors and officers, t o ____________________________________ 534 et seq.
Foreign governments, t o __________________________________________
255
M organ & Co. loans to United Gas Im provem ent Co., participa
478
tion in ________________________ __________________________________
Officers and directors o f corporations_______________________ 534 et seq.
Public utility companies, t o __________________ 471 et seq., 478 et seq.
478
Unsecured________________________________________________________
United Gas Im provem ent Co., t o ________________________________
478
Zimmerman, t o ____ ______________________________________________
394
Morgan & Co., Paris, liability for debts o f____________________________
34
M organ, J. P. & C o.:
Drexel & Co. and M organ & Co. constitute one firm ____________
6
18
Liability of partners of, for obligations of________________________
Loans made by, participation in __________________________________
478
Partnership legally distinct from _________________________________
17
Predecessor o f ____________________________________________________
7
M organ, J. P.:
M em ber___________________________________________________________
6
Substantial interest of, in profits o f ______________________________
53
N onpublic offerings o f_________________________________________*_______
255
Obligations of, liability of partners of J. P. M organ & Co. fo r _______
. 18
Officers and directors, loans to, b y _______________________________ 534 et seq.
Option warrants of United Corporation issued t o _____________________
504
Partners of:
Admission of new partner and creation of new firms___________.436, 437
Directorships held b y ________________________________________ 904 et seq.
H olding companies, as directors o f_______________________________
905
Insurance companies, as directors o f _____________________________
907
Liability of, for debts of J. P. M organ & C o _____________________
18
Morgan, J. P., & Co., identical w ith _____________________________
13
Taxes not paid by, in 1931_______________________________________
53
Philadelphia Electric Co., stock of, owned b y ___________________ 513 et seq.
Pools participated in b y ___________ _________________________________ 269-287
Predecessor of J. P. Mprgan & C o _ ___________________________________
7
226
I N D ik TO HEARINGS ON STOCK EXCHANGE PRACTICES
D r e x e l & C o .— Continued
Page
Preferred lists o f:
Alleghany Corporation, in connection with______ 531-533, 822, 823, 835
M embers o f; their title, directorships, etc., name of issue and
number of shares sold; exhibit________________________ '____ 900-904
United Corporation, in connection w ith _ .__________________ 466-469,
471, 531-533, 822, 823, 835
53
Profits of, M organ, J. P., has substantial interest in __________________
Protective com m ittees, represented on ______________________________ 305-306
Public Service Corporation o f N ew Jersey, stock of, owned b y _ . 513 et seq.
Public utility companies:
Directors of, as partners o f _______________________________________
906
Loans to, b y ___________________________________ 471 et seq., 478 et seq.
Unsecured________________ ____________________________________
478
Officers of, indebted t o _________________________________________ 394, 395
Securities of, owned b y ________________ 412, 413, 436 et seq., 513 et seq.
Securities of, sold by old firm of, to new firm created by adm is
sion o f partner_______________________________________________ 436, 437
Railroads, directors of, as partners o f _________________________________
905
Reorganization committees, represented o n __________________ 305-306; 1399
Stocks, issues and underwritings of, participated in, by_ 240 et seq., 264-269
Syndicate manager o f issue o f bonds defaulted in _____________________
304
Syndicates participated in b y _______________________________________ 269-287
Taxation o f: partners of, paid no incom e tax in 1931_________________
53
Underwritings and issues o f stocks and bonds participated in by_ 240 et seq.,
264-269
United Corporation:
326
Directors of, connected w ith ____ _________________________________
Form ation of, by_^._________________________ 310, 362, 373, 375, 408, 409
O ption warrants of, issued to__^__________________ ______________ 504
•
Preferred lists in connection w ith . _ 4 6 6 -4 6 7 ,4 7 1 ,5 3 1 -5 3 3 ,8 2 2 ,8 2 3 ,8 3 5
United Gas Im provem ent Co., loan of J. P. M organ & Co. to, par
478
ticipation in _________________________________________________________
Zimm erm an, loan to, b y _________________________________ _____________
394
D r e x e l M organ & C o .: M organ, J. P., & Co., predecessor o f ___________
7
D reyfus & C o .:
Bankers_________________________________________ ______________________
1012
Finders’ commission paid to, for “ finding” bon d issue o f M ortgage
Bank o f Chile for K uhn, Loeb & C o___________ 1012 et seq., 1126 et seq.
French bankers________________________________________________________
1012
Kuhn, Loeb & Co., finder’ s fee paid by, t o ___1012 et seq., 1018, 1126 et seq.
M ortgage Bank o f Chile, bon d issue of, “ fou nd” b y , for K uhn, Loeb
& Co. and finder’s commission paid for such services. _ 1012 et seq., 1018,
1126 e t seq,
D ugu id , C h a r l e s : The Stock Exchange, London, author o f ____________
7189
D u m a in e , F. C .:
First National Bank o f Boston, officer o f ___________ _________________
90
M organ, J. P., & Co., loan by, t o _____________________________________
90
6236
D u n c a n : Libbey-O w ens-Ford Glass C o __________________________ _________
D u n can , J. C ____________________________________________________ 6061-6065, 6614
W . E. H utton & C o., m em ber o f _ __________________________ 2478, 2510, 6061
D u n h a m : Bank holiday, M ichigan, opposition to b y ______________________
4742
D u nhill I n te r n a tio n a l _______________ ___________________________________
35
•Pools, August 1930, and investigation b y N ew Y ork A ttorney General- *267
D u n n , D a isy M .:
Anaconda Copper M ining Co. large pool of, M arch to M ay 1929,
participant in (see Anaconda Copper M ining Co., p ool, large, M arch to M ay 1929)____________________________________________________ *764-576
D u n nin gham , W alter G .:
Attorney for Dillon, Read & C o __________________________________ 1535, 1617
Dillon, Read & Co., attorney fo r __________________ _________ 1535, 1617
D u P ont C om pan ie s : M organ, J. P. & Co., connection w ith ___ 548, 852, 853
D u P ont C o .: General M otors C orporation; D u Pont Co., is largely a
'General M otors holding com pany, says John J. R a s k o b _ -_ t_______ *735
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
227
D u P ont D e N emours , E. I., & C o .:
Page
M organ, J. P. & C o.:
Bankers___________________________________________________________
548
Joint account of, trading by, in securities o f _____________________
548
D u P on t , P aul S .: Indian M otocycle Co., made deal to be turned over to
D u Pont in 1930_______________________________________________ *592, *594-595
D u r a b le G ood s (see also U nem ploym ent; Durable g o o d s):
Depression, effect of, on industries engaged in production of, great,
testifies Clarence D illon ________________________________________ 1543, 1544
Investment banks and bankers, function of, to finance long-term
credits for production of, testifies Clarence D illon _____________ 1538, 2109
Production of, fell off 65 percent during depressions, testifies Clarence
D illon ____________________________________________________________1543
Unem ploym ent:
Greatest am ount of, in industry engaged in production of, testifies
1543
Clarence D illon ________________________________________________
Solution for, by stimulation o f industry for, testifies Clarence
D illon__________________________________________________________
2110
D u ran t , D on a ld :
Testim ony o f ___________________________________________________ *1146 et seq.
