Evening star., 1932-04-23
RASKOb IS NAMED
AS BEAR TRADER
SpecuIator Says Democratic
Chairman Dealt in Copper
Stocks Pool.
Continued From First Page.)

Continued From First Page)
counsel for the inquiry, showed up TO-
dav while Knight was testifying. They
are Bernard E. Smith and Bragg, both
of whom held substantial short inter
ests at the close of business April 8.
"Betraying the Public"
Senator Brookhart, Republican
Iowa. asked knight whether the prin--
cinal business of the exchange was not
"in betraying the public" The Wit
ness told him in a way"
Although the committee has been
unable to reach Meeham, who is said
to be motoring in the South recuperat-
ing from an accident, Gray expressed
confidence he was not dodging the
subpoena.
knight, an expert accountant fanlil-
lar with brokerage practices, was the
first to take the stand today In the M
yestigation of short selling. He now
Is an accountant for the Tariff Com
mission in New York, but previously
was employed by brokerage houses for
about 10 years.
knight said pools were organized Tor
various purposes, to stabilize or nqui-
date a stock or to manipulate. Asked
How does q pool operate to advance
prices?" he explained:
1T is necessary first to make sur
vey Of the stock. The aid OF a special
ist on the floor is necessary. The stock
is acquired slowly and easily as pos
sible. Sometimes trouble develops.
Unload on Rise.
1T is necessary occasionally to de-
press the price to go down and eaten
the stop-loss sellers, Then the drive
the stock. When they find there aren't
many orders on the specialists book
then the price is boosted After q GER
tain rise they begin to unload, not wait
ing for the peak.
More skill is needed on the upside
than down. 1t Is easier to depress
price than to raise it."
The aid of specialist is not neces-
sary in bear raid" Knight said. be-
cause the selling begins liquidation and
makes it easy for the manipulators to
gain their objective.
Senator Couzens, Republican, OF
Michigan asked knight If he knew the
names Of any specialists. He couldn't
recall any. Couzens said Il would like
to question some Of them"
pool of 1922" asked Senator Barkley,
Democrat, Of Kentucky.
| IN. J. Meehan," said knight.
! Senator Brookhart asked If 1t was not
q betrayal of the public" for special
lists to turn their information over to a
pool.
Eyes. because it is of a confidential
nature" Knight said.
Never Bought a Share.
knight told the committee he had
never bought share OF stock.
II think you know as much about 1t
as Whitney" said Brookhart, referring
TO Richard Whitney, president Of the
New York Stock Exchange ..
Gray then inquired into the radio
pool. The stock went over $500, was
| split to l and is now selling for about
| SIS. He said Meehan was reputed to
| have been the operator in the radio
pool which boosted the price from a
very low" figure to more than 500.
Knight said he knew Meehan was
the floor specialist in radio, but he had
no other knowledge of the deal.
w. e Hutton, one of the firms that
has been subpoenaed by the commit
tee, did much of the clearing for Nee
han, Knight said.
The witness explained the work OF
a specialist. and the practice of listing
all buying and selling orders at spe-
ciic figure with him.
Read He Was Wanted.
While Knight testified, Bragg and
Smith came into the room and took
! seats together in the front row waiting
| to be called.
Smith said he had not heard that a
! subpoena was out for him until he read
| it in the papers yesterday, adding he
had come without waiting to be served
Bragg would not answer questions
whether he had known the COMMITTEES
wanted him.
Gray asked knight of practices he
| had observed.
I'VE have had several failures" he
said, "and / think it is because some
firms have not been putting up more
capital to protect their positions and
instead, have been Using resources oi
the customers. I don't think 1t is ethi-
cal or good business"
Knight testified that brokerage house.
frequently act in pools.
Act Against Own Advice.
DO you know of any instance wher,
they operate with pools and send ou
! duFlCc W LLlSlI CuoLOIIlcIS COuIIuly u
their own operations2" Gray asked.
1T has been done" the witness re.
piled, but he could not cite specific in.
dividuals that had.
Following Knight, Bragg was called
and sworn by Chairman Norbeck.
What is your busineSs?" asked Gray
Il have no business. am a specu.
lator,' replied Bragg in low voice
He was a member Of the firm Of w
z. Hutton & Co. from 1928 to 1880. HI
said he also operated in his own nan'
during that time. He was with the
American International Corporation II
years before going with Hutton.
Matthew c. Brush, who testified yes
terday, is president of that corporation
Bragg promised to submit a com
. plete picture" Of his trading operations
, In his operations with w. e. Hutton
Bragg said he was chiefly on the ''ul
side" when stocks were going up ant
on the down side" when they wer
going down.
Short on Market Now.
He said he kept long position unit
1929.
When did you begin to establish
short position?"
"In Sentember 1920 said Rraqp