The Birmingham age-herald., 1922-06-08

T have no intentions at the mo- ment at all. The syndicate has not
 yet been formed" 1 If the stock Is not sold by public
 issue then 1t is to be sold on the
 market. isn't it?" 1 Presumably"
 And for that purpose you employ
 Yes"
 Wash Sale Idea Resented l And in the operation of this syndi- I cate you are giving only selling or !, ders and no buying orders7"
 Not necessarily. I am giving sell
 ing orders"
 You are going to give selling or
 ders and buying orders?"
 NO, we give buying orders for
 stock which we wish to acquire" 1 And selling orders for stock you wish to sell?" l Exactly"
 And you are going to buy and sell | the same stock?"
 How do you mean I am going 10 buy and sell the same stock?" | This passage marked the first of
 the open tits between Mr. Schiff and
 MT. Untermyer. The banker made 1t
 clear that he resented the lawyer S 1 imputatien that Kuhn, Loeb & Co. were engaging in wash sales to cre-
 ate market under which they might | dispose of their 59.50o bonus shares
 at whatever peak the market reached.
 MT. Schiff continued: I resent the statement of Mir, r1n- termyer to Mir. Schiff, and I object to It and want the objection recorded" MT Untermyer: Well. Mir. Schiff. you may do as you please about that" The lawyer .fs "No Idea of ManipuIatIonv You are proposing to market this stock are you not, by buying and selling the stock?" No"
 You are not proposing to buy any of them?"
 We may buy some"
 And you may sell some of the same kind of stocl5?" ''Exactlyy
 And thatsyou don't cali trading in No"
 If your syndicate Is, organized for the purpose of marketing this stock and selling 1t so as to get the cash, why should you want to buy the stock that you are selling?" TBeoause there come times where the stock is pressing on the market when people want to sell, and some
 body wants to buy 1t, and We are | quite ready to do SOL That is In order to maintain prices so that you can market this stock for the syndicate?"
 Tt is in order to make A market
 for those who wish to dispose of tbeir
 stock at what we believe Is below lis value" TO
 Then you sell it again. the stock
 that you buy?"
 for sale'' nave Il
 That is what meant. Mir. schfff by trading in this stock by a pooi
 manipulation. of the stock" object to the term 'manipula- tion.'" puie-
 One moment, you do not regard that as pool manipulation, do you? oo not Know what you mean by pool manipulation, if that is what you call pool manipulation, because you know perfectly we'll it Is not.s Or for the purpose of marketing large blocks of stock?,' ever" 'a sso. You know how large blocks of stocks are marketed by syndicates. do you not?" 'I do"
 Relies on His Firms Record They are marketed through a broker, or banking house or a se ries of brokers buying and selling
 stock until they have exhausted the syndicate dealings or until the sym dicate has expired, and they dis tribute what stock has remained ?n That Is not our experience." What Is your experience?" Our experience is that the public. rightly or wrongly, has apparently considerable confidence in our rec l ord and our Knowledge and our iudp- l ment, and that if we buy something | be 1t bonds or be it shares. and nut l a price upon it, the public as a rule
 is ready to buy it because they | think they are making a wise pur | chase"
 That has been the reputation or your house" Yes"
 Nobody is questioning the repu ] tation of your house?" You apparently are" You are mistaken. I am trying
 to get the facts. I ask you whether | this was or was not the method-" 1ou made tho iStatement--" T don't care to have any contro- | versy or discussion with you, Mir. | Schiff. l would like you to answer my question. But I would like to | say to you that nobody is question: ing either the integrity or the stand l ing of your firm. We are question: irg methods, prevailing methods of | disposing of security. In order that the syndicate shall come out even | It has got to get on the figures you | have fixed here at least $43 share | for this comon stock?. Assuming they get substantially | 90 for the preferred" Syndicate Gets Extra Profit, And then when the profits are
 ascertained over and above S43 per share for this stock. how much of l that goes to the syndicate: every | thing over 15?' "Eighty-five per cent to the syn | dicate and Is per cent to ourselves 1 for managing It." By managing the syndicate, you | mean marketing the stock in the. way l you have described, do your" Yes"
 That Is your present impression n ?" Tn general way I should say that would be the result" And any profits that are realized on trading in the stock; that Is. buy ing it at one price and selling 1t at another, that becomes part of the syndicate profit?" "All goes into the syndicate." "Docs No Trading Business" T ask you ho- many shares you NK