Evening star., 1933-02-09
Evidence Hidden and Only SO
Witnesses Called in Entire
Year, Reform Organization
Charges.
PLOT SEEN TO PROTECT
BIG FINANCIAL INTERESTS
New York Committee Declares In
vestigators Will Be Content to
Frame Legislation and Will
Shun Possible Exposure of Sc
curities Scandal.

BY the Associated Press.
A demand for a Senatorial in
vestigation of its Banking Com
mittee, which is investigating
stock market practices, was made
today by the New York Stock Ex-
change Reform Committee and
the Manhattan Board of Com
merce in letters sent to each OF
the SO Senators.
James J. Cahill, secretary of the
Board of Commerce, who signed
the letters, said the group was
sending a delegation to Washing
ton February 16 to present for
mally to the Senate their reSolu-
tions asking the investigation.
The Stock Exchange Committee,
in a report which accompanied
the letter, contended the Banking
Committees investigation Of the
stock exchange "has completely
collapsed and is, and has been,
doing nothing more than prac-
ticing a deception upon the peo-
pie of the United States"
The Reform Committee resolution said
whole years time has been consumed
in hearing the testimony Of only 90 witt
nesses," and that although soms sofn-
mittee members were ready to tnvesti-
gate fully. other members were sitting
on the lid"
Charge Evidence Hidden.
1t said the Reform Committee finds
that the files of the investigating COM
mittee have been deluged with most Inn
portant evidence, but the greatest Sc
crecy has been INDUCED IN to hide these
facts from the public and give immunity
to those interests that swindled defense
less citizens out OF their money ana
less and homeless"
The Reform Committee report said
the senatorial investigation OF the
Stock Exchange ''if properly conducted
would disclose the manipulations OF more
money than the human mind can con-
ceive."
The report also said that the COM
mittee's lawyer-whom it did not name
when he began to unravel few
of the ramifications at hand was elimt-
mated from further service" and that
another lawyer was likewise elimi-
mated" and that the Senate Commit
tee had not retained man highly ex-
perienced with Stock Exchange prac-
tices.
The Stock Exchange committee said
'the present counsel, Mr.. Ferdinand
Pecora, an able and experienced crimi-
nal lawyer, has publicly announced
that he will make the investigation q
fact finding not a head-hunting, ex-
pedition, meaning, Of course, that the
highwaymen of high finance need not
worry about going to jail, no matter
how many millions of dollars worth of
blue sky they might have unloaded onto
the defenseless public, and no matter
how many income tax frauds they
might have been guilty Of, and no mat
ter what the circumstances might be,
they would not be prosecuted-that, in
fact, the committee would just find
some facts about watered stocks, in
f1ated values and other frauds and de-
ceptions and just use these facts to
recommend some more legislation"
Secret Group Scored.
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 "pretendedly innocent, non
profit membership organization to
function in coordination with their
manipulations, and secretly aid them in
procuring and utilizing public conf
dence"
This evidence has not been used BY
the Senate Committee, the Reform
Committee said, adding its disclosure
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