The Detroit times., 1913-01-07
DETROIT BANK
HELPED PROMOTE
PETROLEUM co.
SS,O0O,O0O Cash Actually Paid
in Floating S17,500,0O0
in Stock
ARTIFICIAL METHODS OF
MANIPULATION ALLEGED
Boston and Pittsburgh Bankers
Summoned Before PujO
Committee

WASHINGTON. Jan. THE stock
market birth of the California Petro'
leum company, last fall, and alleged
subsequent manipulation OF the stock
/ was the subject for investigation By
the money trust probers OF the house
. today.
G.. G. Henry. OF the New York
brokerage firm OF Solomon and COM
-pany, was called TO tell OF the organis
zation OF the oil company He was
one OF three voting trustees in the
formation OF the concern by purchase
OF California oil fields.
/ How $l7 500 900 in stock OF the oil
company was fioated with only lit
tie more than $4,000 900 in cash ac-
tually paid for the physical assets,
was recounted by Henry.
Attorney tintermyer OF the PHO
committee, sought TO draw from Hen.
~ that artificial methods of manipu-
lation were resorted to to attract in
yestors and spectators in the oil
stock That several large banks and
fiscal agencies OF New York were in
terested in manufacturing market
for the oil stock because of the stock
alottments taken by them in promo
ton was also sought by Untermyer.
Vital interest OF the alleged money
trust" Untermyer attempted TO bring
out, induced the skyrocket career on
/ the New York stock exchange OF the
Ioil securities.
Untermyer also planned today 10
begin dclying into the alleged part
nership in the money trust center
I an in ~
ers and brokers OF other large cities.
| Chicago, Philadelphia, Boston and
/ Pittsburgh bankers are under sub
ipoena TO disclose their relations with
/ their New York correspondents, an
issuance OF securities
/ How millions of dollars are given
I into Pierpont Morgans hands Tor
investment was disclosed today In the
money trust investigation. The Nor
gan firms submitted letters showing
that Morgans branch banks i'm New
| York and Philadelphia. had S156.T0O.-
600 on deposit on Jan. /, 1912, and
S162, 100000 on Nov. I, 1912.
! How George f. Baker and James
!Sullman, partners OF Morgan. agreed
TO take onefoHrth each OF tho Equit-
able Life Insurance Co. stock. secured
! BY Morgan, in 1911, from Thomas For
J tune Ryan. was also developed.
describing the promoting OF Cali
I fornia petroleum stock last October.
g. G. Henry said a bank officers sub.
sCribed for $4,000 0worth OF the pro.
! motion syndicate stock and received a
/ present OF $4,000 profits without
actually receiving a share.
| Henry said a bull market was
made on the New York stock ok.
! change for the oil stock by four New
York brokers. after the syndicated pro.
motion wash or matched" sales be-
! ing utilized 10 boom sales.
tHTt was done 10 steady the
stock" Henry declared. and TO always
have somebody ready TO buy or sell
H."
Henry protested vigorously that
this process was not manipulation,
declaring IL was merck legitimate
business,
Henys refusal TO disclose the
names OF national banks which sub
scribed for the oil stock. caused Chair
man Pujo to threaten him with con-
-T--77T7t proceedings ftFnry ftdtffy re-
iascd 10 diyulge the information. how
ever He said ne considered such re-
.lations confidential.
Henry said IS officers OF several
Continued on PsSe TEN