The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1933-11-28
TALE Of |NSULT
To HOOVER
DENIED
Banker Refuses to Concede
Speculation in Securities
Should Be Barred

BY International News Service
Albert H. Wiggin, former head
Of the Chase National Bank, to-
day denied under oath he ever
sent word to President Hoover to
"nlind his own business"
Wiggin described the story OF
William Fox to that effect as
absolutely and wholly false" He
said he had met Claudius H. Hous
ton, former Republican national
chairman, only once and never
discussed Fox's affairs with him,
Met Houston at Club
Fox told the Senate Banking
Committee last week that Huston
had interviewed with Wiggin on
Christmas day, 1929, at the Presi-
denJ's suggestion in an effort
to save Fox's film empire. Fox
said Huston reported Wiggin as
sending word to Mr.. Hoover to
"mind his own business" Wiggin
said:
"Mr. Huston and have met
only once, at the University
Club in New York, and he never
had dinner in my home. The
statement that he took meal
with me on Christmas Day is
false"
Wiggin said former Secretary
Of Commerce Robert P. Lamont,
former Senator James E. Watson,
"and some half dozen other
noted Washingtonians" were
present when he met Huston.
Wiggin later told the committee
he lost $2,O79,33544 in film
Syndicates. This included a
100000 payment to the Chase
Securities Corporation, VIII h
saved him from all future liability
for syndicate losses. In the end,
the Chase Corporation had to
assume losses totalling $12,375,-
O73.96.
Ferdinand Pecora, special Sen
ate counsel, asked Wiggin what
he had done about the two let
tiers written him by Fox in Janu-
airy, 1880 pleading for credit.
Wiggin replied:
zone of the letters was
answered by an official of the
bank. The other was not an
swered at ALL"
Did you have any converse
tion with Fox on the Presi-
dents (HoOver's) interest in
these financial matters?"
"NO."
Admits Loans a Mistake
Wiggin agreed the Chase bank
should never have made the loans
It did to the Fox film empire
after William Fox was deposed.
These loans cost the bank and
its affiliates $69,O00,000 in losses
He was asked:
would you prevent specula-
tive loans by banks?"
He replied:
"LOans made for speculative
purposes are not only in stocks
and bonds but in commodities
too. To make a statement that
no loans should be made for
speculative purposes in going
too far"
''WOuId you prohibit loans for
speculative purposes in securi-
tieS?"
81 wouldn't 20 that far"
The Chase Securities Corpora
ton Salvaged $1,000,000 from the
losses suffered through it's partici.
patton with the Sherman Corpora
ton, Virgins personal corpora.
ton, in operations of the trading
accounts. On January IL last, ar
agreement was effected between
Sherman and% Chase Securities
whereby Sherman turned ovel
stock in the Chase bank anc
Chase securities valued at ST.
100000 to the Chase Securities
Corporation. Wiggin said:
81 regarded this $1,000, 900 as
. gift. There was no legal liza
bility against Sherman. There
was only my personal pride and
desire to do what was right and
In avoiding any criticism"
Pecora virtually charged this
million dollar payment allowed
Wiggin to escape liability for hall
Of the $12,375, 073.96 loss incurred
by the Chase Securities Corpora
tons. 1t revolved around the is
sue whether the liability of syn
dictate members was joint or pre-
rata.
Wiggin escaped all further liza
bility by paying the $1,O00,OOO tc
the Chase Corporation. After
that the Chase Corporation as
sumed nearly all the loSses-fol
q total of $12,375 ,073.96.
Wiggin produced a balance sheet
showing he had net loss of ST.
240,347.22 from his participation
In the film syndicates. He said
his $1,000,000 payment to the
Chase Securities Corporation in
creased his total loss to $2,079,-
1884. This payment, however
saved him litigation over the LA
hility issue.