Evening star., 1933-10-31
W|GG|N'S RECORDS
BARE $12,0O0,000
NET
Project Managed by Cutten
in 1929 Paid Sinclair
and Banker.
By the Associated Press.

by the Associated Press
A search of Albert Virgins personal
records disclosed to Senate investiga-
tors today the formation of a series
of corporations in the United States
and Canada to escape taxes, loans by
the companies to bank officers and a
gigantic underwriting account that
netted participants Sl2,000,000.
The profitable underwriting project
was managed in 1929 by Arthur Cut
ten. noted Chicago trader, and other
participants included Harry F. SIN
clair and Virgins personal corpora
ton, It was testified.
Wiggin, slumped down in his chair
at the long committee table, frankly
testified the object Of forming three
personal companies in Canada in ad-
dition to his domestic companies. was
to cut down his income tax, but SAID
he did not know whether the plan
had succeeded
Lists Directors
The former chairman of Chase Ma
tional Bank listed about dozen officers
of the bank and its>security affiliate
who were directors of one or more of
his personal corporations, including
Gates w. McGarrah. then chairman of
the New York Federal Reserve Bank
and former director of the Bank for
International Settlements.
Several officers and directors of the
bank were shown to have been deeply
indebted to Wiggin'S personal COM
panies at the end of 1882 when he re-
tired with 0.000-a-year salary for
life. He relinquiShed this salary, how
ever, few days after it was brought
out by the Senate Committee.
AS the committee dug deeply into the
operations of his personal corporations,
Wiggin read prepared statement say
ing his companies had net loss of
s5,139,697 from participating in syn
dicates with the Chase Securities Cor
poration since 1917.
$4,000 Profit Cited.
Wiggin could give little information
about the underwriting syndicate man
aged by Cutten and the profit figures
were placed In the record by Ferdinand
Pecora, committee counsel
Although Pecora said his personal
corporation made profits of $877. 900,
Wiggin said he only had vague
recollection" of the operations.
After Wiggin had told of the loans to
bank officers, it also was brought out
that the personal corporation Of Wig
gin had lent $724000 to Gerald M.
Dahl. head of the Brooklyn Manhattan
Transit.
The financier testified that 10 officers
of the Chase Bank or its affiliate were
directors Of his personal corporations
which dealt extensively in bank 7tock,
selling short as well as buying.
Wiggin was questioned by Pecora
about the operations of the Sherman
Corporation. the chief Of Virgins do
mestic family corporations. Pecora
asked il any of its officers were also
Securities Corporation.
Replying in the affirmative, Wiggin
named Lynde Selden, vice president OF
the bank, who was vice president
of the corporation.
"He is my son-in-law." the banker
added.
Directors of Sherman and his other
personal companies, Wiggm said, in
cluded 10 officers of the Chase bank
or the Chase Securities Corporation.
He named among them himself, Rob-
ert L. Clarkson, president Of Chase Sc
curities Corporation, and William P.
Holly. vice president OF the pank.
McGarrah Sherman Director.
One of the directors Of Sherman,
Wiggin added, was McGarrah.
"That shows the tie-up between the
Federal Reserve and New York banks"
Senator Couzens, Republican. Of Michi-
gan, said with a smile
Wiggin replied that McGarrah was q
close personal friend.
During the discussion of his Cana
dian companies, Wiggin was asked If
he paid income tax in Canada.
I'm advised" he replied, that no
income tax was returned in Canada be-
cause my counsel said there was no tax
to be paid"
Formed in 1885,
The Canadian companies, Wiggtn
said, were formed in 1925 and dissolved
n.