Berning, doubts of, about Kreuger com m unicated t o _________ *1255 et seq.
Directorships of:
Kreuger & T oll C o ___________________ *1146, *1183, *1190, *1208, *1345
Lee, Higginson & Co_______________________________________ *1146, *1147
Swedish-American Investment C o ______________________________
*1147
Foreign security values, judge o f _____________________________________
*1148
Kreuger & T oll C o.:
Agreement of, through, to furnish inform ation to New Y ork Stock
Exchange______________________________________________________
*1317
D irector o f ___________________________ *1146, *1183, *1190, *1208, *1345
Directorship of, accepted by, to increase contact of Lee, Higgin
son & Co. with business__________ ____________________________
*1183
Listing application of, signed b y _______ ;________________________
*1334
Meetings of, never attended b y _____________ ____________________
*1317
Reports of and inform ation about, received by, from Berning in
personal capacity_____________________________ __________ *1256, *1257
Kreuger, Ivar:
Death of, reported t o ______________________________________ *1207, *1208
Friend o f___________________________________________ *1208, *1213, *1189
Lee, Higginson & Co., inform ed of death of, b y ___________ *1207, *1211
Lee, Higginson & C o.:
Associated with, for 24 years____________________________________
*1147
C ontact of, with Kreuger & T oll Co., attem pted to be increased
b y _____________________________________________________________
*1183
Director o f ___ 1____________________________________________ *1146, *1147
K reuger’s death reported to, b y ___________________________ *1207, *1211
Partner o f _____________________________________ -___________ *1147, *1224
Representation of Kreuger & Toll Co. and of, by, n ot embarassing
duality___________________________________ _____________________
*1191
Sole American director of Kreuger & T oll C o _________________________ *1190
Swedish American Investment C o.:
Connections with, severed because of com pany’s change of
functions, testifies D uran t__________________ __________________ *1147
D irector o f ________________________________________________________ *1147
Testim ony o f ___________________________________________________ *1146 et seq.
A ttorney’s names, use of, in advertising Kreuger & T oll debenture
issue in order to inform investor o f legal counsel________________ *1191
Bankers in Am erica are merchants of securities__________________ *1157
Banking principles consistent with marketing principles_________*1157
Bond and secured debenture com pared___________________________*1149
Death of Kreuger, knowledge of, not taken advantage of b y Lee,
Higginson & Co. b y way of sale of Kreuger & T oll securities __ *1207
Debenture, secured, compared with b on d ________________________ *1149
Definition of b on d ________________________________________________ *1149
228
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
D u r a n t , D onald — Continued
T estim ony of— Continued
D irectors:
Business, not under duty to run_________________ ____________
D u ty of, to watch m anagem ent______________________________
Management, watching of, duty o f---------------------------------------_
Meetings of directors, much can be accom plished outside of,
b y ------------------------------------- ----------------------------------------- -------M eetings of directors, should be attended by, whenever
possible____________________________________________________
Duties of trustee o f collateral securing Kreuger & T oll Co.
debentures______________________________________________________
Foreign bond speaks for itself; knowledge of foreign political con
ditions m ost im portant_________________________________________
Foreign political conditions, lack of knowledge o f________________
Foreign security operations, inexperience in ______________________
Foreign security values, judge o f --------------------------------------------------Hungarian bonds substituted for French bonds securing Kreuger
& Toll bonds were deemed and were good at tim e o f substi
tu tion ___________________________________ _______________________
Investors:
Adequately safeguarded in m atter o f substitution o f col
lateral security________________________ , __________ ________
Directorship of D urant in Kreuger & T oll Co. n ot an in
fluence o n __________________________________________________
European investors had no advantage over Americans
through m ost of sales in United States o f M arch 1932 were
for foreign a ccou n ts._____________________________________
European investors not necessarily acting on inform ation of
Kreuger’s death though they sold heavily in M arch 1932__
Kreuger’s death, notification of, to, not his d u ty .___________
Kreuger & T oll C o.:
Books of, audited according to Swedish customs and law ;
i. e., b y shareholders, not directors.____________ __________
Bonds of, were self-liquidating debt because o f provisions for
collateral security______________________________ ____ *1163,
D irectors’ meetings of, none attended by, till after K reuger’s
death though had been director for 3 y e a r s ._ _____________
Representation o f Lee, Higginson & Co. and of, b y not an
embarrassing duality_________________________ .____________
Kreuger, Ivar:
Death o f :
American public not inform ed of, for a tim e because not
yet official______________________________________*1206,
Concealm ent of, from public hoped fol1b y _________ _____
D uty to inform American public of, not his d u ty _______
Lee Higginson & Co. did not take ad va n tag e'of know
ledge of, by w ay of sale o f Kreuger & T oll securities. _
Public, concealm ent from , of, hoped for b y _____________
Financial difficulties of, unknown t o _________________________
Financial responsibility of, not questioned__________ ________
M arketing principles, banking principles consistent w ith.._______
Name held out to public as director o f Kreuger & T oll Co.,
unaware th a t________ _______________________________________ ___
Representation o f Kreuger & T oll Co. and Lee, Higginson & Co.
