Evening star., 1933-11-10
CHASE-CUbAN LOAN
QUIZ ABANDONED
Senate PrObefS Also An
nounce Fian to Withhold
Records From Public.
BY the Associated Press.

1t was made at an executive session
of the Senate Banking Committee FOL
lowing a public meeting at which big
profits to bankers from organization OF
theater equipment companies were dis
closed.
Harley L. Clarke, once president OF
General TheaterS Equipment, Inc, told
of the formation of concerns which later
were acquired by that holding company
Bankers, including Albert H. Wiggin, re-
tired chairman OF the Chase bank, par
ticipated in the activities.
Wiggin and other bankers acquired
securities in the International Protector
Corporation at the rate of $50 for ont
share Of preferred stock and three
shares of common and sold them K
the public at 500 for one share ol
preferred and one of common, retaining
$4,000 shares of common in addition
to cash profits.
Review Cuban Evidence.
At the executive session the COM
mittee reviewed evidence found by it
agents in State Department files rela'
tive to the Cuban loans.
Afterward Chairman Fletcher sale
the committee had decided to "go nc
further" in the inquiry.
Ferdinand Pecora. committee coun-
sci. agreed with Fletcher that the
State Department records would no'
throw any additional light on the nego-
tiations concerning the loans.
Fletcher said the committee had de-
cided it would do no gooo TO MAKE
the diplomatic records public and there
fore would drop the inquiry with the
evidence already submitted.
1E AEn dc
dealt with plans and conversations that
were never consummated and that
therefore, nothing would be accomp-
liShed" by making them public.
He said he would advise Secretary o.
State Hull by letter.
Clark Names Bankers.
The bankers named by Clark as par
ticipating in the International Pro-
jector transaction included Pynchon &
Co, West &c Co, the Sherman Corpo-
ration. personal company OF Wiggin
and w. s. Hammons & Co.
The witness also related that in the
organization Of General TheaterS
Equipment in August, 1929, he had ex-
changed something less than 100000
shares Of International for the new
stock on the basis of one for one and
one-shares.
Agreed TO Hold Stock.
who owned 10000 exchanged ]
for the public?" asked Pecora.
'I would say So Clarke replied.
was that fair to the public?" Pecora
asked.
Yes. they had the same opportunity
I had" Clarke replied.
He agreed the more favorable offer
had been withdrawn on his investigation
after go or go days.
I'VE had acquired control and didn't
need the stock" Clarke said.
so after you had gotten i "a for each
Of your shares, you withdrew that offer
from the public?" Pecora asked.
Clarke said there was another con-
sideration-that those who got IA in
the new company agreed to hold their
stock and not put it on the market.
Clarke Tells Of Dealings.
At the outset Of today's session,
Clarke said the international Protector
Corporation issued 100000 shares of
common stock and $4,000 shares of
preferred and that he got 125,00O
shares of the common, while the bal
ance, together with the preferred, was
sold to the bankers for $2,250000.
The International used $171, ,331 OF
the proceeds. Clarke testified, for pur-
chase, Of the Acme Motion Picture
Protector Corporation.
Clarke said the International also
paid S690,777 to acquire the assets OF
the Nicholas Power Co., Inc, another
manufacturer OF motion picture ma
chimes.
Clarke said he was not stockholder
in the Nicholas Power Co., but had
made a loan to It, He added he was
interested in the Acme Co.
Another $500, 900 Clarke said, was
paid for the Precision Machine Co.,
Inc, also a protector manufacturer.
This money was equally divided
Clarke explained between James A
Stillman, Edward H. I,arkin and him.
self as representatives OF other stock
holders.
Members Appear Puzzled.
Members Of the committee listened
closely to Pecoras questioning OF Clarke
but showed clearly they did not know
at what he was driving
Clarke said he negotiated with Wig
gins Sherman Corporation through
Wiggin and Murray w. Dodge, Chase
official.
The bankers, he said, sold the 25,00O
shares of preferred to the pubic at
500, netting them a profit of $3.50 900
Clarke said he did not know how
much the common stock was worth
but committee Investigators said of the
stand it went up to high of $28.
This represented a paper profit to
the bankers Of 81 100000 in addition tc
the $250,000 they made in selling the
preferred. The preferred later sold on
the market at around $50. Clarke said
Questioned by Pecora, Clarke told oi
the formation Of syndicate or pool In
December. 1928, to protect" the market
in the common stock.
Participants, including himself, Dodge
and member Of Pynchon 81 Co, eacf
made SAC, 900 in the pool, he said.
Wiggin to Be Recalled.
Several mysterious angles to the prof
table pool in Sinclair Consolidated oil
stock in 1929 were left hanging in the
air by the Senate investigators, II
turning to the disastrous financing ol
General Theaters Equipment Corpora
ton.
The committee planned to call Wig
gin back to the stand to tell OF the
General Theaters financing, leaving
until next week completion of the story
about the oil pool which netted profits
of S12,000,000.
Arthur Cutten, noted grain and stocl
trader, yesterday described operation o.
the Sinclair oil pool, which returned
rich profits to Harry F. Sinclair ant
other insiders as well as himself, with
out any cash investment.
Cutten said he could give no ex'
planation for a payment of $500 ,o0(
from the POOLS profits to William S
Fitzpatrick, then an official of tht
Prairie OIL Co., Q competitor Of I'M
Sinclair company, since absorbed by tht
latter.
Pecora said he might call Fitzpatrick
to the stand next week unless he wa
able to get the story from Sinclair. who
is under subpoena and scheduled to ap-
pear then.
URCES NEW REGULATION,