The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-04-11
Wall Street Raids
Denied by Whitney
Stock Exchange President Tells
Senate We do Not Have
Any Bear Raids
PROMISES TO COOPERATE
Says He Will Furnish Data
Asked by Committee; Tells
Of Liquidation

Washington, April 11.-(ReSaying
I'VE do not have any bear raids"
Richard Whitney, president Of the
New York stock exchange, promised
complete cooperation Monday with
the senates inquiry into the ex-
change In testimony to the banking
committee.
eSnator Brookhart (Rep., Iowa.
brought up the rumors of a huge bear
raid planned for Saturday, which
were understood at the capitol to
have caused speeding up of the in
vestigation.
Whitney told him he knew nothing
of any such raid except something
he had been told by Senator WAL
colt, REP, Conn.,, about operations
In U. s. Steel.
The exchange president also men,
toned the stocks of American Tele-
phone and Telegraph, Public Service
Of New Jersey and Consolidated Gas
OF New York as among those referred
to In connection with the purported
bear raids.
He said there had been mo bear
ra1ding." but great liquidation in
these stocks.
Brought Data Along
Whitney was instructed by sub
poena to bring with him list of all
corporations in whose stock there was
short account above 10000 shares at
tho close Of business last Friday: the
total number of shares in each such
stock: list Of the exchange members
through whom the trading was done !:
the names OF clients for whom the
short sales were made, together with
full details Of the volume for each &C.
count.
After being sworn, Whitney read a
statement saying:
In view of telephone communica-
lions with member of the senate
finance committee on Friday indicat-
ing desire for specific information,
I asked members of the exchange to
aid in supplying it,
He called attention that the ex-
change had offices throughout the
nation.
Il regret that I cannot assure the
committee that the statistics request
ed can be promised before Friday
noon," he said.
Il assure you Of every intent to give
all the data requested"
Senator Blaine Rep, Wis.,, asked
If telegram that had been received
here by Walcott should be placed il
the record.
Couzens said that, as members of
the committee had not seen the tele-
gram, Blaines question should be
considered in executive session.
Blaine said he wanted to use the
telegram as the basis for examination
Of the witnesses and Chairman Nor
beck said the question should be de-
cided later.
Senator Glass Dem. Va), de-
nanded of Whitney to know what
kind Of short selling is legitimate and
what is illegitimate.
May Be Short or Long
"A bear raid may be short selling
or it may be long selling" said Whit
ney. Il say it is illegitimate because
it demoralizes the market"
The exchange president said he had
data showing the complete short
position on the stock exchange up to
April S. and said this already had been
made public.
It 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.
Senator Couzens (Rep., Mich.), in
quired II Whitney thought his data
represented all the short selling.
II am confident it is so, so far as
our members are concerned" he re-
Piled. Members are subject to ex-
pulsion If they do not answer our
questions"
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 tRep., Iowa),
dChCO Va 0A 0VCCuAPV
to stage bear raid last Saturday that
would make the day black Satur-
day."
Il have no knowledge Of bear
raid except some statement made to
me by Senator Walcott last Friday re-
garding some operations in United
States Steel" Whitney replied. I'VE
do not have any bear raids"
Whitney said administration claims
Of bear raids on the stock market
were purely ridiculous"
For two hours the bronzed- faced
stock exchange president parted
question and answer with the COM
mitteemen. Senators from the wheat
belt INDUCED in most Of the exam
nation.
Whitney blamed the public for the
1893 stock price initiation and agreed
with Democratic members as they
poked jibes at the mo More Poverty"
slogan heard in those days.
Awaiting the specific data on
short selling promised by the stock
exchange president on Friday. the
committee made no effort to get
from him any names Of the more
prominent dealers In this manner OF