The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-11-21
M. E. Tracy Says:

STOCKHOLDERS of the Chase National bank
- have brought suit against Albert H. Wig
gin its former president and 1875 directors IN an
effort to cover alleged losses from negligence
and Encouragement.
While this is a civil action, involving no
question of public policy or changes In the
banking system, it probably represents the san
est wav of determining whether what occurred
represented a violation of existing statutes or
whether new ones are needed to prevent similar
| occurrences in the future.
The sensational testimony Of Mr.. Wigg1n
before the senate investigating committee le1t
MANY people in doubt as to the course which
should be pursued The practices admitted gen.
orally were regarded as completely out OF line
with sound banking if not repugnant to bust
ness ethics. At the same time, it seems to have
been taken for granted that no regulatory law
was violated.
Mr.. Wiggin frankly acknowledged that he
had formed personally controlled corporations
which not only enabled him to deal in stock of
the Chase bank but also to save on his income
tax. In addition to this, he acknowledged SELL
ing the bank stock short and making large prof.
its out of the transaction.
LIS personal knowledge that the bank was
l. about to pass a dividend and that the
stock would probably decline can hardly be
dismissed.
Assuming that the bank stock would have
declined anyway, it is the prevailing idea that
short selling represented an effective way to
drive it down faster and further. If that is so,
Mr. Wiggin caused his stockholders unnecessary
loss and they would seem to have a remedy at
| law.
If there is a remedy at law, the investigating
public possesses a powerful weapon by which to
enforce a due regard of its interests by bank
presidents and bank directors.
After all, that is the real issue. We can not
hope to get better results through regulation
than would be possible through upright, con-
scientiouS conduct Of our financial affairs. If
there is any way to compel such conduct. with
out added regulation. it should be sought, be-
cause no matter how well regulations work they
have stultifying effect
TN my opinion, the most important point OF
i this whole problem lies in the simple fact
that Mr. Wiggin did not need to ask for a
raise in salary when he was getting $4,000 a
year and at the very moment he was suggest
ing that other employees take a cut; did not
need to accept bonuses when his own activities
showed that he realized the bank was headed
for bad weather; did not need to form personal
Uncontrolled corporations for the purpse of
specializing, when he had job which, if prop
erly performed, would have taxed his time
and ability to the limit
No one can review such cases as that of Mr.
Wiggin and many other financial or industrial
leaders, without being forced TO the conclusion
that an inordinate love of money has played a
stupendous part in bringing on and prolonging
| the depression.
If men can not control this appetite when
| they have more than enough; if there is nc
| limit to what they want, or will do, regardless
of general conditions, the public has no choice
but to surround them with handicaps and in
hibtions. The public does not prefer to dc
this because it realizes the evil effects of too
much interference in private affairs, but men
Of unbridled ambition leave it no choice.