The Birmingham age-herald., 1922-06-08
BIRMINGHAM AGE-HERALD, THURSDAY, JUNE 8, 1922

 expect to trade in, to buy and sell back and forth, in order to market 505.000 shares?"
 'I do not trade back and forth
 How many shares do you expect to have to trade in?'
 "I have no idea"
 You cannot tell ?"
 "It depends upon the market"
 Tt depends upon the avidity of the investor2y
 Tt depends upon the number oi existing shareholders of the three companies involved who may wan' to cash in on their investment"
 Tt also depends upon how much of the stock you have to sell, the public Is willing to take?"
 ITO a certain extent"
 You know, do you not. that this stock was dealt in yesterday on the curb. when issued?"
 Yes"
 Do yoI know what brokers trad ed in that stock yesterday on the curb?"
 T don't know"
 These transactions of yours will be on the curb; won't they?"
  ably be on the Stock Exchange"
 Don't you know that this stock is going to be traded in before the stock can be listed on the Stock Ex- change?"
 NO. the stock will probably be issued on a when issued basis on the Stock Exchange at the time we form our syndicate"
 You expect to issue 1t then. that will be within how 1ong?"
 Within a week or two"
 And within that time you expect to have all the statements that are necessary for the listing on the Stock Exchange?"
 For the listing when issued.'"
 You have to give all the particu- lars?"
 NO; they do not require a very full statement for issue on the when issued basis"
 Refuses to Name Combinations
 MT. Untermyer explained to the witness again the committee interest in the proposed mergers as affecting housing and the structural steel market and endeavored to draw from him the names of other companies that may be under consideration by the bankers in possible combinations. MT. Schiff refused to name them on the ground that the discussions were in such state that they might never be taken up seriously.
 Mir. Untermyer did not press this line of Inquiry, but MT. Schiff's re- sentiment of the questions began to rise from this point. MT. Untermyer askedt
 Now in addition to this 15 per cent. MT. schiff, that you are to get from any profits of the syndicate in connection with the marketing of this stock, I understood you to say you were to get 59.50o shares of the stock"
 At s1o a share"
 What are you going to do with it?
 we are taking the responsibility toward the public of fathering financially this concern. We propose to take continuing interest in 1t the way we do with other large cor porations with which we are con nected."
 you mean you get this $2.ooo. 900, or whatever more you may get out of the stock for the moral responsi- bility that your firm assumes in fatherink this as the bankers for the new company, Is that it2"
 No, I do not mean that"
 That is one of the things"
 Possibly"
 Isn't that really the main item ?''
 NO. They want a strong finan- cial interest standing by this con- cern."
 ITO do what?"
 "At all times to give 1t financial advice and to give 1t, if necessary, financial backing, and we are only willing to do that if we have strong financial and continuing interest in the concern.'
 ssss3 q Share No Gift"
 q thought it was costing you the financial interest, the moral responsi- billty and the watchful eyer?
 If they think 1t advisable for us ready to sell us 5s.5oo shares at sI0
 (Which you can sell at s4s on the market?'
 Yes"
 50 that is really present. gift or compensation?"
 No, 1t is not"
 Not a gift, it is compensation? ?"
 NO, 1t Is not"
 Tt IS not compensation"
 No"
 Well. what does the other sss rep resent?,
 Tt does not represent a thing to begin with until it Is cashed.''
 And before you undertake to do with respect to marketing the 505,000 shares, you have under writers who will take 1t off your hands?"
 Yes"
 And they are men in the banking world and the mercantile world?"
 Largely people throughout the 
 Men who underwrite your sntef prises?"
 Yes"
 And on your assurance that that is a good thing they take itT'
 They know we would not put our name to it otherwise"
 When your company says that it is a good thing they will take it?"
 There is no assurance given. The fact that we offer its
 That Is quite enough?"
 That is quite enough"
 And they take 1t and agree to pay s43 share for 1t. and that is the same class of stock that you agree to pay s1o share for?'
 Yes"
 T ask you again have you any doubt that that represents at least $43 share?"
 Tt may or may not"
 Have you any doubt that it does !? If you have any doubt that 1t does will you tell me why you are recom- mending your syndicate members to 
 T expect 1t will sell at a great deal higher than s43,
 Explains s2o.ooo.ooo Fund
 Mir. Schiff interposed an objection to statement in morning news- paper quoting Mir. Untermyer to the effeCf that fhe rs,arrar t,~oy{doa