Evening star., 1933-10-18
Pecora Reveals Huge Deals
in Renewed Questioning
of A. H. Wiggin.
LAW FORBID HANDLING
BY PARENT INSTITUTION
Financier Says He Felt Stock
holders Should Share in
Underwriting.
BY the Associated Press

Evidence that the Chase Securities
Corporation traded through a subsidiary
in almost s900,000,000 worth Of the
stock Of the Chase National Bank from
1928 to 1882 was submitted today to
Senate Investigators.
The figure. including institutions
merged with Chase, was introduced by
Ferdinand Pecora, banking committee
counsel, to cover the period from the
time when the bank stock was taken
from the New York Stock Exchange
list until Albert H. Wiggin retired as
head of the institution.
Earlier, Wiggin testified the banks
afnllate, the securities corporation, dealt
IN the banks stock. which the bank it
self was forbidden by law to do.
After denying the bank had dealt
in its own stock, Wiggin agreed the
Chase Securities Corporation, had done
SO through a subsidiary, the Metpotan
Corporation.
Previously Wiggin told of increases in
capital OF the Chase Securities Corpo-
ration from 1920 to 1929 of more than
s70.0O0,0o0.
ou6Hs SHocIWIitluS SudIe.
Smiling jovialIy and frequently re-
moving his glasses as he testified, the
hnancier said he felt a securities COM
pany would permit the stockholders to
share in underwriting which couldn't
come to the bank
You knew national bank had no
right to engage in the securities busi-
ness for which the corporation was or
ganlzed?" asked Ferdinand Pecora
counsel for the Banking Committee
That's right" the banker responded
Chairman Fletcher announced after
an executive session of the Senate Bank.
ing Committee that it would not press
its inquiry into rescue parties" con.
Quoted by the Chase National Bank te
aid other institutions in distress.
Questioned by Fletcher.
Fletcher was the only Senator OF
hand as Pecora began to question Wig
gin today
He referred first to yesterdays testi-
mony that Wiggin received salaries as
director Of various outside corporations.
The counsel asked Wiggin If other
directors of those companies also re.
ceived salaries, referring specifically to
the $4,000 a year payments from the
Brooklyn Manhattan Transit Co.
mo, sir" Wiggin replied, adding his
salary was for serving as chairman Of
the Finance Committee.
Wiggin said payments similar to his,
Of $4,000 year, were paid by Armour
& Co. to other members of the Finance
Committee. He added he no longer
receives this income.
Pecora referred to a report made BY
Wiggin to the bank in 1881, saying "it is
not true that high wages make pros.
perity."
Defends Increases.
Pecora asked if Wiggin felt the sala-
ries Of executive officers of the bank
should have been increased in 1880 as
they were
Wiggin replied he saw no conflict be-
tween the increase granted in 1880 and
the views he expressed in 1881.
Pecora pointed out Wiggin got $780,
00c IN 1881 as salary, compared with
S218,000 in 1880.
The banker replied, however. his
salary was increased because of the ac-
QUESTION of the Equitable Trust.
Pecora then turned to the Securities
Corporation, the investment affiliate of
the bank
Original capital of the Securities Cor
poration was S2,500,000, representing
W VI lllc Udlk.
weren't the funds of the bank used
to underwrite securities?" Pecora asked.
Loaned Affiliate Money.
"The Chase National Bank loaned
money to the Chase Securities Corpora
tion from time to time, yes," the banker
replied.
Questioned by Pecora, Wiggin said
he could not remember whether there
| was any question about the legality of
| founding of the Securities Corporation.
He pointed out, however, the Securi-
ties Corporation was not owned by the
bank directly, but by stockholders of
the bank
Eldon Bisbee, one Of the attorneys
who helped organize the Securities Cor
poration, said the legality was consid-
cred at the time. He added he did not
remember knowing of an opinion sub
mitted to Attorney General Wickersham
| In 1911, by his solicitor, holding such
| companies were illegal.
Il disagree with him." BiSbee said.
Il suggest you read it." Pecora said.
| You'll find it at least entertaining, if
not instructive"
In 1920, Wiggin said an issue of 5O,-
| 900 shares raised s7,250,00O for capital
and $3.50 900 for surplus.
The new shares Of no par value were
distributed to existing stockholders pro
! rata, he added.
| Another stock issue of $4,000 shares
| in 1921 added $250,000 to capital and
S1,O00,0O0 to reserves, the banker said,
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