Evening star., 1933-10-14
DILLON, READ PROBE
BROUGHT TO CLOSE
AT WORDY SESSION
Continued From First Page.)

tCOntlnueQ from f1TSt FdRe.)
I think the matter Is much more seri-
Gus than that end think that If pub
lie confidence is to be secured, We can
not just dispense with these meetings
by exchanging flowers between each
other"
Cites Statement.
Dillon reminded Couzens of a state
ment the former presented earlier
showing that on the whole investments
in Dillon Read interests had paid well
and remarked that he took pardon
able pride" in the summary.
You can oftentimes do something
which externally looks good, and you
can exhibit with pride. but sometimes
you have to analyze the method.
adopted to accomplish that result ano
you. may not be SO proud of the meth
ods as you are of the accomplishments,
CouZens asserted.
we are in our CASE shot bacE
Dillon.
Il expected you would be-" retorted
lCouZens. I'VE never expected to pene-
trate Wall Street"
Asks Regular Reports.
In ending his appearance. Dillon re-
iterated to the committee recommends
tions that full publicity through regu-
lar reports. monthly or quarterly. be
required from corporations. as the best
way Of remedying undesirable flnan-
cial practices.
Il think Federal legislation to tina.
end would be highly desirable he as
serted.
The present securities act. Dillon
said, Is Confusing to the business
man and banker by not clearly de-
fining responsibility and liability. ex-
planning 1t made innocent" persons If
companies responsible for errors D,
engineers or accountants.
There would be an active securities
market now If this matter were cleared
up," Dillon said. and answering query
by Couzens. added:
"I think any one should be respon-
sible for Misrepresentation or NAL
feasance."
Pecora Interposes.
Ferdinand Pecora. committee counsel
In charge of the investigation. broke in
to hold that bankers issuing securities
should assure themselves in the flrst
instance of their soundness by complete
analysis and understanding Of the facts
because it is the primary duty OF the
bankers to satisfy themselves and to
inform the public"
COUGHS name was brought into the
committees record by Pecora in pre-
senting a mass of statistical data. deal
ing with the banking. stock and bond
operations of Dillon. Read and assocl-
ates. along with customers in stock poo
accounts.
The record showed Couch was loaned
5000 900 on January Is. 1928. and that
it was listed as unpaid up to December
81. 1881. Committee investigators said
they understood it was still unpaid
when Dillon, Read answered ques-
tionnaire from the committee this
Summer.
Collateral Disclosed.
Collateral to secure the loan. thu
record disclosed, included participation
in the Louisiana & Arkansas Railway
Syndicate" Couchs life insurance. ant
numerous shares of National Power &
Light and Electric Power &, Light.
Hopson, questioned only briefly, tolt
Pecora he was an officer or director II
SO many corporations he could not give
the total without looking it up. Wher
asked about one of them in particular
he said he could not remember what
Office he held.
He was accompanied by Patrick J
Hurley, former Secretary OF War, a.
counsel.
He said he was officer of many ol
the subsidiaries of Associated Gas &
Electric, numbering about 300. some ol
which the committee counsel wanted tt
look into.
Don't Seek to Evade.
He said he had not tried to evadt
the committee. He said when the com
mittee was trying to find him, he wa!
away and had given orders not tt
disturb him with business affairs. HI
testified, however, he had called his
Office almost every day.
When he said he had brought COM
pany records to Washington. Pecora
asked if they could be sent to New York
where his staff does most OF its work
but the witness was reluctant to do so.
He indicated he had been told to bring
the records to Washington, but Pecora
warmly replied he had told his asso-
ciates he wanted them in New York.
Finally Agrees.
Il QOnt ike 10 pay tilc cAPCHoc VI
carting them back and FORTH" Hopson
said. "They are a truckful."
A moment lated he added
"These are private records. don't
know why you want to look at them
anyway. But they are here and you can
begin looking at them"
Finally after several conferences with
his attorney, Hopson agreed to send the
books to New York and promised to CO.
operate with the committee.