Evening star., 1932-04-11

commlttee that plack SATURDAY pear
raid was planned for last Saturday"
Whitney said all he knew about that
was information passed on to him by
Senator Walcott
The exchange president mentioned
the stocks OF American Telephone
& Telegraph. Public Service of New
Jersey and Consolidated Gas of New
York as among those referred to in
connection with the purported bear
raids.
No Bear Raiding, He Says.
He said there had been no bear
raiding," but great liquidation in
these stocks.
The tremendous interest in the in
quiry was evidenced by the setting in
the committee room. Whitney reached
the expansive hearing room ahead of
any Of the committeeman, but was pre-
ceded by numbers Of newspaper men
and spectators
Chairman Norbeck called the meet
ing to order, with Claude Branch of
Providence, r. l., appearing as counsel
for the committee.
After being sworn. Whitney read 4
statement saying:
In view Of telephone communica-
tions with a member of the Senate
Finance Committee on Friday, indicat-
ing a desire for specific information. /
asked members of the exchange to aid
in supplying it"
He called attention to the fact the
exchange had Offices throughout the
Nation
Il regret that I cannot assure the
committee that the statistics requested
can be promised before Friday noon
he said.
Il assure you of every intent to give
all the data requested"
Whitney explained it had been i'm
possible for him to give voluntarily the
facts asked for by Senator Walcott Fri
day. He did emphasize, however, the
determination of the exchange to CO.
operate with the Senate.
Submits Data on Shorts.
Reading in a clear voice, the Ex-
change president said he had data
showing the complete short position on
the Stock Exchange up to April 5, and
said this already had been made public
1t would be almost impossible TO go
into every detail asked by the COM
mittee. he said, many short accounts
having been in existence for months.
He asked permission to file photo
graphic prints of some of the records,
sin order to avoid delay"
When he concluded, the committee
counsel asked for copy of the Whit
ney statement.
Behind Whitney sat Roland L. Red
mond, counsel for the Exchange.
The witness submitted data, already
made public, showing the stocks in
which short selling appeared between
May rs, last year. and November l.
Subject to Expulsion.
Senator Couzens inquired if Whitney
thought that represented all the short
selling in that period.
II am confident it is so, so far as
our members are concerned" he re-
piled.
Members are subject to expulsion if
they do not answer our questions"
Mrs. Ruth Pratt, Republican Rep
resentative from New York, stood on
tip toes among the crowd of spectators
Just inside the door of the room.
Whitney said the short selling data
had been given to the press ito show
the public that the exaggerations in
regard to it were purely ridiculous
Senator Brookhart then asked about
reports ''of an attempt to stage bear
diQ 1dSb % Jul Ndy Ltldb NOuAN A1AdhC I4lC
day a black Saturday"
Il have no knowledge of bear raid
except some statement made to me by
Senator Walcott last Friday regarding
some operations in United States Steel
Whitney replied. I'VE do not have any
bear raids"
Discuss Secret Telegram.
Senator Blaine Republican, Wiscon-
1rl-, IL I,
by Walcott should be placed in the
record.
Couzens said that as members of the
committee had not seen the telegram
BlaineS question should be considered
In executive session.
Blaine said he wanted to use the tele-
gram as the basis for examination of
the witness, and Chairman Norbeck
said the question could be decided later.
Senator Glass Democrat, Virginia)
demanded of Whitney to know what
kind Of short selling is legitimate and
what is illegitimate
"A bear raid may be short selling or
1t may be long selling" said Whitney.
Il say 1t is illegitimate because it de-
moralizes the market"
The examination was interrupted by
Attorney Branch who asked Whitney
to go ahead with submission of the
records up TO the opening of business
on April 5.
Covering Data Not Available.
In response to questions of Branch.
the witness said his records did not
and could not show the short dealings
in particular stocks in which short
sales and coverings" were made on
the same day.
Replying TO Senator Gore Democrat,
Oklahoma, he said, These daily trans
actions do not have much effect on
prices-they result in offsetting each
other"
Senator Blaine referred to a state
ment attributed to Herbert Hoover. de-
scriblng as idiots" those who rush
into the market when prices have been
pushed up"
Il have no knowledge of that state
ment," said Whitney.
GO TO the Congressional Library and
read an article by Mr.. Hoover in 1912
in the London Mining Journal, replied
Blaine.
Explains Bear Raids.
Brookhart asked Whitney Ito run a
bear raid here for us so We will know
how 1t is done
An individual who wished to de-
moralize the market would give an
order TO sell, say 10000 shares, as
quickly as possible to demoralize the
price" explained Whitney
But that does not take place on the
New York Stock Exchange. 1t can't"
BroOkhart asked Whitney if he was
a relation to the Whitney with j. P
Morgan 81 Co. He said he was a
brother
DO you do any business for Nor
gan?"
Il am delighted to do any can"
Is 1t your principal business?"
No"
Did you have anything to do with
the United Corporation organized by
Morgan"
Owns Some of Stock.
please be more specific. own some