Evening star., 1933-10-20

take several months" the broker said.
Questioned by Senator Couzens, Re-
publican, of Michigan, Pierce said the
information would be within less than
10 per cent of complete accuracy even
if reasonable latitude" was allowed.
Explaining the difficulties, Pierce said
his own brokerage house has $4,000 ac-
counts.
No Signs of Hard Feelings.
1--WE probably could arrive at a very
helpful result if we confer with the
committee accountants to agree on a
method" the broker added.
There were no signs of hard feeling
between Pecora and the witness, despite
the fact it marked the climax Of long
controversy between the committee and
the Exchange
Members Of the following houses were
called before the committee today:
w. E. Hutton g. Co.. Jules S. Bache
& Co., Dominick g. Dominick, E. A.
Pierce g. Co., Erich & Dreves, Horn
blower & Weeks. Bear. Stearns g. Co.;
Chisholm g. Chapman, Hirsch, Lilien-
thai g. Co.
After questioning the witnesses,
Wiggin, heavy-set former head of the
Chase National Bank. for further in
quiry into pool operations in Chase
stock by his personal company and the
Chase Securities Corporation.
Exchange Counsel Called.
After questioning Pierce, Pecora called
Redmond and asked him for a defini-
ton of a pool. 1t was defined as an
account between more than three per-
sons for trading actively in a single
security.
A syndicate. he said. was an account
with a larger number of participants
to buy or sell security or securities,
not for the purpose of actively trading
The lawyer said joint account was
one in which several persons joined to
purchase and sell securities generally
for profit or scme other purpose Of their
business.
Redmond's definition was the reverse
Of testimony by Wiggin yesterday who
said a pool was chiefly distinguished
from trading account by having more
participants.
Asked by Senator Adams Democrat
of Colorado, If there were dishonest"
persons engaging in pools and syndi-
Gates Redmond said there were, and
added:
There are dishonest people every
where"
Wiggin smiled broadly from a seat in
the rear at some of the exchanges be-
tween Pecora and Redmond. He seemed
to enjoy his brief vacation from the
witness chair.
Four Pools Disclosed.
Five hours of steady cross -examina-
tion of Wiggin yesterday disclosed four
pools participated in by the Chase
Securities Corp >ration, two of which
obtained options on stock from Wig
gins company at higher prices than
paid to the securities corporation.
Profits from the first three pool opera
tiCns were set at about S2,000,000, but
no attempt was made to fix the profits
to Wiggin or the securities corporation
on the stock they sold through them.
Wiggins personal company got al
to one of the pools, but he said he
could not give their original cost until
next Monday
During the afternoon session the COM
mittee was stirred by an angry ex-
change between Winthrop w. Aldrich,
president Of the Chase National Bank,
and Chairman Fletcher over investi-
eating Cuban loans made by the ST.
900 100000 banking house
After the bank president had de-
manded an immediate investigation and
Fletcher had reported that I'VE will
do as we wish about it, the commit
tee decided to go into the Cuban loans
at special session Monday. :.
The exchange between Aldrich and
Fletcher took place after the banker had
produced newspaper story which he
said limited at scandals in the Cuban
loans and charged the bank was at
tempting to hush up an inquiry by the
committee.
Denies Wrong Doing.
Clipping his words out angrily, the
financier demanded the committee start
an inquiry Immediately. He said there
had been no wrong-doing.
Fletcher replied sharply that the COM
mittee had not decided whether to in
vestigate the loans. Aldrich shot back
that they should be investigated in view
of the news story today. Then Fletcher
asserted heatedly:
I'VE will do as we wish about 1t, Mr..
Aldrich. without your dictation. and
in our own time
That's obvious" retorted Aldrich as
Senator Couzens formally moved that
I'VE proceed with the orderly course Of
this hearing" The decision to make
the inquiry Monday was at the sug-
gestion of Senator Townsend. Republic
can, of Delaware. Aldrich said that was
satisfactory"