Evening star., 1933-10-17

We might have been, will result in bene-
fit to the bank" he said.
The banker told Of the organization Of
the Chase Securities Corporation as a
dividend to the stockholders of the
bank. It had q capital of $4,000, 900,
but in 1880 the capital was $95 600, 900,
with surplus of $13,000,O00.
For many years the corporation did
not issue securities, but in 1925-as
Wiggin put it-"yielded to the times"
and began it.
Handled $6,158,0o 1000.
Altogether. he said, the corporation
handled $6,158, 100000 in securities. of
which 5.68 per cent defaulted.
After learning Rockefeller was the
largest stockholder, Couzens asked for a
list Of the directorships Wiggin held In
1929, when the bank was under his
direction, and the banker in turn asked
an assistant.
He smiled at his own inability to re-
member important dates in his career
as he conferred with Martin Conboy,
an attorney, beside him.
direction" Wiggin said, from 1911 to
1880, when the Governing Board was
created After that he was still chair
man Of the Governing Board and
senior officer OF the bank, holding an
equal voice with any one else.
Il presume I was chief in COM
mand" he agreed under Pecora's ques-
tioning.
Beginning with a capital Of s300.000
in 1877, Pecora said, the bank had in
creased its capital nine times to $780,
600 900, with a $4,000 900 surplus in
1928.
Tells Of Acquisitions.
Wiggin verified the figures and said
after q merger with the Garfield Ma
tional Bank in 1929, 100000 was
added to the capital and the same to
surplus.
In 1929, Wiggin said, the Chase Sc
curities Corporation acquired the Amer
ican Express Co. and the American
Express Bank & Trust Co., together
with the Equitable Trust Co. in 1880.
Pecora went into detail in formation
|, of the American Express Bank g. Trust
Co. in 1880. when the American Express
Co. was owned by the Chase Securities
Corporation. He placed mass Of fig
ures into the record in connection with
this transaction.
Eldon Bisbee, an attorney. interrupted
the testimony to provide some OF the
detail.
Last Spring, in connection with re-
duction of the capital, the name of the
Chase Securities Corporation was made
Chase Corporation The charter was
altered to prevent issuance of securities,
Aldrich Answers Queries.
w. w. Aldrich. president Of the bank
| took a seat beside Wiggin. to answer
questions by Pecora about this revision
| He said he had become convinced 1t was
not desirable to conduct investment and
commercial banking In close afhliation
Chairman Fletcher remarked that at
that time legislation already was pend
| ing in Congress to require enforcement
| Of these activities.
Eyes, but it didn't go as far as felt
| it should" Aldrich replied
Pecora asked Wiggin If one Of the
reasons for organizing the Securities
/ CORPORATION vas to do things the banl
| could not do directly under the law
| He was told by Wiggin such was no,
| the case.
1T enabled the Chase Securities Co
| to do q securities business" put in the
| banker.
wasn't that done in order to dc
/ indirectly what the bank could no!
| do directly?" Pecora insisted.
Wiggin agreed 1t permitted the bank
| share holders to benefit from the securi-
, ties business, but asserted the bank
did not directly control the corpora
ton.
Did you approve Of these proposals.
Pecora asked, referring to an Aldrich
letter to stockholders last April ap-