Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-12-17
Frederick LewiSohn Declines to
Answer Questions Asked by
Untermyer in Money Trust
Investigation.
MAY BE JAILED FOR
CONTEMPT OF COURT
California Petroleum Company
Flotation Through Syndicate
Leads to Close Inquiry by
Counsel for Congress,

(By Morning journal Special Leased wirc)
Washington. Dec, l6.---rhe refusal
today OF Frederick Lewisohn. Of the
New York banking firm OF Lewisohn
Brothers. to make a statement as to
the profit made by syndicate form
'ed to float the stock OF the California
Petroleum Company, forced an ad-
journment of the house money trust
committee. The committee adjourned
until tomorrow to allow Mr.. Levi
sohn to confer with his counsel. Mar
tin Vogel. as to answering the ques-
ton. Tonight, the witness conferred
with his counsel and hurried confer
ences We're held with his associates In
New York over long distance tele-
phone.
If Mr.. I.ewisohn declines to answer
the question when the committee
meets tomorrow. the committee has
the power to take the case to the
speaker OF the house. who may certify
the record to the district attorney for
the District of Columbia. 1t would
be his duty to take the matter before
the grand jury and ask for an indict-
ment for contempt of the house, which
is punishable by Imprisonment. The
disputed question was asked after
samuel Untermyer, counsel for the
committee, had led Mr. Lewischn
through long discussion OF the oper-
ations that preceded the listing of the
California Petroleum stock ON the
New York stock exchange In October.
Mr. Lewisohn said his firm, Will
liam Soloman a. Co, and Hall Garten
4 CO., had formed a syndicate to
huinli tile $t2,5o0.3 600 preferred ana
S15,0O0,00 common stock issued by
the California Company. He traced
the stock through two subsequent
syndicates with which he was connect
ed. by the last of which the stock
was opened to purchasing investors.
ON October ard, the stock was listed
on the New York stock exchange. and
Mr.. Lowisohn said he conducted mar
lSet quotations in the stock which rose
during the next month from So to
around 20.
Two of the syndIcates, Mr.. Levi
sohn asserted, sold lo,o0Q,O00 OF the
common stock and 100000 OF the pre-
ferred at 40 and 81 respectively. This
was out of 10,000.000 OF preferred
and the amount of common which
Mr.. Lewisohn did not remember but
which Mr.. untermyer suggested was
| 0, 900. .0b0 shares, sold to the original
syndicate for $10.000,0oo At this
point Mr.. untcrmycr tried to evolve
thai the remaining j,000.V00 shares OF
went to The syndicate as
profit
Mr. Lcwisohn said he could not re-
member the figures.
"Will you furnish the conn,ittee
statement Of your operations In this
stock in the stock market when, DUR
ing October, with 105,000,000 shares
listed 3G2.270 shares were traded IN
ana with statement OF the syndi-
Gates profit on the sale ot the stock ="
asked Mr.. rntermyer.
Il will not furnish statement or
the profit" said Mr.. Lewtsohn.
do YOU refuse to furnish it?' ASK
Cd Mr. untermyer
Il do"
George II. Kendall. president OF the
New York Bank Note Company. tes-
trying today discussed the differences
between the New York Bank Note
Company and the New York Stock ex-
change.
'.Why is your work Disseminated
against by the stock exchange?" ask
I'd Attorney Untermyer.
"Bluntly speaking. because we VIII
not combine with the American Bank
Note Company answered MIR. ken-
'all
Mr. Kendall testified that tha prices
u the New York Company were about
10 or so per cent under tho prices
iuoted by the American Company for
.ngravins certificates and bonds. MIR.
< en,lan Identified list of stockhol l.
ms in the American Bank Note Com-
,any Mr.. Kendall said j. +.
Morgan had told him that he was
lock holder in the American COM
ianv. He told how the late Russell
'age had warned him that unless 10
flowed the American Company to abb
ora the New York Company. the lat
er would be barred from the exc
'hange.
Il refused" he said. land ten days
alter. We were barred from the ex-
hange.'