Evening star., 1933-02-26
EXTENSION SOUGHT
FOR STOCKS PROBE
Fletcher Resolution Would
Continue Hearings After
March 4.

Senator Duncan U. Fletcher, Demo-
crat, of Florida, yesterday introduced in
the Senate a resolution providing for
continuance beyond the present Con-
gress of investigation being made by
the Senate Banking and Currency Com
mittee of activities by brokers, ex-
changes and other agencies with ref
erence to the floating and banks, selling
securities. Senator Fletcher will be
chairman of the committee and, pros
pectively, of the subcommittee charged
directly with the inquiry in the new
Congress. There is little doubt Of the
passage of his resolution before the
present Congress ends March 4.
Meanwhile, it was said authoritatively
tina the supplementary investigation
instituted by the Department of Justice
with reference to developments relating
to affairs of the National City Bank
of New York and its affiliate. the Ma
tional City Co., and some of the officers
of the affiliated establishment will be
continued by the new administration,
to be directed by Thomas J. Walsh, now
Senator from Montana and long noted
for investigatory zeal.
Object of Inquiries.
The Department of Justice inquiries
will relate to the question whether dis
closures in the Senate Committees
hearings this week involve acts for
which prosecutions should be instituted
in the courts. The inquiries are to
include. it was said by Attorney Cen
eral William D. Mitchell, examination
of appurtenant income tax returns. in
cludlng personal ones made by Charles
E. Mitchell, chairman of the board of
the National City Bank. 1t is stated
that. in the light of the opinion rem
dered by Solicitor General Fred w.
Lehman 81 years ago and first fully
disclosed Friday, when it was read dur
ing the Senate Committees hearings,
there will be a consideration of the
question whether national banks legally
may have investment and other aff1li-
ateS.
The criminal division of the Justice
Department began examination of rec
ordS of the Senate investigation of both
the insult utilities collapse and the Ma
tional City Bank. A Federal grand
jury in New York also is to investigate
the 1929 tax return of Charles E.
Mitchell, chairman of the boards of
the National City Bank and the Ma
tioaal City Co.. who told the Senate
Committee this week that he sold 1890
shares Of National City Bank stock in
1929 for tax purposes. The sale, to a
member of his family, enabled him to
show s2,700,000 loss on that transac-
ton. He repurchased the stock some
time after January /, 1880.
Active in Investigation.
Senator Fletcher, who after March 4
will take directive charge of the Senate
Committees investigation, has been
active in the inquiry, which was begun
about year ago. Senator Peter Norbeck,
Republican, of South Dakota, who, as
chairman of both the Senate Banking
and Currency Committee and the sub
committee charged directly with the in
yestigation, will become ranking mi
nority member of the committee. Sen
ator James j. Blaine, inSurgent Repub-
1ican, of Wisconsin, and Senator Smith
w. BrOokhart, insurgent Republican, of
Iowa, who have been active investiga-
tors in the hearings held in connection
with the securities investigation. will
retire from the Senate on March T.
Samuel Untermyer, in a telegram to
Chairman Norbeck yesterday. said he
had sought to suppress banking affli-
ates in 1912, but had failed to obtain
action from President Taft or Attorney
General W.ckersham
Both the President and the Attorney
General, he said, had seemed Sympa-
thetic at first to his demands that they
institute legal proceedings, but nothing
came of it. At the time he was counsel
for a Senate committee investigating
financial practices.
Untermyer said neither Wickersham
nor any one else seemed to know at
that time of the opinion by Solicitor
General lehman holding that the Ma
tional City Co. was illegal.
Untermyer said he also had prepared
q bill to prohibit these aflliates. OF
which he said there were then only
while there are now 200.