not an embarrassing duality______________ _____________________
' Swedish American Investm ent Co., connections with, severed
because of com pany’s change o f functions_____________________
Trustee o f collateral securing Kreuger & T oll debentures, duties
o f ___________________________________________________ ____________
Value, difference in, between French bonds securing Kreuger &
Toll debentures and securities substituted therefor impossible
to estimate because substituted securities not listed and be
cause of Hungarian transfer problem __________________________
Page
*1190
*1190
*1190
*1184
*1190
*1169
*1148
*1148
*1148
*1148
*1169
*1171
*1191
*1219
*1219
*1210
*1219
*1164
*1182
*1191
*1207
*1212
*1210
*1207
*1212
*1189
*1190
*1157
*1190
*1191
*1147
*1169
*1169
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
229
D u ran t , W . C., trader:
Page
Anaconda Copper M ining Co. large pool of, M arch to M ay 1929,
participant in (see Anaconda Copper Mining Co., pool, large, March
to M ay 1929)_______________________________________________________
*765
Radio Corporation of America pool (1929), participant in (see Radio
Corporation of America, p o o l)______________________________________
*469
D urium P roducts C o rporation :
Lamont, T. S., sale by, of stock of, consideration fo r__________ 781 et seq.
Stock of, not listed____________________________________________________
785
D utch K reuger & T o l l : Kreuger, frauds of, handled largely through,
testifies M ay_______________________________ _____________________________ *1269
D w igh t , R obinson & C o.: Cuban loans, to be handled by institute, bid
for________________________________________________________________________ 2582
D w y e r , H. B .: Options granted by, in International Salt Co. stock to
Oscar C. Seabass and then assigned to Charles C. W right___ 6127-6129, 6158
D ye r , H udson & C o .: Raskob (John J.), brokers fo r _____________________ *719
E a r n in g s :
Public utility companies, o f_________________________________ 499 et seq., 505
Stocks, value of, determinable by power of, testifies Lindley_________ *1396
United Corporation, o f ______________________________________ 499 et seq., 505
Value of stocks determinable by power of, testifies Lindley__________ *1396
E ast T ennessee L ight & P ow er C o .: Cities Service Power & Light Co.
is parent o f ______________________________________________________________
6312
E astern M anufacturing C o.: Chase National Bank loan to, officials
or trustees of interested in _______________________________________________
2914
6312
E astern Shore G as & E lectric C o __________________________________ _
E astern T rust C o.:
Dillon, R ead & C o.:
Control by, over__________________________________________________
1966
Profits of sale of Brazilian bonds, part of, taken by, in name of,
to avoid excess-profits tax in higher brackets being assessed
against it_____________________________________ _________________
1966
Subsidiary of Dillon, Read & C o ______________________________________
1978
E astm an , D illon & C o.:
Accounts with:
Closed after Kreuger’s death_____________________________ *1375 et seq.
Edison Securities Corporation, of:
Closed o u t____________________________________________ *1377 et seq.
Short sales of Kreuger & Toll stock__________________ *1374 et seq.
Jordahl, of, as agent of Ivar K reuger_____________________ *1374 et seq.
Kreuger, Ivar, of:
Additional stock of Kreuger & T oll kept available in New
Y ork _________________________________________________ *1369, 1370
Agreement between Lee, Higginson & Co. and Eastman,
Dillon & Co. arranged by Kreuger____________ *1370, 1373, 1385
Closed after Kreuger’s death____________*1375 et seq, 1378 et seq.
Commissions of Eastman, Dillon & C o________________'_____ *1369
Death of Kreuger not provided for____________________ i ____ *1369
Guaranty of minimum operations___________________________ *1369
Investigation of, by New Y ork Stock E xch ange.*1373 et seq.,*1385
Jordahl, represented b y _______________________________ *1374 et seq.
Kreuger & T oll stock, additional, kept available in New
Y ork _________________________________________________ *1369, 1370
Kreuger & T oll stock deposited with discretion in Eastman
Dillon & Co. when Kreuger unavailable____________ *1369, 1371
Loan of Kreuger & Toll stock for short selling, exclusive rights
in United States in Eastman, Dillon & C o __________ *1370, 1371
Market stabilization sought to prevent erratic fluctuations of
Kreuger & T oll stock, testifies Siler_______________________ *1369
New Y ork Stock Exchange, investigation by, o f . *1373 et seq., 1385
Options on stock given to Eastman, Dillon & C o . *1369, 1372, 1385
Represented by Jordahl & W heeler_______ __________ *1374 et seq.
Short sales b y __________________________________ *1368 et seq., 1385
Stock options given to Eastman, Dillon & C o ___*1369, 1372, 1385
Unexercised_____________________________________________ *1369
Wheeler, represented b y ______________________________*1374 et seq.
230
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
E astm an , D illon & C o .— Continued
• Accounts with— Continued
Liberty H olding Corporation, of:
Pase
Closed ou t_____________ ______________________________________ *1377;
Relatively inactive till after Kreuger’s death________________ *1377
Short sales o f Kreuger & T oll stock __________________________ *1377
New Y ork Stock Exchange, auditing division of, report of,
on _____________________________________ _________________________ *1375
Numbered, not nam ed___________________________ _ _________ *1374, 1386
Operated on own account in Kreuger & T oll stock _______ *1374 et seq.
Short sales of Kreuger & Toll s t o c k .._____________________ *1375 et seq.
Wheeler, W . E., o f: as agent of K r e u g e r .._______________ *1374 et seq.
Auditors’ report on, to business conduct com m ittee of New Y ork
Stock Exchange_____________________________________________________ *1391
Bankers_________________________________________ - _ *2278 et seq., 2288 et seq.
