Evening star., 1933-10-19
Tells Senate Investigators
Subsidiary Was Given
Power to Sell Short.
TESTIFIES TO 1O0-POINT
RISE DURING OPERATIONS
Former Chairman of Board Reveals
Family Made Profit of $4,000
During 1928.
BY the Associated Press.

BY the Associated Press.
Evidence that the Chase Securities
Corporation participated through sub
sidiary in a pool in Chase National
Bank stock in 1880 with power to sell
short was presented today to Senate
investigators.
This development came during ques-
tioning of Albert H. Wiggin, iormer
chairman of the Chase National Bank,
who shortly before had told Senate
investigators his family was buying the
bank stock during operations in it by a
pool in 1928.
The 1880 pool was formed by Chase
Securities Corporation and Dominick q
Dominick, with the latter as managers.
Chase Securities Corporation later
allotted its participation to its sub
sidiary, the Metoptan Corporation and
the Sherman Corporation, a personal
company belonging to Wiggin and his
family.
Questioned closely Wiggin said his
family acquired l,l00 shares while a
pool managed by Chase officials made
a profit OF S50,000 from buying and
selling 22,217 shares.
He first said the pool was formed to
stabilize the market in the stock, but
modified this later to assert 1t was to
give wider distribution to the stock.
Stock Jumped 100 Points.
The market price of the stock rose
about 100 points during the pools oper-
ationS, he testified.
Wiggin said the syndicate managed
by the Metoptan Corporation, a subsld-
iary of the Chase Securities Corpora
ton, bought the stock for Sl3,24O, 900
and sold it for S13 3,290,000.
The banker said on dissolution of
the account in April, 1928, another
was formed to buy and sell the bank
stock.
The Investigating Committee was
armed with evidence showing that al
though national banks are not per-
mitted to deal in their own stock, the
Chase affiliate engaged through sub
sidiary in transactions in the stock OF
the bank and other institutions merged
with it running almost to q billion
dollars from 1928 to 1882.
Ferdinand Pecora, committee counsel,
decided to go into these transactions
in detail through questioning Wiggin,
who now is retired with q salary OF
100000 year for life.
Seek to Balk Cuban Angle.
Before today's hearing the Senate
investigators said Chase National Bank
officials were seeking to prevent an in
quiry into their loans to Cuba because
of the uncertain situation in the island
republic.
Chairman Fletcher told newspaper
men, however the committee PROBABLY
would go into the matter to determine
what the practices had been.
He said at yesterdays executive ses-
sion w. w. Aldrich, president OF the
bank. urged the committee not to go
into the Cuban loan situation for fear
it would bring additional disturbance
on the island.
He did not go into detail with the
committee about the bapfs activities,
but said all individual loans to Cubans
had been repaid.
American banks aided in floating two
big loans aggregating $225, 900, 900 for the
old Machado administration in Cuba in
which Chase participated.
One of the loans was used for con-
struction Of capitol building and the
other for highways.
The committee began today's hearing
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