Evening star., 1932-04-10
PRESIDENT BACKS
STOCK INQUIRY
Whitney Appears Tomorrow
in Answer to Summons of
Committee.
Continued From First Paee.)

situation was communicated to the
committee and action demanded. The
name of George Barr Baker as one Of
those who had communicated with
Senators, telling of the threatened bear
attack on the market, was used by
Senators telling about the situation
yesterday
President Whitney of the Stock Ex-
change notified the committee that he
would be on hand to testify tomorrow.
The demand for his presence before the
committee was coupled with demand
for many records of the Exchange and
its members. setting forth the names
concerns who &e and have been
short" on the market.
Senators were influenced in their &C
ton for an immediate inquiry into the
stock market not alone by the report
of short trading activities by American
operators, but by the reports Of coming
efforts in foreign countries, particularly
France, to force the dollar down and If
possible to force the United States off
the gold standard.
If the bear raid on the market, as
reported to the Senators, was to be
sprung yesterday, it failed to mate
rialize Whether the threatened inves-
tigation by the Senate was effective in
halting the raid was a question which
the members of the committee we're
asking themselves last night.
U. S. Abandons Delay.
1t appears, however, that after dilly-
dallying for weeks with the matter Of
a stock market investigation, the Gov
ernment-in this case acting through
the Senate-has determined to 60
ahead without further delay. The Gov
eminent is represented as firm in its
position that bear raids, from whatever
source, are to be exposed and halted If
possible. This course is to be followed
in the interest of recovery of business
The Senate Banking and Currency
Committee announced that John L. Hall
Of the firm of Choate, Hall g. Stewart
of Boston, had been selected to act as
counsel for the committee in making
the investigation of the stock market.
Witnesses to be summoned after Mr..
Whitney has been questioned by the
committee will be selected by the COM
mittee next week, it was said.
While the Senate Banking and Cur
rency Committee was preparing. through
its investigation of the Stock Exchange.
to protect the American dollar and
American industry, the Senate Finance
Committee was making ready for its
hearings tomorrow on the revenue bill
designed to balance the Governments s
budget and to maintain the Govern
ment'S credit,
Both Chairman Smoot Of the Finance
Committee and Senator Pat Harrison
nf fCefc 4
member OF the committee, said last
night they were convinced the Senate
was overwhelmingly in favor OF the pas
sage of tax bill calculated to balance
the budget. Neither was prepared to say,
however. just what form the bill will
take in the end. The committee has
before it the House bill as a basis for
its consideration. Many amendments it
has already been indicated. will be Of
fered. These amendments will go first
to the Finance Committee for consider
alton. If the committee does not act
on the amendments offered by indi-
vidual Senators, they may be offered
from the floor when the bill is reported
out.
Sales Tax Opposed.
The committee itself, however may
amend the Dill IN any respect 1t desires
before reporting it. Senator Smoot was
unequivocal in his assertion last night
that a manufacturers sales tax would
not and could not be written into the
revenue bill. In this he was supported
by Senator Harrison. It was admitted
that efforts to have such a tax adopted
in place Of many of the specific sales
taxes-called excise taxes in the House
would be made. But the Senators in
sisted these efforts would fail.
Neither Senator Smoot nor Senator
Harrison believed, they said. that there
was any prospect Of adding to the bill
more so-called tariff" amendments.
such as the tax on imported coal and
oil included in the bill during its con-
sideration in the House Senators from
copper and lumber producing States
have announced they will seek to have
amendments adopted placing taxes on
imported copper and lumber products.
including wood pulp and shingles.
Whether the oil and coal taxes on
imports will be stricken from the bill
during its consideration in the Senate
Is problematical. it was said.
One of the big fights over the bill
Will come in the consideration of
amendments proposing to increase still
further the Surtaxes on incomes and
taxes on inheritances and gifts.