Evening star., 1933-11-27
COUzENS RESENTS
ALDR|CH REMARKS
Senator Says Stock Investi.
cation Will Not Be
"Dictated To-"
BY the Associated Press.

BY the Associated Press.
Senator Couzens. Republican. oi
Michigan, denounced an interruption OF
the Senate's stock market investiga-
ton today by w. w. Aldrich, president
of the Chase National Bank, and said
the Inquiry Committee would not be
dictated TO-"
This took place after the investiga-
tors had received evidence that the
Chase bank lent $4,000 900 In 1890 to
General Theaters Equipment. Inc. fol
market operations in Fox Film stock
designed 10 strengthen the market
preliminary to large refinancing oper-
ations.
CVu9ens expressed resentment at an
interruption by Aldrich TO explain that
Hermann Place. Chase vice president
was not a director of Fox Film Cor
poration in 1891 when it paid diyi-
dends of $4,1o4,0oo despite losses OF
$3.50. .304.
1t was the second time Aldrich had
voluntarily taken the witness stand and
the outspoken Michigan Senator plainly
showed his displeasure.
Couzens had just remarked that when
the dividend was paid, the company s
obligations were larger than its sur
plus.
No Interruptions Wanted.
Aldrich moved up to the table and
sat down beside CouzenS to remark
that Place, who was then on the wit
ness stand, was not then connected
with the Fox company and knew
nothing about 1t.
I'm not questioning Mr.. Place, "
Couzens retorted angrily.
I'm making some observations and
not charging anything against the
Chase Bank and l don't want any in
terruptions from you.
Mr.. Aldrich interposes observations
whenever he proposes to do So" CouZenS
continued
Il resent it. the committee will not
be dictated to by Mr.. Aldrich or any
one else.
Il don't see that any comment from
Mr.. Aldrich at this time is necessary.
Aldrich returned to his seat without
replying to Couzens
When the loan to General Theaters
Inc, was made, Murray Dodge. former
vice president Of Chase Securities Cor
poration. testified. Fox Film faced ma
turing notes of SIS 900 900 in 1881.
Ferdinand Pecora. committee counsel
said the market operations were de-
signed to boost" the market price OF
the Fox Film stock. so options on il
would make bonds attractive to the
public.
Dodge said the plan failed. as the
market collapsed. and the loan was
never repaid.
Mayer Denies Testimony.
Before Dodge was recalled to the
stand. Pecora announced receipt of a
telegram from Louis B. MAYER. Cali
fornia movie producer and Republican
leader. denying previous testimony that
he had claimed to have had Justice De-
partment records changed.
Pecora said telegram could not
"controvert' sworn testimony, and an
nounced that if Mayer wanted to testify
he would be heard by the committee.
Dodge said in 1881 the Fox Film
Corporation sold $4,000, 900 CT de-
bentures at s92 per slOO par value to
a group headed by the Chase Securities
Corporation.
In addition. he said, it sold 66O .OOO
shares OF Loew stock TO Film Securities
Corporation for stock in that company
and S28800,000 cash. He added that
The Wesco Corporation, owning a
chain OF theaters on the West Coast
sold al 500, total of 10000 600 notes
The Film Securities Corporation sold
81 1888 shares Of common and $20,-
600 900 notes for Sl9,268,333.
This corporation also sold l00,0 900
shares of preferred stock at S97 for
s9,700.000.
History Put in Record.
From this financing. Dodge said. Fox
Film and Wesco realized sTo8. 81 500 tc
meet their obligations.
Chiefly, he added. it was used to meet
SIS, 100000 of one-year notes. which
matured at that time and which Halsey-
Stuart & Co. refused to renew.
Dodge placed in the record history
of the financing which disclosed huge
losses to the Chase Bank and the Chase
Securities Corporation The bank has
S70000.0O0.
Dodge's statement showed only
$l,70l 300 of the S3O.00O,OOO of bonds
were sold to the public at the offering
price of 98lo
AS a result. he said. the Chase Sc
curities Corporation took up the entire
issue for s29. .465 900 and the bank took
the corporations interest in the issue
The Chase Securities Corporation
and associates also took up the s2o,-
100000 note issue Of Film Securities
Corporation and the $4,000 600 wesco
issue. which was later sold to the Chase
Bank, he added.