Montana labor news., 1932-06-23
INVESTIGATION STOCK MARKET
MANIPULATI0NS SHOW PUBLIC
TAKEN FOR BIC LOSS BY BANK
RYAN AND MITCHELL SUFFER LOSS OF MEMORY REGARDING
MANY OF BIG TRANSACTIONS BY POOL IN ANACONDA STOCK
AND IT'S SALE TO THE PUBLIC BY NATIONAL CITY COMPANY.

While John D. Ryan, chairman of the board of the Anaconda Copper
Mining Company, and his close associate, Charles E. Mitchell, president
of the National City Bank of New York, we're apparently afflicted by many
iapss Oh memory IN regard to business transactions IN which their COM
panies we're dealing in tens and hundreds of millions of dollars, the Senate
investigation during the past week of stock market manipulations devel-
oped the outstanding fact that the public had been stung for the u of
s157OooOOo IN Anaconda Copper stock.
Copper Stocks Manipulated.
Mr.. Ryan managed to recall that market operations were conducted be.
fore and att the time of the conversion of Chile and Greene Cananea stocks
oonia'y ' an Ahaconoa suosNuais' he omteu cMt te urpoas Oh inc
operations were deliberately planned, by buying and selling, to bring the
two stocks to the price standard most advantageous to the operators.
According to Mr.. Ryans testimony, the stock manipulating subsidiary
at the end of 1928 had 42O62 shares of Anaconda, and at the end of 1929
this period, though it was asserted that a million dollars profit accrued.
Selling Company Helps.
The operations of the United Metals Selling Company in the copper
stocks were conducted at the same time that the National City Company
a subsidiary of the National City Bank, organized for the purpose of de.
Anaconda stock to the public. Naturally, then, the United Metals Selling
questionaby co-operated with the National City Company in securing that
while the sale to the public was being carried on The higher the price,
the more money to be made, and "the public be damned"
High Prices for Stock Sold.
When the National City Company began the sale of Anaconda stock
to the public in August, 1929, its price range was between 117A and 100.
During the time the sale was continued, from Aug. 6, 1925, 20 Oct. l.
1929 the stock a sold at practically continuously mounting prices
reaching a high of 1876, and the National City Company had closed out its
holding at prices between s2O and s135 a share.
1t was stated that during the selling operations of Anaconda stock, the
National City Company bought 1,889OoO shares at a cost of about $751;
100000, and out of that lot sold the public 1,315SSO shares at ~$168OOOOOO,
leaving the company in possession of 1887 shares at an average cost to the
company of si5O6,SO475, or $3.50 a share. This fact was too insignificant
for Mr. Mitchell to remember.
Public Holds Sack.
Since most of the stock sold by the National City Company to the public
"a sold at an averagep price of $l2O a share and the price is now lowering
around 81, the investing public is estimated to have lost about S157000000.
Percy Rockefeller, James A. Stilman and Lee Alwe1, all directors of the
National City Bank, were participants in the stock manipulation pool in
Anaconda.
During Mr.. Mtchels testimony, when he admitted becoming a director
in Anaconda in May 1929, and that John D. Ryan, chairman of the board
Of the Anaconda Company is also n of the directors of the National
City Bank, Senator Couzens remarked, to him: But this adds to the beau
tfl picture you have been painting"
Kelly "Set Down"
Mr.. Kelly counsel for the Anaconda, came in for ONT notice in the
New York Times account Of the hearing, in the following part of its story;
"The cross-examination was proceeding rapidly M. Gray started out
again with:
"From these two accounts, Greene Cananea- but Mr.. Kelly broke in
holly and advised Mr.. Ryan:
Insist IN having a chance to answer
"Mr. Gray said he "a affordng this chance. Mr.. Ryan denied that the
counsel was, and Nh. Gray heshated, then added:
81 probably operate a little fast; this is Saturday you know
"fYou re riding him, Mr.. Kelly nterjeced.
81 let Mr.. Kelly sit there because if he had any information Mr. Ryan
did not have, would be glad to have him communicate it, Mr.. Gray re
piled.
"What vas that remark, Mr.. Kelly? Senator Goldsborough asked, peer
ing yer his glasses.
az said Mr.. Gray wa trying to ride the witness for the benefit of the
gallery, Mr. Kelly answered.
81 think that better go in the record Mr.. Godsborough said severely.
AFTER further testimony, Chairman Norbeck looked at Mr.. Kelly and
remarked:
90 just want to say to this gentleman who introduced himself here and
found fault with the questioning, that there are no galleries and that it is
not his urn to butt in. He will be called as a witness later"