Evening star., 1933-12-07

Couch loan had remained under
collateraliZed for about six months.
During that period, Mccain said, the
loan was criticized by the national
bank examiner
He explained that Couch was con-
stantly putting up additional collateral
as the market went down.
Pecora placed a letter into the record
from an unidentified Chase official to
Couch, August "a. 1881, asking him "to
put his loan in shape"
Mccain said he believed the letter
was written by James Bruce, member
Of the Discount Committee of the bank.
Almost every time at our Discount
Committee meetings in the morning.
the letter said, "the loans with q de-
flciency of margin are brought up.
Yours has quite prominent part in
the list.
When Charlie was here, it used to
be referred back to him, but since he
has been on his holiday, it has been
referred to me to ask you If you would
not have the same put in shape.
Embarrassed by Request.
"This is naturally embarrassing to me,
but the fellows here all feel that the
loan should be in order, and am sure
you will appreciate the position of the
bank in the matter"
Mccain was called before the commit
tee to tell of his connection with pool
operations in the stock Of Seaboard
Airline and Louisiana & Arkansas Rail-
road stock in which Couch also par
ticipated.
The pool operations were begun in
1880, before Couch became a Govern
ment official.
AS the hearing opened Mccain told
of operations of a $10,000.000 pool
in the railway stock. He said the pool
was organized in 1928 to purchase stock
in the Louisiana g. Arkansas and the
Louisiana Railway & Navigation Co.
Participants. he, said, were Dillon,
Read &, Co., r. j. Pack, H. c. Couch,
Rogers Caldwell, Coverdale g. Colpitts,
]. A. Moffett and himself.
Pool Still Owes Bank.
Each of them, he added, extended
shares to some participants.
Mccain testified the pool, in which
Couch was a member, still owes the
Chase National Bank 81, ,2ss, 900.
The pool borrowed S2,295 900 in 1928,
Mccain said, from the National Park
Bank of New York while he was presi-
dent of that institution.
This was increased by s500,000, he
added, in May, 1929, and the total of
S2,795, 900 taken over by Chase in the
merger Of the two banks in August,
1929.
Pecora cited proceedings before the In
terstate Commerce Commission, for ap-
proval Of the merger Of the Louisiana
and Arkansas, with the Louisiana Rail-
way & Navigation Co.
L..
the latter from Mrs. Sarah Edenborn
Pecora read testimony before the
I. c. c., IN which Commissioner Wood
lock questioned Frank NJ Swacker, at
torney for the Louisiana g. Arkansas.
Forced to Sell.
"You don't mean they got this old
lady in a tight place and are proceed
ing to take advantage Of her, do you?"
Woodlock asked.
II suppose I cannot very well deny
the fact" Swacker replied. "It is per-
fectly obvious one. She is in posi-
ton where she has got to have a lot
of cash and she must sell. She wants
to sell. She is much more anxious to
sell than the syndicate are to buy
Mccain was called to the stand late
yesterday, but the committee recessed
before getting into the story. Couch,
notified Of the inquiry, was expected to
testify today after his friend had con-
cluded.
Aldrich Leaves. /
Before Mccain started testifying,
Winthrop w. Aldrich, president of the
Chase Bank, expanded his legislative
recommendations to the committee by
suggesting modification of the deposit
insurance provision of the new banking
law and the securities act regulating
the sale of stocks and bonds.
He was dismissed after this testi-
mony and returned to New York with
out waiting for today's conclusion Of
the inquiry It was the first time for
almost two months that he had not at