Banking functions exercised b y __________________________________ *1385, 1392
Borrowing for short position in open market customary, testifies
Siler___________________________________________________________ *1378, 1381
Brokerage house__________________________________________ *1366, 1385; *994
Brokers acting for:
W eiley of Proctor C ook & C o _____________________________________ *1381
Bliss o f Gilchrist & Bliss---------------- ------ ----------------------------- *1381 et seq.
Chase National Bank trading account managed b y D om inick & D om
inick in shares of, participant in ---- ------------------ -------------------------------2451
Claim of, against Kreuger estate______________________________________ *1384
Clients of:
Accounts of, in Kreuger securities sm all____________________,-------- *1377
Short sales of Eastman, Dillon & Co. o f no effect on testifies Siler. *1377
Commissions o f ________ ____________________________________*1368, 1369, 1384
Discretion of, in Kreuger account_____________________________________ *1369
Edison Securities Corporation:
A ccount of, w ith________________________________________ *1374 et seq..
Subsidiary of Eastman, Dillon & C o ______ ,________________ *1374 et seq.
Underwriting comm itm ents taken through, b y ___________________*1375
Guaranty by o f minimum operations in account of K reuger__________ *1369
Investigation of. by N. Y . Stock Exchange--------------•____ *1373 et seq., 1385
1392
Investm ent banker__________________________________________________ _
Joint accounts with. (See under Eastman, Dillon & C o .; Accounts with.)
Jordahl (agent of Ivar Kreuger) account of, w ith ____________ _ *1374 et seq.
Kreuger, account of, with. (See under Eastman D illon & C o.;
Accounts of;- Kreuger, Ivar; A ccount of, with Eastman Dillon &
Co.)
Kreuger & T oll stock. (See also Kreuger & T oll C o.;,S tock o f; East
man, Dillon & Co.)
Closed out after Kreuger’s death_____ ________________ . . . *1376 et seq_
Collateral given b y Kreuger to Eastman, D illon & Co. to secure
loan; perm itted to be used to cover short sales_________ *1378 et seq.
In vault of Eastman, Dillon & C o.; n ot used to cover short sales. *1382
Options for, given t o __ _______________________________ *1369, 1372, 1385
Purchases and sales of, ordered b y _____________ ___________ *1381, 1382
Short sales of stock o f . : ------------------------------------------------------ *1375 et seq .
Kreuger, Ivar:
A ccount of, with. (See under Eastman, Dillon & C o.; Accounts
with; Kreuger, Ivar, with.)
Loan to, by. (See under Eastman, Dillon & Co., Loan by, to
Kreuger.)
Short sales approved b y ____________________________ : _______ *1376, 1386
Lee, Higginson & Co., agreement w ith .__________________ *1370, 1373, 1385
Liberty H olding Corporation:
A ccount of, w ith _________________________________________________
*1377
Subsidiary o f Eastman, Dillon & C o ______ i _______________ *1375, 1377
Loan by, to Kreuger---------------------- *1367 et seq., 1376 et seq., *1390 et seq.
Agreem ent o f loan unusual, testifies Lindley_______________ *1390, 1392
Collateral, additional, demanded of Kreuger estate, on penalty
of maturing debt and liquidating collateral______ *1378 et seq., 1385
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
231
E astm an , D illon & C o.— Continued
Loan by, to K reuger— Continued
Pa^e
Collateral for; Kreuger & T oll stock__ *1376 et seq., 1368 et seq., 1371
Liquidation of, at early date saved Eastman, D illon & Co.
considerable m on ey_______________________________________ *1385
Privilege of Eastman, Dillon & Co. to use for short posi
tion ________________________________________________ *1378 et seq.
Sold out after Kreuger’s death_________ *1376 et seq., 1381 et seq.
Free and open market in stock in loan crowd not restricted by
loan agreement, testifies Siler__________________________________
1393
Interest on, included additional commission charge, testifies Siler. *1368
New Y ork Stock Exchange rules not violated by loan agreement. *1392
Solvency of Eastman, Dillon & Co. could not be impaired by loan
agreement, testifies L indley____________________________________ *1393
Loan to, o f Kreuger & Toll stock for short selling, exclusive right in
United States____________________________________ *1370 et seq., 1373, 1385
Ineffective for Kreuger & Toll stock available from other sources. *1370
Manipulation o f market, states M arrinan____________________________ *1385
Marginal account of K reuger---------------------------------------------------------------- *1368
M arket:
Freedom of, in Kreuger & Toll stock not restricted in agreement
of loan to Kreuger_____________________________________________ *1393
M anipulation of, b y ______________________________________________ *1385
Short sales of Kreuger & T oll stock has no effect on, testifies
Siler____________________________________________________________ *1377
Stabilization of, sought to prevent erratic fluctuations of Kreuger
& T oll stock, testifies Siler_____________________________________ *1369
National City C o.:
Disagreement with, with reference to financing of Oliver Farm
Equipment C o ____________________________ *2287 et seq., 2296 et seq.
Financing by, of form ation of Oliver Farm Equipment Co., par
ticipation in, given t o ____________________ *2278 et seq., 2288 et seq.
Oliver Farm Equipment Co., financing Of, by, participation in,
given to Eastman, Dillon & C o___________ *2278 et seq., 2288 et seq.
New Y ork Stock Exchange:
Accounting division of, report of, on accounts in_________________ *1375
Investigation by, o f ___________________________ *1373 et seq., 1385, 1391
Members o f_______________________________________________________ *1390
Rules of, not violated by agreement of Eastman, Dillon & Co.
with K reuger___________________________________________________ *1392
Oliver Farm Equipm ent Co., financing of form ation of, by National
City C o.; participation in, given t o ___________ *2278 et seq., 2288 et seq.
Operations of, virtually banking business, states J. M arrinan________ *1385
Options held by, in stock of Kreuger & T oll C o __________ *1369, 1372, 1385
Partners of:
Bent, M aurice____________________________________________________ *1367
Siler, G ___________________________________________. . . . _____________ *1367
Sales and purchases made by Bliss not wash sales, testifies Siler_____ *1384
Short sales:_______________________________________________ *1377 et seq., 1381
Approved by K reuger______________________________________ *1376, 1386
Borrowing for, customarily done in open market, testifies Siler__ *1378,
1381
Clients of Eastman, Dillon & Co. not affected b y short sales of
Kreuger & T oll stock, testifies Siler______________________ '_____ *1377
Kreuger & T oll stock, o f __________________________________ *1375 et seq.
