Evening star., 1932-04-22
BEAR RAIDS DENIED
BY STOCK WITNESS
Brush, Veteran Trader, Says
Shorts Might Depress
Stock Market.

Continued From First Page)
a 6e-year-old Spanish sportsman who
| is well known in social and sporting
| life of London. Paris and Madrid is
probably the man in question, Marquis
| de San Miguel took down winnings of
s1.25O,OOO in the 1928 Christmas lot
| tery of Spain. He is reputedly one of
| the luckiest men of the continent.
Paris Bank Listed.
Another touch of foreign flavor was
| added to the list when the Travellers
| Bank appeared as a short seller of Is
American stocks. Travellers Bank is a
Paris institution. 1t is owned by B.
Covles Neidecker, an Americans who
was an aviator in the World War and
served with President Hoover in his
Belgian relief work.
| The Greva Compania was assumed
to be affiliated with the activities of
william Greeve, director of the Bank
of Manhattan Co. and a number of
other important institutions.
Two names which attracted interest
were those Of G.. NJ. Moffet and z. c.
Simmons George M. Moffet is presi
| dent of the Corn Products Refining Co.
and a director in number of leading
| concerns. Zalmon G.. Simmons is head
of the Simmons Co, manufacturers of
beds and furniture.
Big Crowd on Hand.
A stocky. gray-haired man with heavy
dark eyebrows, Brush took the witness
chair. which has been occupied for
four days by Richard Whitney, presi-
dent of the exchange.
There was another big crowd on
hand, but not as large as on previous
days.
A row of seats in front, next to the
committee table, was reserved for the
subpoenaed brokers waiting to testify,
including Percy A Rockefeller, cousin
of Jon D. Rockefeller. jr.. who was told
to appear this afternoon.
| After Brush was sworn, he told
william A. Gray, committee counsel he
was associated with about so firms.
You have been a pretty heavy trad
er?" asked Gray.
Depends on what you mean by
heavy" said Brush. Il would say a
substantial trader"
He testified he had been in the mar
ket since the Summer of 1921.
When l first started it was pretty
skinny" he continued in low voice.
Il had on the long side about 125,000
shares at one time"
You trade on both sides?"
"Yes."
What volume did you ever have on
the short side?"
approximately the same" said
Brush, referring to the 125000-share
total
Gray asked maximum value of
Brush's holdings.
Tho trader ccpsuI+ad an assistant and
then testified that in August, 1929, the
'liquidating value" of his entire hold
ings was s15,ooo.o0o.
Were you ever short during the peak
Of 1922" Gray asked,
II don't think I was ever short at
that time" he replied.
Brush said he never started selling
short until the Spring of 1880.
Holds Judgment Was Good
You thought you we're exercising
good Judgment" asked Gray.
II would have If I had stayed with
it." responded Brush.
The only time to sell short" Brush
said. lis when there is demand.
IF you start selling 5000 shares Of
stock when 1t is 10, by the time you
have got eff the last 1000 it might
be so.
IF you are going to take short po-
sition you ought to sell when the market
is rising. Be ahead of the turn.
IF think stock is going up buy
it. I am not trader from day to day
or during the day. I take a position.
If THINK stock is going down I sell"
DO extensive dealings in pivotal
stocks affect the others?"
II don't think dealings in certain
stocks control the market, but 1t is a
contributing factor in the market The
market is subject to the law of supply
and demand"
Asked to detail operations in the mar
ket, Brush explained some large traders
put in orders for purchases or sales at
a range of points.
That is the other fellows school Of
thought-not mine" he added.
i buy or sell where I think it right"
Explains Depressing Factor.
Brush drew laughter as he explained
a short sale which he conceded de
presses the market" and added. Il am
going to get shot when get back to
New York anyway so I might as we'll
tell YOU"
! The factor Brush pointed out was
where short sale is made when some
other operator is liquidating a large
block
Suppose" he said, his sales have
sent the price down from 80 to 29,
and he has only disposed of part of his
| block
Il come in and offer 5000 at 2e7s
the chances are that makes the supply
| greater than the demand and I've had
an influence in depressing the price
committee members left their seats
! tn lean "a foh 4,
chart to explain trading operations.
He said there were times when the
snort interest increased even on a ris-
ing market.
There are so many ramifcations ]
cont think you can apply any rule,
he added.
The chart did show an increase in
the short interest from November l to
January 7 on declining market.
II there is twice as much supply
as demand" Brush said, then the
market goes down"
Works on Long Time.
Brush reiterated that IF I take a
position in the market I take it fol-
weeks or months or a year."
For that day-by-day racket you
got to stay there at the brokers and
work at it," he explained. Those fell
lows We call chiselers in New York"
He argued it was hard to guess on
the day-by-day trading.
IF fellow goes into the market at
IL o'clock in the morning and the
! President of the United States gives
out a proclamation at l130 o'clock II
is too bad" he said.
That depends on the kind of proc
lamation it is" interposed Senator
Gore, Democrat, Oklahoma
Yes" conceded Brush amid laughter
Brush told Senator Glass. Democrat
Virginia. that he always knew all the