Evening star., 1932-05-01
|U.S.PROBE W|DENED
ITO ALL EXCHANGES
Bull and Bear Operations for
Several Years viii Be
SCrutinized.

Plans for a thorough investigation
into the stock exchanges, including
not only the New York market, but
those of the rest Of the country, were
set in motion along definite lines yes
terday by William A. Gray, counsel for
the Senate Banking and Currency
Committee.
Mr.. Gray, who has been given "a
free hand" by the Steering Committee
of the Banking ana Currency Com
mittee, indicated that it was his pur-
pose to go fully into the workings Of
the important pools, whether they were
for the purpose Of bulling the market
or depressing it, and that while the
activities of big bear operators would
be studied. these would constitute only
one part of the inquiry. The tnvestt-
CATION will 90 back for several years to
the period before the 1929 crash, but
so far there Is no definite limit as to
how far back the explorations will be
carried.
With respect to report that J. P.
Morgan or leading figures In j. 2.
Morgan g. Co. will be called as wit
nesses, it is asserted that no decision
it will be the purpose to summon rep
resentatives of any of the financial
houses provided it appears they can
throw any valuable light on market
operations. Mr.. Gray said that whether
Mr. Morgan will be called will depend
on Developments and disclosures by
the accountants and Investigators.
Wants Accounts Probed.
Mr.. Gray indicated that he desired
to study fully into the accounts re-
lating to such market operations as
those Of Percy A. Rockefeller, John j.
Raskob, Fred C. Fisher, Matthew
Brush, Bernard z. Smith and Thomas
E Bragg. All of these have testified
on general aspects of market operations
before the Banking Committee.
Mr.. Gray plans to go to New York
himself early this week. probably Tues
day, and there to complete the task OF
arranging for the inquiry and getting
accountants and investigators started
along different lines.
Yesterday, Mr. Gray was in consulta-
ton with q number OF individuals who
have been proposed or recommended
as investigators. He has announced Sc
lection of George K. Watson & Co. OF
New York. Philadelphia and Chicago,
as accountants and it is understood
they have already begun their activi-
ties
For the present. the Banking and
Currency Committee has no plans made
for resumption Of hearings. Senator
Peter Norbeck, chairman, will be out of
the city next week, so that none will
be held then. Thus far, no objection
has been raised to the program Of Mr..
Gray, who wants to have the investiga
tion of the accountants and experts
under cover go ahead for three weeks
or thereabouts before any attempt is
made to hold hearings.
Legislation Contemplated.
In the background of the activity Of
the Senate committee in proceeding
with the investigation, will be the pur-
pose to make recommendations to the
Senate eventually on the subject OF
legislation to regulate or restrict stock
exchanges. The investigation will pro-
ceed, Mr.. Gray said, with this object
always in view.
Mr.. Gray said it would be necessary
for him to be in Philadelphia Monday
in order to arrange temporarily to lay
aside other phases Of his law business
and this would prevent his going to
New York before Tuesday.