M arket for Kreuger & T oll stock not affected by short sales of
Kreuger & T oll stock, testifies Siler____________________________ *1377
Privilege to use Kreuger & Toll stock given by Kreuger as col
lateral for loan__________________________________________ *1378 et seq.
Sinclair Consolidated Oil Corporation pool and syndicate’s (1928)
brokers, E. F. H utton & Co., em ployed Eastm an-Dillon for
clearance for some of their orders (see Sinclair Consolidated Oil
Corporation; P ool and syn dicate)--------------------------------------------3250
Solvency of, could not be impaired by loan agreement testifies L in dley. *1393
Stock brokerage house_________________________________________ *1366, *1385
Stock commitments of, taken in name of Edison Securities Corpora
tion __________________________________________________________________ *1375
232
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
E a s t m a n , D i l l o n & C o .— Continued
Subsidiaries of:
Page
Edison Securities Corporation_____________________________ *1374 et seq.
Liberty H olding Corporation_______________________________ *1375, 1377
Underwriting comm itm ents in securities taken through Edison Se
curities Corporation_________________________________________________ *1375
Underwriting house________________________ - __________________________ *1375
Wash sales made b y ___________________________________________ *1383 et seq.
E a s t m a n , J o s e p h B .: Louisiana & Arkansas Railway Co., dissent in part
from decision of Interstate Com merce Com mission on opinion o f on
consolidation-__ ____________________________________________________ 4147-4148
E a s t m a n K o d a k C o.; Fox, loaned m oney to, to prevent raid on Loew
stock _________________________ ____________________________________________
3716
E a t o n , C y r u s S .:
Continental Shares (I n c .):
D irector o f ________________________________________________________
*901
Was controlled by Eaton, says D avid Stock (see Continental
Shares (In c .))__________________________________ ________________
*901
D irectors were dum m y directors put in office and maintained b y >
E aton; indicated by facts that not once in the 5 years o f the
com pany’ s operations did any director object to action b y the
com pany, and that although said directors subscribed to large
amounts of Continental stock, they never paid for the stock
but those shares were taken b y Eaton in his own name and
voted b y him, says D avid Stock____ _ _,_________ *902, *906, 907, 933
Was so handled by Eaton and his associates as to further the
personal ventures of Eaton and his associates, says D avid Stock
*901
(see Continental Shares (I n c .))_____ ___________________________
Founders’ shares were taken b y the founders of the com pany,
Eaton and his associates, which shares were to receive dividends
of 25 percent o f all profits only after the cum ulative dividend of
$1 was paid on the com m on stock; yet in 1929 in order to make
such cash dividends to founders’ shares, a stock dividend was
paid on the com m on stock, which was in direct violation of
com pany’s charter and laws o f M aryland, State of incorpora
tion, £ays D avid Stock (see Continental Shares (I n c .)) _____ *901-902r
*903-904, 924-925
Obtained a loan at various banks, putting up the collateral so
that the proceeds could be used to pay off obligations of Otis
& Co., Eaton and Foreign Utilities, E aton ’s personal holding
com pany, says D avid Stock (see Continental Shares (I n c .))___*903,
*911-927, 930-935, *951-953, 963-977
Financed and furthered Eaton’s personally sponsored and con
trolled syndicates in rubber, steel and utilities, by buying
shares in those syndicates or b y loaning m oney to the syndi
cates or by guaranteeing or indorsing the notes o f the syndi
cates, or by putting up collateral for loans to the syndicates,
says D avid Stock (see Continental Shares (I n c .))____________ _ *902,.
*905-906, 928-930, 932, *957-958, 977
M ade personal loans to Eaton and his w holly ow ned com pany
Industrial Shares (In c.), says George L. G ugle____________ ___
*932
M oney was used to purchase large amounts o f Y oungstow n sto<jk
to obtain control of Youngstow n and block the Y oungstow nBethlehem merger which Eaton wanted to, and did, prevent
and then Continental and its subsidiary were charged with the
entire cost o f the litigation incident thereto, says D avid Stock
(see Continental Shares (I n c .)) _________________________________
*903
Financial statements were altered at Eaton’ s direction, to conceal
items from the public, in order to maintain the confidence of
the public, says D avid Stock (see Continental Shares (I n c .))____ *902,
909-910
Eaton subpenaed in connection with Continental Shares (Inc.)
but failed to a p p e a r ,. *873-874, *899-900, 901, 958-960, 974, 977-978,
D aley (W illiam A .), attorney fo r __________________________ ________ *958-959
Foreign Utilities, a Canadian com pany, was E aton’s personal trading
and holding com pany, says D avid Stock _______ *899, *902, *906-908, 973
Incom e-tax evasion am ounting to over $2,000,000 m ay have been
accomplished b y Eaton in connection with sale of securities to
Continental Shares (In c.), says D avid S tock ____ *919-923, *926, 930-933
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
233
E a to n , C yrus S.— Continued
Page
Industrial Shares (Inc.) wholly owned corporation o f Eaton, says
George L. Gugle--------------------------------------------------------------------------------- *932
Otis & Co., principal partner o f (40 percen t)___________ *901, *955-956, 963
*955
Otis & Co., member of executive committee o f _______________________
Subpenaed to hearings but failed to appear___________________________ *873874, *899-900, 901, 958-960, *974, 977-978
E aton I n te r e sts :
Guardian Trust Co. of Cleveland:
Loans by ($5,343,055.19) t o _____ _ 7984 et seq., 8017 et seq., 8054 et seq.
Loans to, by Guardian Trust Co. of Cleveland_____________ 8054 et seq.
