Evening star., 1932-04-24
SENATE MAY QUIZ
RASKOB ON STOCKS.
Democratic Leader, W. c.
Durant, W. F. Kenny and
Others Named in Pool.
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Senator Couzens demanded to know
who promoted the deal
Mr.. Rockefeller suggested the stock ."
Mr.. Bragg responded, demurring to the
use of the term promoted" He said
Lima Locomotive had quick assets of so
much, and was good We put up S50,-
600 apiece. but the stock didn't move"
Who suggested that you sell?" Sen
ator CouzenS pursued.
Il did Mr.. Bragg replied. I'VE had
loss. I think we lost about $4,000
apiece"
was Mr.. Rockefeller in other
pools?" Senator Couzens continued.
Yes, IN two In Anaconda" said Mr.
Bragg. One was a big one, taking in
10000 shares of stock, with many
people in it"
How much did you put in it,"
About $500,000," Bragg replied. Il
think Mr.. Smith put in a half million
and Mr.. Rockefeller s12o o0o."
Names Others in Pool.
Directed ito go ahead and name the
others Mr.. Bragg said that Michael
j. Meehan, a stock exchange member;
John j Rsskob, Fred j. Fisher and
W. F. Kenny were in the group. Later
MIR. Smith added w c. Durant TO the
list and the time of the pools forma-
ton was fixed as early in 1929.
How did the operation come out?"
Senator CouzenS inquired.
I lost $400 000,' Mr.. Bragg con-
fessed. I was one of the managers.
Others may have lost more. This pool
was closed up by distributing the stock
pro rata. We had paid around $170 for
the stock. and Immediately sold mine,
when it was around S100. Others may
have hung on and lost more
Who organized this operation?" Sen
ator Couzens asked.
Il really don't know" Mr. Bragg re-
turned. Il was in Florida at the time,
and Mr. Meehan and Mr. Smith invited
me TO come in
What representations were held out
10 get people to join?" Senator Couzens
pursued.
Possible profit" Mr.. Bragg told him
bluntly.
Did you investigate the possible
value of the stock when you went in?"
Senator Couzens asked.
s32.oO0,o00 Investment.
mo, investigated afterward,
though" the witness retorted, while
the crowded committee room echoed
with laughter. Then l concluded the
stock was too high. much too high.
even though the metal it produced was
up. and earnings were based on "a cent
copper"
Mr.. Gray took over the examination.
announcing after calculation that the
Anaconda pool under discussion meant
at one time more than q $32 600 900
investment
Tell me why you and your associates,
men supposedly wise in the market
would buy that stock unless you had
some way to put it up?" he asked.
We'll. there was 24-cent copper at
The time" MIR. Bragg suggested.
As matter of fact" the lawyer
pressed on, wasn't that pool formed
because of the ability of this group to
manipulate the market?"
Here Mr.. Bragg dissented, asserting
that he didn't know about any
manipulations."
Well, what did you do?" Mr.. Gray
asked impataently. "Just buy the stock
and wait for 1t TO 90 up2"
Il don't know that there is much to
do" Mr.. Bragg protested. Il don't just
know how 10 tell you"
oh, be o Little frank with this COM
n1ittee and tell as some truth" Mr..
Gray adjlred HIM. You didn't Just
take $4,000 600 into the market and
then at down and wait. Tell US some
truth
Market Went Down.
I'D oe glad to tell you, and tell you
the truth" Mr.. Bragg responded. This
stock was bought, and bought up high,
and then nothing happened. The mar
ket went down"
Ia Sr,
make a proft?" Gray demanded. The
manipulation to make profit is what
we are after"
II don't think there was any manipu-
lation," Mr.. Bragg protested. Then
Senator Glass, Democrat, Virginia
cut in.
Il protest against bully-ragging the
witness that way" ne said. though I'm
as anxious to get the facts as anybody
On the committee
This intervention drew in several
committee members. but Mr. Gray, after
a defensive assertion that he was only
trying to get the facts for the satisfac-
tion of the committee" went forward
Nov certain banks in New York
have affiliated corporations" he re-
sumed. for security dealings, and the
National City is one of these Don't
you know that the National City affiliate
was selling short in association with
your pool?"
No. sir, didn't know it." Bragg
returned.
Who was the specialist in Anaconda
stock on the floor OF the Stock Exchange
at the time of your pool?" Mr.. Gray
continued but the witness didn't have
the information. This was a point the
committee had previously looked into
the degree of cooperation between the
specialist floor broker in a given stock
and the members Of pools operating in
these securities.
In Other Pools.
Mr.. Bragg was asked whether he had
participated in other pools during the
period. And he said that he had. nam
ing Radio, Briggs Manufacturing and
St. Louis Southwestern Railroad as
securities taken into operations. He
said that in one of the Radio pools,
Meehan, at the time the Stock Exchange
specialist in the transactions in that
particular stock, was also an operator
In that case, We have the specialist
Ar the floor cooperating with the pool