Evening star., 1932-04-22

facts could get" about a stock he
dealt in.
AS for the knowedge Of the average
thetic"
That is it. all right. pathetic" Glass
volunteered
Isn't it a fact" Gray asked, that
a good many Of the public watch the
board and when they see it begin to
go up rush imp"
They don't even do that" the vet
eran trader replied. They get cir
cular in the morning from somebody
probably somebody who has been in the
country two weeks from Greece. The
circular calls some stocks good. He
thinks it is a great buy and goes in
to buy it."
ITS no exaggeration, the Senator
on my left Senator Walcott, Repuo-
lican, Connecticut, will bear that out
because he was in the business before
I was" added Brush as the committee
laughed.
Brush said he never knew OF any
member of the Stock Exchange working
in cahoots' to the detriment OF the
public and to his own advantage.
Gray asked whether Whitney had
been correct in saying there was no
bear raiding, and Brush agreed 1t hao
not happened since November when
further restrictions took effect.
Before then, he said, with Steel at
30. an order to sell at 90 would be
cinch to get off. It's bear raid"
IT'S being done?" Gray asked.
mot to my knowledge" Brush said.
1T can't be done today
The witness added it was just as
harmful to CLOSE up" the market as
- oil slnurT1 -
Suppose I go in at the close of the
market and Steel is at 90. bid it up
to 80. The market closes a point up.
"Too Fast for Me-"
THAT night some fellow out in
Keokuk says to his mother over stein
of beer--it they have any out there
steel closed up point. Let's get in
on it, says this fellow. In the morning
he goes in and I sell him the very
stock used to put the price up the night
before. Down goes the price. OF course
don't trade that way. 1t is too
fast for me-"
Gray asked If a specialist on the
exchange floor, knowing all the out
standing orders for his stock, ever CO.
operates with a big trader to buy or
sell for the purpose of manipulating
the market.
Frankly, I don't know" was the
reply.
Brush said he had never been in
a pool, but he agreed that pools exist.
"Of course" he explained, there is
only one reason on earth for a pool
and that is TO make money. No one
is in the Street for his health.
Committee Enjoys Testimony.
Say X, Y and z agree to form a
pool in some stock. They get their
stock. They do what is known as clean
the book The supply of stock is gone.
The demand forces the price up"
The committee seemed to enjoy the
testimony of the veteran trader Mem
bers leahed forward over the table to
hear and frequently laughed as Brush
made joking remarks.
You say you are afraid to 60 back
to New York" interrupted Senator
Brookhart, Republican, of Iowa. rs
there an Al Capone racket up there?"
"Al Capone Is piker compared to
Brush, as laughter roared.
Referring to the 1929 boom. Brush
said, Every man. woman and child,
church and library was in it"
Asked about ban on short selling,
Brush warned, You will get terrific
swings in the market"
II think the term short selling has
become extremely unfortunate" he
added. THE transaction IS in fact a
definite future contract
Gray asked Brush about other means
Of manipulating the market, including
'pegging the price
Brush said it was quite possible to
peg the market and recalled the re-
ported Rockefeller offer of late 1929 TO
buy a million shares of Standard Oil of
New Jersey at So
II don't know whether it was true
Or not" he added. But that was good
pegging."
Brush said he did not see any purpose
in putting through buying order