E aton M anufacturing C o.: W right (Charles C.), specialist in_ 6074, 6075, 6079
E berstad t , F e r d in a n d : Formerly m em ber of Otis
Co__ *909,951,962-963
Testifies:
,
(Continental Shares (In c.), and Cyrus S. E a to n )_____________*962-977
Dillon, Read & Co., director o f_______________________________________ *1151
D irector of Dillon, Read & C o ____________ ________________________ *1151
F. Eberstadt & Co. (Inc.), now connected w ith_______________________ *962
E berstadt , F. (In c.), banking, Eberstadt (Ferdinand), now connected
w ith ______________________________________________________________________
*962
E c ker , F rederick H .:
American Express Bank & Trust Co. shares allotted t o _____________
2332
Chase National Bank, director of, expert in real estate, Lincoln
Building financing disapproved of by member of committee, which
entered into agreement with Shermar______________________________
3875
4183
Dillon, Read & Co. investment trusts, member of board of one o f___
Dillon, Read & Co., receipt from , of stock of United States & Foreign
Securities C orporation____________________ __________________________
1576
M etropolitan Life Insurance Co., president o f ____________________ 192, 1579
M etropolitan Life Insurance C o _______________________________________ 2311
M organ, J. P. & Co., preferred list of, member o f____________________
192
St. Louis & San Francisco Railroad Co., member of board o f_________ 4183
United States & Foreign Securities Corporation:
D irector o f ___________________________________________________ 1576, 1577
Preferred stock, junior, of: 500 shares of, received by, with 2,500
of com m on stock from Dillon, Read & Co. at cost to Dillon,
Read & C o ___________ __________________________________________ 1576
Wiggin, assisted by in securing retirement salary. 2304, 2305, 2406, 2311, 2312
Pension discussed with before meeting introduced resolution
fo r ___________________________________________________ 2306,2311,3875
Suggested W iggin’s withdrawal during discussion________________ 2304
E c k e r t , E dw in J. (see Peoples Wayne County Bank, E ck ert):
First W ayne National Bank, loans to, unsatisfactory condition of,
director of vice president____________________________________________
5640
Trustee with Bodde for Peoples W ayne County Bank_ 5668, 5671, 5672-5673
Wise Chrome Products Co., mortgage, Sweeny and Bodde familiar
with according t o ___________________________________________________
5229
E cuador , B onds o f :
D efault in interest_____________________________________________________ *1321
Interest on, default in_________________________________________________ *1321
Kreuger & T oll debentures, substituted as collateral security fo r____ *1321
E dison S ecurities C or poration :
A ccount of, with Eastman, Dillon & C o_______________________ *1374 et seq.
^
Closed ou t_________________________ _________________ .l____________*1377
Short sales of Kreuger & T oll stock __________________ *1375, 1376, 1377
Eastman, Dillon & C o.:
A ccount with, in Kreuger & T oll stock________ __________ *1374 et seq.
Subsidiary o f________________________________________________ *1374, 1376
Underwriting commitments in securities taken by, through_____ *1375
Stock commitments of Eastman, Dillon & Co. taken in name o f ____ *1375
Subsidiary of Eastman, Dillon & C o ____________________________ *1374, 1376
Underwriting commitments in securities taken by Eastman, Dillon &
Co. through_________________________________________________________ *1375
E d d y , M rs . O l iv e : Radio Corporation of America pool (1929), participant
in (see Radio Corporation o f America, p o o l)_____________________________ *468
E ddy , W illiam H .: Chase Securities Corporation, vice president o f_____
2770
234
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
E den born , Sa r a h :
Page
Louisiana & Arkansas Railw ay Co. syndicate got in tight place and
proceeded to take advantage o f M cCain denied_______________4146-4147
Situation of, explained b y M cC ain ____________ ________________________ 4147
E dge L a w :
Clayton Act, corporation comes under section 8a o f if organized under, 4040
Corporation engaged in foreign contracts, designed fo r _______________
4041
E d g e r to n , A u g u s ta (wife of partner o f M elady & C o .): American C om
mercial Alcohol Corporation pool maintained b y R u loff E. Cutten, par
ticipant in (see American Com m ercial Alcohol Corporation, pools— Op
tions by directors and officers to C u tten )_____________________ 5894, 5905-5907
6210
E dgerton , M cK e n n e y ____________________________________________________
E dmands , I. R .: Com munication re Securities Exchange A ct o f 1934, sug
gested margin regulation am endm ents.__________________________________
5987
E dmondson , R ic h a r d :
Plummer (A. New ton), publicity man, retained b y —
Chase Securities Corporation to write material concerning Pure
Oil stock, apparently paid Edm ondson, then with the W all
Street Journal, $468 to publish this, says F. H. LaG iiardia. *452-453,
454-456
Jackson Bros. & Boesel to write material concerning Savage Arms
Corporation stock, apparently paid Edm ondson, then with the
W all Street Journal, $268 to publish this, says F. H. LaGuardia____________________________________________ *445-452, 453-454
E d w ards , A llen F.:
First W ayne National Bank, director o f ______________,________________
5640
Loan to, unsatisfactory condition o f reported____________________ :____
5640
5641
Liquidation, none afterw ard_________ _________________________________
E d w ard s , C has . G .:
Lincoln Forty-second Street Corporation, Bondholders Com m ittee,
m em ber o f__________________ .______________________ _________________
4086
4090
N ot representing institution originating securities o f _____________
Real-estate m an_______________^_______________________________________
4086
E dw ards , J. R .: Com m unications re Securities Exchange A ct o f 1934
7247,
7258, 7260, 7263
E gginton , H e r s e y :
American Com mercial A lcohol Corporation, legality o f additional
issue o f stock, M ay and June 1933 investigated b y (see American
Com mercial Alcohol Corporation, pools— Options b y directors and
officers to Thom as E. B ragg)___________________________________ 5958-5960
American Commercial Alcohol Corporation, legality o f proposed
additional issue o f stock, July 19, 1933, investigated b y (see American
Commercial Alcohol Corporation, pools— Additional issue o f stock
(abandoned), July 19, 1933)________________________ 6190-6191, 6216-6217
Larkin, Rathbone & Perry, member o f _______________________ '___ 5958, 6190
E g ly , H arry H .: Dillon, Read & Co., vice president o f___________________
1536
1874 E ast E ighteenth St r ee t C o . :
Balance sheet o f_______________________________ ____ ___________________ 8630
Guardian Trust Co. o f Cleveland, subsidiary o f__________________ 8596, 8630
H istorv o f ______ _______________________________________________________
8630
Land D evelopm ent & Realization Co., subsidiary o f _________ r__ 8596, 8630
E ighteenth A m e n dm en t : D etroit & Canada Tunnel Co. repeal m ight
affect_____________________________________________________________________
3932
E ise l e , J ohn C .: Partner in Eisele & K ing________________________________ ^ 9 5
E isele & K in g ; brokerage:
F ox Film Corporation pool operated b y Taylor, Thorne & Co.
