The Washington times., 1932-04-26

Guardia tax clause on trans
fer Of securities had been in
troduced in the House, bonds
had declined over a billion dol
lars in value and stocks had
deprecated over two billion dol
lars"
LaGuardia called this an alibi,
saying he had not introduced the
tax on stock transfers, although 1t
Is now a part of the bill.
He said Hornblower & Weeks
used it merely to explain why
their market predictions failed to
come true.
Market Rugged, Charge
Charging that brokers deliber-
ately rigged the market. La
Guardia said the hired high
priced publicity men" to promote
the exploitation campaigns, that
the financial writers contacted"
these publicity men, and that he
was prepared to produce Cancelled
checks of some of the financial
writer's"
LaGuardia cited the case in
which a woman named Grace
Wand Roberts recovered $4,000
from Hayden, Stone & Co. He
said the woman lost her money
by following the advice Of the
brokers customers man and the
court said she had been defrauded.
Whitney Under Fire
He frequently criticized Richard
Whitney, president of the New
York Stock Exchange, for his
testimony before both House and
Senate committees. He said Whit
ney had not told the truth.
Senator Couzens (RO of Mich
1gan demanded:
do you say he committed
perjury before this COmmittee?"
LaGuardia replied:
81 haven't read all his teSti-
mOny. He didn't testify under
oath before the House commit
tee"
LaGuardia offered newspaper
clippings and checks as evidence
that the brokerage firm OF Jack
son Brothers & Bosel literally
bought publicity in behalf of
Savage Arms stock in 1924. He
showed that A. Newton Plummer,
q representative of the firm, was
given the account to distribute
among financial writer's.
"BalIyhoo," Says LaGuardia
Plummer handled the "bally-
hoo" for the stock and spent
$286,0O in that connection, La
Guardia said. He told the COM
mittee, though, that he would only
60 into $4,000 of this expendi-
ture for favorable publicity and
advertising, saying:
'T will only use names when
/ have checks. Take the case
of Savage Arms. The promo
tion campaign began about
June rs, 1924"
LaGuardia showed by Plum
mer's records that the firm
turned over to him 500 shares of
the stock. He said that since this
happened, Plummer had been
bounded and indicted" He said
this firm used Plummer for Is
years Ito carry on its ballyhoo."
Names Newspaper Men
The Representative produced
cancelled checks, given newspaper
men by Plummer, he said, and
each time he showed a newspaper
story praiSing Savage Arms stock.
The first check shown was for
$50, dated July "a, 1924, to
j. F. Lowther of the New York
Herald-Tribune. The next was
for $40 to William j. Gomber,
Of the Financial American. The
third was for $50 to Gomber.
''Is that the GOmber, who,
writing in the Wall Street
Journal, is panning this inves-
tigatiOn?" he was asked.
II wouldn't be surprised"
LaGuardia produced three
checks in July, 1924, for $1,000,
1910 and $500, respectively, made
out to cash" that, he said,
were given to a "pay-off man"
to be given to other financial
writers who were ticklish about
taking checks.
Said the witness:
II will give the committee
the name of this 'pay-Off man,
but not now and here for Obvi-
Gus reasons, physical and
otherwise"
LaGuardia presented in evil
dence a 1858 check from Plum
mer to Richard Edmonston, of
the Wall Street Journal.
Oil Stock Cited
LaGuardia next TOOK UP the pro-
motion of pure oil stock in 1925.
The firm of Chase Securities Cor
poration employed Plummer to
handle the publicity. The witness
was asked:
"DOeS the Chase Securities
Corporation have any cOnnec-
tiOn with the Chase National
Bank?"
Certainly"
EaGuardia produced a check
for $500 dated January %, 1925,
cashed by Richard Edmondston,
of the Wall Street Journal. Plum
mer drew it on an account opened
for him in the Central Union
Trust Company, by the Chase Cor
poration.