Evening star., 1933-10-27
CHASE PRESIDENT
REPUD|ATESP POLICY
Of PREDECESSOR
Statement Follows Disclosure
of s1o,ooo,ooo Wigein
Stock Profit.
BANKER SAYS AFFILIATE
LOST $50, 1000, 900 IN POOL
Washington Gas Light Co. Among
Securities Dealt in From
1928 to 1881.
By the Associated Press.

By the Associated Press.
Disclosure to Senate investigators
that Albert H Wiggin made more than
$l0,000,000 by trading in stock of the
Chase National Bank while he was its
head drew a repudiation of the institu-
tion's past policies today from its new
management
After Ferdinand Pecora. counsel for
the Senate Banking Committee. had
created stir by showing the fortune
made by Wiggin, w. w. Aldrich, the
present head of the bank, interrupted
the proceedings with a statement prom
lslng there would be no artificial mar
ket" in the stock as long as he was in
charge of the institution.
Aldrlch later amended the statement
70 promise the market would not be
affected by the operation of trading
accounts by affiliates of the bank.
The bank presidents statement was
extemporaneous and followed the dis
closures of Wiggin profits while the
Chase Securities Corporation. an af-
f1liate of the bank was engaging in
pool operations in the bank stock.
Statement Is Surprise.
Aldrichs dramatic statement, repu-
dating the policies of the man who
sat beside him and preceded him in
management of the bank, came as a
surprise to committee members.
Wlggin listened to Perora'S state
ment of his profits and then said he
could not verify the figures, but did not
challenge them.
Wiggin only two days ago gave up
his retirement salary of 100000 a
year in the face of criticism.
Under close questioning by Pecora,
Wiggin said the reason his personal
corporation made Sl00O0,0O0 in the
bank stock while the Chase Securities
Corporations operations were yielding
only sl56,OOO was difference in the
way they operated
After the recess, Aldrich told news
paper men:
Il didn't know anything about half
of that"
Then it was as much a surprise to
you as to us?' one of the reporters
asked
1T certainly was" Aldrich replied
Profits Cover Five Years.
Pecora said Virgins profits covered
the flve-year period, 1928 to 1882, when
the Chase Securities Corporation was
active in pools in the bank stock
Wiggin testified the Sherman Cor
poration traded extensively in the open
market in the stock
Germs, the Murlyn and Clingston Co.,
Inc also dealt materially in the bank
stock during this period.
Does Not Know of Pool.
Are any pools in the bank stock
existing today?'' Senator Couzens, Re
publican, of Michigan, asked
Not that I know Of" Wiggin re-
piled
Pecora said his records showed Wig
gin made the following profits from
Chase stock during the, five-year period;
Sherman Corporation, $5,594,333.
Murlyn Corporation, S386161.
Clingston Co, Inc, S4,445 900.
Total, 1O,425,4o4-
Tie Cl1ngston operations also COW
cred the year 1927.
Pecora asked why Wiggins companies
showed SO much more profit than the
corporations dealings.
My entire family holdings, includ-
ing the corporations treated altogether
if sold on the market would show a
different result" Wiggin replied.
He added the family holdings Of 1874
600 shares at the end of 1882 had
shrunk from a value Of $3.50 to $40.
Gas Company Stock on List.
Pecora revealed earlier that the stocks
of the Washington Gas Light Co. were
among the SecuIitieS the corporation
had dealt through pools from February.
1928. to March, 1881.
The records of the District Public
Utilities Commission, which made an
exhaustive inquiry into the ownership
of the Washington Gas Co.. show that
contract was executed by the Central
Public Service Company in 1929, pro-
viding that it would purchase or find
purchasers before August 80, 1881, for
the entire 125000 alleged shares of ben
eficial interest of the Seaboard Invest
ment Trust, which held the gas COM
pany stock at that time, at price of
SAB a share payable to the Chase Ma
tional Bank upon delivery.
Wiggin testified earlier the Chase Sc
curities Corporation had lost almost
50000.000.
Interrupting testimony on pool opera
tions in the bank stock, Senator
Couzens asked how much of the total
S120O00,000 paper losses by the cor
poration, an affiliate, had been actually
realized.
Wiggin replied that s7l ,592 900 of the
S12000000 represented reserves against
assets still held by the corporation.
The remainder of the securities, he
said, had been actually sold, and the
losses taken.
Testimony last week disclosed the
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