Evening star., 1933-11-24

fore Senate Investigators tnat Slo,-
600 900 had mysteriously disappeared
from the treasury Of Fox Theaters
Corporation since he held control
of it.
BY the Associated Press.
Testimony that the Hoover admins
tration attempted to arrange loan to
prevent receivership of the vast theater
holdings of William Fox, only to be re-
buffed by Albert H. Wiggin. chairman
of the Chase National Bank, was re-
ceived today by the Senate Banking
Committee.
Relating to Senate investigators the
story of the collapse of his chain Of
1000 movie houses, Fox testified that
Claudius Huston, chairman Of the Re-
publican National Committee, went to
Wiggin to try for loan, and was di-
rected to tell the President to mind
his own business"
Resented Interference"
wiggin also was quoted as saying he
resented Mr.. Hoover's interference in
this matter"
Later Fox said he considered Huston
as the agent of the President.
The last thing the President
wanted" he testified, was for a cor
poration with assets of $500, 900 to
be plunged into receivership."
Fox also testified that Wiggin and
Clarence Dillon, head of Dillon, Read
g. Co., had discussed the capture Of
the Fox companies"
This testimony was given by Fox
to support charges of a banking con-
spiracy to take his properties away
from him.
Bear in mind" Fox told the COM
mittee, these men in 1929 were al
mighty"
They were not working under the
regime that we are working under now.
mon people were Just people then.
The Chase Bank had huge capital
ization and Wiggin felt himself power
tul enough to say to the President:
II resent his interference in this
matter"
Finally. he said, Huston appeared
and offered to help.
Il asked him to return to Washington
and report the situation" Fox said.
When he came back few days later
I inquired whether he had done so
and he said he had in a general way"
He said he was going to see Albert
Wiggin and could adjust the trouble
with him"
Then Fox told of the reply he said
Huston brought back from Wiggin.
Resuming his story of difficulties with
bankers, Fox said he arranged to see
Dillon while peddling my wares down
the lower end of Broadway" He was
seeking financial aid to save his COM
panies.
Warned to Give Up Shares.
Dillon, Fox said, warned him to give
up his voting shares or he would find
some one else in charge of his COM
panies.
Fox also told of asking aid from
Richard Hoyt. a partner of Hayden.
Stone 6 Co., which had done some Fox
financing.
When he received an unSympathetic
response. Fox said he told Hoyt:
Perhaps you would like to cut out
one Of my kidneys"
II would like to cut both Of them
out Fox quoted Hoyt as replying
In conference with Dillon, Read &,
Co. Fox said he found he wasn't in
the hands of friends and withdrew
when they demanded 81 5000 in COL
lateral for a S5OO,000 loan.
1T looked fishy to me-" he added.
As Fox resumed his dramatic story
Senator Couzens, Republican. Michigan
called for. evidence that the bankers
charged off loans against your bal
ances before the loans were due"
Couzens said that was a most un-
usual practice" and should be proved
if possible. Fox agreed to try to fur
nish the data and Ferdinand Pecora,
committee counsel, suggested the COM
mittee's subpoena power could be used
to aid him.
Fox Lists His Banks.
At the outset, Fox listed a dozen
banks IN which he said his companies
had loans and deposits.
He named them as the Chase Ma
tiOnal, Public National, Chelsea Springs,
Hartman National. Bank of United
States. Bankers Trust Co., Corn Ex-
change, Federal Trust Co., Trust of
New Jersey, National City, Chemical
National and Manufacturers Trust Co
Fox submitted a letter he said he
wrote to the banks asking for Ieniency
on the loans.
After reading the letter. Couzens re-
marked it showed the loans to Fox
were demand loans and that therefore
they were not being called ahead of ma
turity.
Some were due and some were not, "
Fox replied. THE Chase Bank note
was past due"
$50 charging it of against your bal
ance was legitimate" Couzens said.
This does not agree with your testi-
nnony yesterday"
Fox told of a letter to the Chase
Bank January 6. 1880, In which he
characterized as short sighted" threats
Continued on Page Q. Column A.