Evening star., 1932-04-25
SENATE WILL SEND
INVESTIGATORS TO
STOCK EXCHANGE
Committee Votes to Widen
Inquiry and Dispatch
Corps of Probers.
"BULL POOL" OF 1929
WILL BE EXAMINED
"Bear" Trading Since Collapse
Also to Get Full study-Dan-
forth Appears.
Ry the Associated Press.

BY the Associated Press.
The Senate Banking Committee to-
day ordered full investigation Of the
Stock Exchange and determined to
send Investigators to New York.
At a lengthy executive session, the
committee agreed to appoint subcom-
naittee and to employ additional coun-
sel and Investigators necessary to make
the study in New York.
The committee is determined to find
out the inside operations of the gi-
gantic pool in stocks which operated
ON the "bull' side in the 1929 boom
and on the bear" side since the price
collapse.
Danforth Appears.
Before today's meeting, William H.
Danforth of Boston, big trader on the
Stock Exchange, appeared at the Office
of the Senate Committee and offered
to testify in the investigation when
ever he is wanted.
A subpoena was issued for him last
week, but he was in Florida and could
not be Immediately located He prob
ably won't be called for several days
The trail of testimony so far taken
In the committees investigation of the
stock market has been led to establish
existence Of combines formed to profit
by rise or fall of a particular stock
However, all have stopped dead when it
came to proving what the pool traders
did to force prices in the direction by
which thev MANNED tn prOflt
A number of traders and brokers
have been subpoenaed to appear before
the committee, but they probably will
not be heard for several days, as the
hearings have been temporarily sus-
pended. Others may be called, includ-
ing Chairman Raskob of the Demo-
cratic National Committee, who partici-
pated in pool described in Saturdays
testimony.
The membership of two pools of i'm
portance has been described to the
committee and its agents say they had
information concerning score of such
combinations, whose affairs are ex-
pected to be gone into.
Conspicuous among the points the
Senators wish to establish is whether
the pools have been working with mar
ket specialists-brokers who handle one
stock and know the pending orders and
holdings in that particular security.
Saturdays testimony brought into the
record that NJ j. Meehan, prominent
broker, was the specialist in radio
stocks and that his wife participated
in pool operating in that line.
Meehan to Testify.
For specialists to pass out their con-
fidential information is against the
Exchange rules, and Senator Brookhart,
Republican, of Iowa, after hearing the
radio pool testimony, said he favored
legislation to make such a practice il
legal. No testimony had been adduced
to establish that such an exchange of
information actually did take place in
that or other cases and Meehan, for
whom a subpoena has been issued, is
expected to testify.
AS a result of deciding to send a
corps of investigators to New York, the
committee must ask the Senate for
more funds. 1t was given only $50 1000
for the inquiry.
After today's meeting chairman Nor
beck said the question of subpoenaing
witnesses would be decided by the
Steering Subcommittee.
Proposals for employing Samuel IN
termeyer, veteran New York attorney,
for counsel we're not discussed.
Determined to Get Data
Asked concerning plans for secur-
ing information, Norbeck said 1T
doesn't make any difference whether
it's in New York or San Francisco. If
we want it we are going to get it,
that's all there is to it."
He said the investigation would be
pushed "as fast as possible" and would
go into both the short and long sides
Of the market.
The idea of a steering committee was
first suggested by Senator Couzens, Re
publican, of Michigan.
The proposal for sending investi-
gators to New York was advanced by
Senator Blaine, Republican, of Wiscon-
sin. and the committee approved his
suggestion that the agents should be
selected from outside the Government
service.
The selection of committee counsel
was discussed in some detail, but the
question was referred to the Steering
Committee Committee members gen.
orally approved the manner in which
William A. Gray, the present counsel,
has conducted the inquiry
The committee today received a letter
from Matthew c. Brush, veteran trader
who was on the stand a few days ago,
correcting certain of his testimony. In
answer to a question. he had said he
had never participated in pool
In his letter he said he wanted to
correct that, because he had meant to
70 had haay, in, cfooG ,NooI