The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-02-09
new YORK REFORM
GROUP RAPSSENATE
BANKING COMMITTEE
Charges It With Deceiving PEG.
pie and white Washing
Wall Street

washington, Feb. s-R)-A demand
for a senatorial investigation Of its
banking committee which Is investi-
eating stock market practices was
made Thursday by the New York
stock exchange reform committee and
the Manhattan board of commerce in
letters sent to each of the So senators.
James ]. Cahill, secretary of the
board Of commerce. who signed the
letters, said the group was sending a
delegation to Washington on Febru-
airy 16 to present formally to the SEN
ate their resolutions asking the inves-
tigation.
The stock exchange committee, In a
report which accompanied the let
ter, contended that the banking COM
mittee's investigation of the stock ex-
change has completely collapsed and
is, and has been, doing nothing more
than practicing a deception upon the
people of the United States"
The reform committee resolution
said a whole years time has been
consumed in hearing the testimony
Of only 80 witnesses" and that, al
though some committee members
We're ready to investigate fully, other
members were sitting on the lid"
Too Much Secrecy
It said the reform committee finds
that the files Of the investigating
committee have been deluged with
most important evidence but the
greatest secrecy has been INDUCED In
to hide these facts from the public
and give immunity to those interests
that swindled defenseless citizens out
of their money and made millions Of
American people jobless and home
less"
The reform committee report said
the senatorial investigation of the
stock exchange IF properly conduct
ed would disclose the manipulations
of more money than the human mind
can conceive"
The report also said that the COM
mittee's lawyer--whom it did not
name-"when he began to unravel
few of the ramificationS was elimin-
ated from further service" and that
another lawyer WAS likewise elimin-
ated'' and that the senate committee
had not retained a man highly ex-
perienced with stock exchange prac-
tees.
The reform committee said evidence
had been given the senatorial COM
mittee that in 1922 stock exchange in
terests bought for 100000 and main
tanned a "pretendedly innocent, non
profit membership organization to
function in coordination with their
manipulations and secretly aid them
in procuring and utilizing public con-
fiderce."
Evidence Not Used
This evidence has not been used by
the senate committee, the reform
committee said, adding its disclosure
would reveal one Of the most i'm
portant angles of the entire debacle."
The reform committee said the SEN
ate committee had injected itself in
to the Samuel insult and WAR Kreug-
err cases with loud noise," and
that:
"Your committee finds that the
senatorial investigating committee
apparently does not want to uncover
any situation similar to that Of In
sull or Kreuger. but apparently wants
to satisfy the public with q few head
lines and with as much lethargy as
the public will tolerate"
About the time the letter was cir
culated, Chairman Norbeck (Rep., S.
d. of the senate banking committee,
received a letter Of resignation from
David A. Olson. of New York, who has
been a special investigator for the
committees stock market inquiry.
He said Olson complained he had
not been paid the agreed fee. Nor
beck declined to comment on q re-
port that Olson had resigned as .
protest against what he regarded as
an attempt to "whitewaSh" Wall
Street, but said he would have q
statement later.
The stock exchange reform COM
mittee, functioning under the auspices
of the Manhattan board of commerce,
was created In 1880.
James F.. Meehan Of New York Is
general chairman Of the committee,
which set up as its first objective a
far-sweeping inquiry into the stock
exchange and market practices.