Evening star., 1932-06-03
|RASK0b ACCUSED
Of SELLING SHORT
Denies Gray's Charge Before
Senate Market Inquiry
Committee.
CONTINUED From First Page.)

the corporation.
Glass asked Gray If any other Of
ficials had the information he intended
to elicit from Raskob.
Gray replied that he had called Ras-
kob in connection with personal opera
tions Of which other ofncials we're not
informed.
Sold Against Bsx."
Prior to the hearing, Gray said
Raskobs operations In General Motors
included selling against the box" so
that although he was an officer of the
corporation he put himself in the posi-
tion Of holding no stock"
Selling against the box has been de-
scrtbed before the committee as similar
to short selling except that the seller
owns stock and retains 1t while he
borrows stock to cover his operations
Raskob appeared in the committee
room shortly before time for the hear
ing to get under way. He was asked
by newspaper men why he was called
Denies Short Selling.
Il don't know" he said. Il was sub
poenaed to come and bring my records
Of General Motors
Have you been short selling that
stock?" he was asked.
No" he replied. smiling.
As Raskob entered the committee
room he smiled and shook hands with
two administration Republican members
of the committee who stood near the
door-Walcott of Connecticut and Town
send of Delaware.
Hello, John" said Walcott heartily
Townsend took a seat beside RaSkob
among the spectators and they chatted
animatedly
Submits Holdings Statement.
Raskob submitted statement show
ing he had 1886 shares Of General
Motors common stock on hand January
/. 1923, In his regular account and that
at the end of 1881 his balance was
20 900 shares
Another statement. on a special ac-
count, showed that he had $500 shares
January /, 1928. and none in that ac-
count January 81. 1881. Another state
ment, headed Consolidated Accounts
of j. j. Raskob" showed that on jan
uary /. 1928. he had on hand 1876
shares and that at the end OF 1891, he
had 10000 shares.
The consolidated account showed
that In January Of 1928 he sold 2O,Oo0
shares. though he had only 17.796
Raskob told Gray that at the end
of June, 1928. he had 1886 shares Of
General Motors common.
When Gray asked Raskob about his
accounts, and whether they were long
or short. Raskob replied with a smile:
L don't want any confusion about
long or short
He presented an itemized statement
showing account No with Dyer &
Hudson. his regular account; No. 2,
a special account. and No. 3, a con-
solidation.
Explains Special Account.
count because he'd been advised it was
better for selling
AT no time will you find I sold Gen.
eral Motors short. except on what might
be called two technical occasions" Ras-
kob said
These times. he said. were in 1928
when he sold 2,204 shares. and 10000
shares in August. 1880. which
couldn't deliver for about six weeks"
Gray asked him II the Archmere Co
account IN the brokerage house was his
That is Mrs. Raskob's company"
Raskob said. Its an estate account.
She owns it."
Gray then asked him about an &C
! count in the name of H. S. Raskob.
That's hers" Raskob replied.
The Consolidated account filed by
Raskob showed that at the end Of
March, 1928. he had a balance of IS 800
shares. and was on the long side Of
the market ever since. except in August.
1890, when he sold 10000 shares with
out having any on hand.
His balance in September 1928.
shrank to 1850 shares.
Describes 1927 Sale.
Gray described a sale Of $4,000 shares
bv Raskob in 1927 as "a pure short
transaction"
The special account, Gray said,
showed there were sales UP to January
/. 1928. Of $500 shares from the spe-
cial account. and that on January l,
1928 he had 1886 shares in his per-
sonal account.
Your long position represents the
difference between 1886 and $500,
does it not?" asked Gray.
From his special account. Raskob ex-
planned. he sold 10000 shares in Jsnu-
ary, 1928, making q total of rs, 800 in
sales
He purchased 78,SOO in March. bal
ancing the special account. from which
sales of $500 shares were made in
1927, but not transferred from the reg
ular account
When Rsskob sold that stock. Gray
said, he had about the same amount in
another account, but later covered his
sale by an Independent purchase
While did buy that back" Raskob
said. my broker had that much, or
more, in my regular account
Il always had more long stock in my
regular account than I sold. except in
the two cases I have mentioned.
Holds Implication Untrue.
AS chairman of the Democratic Ma
tional Committee. don't like to have
the information given out that I re-
sorted to that kind Of thing, because
it isn't true.
while I am taking great pains to
show that have not been short selling,
I think it perfectly proper when it is
properly conducted"
Raskob said none of his transactions
were designed to manipulate the mar
ket and denied that they were pool
operations.
Gray asked Raskob If, in balancing
the 78,S00 shares of sales listed in the
special account at the end Of January
1928, you bought in the market" in
stead OF using the stock in your long
account" to cover
That's right" Raskob replied. He
said he did not know how much he
had made on the transaction.
Raskob said he sold his stock in 1927
at an average of 1921, but did not
know what he paid to buy back in
March, 1928.
He pointed out that in March the