(1927-28), participant in (see Fox, Fox Film Corporation, p o o ls )__ *10061007
F ox Film Corporation p ool operated b y Taylor, Thorne & Co.
(1927-28); William Fox participated through name o f Eisele &
King in, says W m. A. G ray_________________ ___________________*982, 1017
(See Fox, Fox Film Corporation, pools)______________ *1020-1021, 1024
F ox Theaters stock distributed in 1925 b y _________________________*979-980
(See Fox, F ox Theaters)__________________________ *995-1000, 1031-1032
Partners are John C. Eisele and Nathaniel K in g ______________________
*995
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
235
E lectric A uto -L ite C o .:
Page
Joint account (M arch-April 1931)__________ *502, *521, *522-523, *750-756
Am ount of shares dealt in totaled 92,800 on each side----------------*755
M . J. Meehan & Co. were brokers and had absolute discretion in
handling the transaction___________________ *522, *751, *753, 755-756
M inniger (C. O.), president of Electric Auto-Lite Co., granted
option for 75,000 shares to Joseph E. Higgins and Bradford
Ellsworth, with which pool began__________________________ *750-751
Participants were Joseph Edward Higgins, and Bradford Ells
w orth ___________________ ______________ *522, *750-751, *753, 755-756
Profits am ounted to $35,500, o f which $7,102.44 went to Collins,
N orton Co. for arranging for option from C. O. Minniger and
$3,551.22 to Stewart M cN air for the same reason. *522-523, *753-754
Trading consisted entirely of short-sales from M arch 10 to April
27 to extent o f 94,000 shares against an op tion ; option entirely
abandoned since price dropped from 70% on M arch 10 to 52%
on April 7, thus allowing account to cov er_________________ *522-523
Transactions began with option obtained from C. O. Minniger,
president of Electric A uto-Lite Co., by Joseph E. Higgins
and Bradford Ellsworth; short sales made against options; and
when prices dropped despite attem pt by pool to help the
market up, the short sales were covered in the market and the
option was not exercised__________________________ *750-753, 754-755
B y selling short against options, the pool was in position
that if stock went up, pool could exercise option and sell
at a price higher than that which p ool paid, whereas if stock
went down, pool could cover in the market and not exercise
op tion ______________________________________________________ *751
E lectric B ond & S hare C o.:
American & Foreign Power Co., Inc., is subsidiary o f ________________ 6323
Am erican-Foreign Power Co., stock of, owned b y _____________________
469
Call loans made b y the com pany to brokers indirectly through banks
in 1929___________________________________ i ________ _______ 6323-6331, 7603
American & Foreign Power Co., Inc., loans included am ong these
loans------------------------------------------------------------------------------------- 6329, 6362
American & Foreign Power Co., Inc., itself made loans. (See
American & Foreign Power Co., Inc., Call loans made by.)
Am ount o f loans $867,295,000-------------------------------------- 6324, 6327-6328
Am ount outstanding daily averaged $100,727,010_________ 6324, 6327
Am ount outstanding largest August 27, 1929, $187,900,000. _ 6324, 6327
Am ount in 1929 greatest because of attractive interest rates,
perhaps due to very active speculation, savs C. E. G roesb eck .. 63256326
Am ount reduced considerably after “ crash” of October 1929
because of drop in interest rates_____ ___________________________
6326
Banks through whom loans were m ade: Bankers Trust Co.,
Central H anover, Chase National Bank, Chemical Bank &
Trust Co., Guaranty Trust Co., Irving Trust Co., National
City Bank______________________________________________________
6323
Call loans made for about 3 years prior to 1929_________________
6325
Call loans were made in 1930 but in very much decreased am oun t. 6326
Call loans 1931-33_________________________________________________ 6326
Interest rates 5 to 15 percent in 1929___________ ____________ 6324-6326
Interest rates after 1930 were 2 percen t_____________________ 6326-6327
Interest received by the com pany___________________________ 6324-6325
Losses were not suffered on any loans____________________________
6331
Num ber of loans, 1,633_________ _____________________________ 6323, 6327
Sources of funds were sale o f com pany’s securities and subsidiary’s
sale of securities and earnings_____________________________ 6330-6331
Tim e of average loan_____________________________________________
6327
Control of:
M organ, J. P. & Co., b y . . ________________ ________________________
394
United Corporation, b y ___________________________________________
394
Directors o f____________________________________________________________
327
Dividends continued on preferred stock, but discontinued on com m on
(as of February 23, 1934)___________________________________________
6331
286 '
INDEX TO HEARINGS ON STOCK EXCH ANGE PRACTICES
E lectric B ond & S h are C o.— C ontinued
D ividends on preferred stock cut or eliminated b y m any subsidiaries
(as of February 23, 1934)------------- --------------------------------------------__'----6331
Groesbeck (Ci E.) chairman o f board o f _ _ ____ ___________________6322-6323
Listed on New York Curb Exchange______ ____ ___________ ______ 6328-6329
Morgan, J. P. & C o.:
Control b y ______________ ________________ ___ _____________________
394
Preferred lists of, in connection with Standard Brands, Inc.,
mem ber o f _____________________ _ _ ______________ ^___________ 395, 396
Officers of, not indebted to J. P. M organ & Co _ _ _ ____________________
394
6323
Organized 1905________ _______________________________________________
Par value of com m on stock _______________________'_____ ^_____________ 6329
, Public utility holding com pany___________!____________________________ 6323
Standard Brands Inc., interests in, o f_____________ ________________ _ 395, 396
Stock (com m on) outstanding in 1929_______________ ________ _________
6328
Stock in name o f brokers, am ount of and num ber o f brokers holding
(June 18, 1929)_______________________________ _________________ 6328
Stock of, owned b y United Corporation______________ 317, 319, 363, 394, 469
6328
Transfers of stock 1929, am ount o f ________ ___________________________
United Corporation:
Control b y __________ _____________________________________________
394
Interests of, in ___________________________________ 317, 319,'363, 394, 469
Unlisted trading privileges on New Y ork Curb Exchange________ ____
6497
W rote up investm ent in American & Foreign Pow er Corporation to
extent of $399,000,000 in M arch 1929 creating surplus; subse
quently written down even beyond that sum b y a charge against
surplus, says R obert E. H ealy_____________________ 7603, 7605-7606, 7607
E l e c t r ic .I nvestors C o .: United Corporation, option warrants of,
issued t o _________________________________ _____ ____________________ 504 e t ’seq.
