Evening star., 1932-04-09
BEAR RAID RUMORS
PLAY LARGE PART
IN INQUIRY CALL
Senators Acted Suddenly
After Hearing Huge Opera
tionS Were PIannsd Today.
PRICES SWING UPWARD
ON NEW YORK EXCHAN GE
Committee Is Determined to Learn
What Influences Are Back of
Drive on Stocks.

Representative La Guardia, Re-
publican, New York, told the House
today that New York Stock Exchange
officials had threatened" the SEN
ate with a panic If short selling was
investigated
BE the Associated Press.
Rumors of huge bear raid planned
for today on the New York Stock Ex-
change had a part in the sudden de-
cislon Of the Senate Banking Commit
tee yesterday to call Richard Whitney,
president of the exchange, to testify
Monday.
This word came out today as the
Senate leaders smiled wisely at the
prompt upward swing of prices on the
exchange.
The bears" were forced to take to
cover today and in doing SO they had
to buy.
There was just an intimation that
the purpose of calling Whitney for
Monday had been accomplished
prices had gone up and the rumored
raid had been forestalled.
Nevertheless. there was every prep
aration to go ahead with the stock
market inquiry.
Brookhart Directs Proceedings.
The Senate Banking Committee has
determined to find out what influences,
domestic or foreign, were behind the
drive which smashed down security
prices this week eliminating yesterday
in record lows for many issues
The committee assembled hastily in
the Senate cloak room, the members
rounded up from the floor during the
conclusion of yesterdays debate. With
Chairman Norbeck absent. Senator
Brookhart, Republican, of Iowa. direct
ed the proceedings. The date was set
and a subpoena was issued for Whit
ney's appearance, with detailed record
of all big short accounts as they stood
at the close Of business on the Exchange
last night.
Suddenness Surprises Capital.
A sergeant at arms of the Senate
was in New York today to serve the
papers and see that the desired records
were assembled and brought to the
Capital.
The secrecy and suddenness of the
committees session startled the Capt.
tai. The Senate, with the known back
ing of President Hoover, ordered an in
vestigation of the stock market month
ago, but it had been deferred pending
disposition of other business, still un-
completed.
Senator Walcott, Republican, of
Connecticut, administration spokesman,
organized the meeting. He insisted he
had received no suggestion from the
White House for the new move. yet his
closeness to the President left no doubt
but that Mr.. Hoover is supporting the
inquiry. He was reluctant to comment.
"Just read today's papers" he told
the newspaper men who crowded about
him as they learned Of the decision.
He directed attention to stories from
New York and Paris. They told Of the
downward movement of stocks, new
gold shipments from this country to
France and the campaign in that coun-
try against the American dollar.
Foreign Influences Hinted.
Brookhart spoke of a systematic
bear raid" and hinted at foreign inf1u
ences, specifically naming France. A
lot Of vague hints were passed out
Brookhart remarked he had in his
pocket a report purporting TO show an
attempt to drive America of the gold
standard.
Just who will be called, if any one,
after Whitney is heard has not been
determined.
Wait till we get the facts" said
Walcott.
Senator Walcott had begun nego-
tiations for the meeting early in the
day. Only last night the Capital was
aroused by a fresh outbreak of the
campaign in France against the dollar,
in which one newspaper published a
story that a prominent New York bank
had suspended payments.
Another story told Of the shipment
yesterday CT $10,000,000 in gold abroad,
of which $4,000, 900 went to France and
$1,000 900 to Belgium.
The Banking Committee includes
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