Evening star., 1933-02-15

StA3otNA
insult said the price paid by members
Of the family was S7.54 per share.
insult said $4,000 shares were sold
to Halsey Stuart & Co., a Chicago in
vestment house, at 500 share which
were sold to the public at that price.
Some of the 100000 shares OF COM
mon stock also were given to Halsey
Stuart, he said.
Family Bought Common.
The preferred stock acquired by the
insult family, the witness continued,
entitled it to buy 100000 shares Of
common at Sis a share, which rights
were exercised December 81, 1929.
Samuel insult, ST., was given an
additional control to buy $50 900 shares
Of common stock at $l2 a share, young
insult testified. -s
"He contracted to purchase 1t or
have it acquired by other people," he
added
Instead of buying it, he testified
insult, ST., sold the stock at $12 to
others before it was listed on the ex-
change.
insult sid he did not have the list
of persona 10 whom the stock was sold,
but identiAed a photoStat handed him
by Pecora.
1t was a list formerly made public
In Chicago.
DO you know any one on that list
holding or formerly holding public Of
flce?" Pecora asked
He named Samuel A. Ettelson, who
was listed for $50 shares, as a former
corporation counsel but said he did
not know whether he was in Office at
that time.
The list included Young for 1000
shares, and william A. Fox, SWope and
Trimble for varying amounts.
Brought $50 a Share.
insult did not mention Trimble to
the committee.
AS he scanned the list, insult asked
one of his associates:
Herbert Lawler, who is he?" And
then he added, "Oh, yes, he's the
chauffeur"
A moment later he mentioned L. E.
Myers, whom he said was associated
with his father in business and was
at one time head Of the school board.
The only, shares outstanding when
trading in the stock opened, insult said,
were those issued to the insult femily
and Halsey Stuart. insult said his i'm
preston" was the stock sold for $50 a
share on the first day it was traded in
on the Chicago Stock Exchange-Jan-
uary IT, 1929.
Pecora pointed out that the family
less than three weeks before had paid
but $7.54 per share.
insult said his father had used some
OF the stock to finance its marketing.
Senator Brookhart, Republican, OF
Iowa, called insults attention to South
Trimble's name.
piled.
"Who is Judge George A. Cooke"
Brookhart asked, as he scanned the
list
He is an attorney in Chicago" In
sull replied, explaining he was counsel
for one of the insult operating COM
panies.
Dropped 81 or 81.
The witness said most of those on the
list were officers or employees Of the
insult companies
Pecora asked If the stock did not sell
for 40 on the second day Of trading.
insult said the next he remembered
was AZ in June.
Those who bought the 250,000 shares
at Sl2 paid a total of $3,000,000, Pecora
said, while on the first day of trading
they were worth S7,500,000.
Later, insult said, the stock reached
price Of lat or 149 in July or August.
'How low did 1t go?" he was asked.
"It was down to a nominal value Of
81 or 81 share" insult replied.
But it didn't go below 100 in 1929"
Pecora added.
insult agreed with a statement by
Pecora that the contract between his
father and the company for acquiring
the 250,000 shares at sl2 was signed
on the same day the stock was opened
on the market $50.
Halsey Stuart on List.
Pecora asked if Halsey-Stuart had
not acquired large blocks of stocks at
far below $50.
Yes" insult replied, but not from
the corporation"
HalseyStuart were on the list of
SIP purchasers, Pecora said.
He asked what impelled insult, sr.,
to sell to Halsey- Stuart.
insult replied that the investment
House bought s6,000,000 of debentures
at par value and large block of stock
at $l2 a share, all of which had been
sold to the public at the same price.
insult said he was telling all he knew
personally of the transaction.
Are you reading from a prepared
statement" Pecora asked.
Yes" insult replied, adding it was
prepared by the bookkeeper for his
father and himself.
insult testified that in discussing the
price at which the stock was to be
listed on the Exchange, there was some
talk of the $7.54 cents share paid by
the insult family.
He said he engaged in the negotia-
ton for listing the stock, but was no
very familiar with Stock Exchange pro-
cedure
insult said he participated in the dis
Eussion Of the contracts to sell the stocl
to his father at Sl2.
"Were there any syndicates or pool
to boost the price of these stocks tt
such high prices?" Brookhart asked.
mot that know Of" the witness re.