E lectric at, R esearch C o r po r a tio n : Sound equipm ent, large am ount o f
^old to film industry______ ._______ ______________________ ,.____ _____ _
2558
E l e c tr ic ity :
Energy in eastern United States furnished b y companies in which
United Corporation has an interest, percentage and proportion
o f __________ _________________________________ _____ - - - - - 319-320, 321, 322
Insull companies interested in ________ ____________________________ i__
1434
O utput in eastern United States furnished b y com p a n ies'in which
United Corporation has interest, percentage and proportion o f _ i _ _
319,
320, 321, 322
Population served b y companies in which United Corporation has an
320, 321, 322, 323
interest, proportion o f__________________________ ____ _
Revenue, gross, o f utility companies in which United Corporation has
interest, proportion o f______________ ________ __________________ 320,32 1,32 2
United Corporation, interest of, in _________________ ______________ 319 et seq.
E lk in s , W illiam M .: Pennroad Corporation, director o f ______________ __ 1336
E llis , G eorge A., J r ., M em ber of E .’ F. H utton & C o_____________ _
2510
E llsw o rth , B rad ford , j ___ ________________________:____ _____________ 6127-6128
Testifies (W illiam F ox and the F ox corporations) _ ____ ^___ ____ *1052-1071
Electric A uto-Lite join t account, participant in (M arch and April
1931) (see Electric Auto-Lite, joint account (1 9 3 1 ))____________ *522, 753
F ox Film Corporation pool operated b y Taylor, Thorne & Co. (192T8)
gave Ellsworth a put on 5,000 shares resulting in benefit to Elisworth (see Fox, Fox Film Corporation, p o o l s ) - *1018-1020, 1069-1071
Fox Theaters Corporation short sale pools (1929) participated in (see
Fox, Fox Theaters Corporation, short sale p o o ls )___ _
*983, J984, 1053
R adio Corporation of America, po.ol (1929), a nominal m a n a g er‘o f
i
and participant in (see R adio Corporation o f America, p o o l) ___*466, 468
E m a n u el , V ic t o r : Chase bank clerk in W iggin’s office______________
2991
E m b r e e , W illiam D e a n : Of M ilbank, Tweed, H ope & W ebb, counsel
to The Chase National Bank and The Chase C orporation ____ 2475-2534,
3217-3376
E merson , G u y :
Chase National Bank does not represent, Aldrich says____________ _
4022
»
Official opposed to provisions o f Banking A ct o f 1933__________ _ _ . >4022
E m m ert , J ohn H .:
I First W ayne N ational Bank:
D irector o f _______ ________________________________________________
5641
Loan to, unsatisfactory condition of, reported___________________
5641
Stock assessment against______________________________________________
5641
INDEX TO HEARINGS ON STOCK EXCHANGE PRACTICES
237
Empire D istr ic t E le c tr ic C o.: Cities Service Power & Light Co. is
6311
parent of_________________________________________________________________
E mpire T rust Co.:
Dillon, Read & Co., members of, as directors of---------------------------------- 2103
Radio-Keith-Orpheum Corporation made call loans in 1929 through__ 6386
E nos C oal M ining C o .:
Assets of___________________________________________ 8501 et seq.; 8509 et seq.
Balance sheet of_________________________________________________ 8504 et seq.
Condition of_______________________________________ 8501 et seq.; 8509 et seq.
Credit data________________________________________ 8501 et seq.; 8509 et seq.
Examination of books of, by Ernst & Ernst-------------- ---------------- 8503 et seq.
Guardian Trust Co. of Cleveland, loans by, to ------------------------------------ 8050,
8052 et seq.; 8501 et seq.; 8509 et seq.
Liabilities of_______________________________________ 8501 et seq.; 8509 et seq.
Salaries of officers, excessive___________________________________________ 8509
E nos, G eorge A .:
Enos Coal Mining Co., president of--------------------------------- ---------- 8050 et seq.
Guardian Trust Co. of Cleveland, loans by, to ________________ 8050 et seq.;
19-8499 et seq., 8505
Officer of: Enos Coal Sales Co., George A. Enos Coal Co., McConnell
Coal Co., Salineville Coal Mining Co., Tabor Coal Co., Underhill
Coal Mining Co------------------------------------------------------------------------------ 19-8506
E nos I nterests : Guardian Trust Co. of Cleveland, loans by, to . 18-8022 et seq.
34
E n d in e,------- : Morgan & Co., Paris, partner of___________________________
Engelau, Iv a r: Kreuger & Toll Co., attorney in Stockholm for. *1195,1196,1241
Engholm, E. C .: Detroit & Canada Tunnel Co., agreement for purchase
of real estate fixed payment to __________________________________________
3954
E ngland :
Balance sheets, fees for underwriting and commissions included in___*1324
Circular of Lee, Higginson & Co. dated January 1932 advertising
Kreuger & Toll debentures, violation of Companies Act, testifies
Winkler____________________________________________ _____ __________ *1323
@FedFRASER