The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-20
BULL MARKET
FOUNTAIN OF
RICHES Barred
Dazzling Wealth Flowed
From Security Pools in
Boom Days of 1e28-29.
PAY HIGH FOR PROFITS
Smart Operators Cash In
for Millions by Pushing
Certain Issues.
BY LYLE C. WILSON
United Press stan Correspondent


WASHINGTON, May 20.-Senate
investigators are revealing the New
York Stock Exchange to have been
a miraculous fountain of quick,
dazzling riches, flowing from Sc
curity pools.
Millions Of dollars of profits in
few days are disclosed in the story
Of what happened when speculative
millionaires dealt in rocketing stocks
at the corner Of Wall and Broad
streets, New York, in the boom DAYS
OF 1928 and 1929.
A multimillionaire, it developed.
thought nothing Of paying a smart
market operator and three associ-
ates 1881. 152 to dispose of some of
his surplus stocks.
In this instance, the multimil-
lionaire was Rudolph Spreckels, de-
scendant Of a California pioneer.
The stock was holster Radio. The
market-wise trader was George F..
Breen, tight-lipped but genial
little man.
uAe hlsBine Is Denled
Oscar Alexander, Arthur Cutten.
famous grain trader. and L. P.
Fisher of the equally famous Fisher
brothers were partners with Breen
in the Spreckels transactions. Each
got 1897. 1878 cash for selling the
Californian's stocks at prices salts
factory to him.
Through Breen. Spreckels sold
100000 shares of holster Radio for
approximately S1e,000.0O0. Spreckels
could have handled the transactions
himself.
William A. Gray, senate banking
committee counsel, commended that
Spreckels had engaged Breen to
handle the deal in order to main
tain an absorbent market during
disposition of the stock.
1T was pure rigging the market,
wasn't it?" Gray asked.
"Oh, no." said Breen, it was buy
ing and selling
Radio Stocks Skyrocketing
In the process Of selling the ESQ.,
600 shares, Breen actually sold
10000 shares and bought 206 900.
Spreckels wanted from 70 to "a for
his stock. Breen sold it at from "a
TO 965s, and the difference was the
profit for him and his associates.
1T was very wild market" Breen
saio, with the tape running an
hour to an hour and a half behind
sales each day. All radio stocks were
skyrocketing in those DAYS Q928).
Grigsby- Grunow went from to
1900"
Breen cited the tripled value of
Columbia Graphophone and the up
ward sweep Of Radio Corporation of
America from the SOS to 480.
A glance az market reports this
week showed Grigsby- Grunow
quoted at low Of Y, and Radio
closed one day this week at 4.
The internationally famous bank
ing house Of j. P. Morgan d Co.
today protested indirectly TO the
senate committee against implica-
lions regarding relationship of the
organization with involved financial
transactions OF United Foods Cor
porations in Canada and the United
States.
Hearing Is Recessed
Chairman Norbeck received word
that a representative OF Morgan AZ
Co. desired to be heard by the COM
mittee.
The hearing was recessed TODAY
after testimony purporting TO show
that John j. Levinson, a trader.
had paid over period of a year
more than $4,000 to Raleigh Cur
tbs who. in 1929 and 1880. wrote for
the New York Daily News a mar
ket column under the name of
The Trader" William A. GRAY.
committee counsel, contended Cur
tbs was paid for "puffs" and tips to
purchase stock in which Levinson
was operating.
The investigation resumed Thurs
day with sensational revelations of
profits in a 1929 Radio stock pool.
The participants put up SO ,6s3 900
for $4,000 shares, and. in seven
days, had won s4,924,07s in profits.