Evening star., 1932-04-12
ESTIMATES RECENT
STOCK SHR|NKAGE
Whitney Tells Hearing Drop
in Last Two or Three Weeks
Was s6, ZOO, ,0O0,O 900.

Continued From First Page)
Crex Carpet, $50 and 2,480.
CurtiSs Wright, 7,106 and 1891.
e !. du Pont de Nemours, 125,O66
and 1882
Eastman Kodak, s3,17s and 2s.sOs
General Electric, 119,425 and el,806.
International Telephone 81 Tele-
graph, $1,000 and 5s,700.
New York Central, 1896 and 50, 1927.
North American Co., 1888 and
Public Service of New Jersey. 18TH
and l5,009.
Radio Corporation Of America. 2o,s79
and 1924.
Standard OIL Of New Jersey, 4s,472
and 47,475.
United Gas Improvement, 1888 and
Is, ,0s4.
Taking the stand again before the
Banking Committee In room some
what less crowded with spectators than
yesterday, Whitney gave the short in
terest as Of April as 2,S49, ,8s5 shares,
decrease Of 2l4,o33 from the previous
market day.
Between the opening of April and
Of April 7. during which period a
very drastic decline had taken place"
he said, there has been a reduction
in the short account of 42e 500 shares"
At the outset of the hearing Claude
Branch Of Providence, r. J., the COM
mittee's counsel. said 1t did not seem
to him -at the present time worth
while to 60 in detail into previous short
"You merely desire the firms in
which short accounts reside at the
present timer" asked Whitney
Branch replied It was agreeable to
him.
He asked II q chart submitted yes
terday by whitney did not show that
generally an increase In prices was ac-
companied by decrease in short in
terest.
NO" Whitney said, usually de-
cline IN prices was accompanied by
decline in short interest"
Whitney agreed that during June,
1891. the market went up, while there
was q great decline in the short in
terest.
He pointed out. however, that the
moratorium announcement came on
june 20.
The chart showed a marked increase
in the total short interest since last
November, while the liquidation on the
market has been continuous, except for
short periods.
Prefers Awaiting More Data.
Branch said he felt it would be bet
ter to defer most Of the examination
until the statistics called for in the
subpoena are Forthcoming"
Whitney has told the committee that
will take several days.
Undoubtedly there viii be further
statistics not mentioned in the sub
poena that will be required" Branch
said.
Branch began questioning whitney
closely concerning speeiahstS-persons
who deal in only one group Of the
stocks on the exehange-and whether
they have given information improperly.
There might be very serious sit
uation, might there not" the attorney
asked, IF specialist improperly d.
vulged Information concerning stop
orders2"
There might be-" whitney replied.
do you know whether any spe-
cialtst has divulged such. information
improperly" Branch pursued.
Whitney replied he believed there
have been such cases in the past, but
tAlC4E AAAhG RCCn La Sk<CC4xlC C41&1Ato
Of such violations recently.
There have been rumors." he said.
There are rumors about everything"
Then he added, We haven't had that
lately. that was In the early days Of
the decline"
Whitney explained there is q special
committee responsible for seeing that
information is not given improperly.
Csuzsns Questions whitaey.
The new restrictions on loaning stock,
which went into effect April !, had in
creased rather than decreased the sup
ply of stock for loans, the exchange ex-
ecative said, and the new rule has shown
no effect on the amount OF short sell
ing.
1T never was intended TO have any
effect on short selling" he added.
Most Of the committee members were
again seated around the committee ia
bic today and leaned forward in their
chairs, eagerly. to hear the questions
and answers.
Senator couzens (Republican. Michi-
gam questioned Whitney about agree
ments between customers and brokers
regarding the loan Of stock.
It understand" Couzens said, 1T is
quite possible for a broker to use a
customers stock to depress the price
Of the customers stocks"
Il deny that" Whitney said.
Deny vhat?" Couzens asked.
THAT broker may use a customers
stock to depress the market. That Is
absolutely a violation Of our rules"
How do you prevent 1t, when 1t
happens%
When 1t happsns?" returned
whitney.
-Oh, yes" Couzsns said. there is no
reason for being so innocent It does
happen"
Whitney said the last time he heard
of 1t happening was in 1920, or 1871,
when z. w. Wagner & Co Of Chicago
was expelled from the exchange for
an action which he said was nothing
less than q bucket shop operation.
since then" Cou7ens said, you
have been able to obscure all such
operations?"
II don't think they have taken
place" Whitney rejoined.
With marginal accounts being dis
cussed, whitney said the agreement in
use on the exchange under which q Gus
TONER agrees to let the broker loan his
stock for short sales is perfectly COM
prehenSihle and any customer who
could not understand It must be
fool"
Aren't the majority Of these who
deal ON the exchange fools7" asked
Chairman Nerheek, x, Republican,
South Dakota.
mo sir" returned whitney.
- - 4 "a sIwzA AtaA