Evening star., 1933-11-09
CUTTEN bARES BIC
OIL POOL PROFITS
Says He Obtained S3,-
100000 Without Putting Up
CaSh-RaSkob Explains.


Continued From First Page.)
syndicate was formed to prevent stock
in the County Trust Co. from being de-
pressed after what he described as the
unfortunate death" of James J. Rior-
dan, its president.
Bought 1874 Shares.
The syndicate, RaSkob said, purchased
3.794 shares for a total of S916, 500.
RaSkob said the syndicate was con-
cluded November Is, 1882, when the
sock was distributed and loans to the
Chase National Bank paid off.
Smith said in statement in New
York last night that the syndicate was
composed only of directors of the
c6si1an G0an1y trust of tbe Co sr OF which he he is
borrowed money simply 10 buy the
stock of our own trust company"
to gambie d in I the 9oe s5oes market mas eerr0"ed
Cutten said he managed the Sinclair
pool in 1923 and 1929 and in addition
TO purchasing 800 900 shares from the
oil company for $33 100000 he and his
associates bought 702,760 shares at
varying prices. A total of 1,702,7 ,760
shares were sold, he testified.
Harry F. Sinclair, wealthy oil opera
tor and head of the Sinclair Co., had
been Subpoenaed to appear today, but
his testimony was postponed until next
week on account of illness.
RaSkob began his testimony today by
reading newspaper stories about the
loan. He said statements that the syn
dicate Was still open and the obligation
outstanding we're not true.
1.-The facts are these" Raskob said,
beginning with the story Of the death of
Riordan
News of the death was withheld until
the next day, Saturday, RaSkob said.
adding a meeting was held by directors
Of the bank and others to devise means
to prevent run on the bank
RaSkob said he agreed to take the
post of chairman of the banks board,
and then told how he suggested forma-
ton of syndicate to prevent the stock
from being depressed when the market
opened the following Monday.
He suggested, he said, that dumping"
of the bank stock might cause the price
to drop 100 points or more.
For that reason, Raskob testified, the
syndicate was formed by the banks
directors to purchase up to $500 shares
I'VE never sold any except 23O
shares" Raskob added Il have never
been able to find out why we did that"
Lists Pool Participants.
Listing participants In the syndicate,
Raskob said he and English each had
5O0-share interest together with
Michael J. Meehan.
Other participants, he said, were:
w. F. Kenny, 500; Arthur Lehman, 500;
Vincent Astor, 500: Alfred E. Smith,
100; John j. Cavanagh, 100; John j.
Pulleyn, 100. and Peter J. Carey, 100.
Later. Raskob said, the bank manage
ment was reorganized and Edward j.
Kelly was made president.
In order to get him to take the posi-
ton, Raskob added, he was given
three-year option on 1000 shares.
To get the stock second syndlcate
was formed, but Kelly never took over
the stock, Raskob said.
Testifying in a low-pitched voice,
Raskob said it was "unfair" to give the
impression that the syndicate had en-
gagged in stock market operations
He added certain articles we're par
ticularly unfair to Smith, because the
former Governor knew nothing about
stock market operations.
Raskob was on the stand for only q
few minutes and left with an express
sion of appreciation to the committee
for hearing him.
Cutten Tells Of Deal.
Cutten was then called.
Pecora asked about the pool in Sin
clair stock
Leaning over the table, Cutten re-
piled in a voice that was barely audi
Bile that Sinclair and others had called
on him In August, 1928, and suggested
the purchase Of 100000 shares OF the
oil company stock.
Sinclair took the initiative, Cutten
said. offering the stock at $50 share
The trader said he had replied the
price was too high and pointed out the
market price was then $28.
Sinclair. he added. suggested the for
nation of a group to handle the stock
and refused to sell it for less than $50
Cutten said the conversation was
four or five years ago, and he could
not remember the details.
did he say the matter had been
discussed by the directorsP" Pecora
mo" Cutten replied.
Wiggin Listens Closely.
Albert H, wiggin. former chairman.
and W. W. Aldr1ch, president OF the
! Chase Bank, listened closely to the tes-
timony from seats back Of Cutten.
The trader said nothing was settled
| at the conference with Sinclair, and
that future ones were held with the
| oil man by E. F. Hutton & Co., acting
as his brokers.
Ruloff E. Cutten, a cousin, was
| member of the Hutton firm, the witness
said.
Cutten then submitted statement
| outlining the transaction, prepared by
| his attorney, Millard F. Tompkins OF
New York. The statement was read
to the committee by Pecora. Sinclair,
Cutten said, told him the company
| wanted to issue the stock to raise ad-
ditional capital.
Cutten said he made 1t plain he did
not want to take such a large block.
Others Took Balance.
To this, he said, Sinclair replied that
he would purchase $4,000 shares Ut