The Washington times., 1933-10-28
W|GG|N PROFITS.
SHOCK HEAD Of .
INSTITUTION
Rising Leader Of Finance and
Predecessor in Dramatic
"Partinq of the Ways"
BY WILLIAM X. HUTCHINSON
international News Service

by WILLIAM N. hO 1NnAN0ON
International News Service
A New Deal' in the manage
ment of the Chase National Bank
was made matter of record to-
day following the spectacular
"break" between Winthrop w.
Aldrich, its present head, and
Albert H. Wiggin, former chair
man of it's governing board.
Aldrich tore the bank loose
from Virgins former leadership
by publicly condemning the ope-
rations of Chase affiliates in the
banks own stock.
This program was Virgins own
brainchild and Aldrich declared
himself absolutely opposed" to
such operations.
. It was the parting Of the ways
for these two men-one a rising
leader in the world Of finance,
the other long regarded as Amer
ica'S leading commercial banker.
Aldrich Amazed
The open break came at the
Senate banking inquiry after
Aldrich listened in angry amaze
ment to a revelation that Wiggin
made a profit of SIC, 1857 from
speculating in the banks stock
between 1928 and 1882.
If Aldrich were anyone but the
slim, distinguished head Of the
nations largest bank, it could be
said he heard of Wiggin's profits
in "pop-eyed amazement."
It took him but five minutes to
sever the present management OF
the bank from Wiggin's policies.
The Wiggin profits, result OF
secret speculation in the banks
stock through three personal cor
porations, literally stunned the
banks officials.
Of 200 officers owning Chase
stock, Wiggin was reliably re-
ported to international News
Service as the only official to
make a profit by dealing in it on
the open market.
ALI the other officials were
said to have incurred losses by
holding on to their stock as
values crashed on the market.
Through Personal Firms
Aldrich and his present asso-
ciates will suffer further shocks
next week when they learn more
about Virgins profits in security
operations. s53
The former Chase head drew
down $10,425,657 from Chase
stock deals, but he scored many
more millions of profits in other
securities. His operations were
conducted through personal COM
panies, called the Sherman,
Murlyn, Clingston, and Green
wich corporations.
The passing of Wiggin and the
rise of Aldrich in Chase affairs
was replete with drama. In
June, 1880, Wiggin was regarded
as the nations greatest CONNER
cial banker.
Aldrich Joined the bank then
as president when it merged with
the Equitable Trust Company. He
had the support of John D.
Rockefeller. jr., who became the
largest stockholder in the Chase
through this merger.
For two years Aldrich familiar
lied himself with the banks af-
fairs, which Wiggin dominated.
Indeed, the Chase was known by
bank examiners as a "one-man
bank" and Wiggin was that man.
With Rockefeller Aid
In May, 1882, Aldrich was
elected vice chairman Of the
banks governing board. This was
accomplished through the aid of
Rockefeller. It made Aldrich next
to Wiggin in the management
and elevated him over c. s. Nc
Cain. chairman of the executive
committee. and John McHugh,
chairman Of the board Of directors.
In his new position and with
Wlggin absent in Europe on other
affairs, Aldrich took command Of
the bank. At the end Of 1892,
Wtggin retired on q salary of
100000. He gave up this salary
Wednesday, due to public crlti-
ciSm.
Aldrich faced the Senate in
quiry confident his banks record
was "SpotleSs." He relied on the
reports Of Subordinates that its
affairs were in splendid shape.
Then he was forced to sit in
stunned silence while the banks
d1Scredited Cuban operations were
spread upon the record.
Parting Of the Waye
From reliable sources Interna-
tional News Service learned that
Aldrich had no "tip" on such
activities as the loans to Presi-
dent Gerardo Machedo, the en-
ployment of his son-in-law, Jose
Obregon, or of his business part
ner, Henry W. Catlin.
He knew nothing of the banks
own reports, revealing a terrible
economic plight in Cuba Just six
months after the bank floated a
100000, 900 Cuban credit in 1880.
The final blow came when he
sat in the committee room and
learned, with other bank. officials
for the first time, that Wiggin
made $10,425, ,657 speculating in
the banks stock. He probably
lost money on his share Of the
banks stock, as did many other
officers. He denounced the Wig
gin regime.