The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-04-09
SENATE COMMITTEE
. DECIDES TO BEGIN
inquiry ON monday
Action is Taken Suddenly as
Securities Prices 90 to
New Low Marks
whitney IS SUBPOENAED
Stock Exchange Chief to be
First Witness; Decision
Causes Boom
Whitney IS sUBP0ENAED

Washington, April 9.-(R-Actina
on a suddenly reached decision the
senate bank committee will open the
long waited investigation of the New
York stock exchange next Monday
with Richard Whitney, its president,
on the witness stand.
The immediate result of the an.
nouncement, made Friday night, was
to drive bears to cover on Wall Street
and stock prices doomed in the short
trading session Saturday.
seeming a far-reaching conspiracy,
the committee has determined to find
out what influences, domestic or for
etgn. were behind the drive which
smashed down security prices this
week, eliminating Friday in record
lows for many issues.
The committee assembled hastily
IN the senate cloak room Friday. The
chairman absent, Senator Brookhart
(Rep., Iowa. directed the proceedings.
Inc date was set and subpoena was
issued for Whitney's appearance with
a detailed record of all big short ac-
counts as they stood at the close Of
business on the exchange Friday
night.
Capitol Is Startled
The secrecy and suddenness Of the
committees session startled the can't
tai. The senate. with the known
backing OF President Hoover, ordered
an investigation OF the stock marked
a month ago but it had been deferred
pending disposition Of other bust
ness, still uncompleted.
Senator Walcott (Rep., Conn.,. adj
ministratton spokesman, oreanized
the meeting. He insisted he had re-
ceived no suggestion from the white
house for the new move, yet his close
ness to the president left no doubt
but that Hoover is supporting the in
quiry. He was reluctant to comment.
Just read today's papers," he told
the newspapermen who crowded
about him as they learned Of the
decision. He directed attention to
stories from New York and Paris.
They told Of the downward move
ment Of stocks, new gold shipments
from this country to France and the
campaign In that country against the
American dollar.
Brookhart spoke Of q systematic
bear raid" and limited at foreign in
fluences, specifically naming France.
A lot Of vague hints were passed out.
Brookhart remarked he had In his
pocket report purporting to show
an attempt to drive America off the
gold standard.
Bear Raid Rumored
Rumors Of q huge bear raid plan
ned for Saturday on the New York
stock exchange had q part in the
sudden decision of the committee it
was disclosed Saturday.
The word came out as the senate
leaders smiled wisely at the abrupt
upward swing of prices on the ex-
change.
The bears" were forced to take to
cover and in doing so they had to
buy.
There was just an intimation at the
capitol that the purpose of calling
Whitney for Monday had been &C.
complished-prices had gone up and
the rumored raid had been fore
stalled.
Nevertheless, there was every pre-
paration to go ahead with the stock
market inquiry.
LaGuardia Tells Of Threat
In the house, LaGuardia (Rep., N.
70 said New York stock exchange Of
ficials had threatened the senate with
panic II short-selling were investi-
gated.
Il was in New York a week ago"
LaGuardia said, land it was generally
stated that there would be q decline
in security prices during the coming
week. There was.
Il want to charge now that the in
formation being sent throughout the
country that this decline is due to
the tax bill is absolutely false and
the people making that misrep-
reservation know that it Is false"
Senator Norbeck, (Rep., S. d..
chairman OF the banking committee,
returned to the capital Saturday to
take command Of the exchange in
quiry. He said thorough investiRa-
ton would be made, but he doubted
IT such work could be done until the
Whitney data was thoroughly analy-
zed.
President Hoover gave his endorse
ment Of the senate's stock market
investigation Saturday to Senator
Walcott (Rep., Conn.,.