Evening star., 1933-02-21
MITCHELL SALARY
EXCEEDS MILLION
Senate Group Hears Bank
President Got $2,446,519
in Two Years.
Ry the Associated Press

By the Associated Press.
Evidence that Charles E. Mitchell
received salaries amounting to more
than million a year during 1923 and
1929 as an officer of the National City
Bank of New York and its security
affiliate was presented today to the
Senate Banking Committee.
Testimony showed Mitchell received
total compensation of $2,446,519 during
1928 and 1929.
At the same time, the committee re-
ceived from Mitchell testimony that, of
the twenty billions of securities his
company had handled, II think there
has been dificulty of one sort or an
other in something under $1,000, ,000.-
00o."
Questioned on Defaults.
He gave the estimate in response to
an inquiry as to how many securities
sold by his company were now in de-
fault.
Mitchell was the first witness in the
investigation into the operations OF his
company after the committee had con-
cluded its insult inquiry.
Winding up its insult investigation,
the Banking Committee previously had
questioned George w. Dawson of the
Central Hanover Bank and Trust Co.
of New York.
Dawson, chairman of the banks
board, testified that in December, 1881,
his bank had loans of $12,500, 900 to
insult companies, but that the loans
were slightly reduced during that
month. He testified under the ques-
tioning of Ferdinand Pecora, the COM
nittee counsel, that he did not know
of the insult companies debenture
agreements until February, 1882, when
he talked with Owen D. Young.
Discussed Agreement
The debenture agreements provided
that the insult companies should not
incur obligations of more than 5O per
cent of their assets.
"Some time in February he Young)
came in and talked about the situa-
tion," Dawson said.
II think he asked our cooperation.
The agreement made in December
about not calling for additional COL
lateral had not been signed by every
body"
After a few questions Dawson was
excused and Mitchell succeeded him
as the committee turned to an inquiry
of the National City Banks security
affiliates.
Pecora asked about the organization
of the National City Co.
Mitchell explained that stock In the
National City Co was held by board
of three trustees for the benefit OF
stockholders in the bank.
Names Three Trustees.
These trustees now, he said, are
Beakman Winthrop, Percy A. Rockefel-
Ter and James A. Stillman, and vote all
the stock of the National City Co."
Pecora asked whether, at some time
subsequent to 1911. the National CITY
Bank had entered any arrangement or
agreement" with the Farmers Loan d
Trust Co.
Mitchell replied there had been a
merger in the Spring of 1929 and that
the capital stock of the National City
Bank was increased to effect it.
Mitchell said he could not remember
the terms of the merger, but that 1t
was based on an exchange of stock.
He could not recall he said, pro-
vision in the charter of the National
City Co. permitting transactions with
it's officers.
Transactions Frequent.
He agreed such transactions had been
rather frequently engaged in.
Since 1925 the National City Co.'S
transactions in buying and selling Sc
curities to the public increased tre-
mendously year by year, did they not?"
asked Pecora.
Mitchell replied that Sales of Sc
curities by the National City Co, over
a l0-year period averaged about bill
lion and a half year"
The high" point, he said, was about
So, 900, 100000 a year in 1927 and 1928.
Senator Couzens, Republican, Mich
igan, asked who determined the ulti-
mate spread" or profit, to the COM
pany on various issues.
1.-The man in charge of the negotia-
tions," Mitchell replied.
1.-The spread depended on the guilt
bility of the public and the nature of
the security?" Couzens asked.
Mitchell took exception to the "gul-
libility" phrase. but added, There is
great deal of difference between selling
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