Evening star., 1933-11-02


By the Associated Press.
Evidence was presented to Senate in
vestigators today that Albert H. Wig
gin sold large holdings of stock in the
Brooklyn, Manhattan Transit Co. III
1882 shortly before the board of direc-
tors, of which he was a member, voted
to pass a dividend.
Previously, the former chairman of
Chase National Bank testified that his
income during the past five years ag-
gregated s5,88l 900. His payments dur
ing that time on Federal income tax
totaled sl,365,z34.
Headed b. M. T. Committee.
The banker. who was head of the
Finance Committee of the B. M. T. at
the time of the sales, said he did not
definitely know the dividend would be
passed but thought it probable" be-
cause of notes due to his bank
Referring to documents, Wiggin said
family companies, held about $4,000
shares of the stock and disposed of
virtually all of it.
He agreed that there was marked
depreciation" in the price of the stock
after the dividend was passed
At about the same time, Wiggin said
Gerhard M. Dahl, chairman of the
board Of the transit company, sold
large blocks of the stock he had placed
with the Chase Bank as collateral on
loans.
MY Judgment was based in part on
the fact that the B. M. T. had notes
coming due to the Chase" Wiggin told
the investigators.
He added that he felt the notes would
not be renewed because of market con-
ditions.
Pecora said the dividend was passed
by the B. M. T. at meeting of the
board June 20.
Pressed by PecOra.
Pressed by Pecora to say he knew the
dividend was to be passed, Wiggin said ::
1T would be a guess, wouldn t
know"
You were paid $4,000 a year as
chairman Of the Finance Committee, "
Pecora said, You must have had some
knowledge"
Pecora said the records showed Sher-
mar sold all the $4,000 shares 1t held
from June 3 to June 6.
The average price was $24, Wiggin
said, and the stock dropped to sl1ls
within a week When the sales began
the stock was at s25
The bank sold $4,000 shares of Dahl's
collateral at s24 and s25, and another
5000 at less, Wiggin said.
no 0f H1v -.
posed of their personal holdings In the
banks stock just before the 1929 market
collapse through pool in which one
OF the bank affiliates was attempting to
stabilize the price also was developing
today before the committee.
Others in Pool Sought.
The record already showed Wiggin
was one of the officials who felt the
stock was too high and who was selling
short. The Senate Stock Market Com
mittee sought today to develop the
names of others 1t understood also sold
to the pool.
ing 5000 shares of the stock sold to
the pool by the Sherman Corporation,
through the Metpotan Corporation. a
Chase company, which was a partici-
pant in the trading account
TWO weeks ago, Wiggin told the COM
mittee his corporation sold the stock to
the pool because it had some 1t wanted
to get rid Of. and the Metpotan Cor
poration did not. One of the purposes
of the pool, he said, was to stabilize
the market.
Got Stock Elsewhere.
He testified yesterday, however. that
the Sherman Corporation did not have
the stock when 1t agreed to sell it and
obtained it from others. In following
this up. the Investigators found some
of the stock came originally from otGer
Chase officials.
Wiggin also testified to a profit of
s4,000,00o from selling the bank stock
short just before and during October,
1929, through his family companies.
Under questioning. he disclosed he
had not reported most of the s440, 900
tax due on this profit until 1881 when
it was counteracted by losses which
saved him from paying it.
The stocky banker said the profit was