Evening star., 1933-03-01
LOAN IN BOND DEAL
Barred At HEARING
Witness Says National City
Company Let Port Man.
ager Have $1,000.
BY the Associated Press.

Evidence was given a Senate COM
nittee today that cash loan of $1,000
went from the National City Co. to John
Ramsey, manager of the Port of New
York Authority during company partici-
patton in handling a S66,000,000 Port
Authority bond issue in 1881.
H. c. Sylvester, j. vice president OF
the company, in charge OF municipal
financing, said he did not know whether
any part of the principal or interest on
the loan had ever been repaid.
He testified that he drew the money
in cash from the company and gave it
to Edward F. Barrett, vice president OF
the National City Bank, who made the
loan to Ramsey.
The $1,000 was charged on company
books to expenses in connection with
syndicate acquisition of the bonds, 1t
was testified.
DO you ever recall a similar trans
action where there was no explanation
on the company books of such a trans
action?" he was asked.
Never" replied Sylvester.
Not Price Information"
In response TO questions, he said there
was competitive bidding for the bond
issue and that he got information from
Ramsey, but that it was not price in
formation"
The committee hoped to complete its
investigation of the National City Bank
and its security affiliate, with two big
figures in finances-Charles E. Mitchell
and Richard Whitney-as witnesses
Whitney took the stand shortly before
pm. and Mitchell was to follow him.
Mitchell was chairman of the bank
until he resigned a few days after testi-
flying before the committee last week
At that time he told the Senators he
had sold bank stock at loss, later buy
ing it back to escape paying income
taxes. Whitney is president of the New
York Stock Exchange.
Ramsey Loan Explained.
Pecora asked Sylvester. why loans
were made.
"Mr. Barrett came to me and said
Mr. Ramsey was in need of money and
loan" he replied. He said the bank
couldn't make him the loan and asked
whether it would be possible for the Ma
tional City Co. to do SO.
After considering the matter I de-
cided that, Mr.. Ramsey being a good
moral risk. it would be perfectly proper
to make him the loan.''
When asked what written evidence
of the Indebtedness" was given, Syl-
vester said he did not have information
on that point.
Pecora reminded Sylvester that Bar
rett was not an officer of the company
but of the bank.
do you know that any note was
givefi-fo this loan?" Pecora asked.
Il understood So"
You understood SO. You mean you
assumed there was"
Yes"
why, if Ramsey was a good moral
risk" Pecora asekd, wasn't this loan
set upf on the books in the usual way?"
II looked upon this as an accommo-
datiQn to Mr.. Ramsey" Sylvester re.
piled. II expected it to be repaid, that
was why it was charged to the reserve
fund"
Unusual Transaction.
rs a transaction of this kind Gus
tomary?" Pecora asked o
Sylvester replied that in all his ex-
perience with the City company he did
not recall a similar transaction"
did Barrett tell you that he held
Ramsey's note?'
Sylvester said he wasn't sure, but he
thought not.
II don't know whether any interest
has been repaid Sylvester said in
answer to question.
He added that Ramsey had no vote in