New-York tribune., 1922-06-09

ere in raising the money. does :, not =
asked the counsel.
"Not necessarily replied The wit
ness
"When YOU say that Kuhn. Loeb 4
Co have agreed % act a. bankers for
a plan that provides FOR the raising
n money on given securities ~ certain
prices. YOU do nor understand that 10
mean the hrm has agreed 60 act a.
bankerf in providing the money
as, necessar.l,." the witness held
out
SO IN point % .ac. YOU have not yet
ayr,ci 20 raise tbs money insisted
the ceanincr.
we have not agreed TO anything
rcp,ird Mr. Sch.A
"1rs you do nct consider yourself
Obligated. In view - that publication
to rslsc this money IN the manner IN
Not necessarily" Mr. srhG re-
pcated :,
100 YOU no, know ;ha' the stocks of
.h.rr comparies nave been heavily
dealt in on .he basis of this pl.n
Publicity cited as Defense
Il am so Informed replied the
I'm defense of his position iha; the
hrm was no: obligated. Mr. Schia point
ed 20 a statement .n The advertisement
when reads. ,r
be formed 20 provide FOR the cash r.
ouirements OF The plan. including me
provision 81 S20.00000o additional cosn
working capital. which will MAKE tne
totai working capital ~ the company
over si00.0O0.0 .00o
He said he did 10; think hat ms
was representation ~ The puoic ihdi
Kuhn. Loeb & Co. were gong % i9in
d svndicato 20 raise money. and ina'
bo Socs rot consider himself under
commitment. "p'thcr moral or oinei-
wise"
And vet you know mat people arc
trading in these securities.' hred back
'hc counsel. CIR
parried ..
of rebellion apairst NJ JnfermyeI
line OF inquiry Nj. Chairman, n.f
arrcaicd 10 Senator lockwood
would Ike 20 appeal to the char as 10
This line Of inquiry. a. 20 what oear.nE
=. has on the subject matter hs neIns
relevant 10 your entire investigation :
what has this 20 90 with ihe housing
situation in New York
well. II there should he conlbina-
ton formed FOR the purpose o. incre".-
.ng prices on steel replied inc c.'''
rier. go go into new structures
Nj Schiff had 70 submit. on inc rui-
ing Of the chairman. 10 further cues.
tioning along this line. and said ne eid
not know whether Kuhn. Loeb & co.
ever intended 90 form a syndicate 20
raise the cssh requirements
Have the details Of this merger
been furnished 20 the Federal trade
Commission 80 asked the counsel
u don't know: will have 10 refer
YOU 10 my counsel" said Nr. schia'
"When Issued" Basis Questioned
The matter of the stocks being sold
on the curb on a when issued basis
was referred %.
"Do you believe that IL is n good prac-
tico.n asked Mr.. untermyer, "or ono
that is justified. 20 offer securities 20
the public on = public exchange. IN ad-
vance OF complete statement, avail
able 10 the public Of all the facts re-
latinc 20 the property and the security
offered ~
81 thins ! would prefer 70 abstain
from discussing academic question,
sharply answered the banker.
"You will find IL is not an academic
question" retorted the counsel mean
ingly.
Mr SchfT then went on to say that
the firm may make a public ISSUE OF
the stock instead of byinR and selling
on tho Stock Exchange.
Lawyer Withholds Figures
Mr. Chadbourne, following Mr. Schif
on the stand, produced various doeu-
ments referring 20 the three COM
panies which had not yet been COM
pleted but which MI. Chadbourne
promised 10 have ready for the commit
tee this morning.
The lawyer steadfnstly declined -
produce any figures referring % the
four companies that had dropped away
from but which had been mentioned
in connection with the original merger
proposition.
Mr. Untermycr insisted. however