The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-03-01

present Senate investigation,
AN analysis OF each of these Al
banks shows that the group under
the National City Bank hold 4,0l9
directorShips in other banks, public
utilities, insurance companies, tram
sportation companies, manufacturing
and miscellaneous corporations.
Investigation further reveals these
interlocking directorates, both in
banking and industry extend into
foreign countries. 1t further reveals
that it extends to every automobile
concern with the exception of Ford.
II shows that it includes practically
every railroad, ship company and
aviation company in the U. S.
1T includes a majority of the in
surance companies in the U. s. It
includes every line OF manufacturing.
It reveals that there is scarcely such
a thing as an independent concern
in the U. S. Just g few bankers
completely control commerce, indus
try. and transportation
This bourgeois critic is surprised
and only states what Communists
have known for long time.
Bank Sold Own Stock Short
After some verbal fencing which
lasted for two hours. Hugh Baker,
president Of the National City Bank,
admitted in the Senate Committee
investigation that the bank had sold
its own stock short. The excuse for
this NO g fI,st +l,av- ,T-ara teoy,,,;oo
short, The bank then borrowed from
Mitchell 5000 shares Of his own
stock on April % and $1,000 shares
on May Is to cover its short sales.
For loaning the bank this stock, that
is Mitohcn's own bank. Mitchell re-
ceived in interest for the borrowed
stock loan Sl28850. This is some
thing like the coin game heads I
win and tails you lose"
The testimony brought out that
the National City Bank sold the we'll
meaning faithful petty bourgeoisie
1859, 600 shares OF the banks stock
curing the peak Of stock prices in
1929. During that year the stock
sold somewhere between $3.50 and
$3.50 a share. Today it is selling
under s35 q snare. Thus are those
who look up to the ruling class re-
warded.
In the fall Of 1927 when Baker
was vice president the stock of the
bank then listed on the N. Y. Stock
Exchange, Mr.. Richard Whitney's
righteous institution, fiuctuated on a
fetal of so shares points in one day
according to Bakers testimony. He
then with the approval Of Mitchell,
who was then in Europe, applied for
the withdrawal of the stock from
the exchange This fluetuation, said
Baker, indicated to him that mani
pulation of the stock was quite pos
sible, This, he told the committee,
he disapproyed of.
Down and Up
The stock was finally removed from
the Stock Exchange and traded in
only "over the counter" that is, by
telephone from one broker to an
other. This was in January 1923.
The stock was then selling at $3.50
q share based on 500 par value
Aiio bLpuSAlJ Tic pI1CC Out VI 4CdC44
of the petty bourgeois speculator
so it was reduced to $40 par value
which meant a split in the price of
the stock and therefore reduced its
nominal market value. This put it
within reach of more people, who
in turn could be sold the stock. The
stock was then boosted again and
this time to $3.50.
1T has been of great interest to
me TO discover which of you were
the most efficient at booming the
value of this stock" a senator said,
land I find that under the Stock
Exchanss it increased about $50 per
cent in terms of par, while under
the National City Co. $500 per cent.
1t was then brought out that a
trading option was given several Wall
Street brokerage and banking houses.