The Washington times., 1933-03-01
WHITNEY, HEAD
! Of EXCHANGE,
QUESTIONED
Denies Attempt to Maintain
Prices in Violation of
I Antitrust Act

antitrust laws by Senator Brook
hart (R) Of Iowa, today.
With Richard Whitney, presi-
dent of the exchange, on the
stand in the Senate stock market
investigation, Brookhart asserted
that the exchanges practice Of
accepting buying orders from
houses seeking to maintain
prices in securities they were at
the time marketing was a disre-
gard Of law.
whitney Makes Denial
The issue was raised by the
Iowan after he cited testimony
of Whitney before the committee
O year ago. Brookhart at first
declared that in this testimony
Whitney had admitted that the
exchange itself maintained
prices" while syndicates marketed
certain securities. Whitney de-
MED this, saying:
"OrderS are accepted by the
exchange. The Syndicates may
be trying to maintain the mar
ket while merchandising Securi-
ties but these are simply buying
orders on the exchange. The
exchange is not maintaining
any price,"
Whitney outlined the organiza-
tion of the Stock Exchange and
named the various committees
charged with duties under the
board of directors and the gov.
erning committee. Whitney said
his organization continuously
sought information from the New
York Better Business Bureau and
similar organizations.
Asked About Ethics
Brookhart asked about the
practices of the exchange in
maintaining ethical standards.
Whitney explained that on va
riouS occasions the exchange
had suspended members and
taken other action to reprimand
concerns for practices that the
exchange considered undesirable.
The. mysterious $1,000 cash
withdrawal from the National City
Company's expense fund for
handling $66, 200, 900 Of New York
Port Authority bonds on June 2,
1881, was explained today to the
Stock Market Committee as per-
sonal loan made to John Ramsay,
manager of the Port Authorities.
H. c. Sylvester, jr., vice presi-
dent Of the company in charge of
municipal financing, said he di-
rected D. c. Baldwin, company
treasurer, to hand him the cash,
that he turned it over to Edward
F. Barrett, a vice president of the |
company, and that he presumed"
O note was given.
TelephOned for Check
Earlier, Baldwin told the COM
mittee that all he knew about the
$1,000 cash withdrawal was that |
Sylvester telephoned him for the
money, that he drew a check on
himself as treasurer, cashed it,
and gave the money to Sylvester. |
Sylvester said the loan to Ram
say was not usual" but that he |
considered him a good risk. FIX
planning the transaction, Sylvester |
said:
81 learned that Ramsay was
very much in need of a loan.
After thinking it over, 1 decided
that John Ramsay beirg good
moral risk, it was proper to
make him a loan. Therefore, /
ordered the cash and turned it
over to Barret, who turned it
over to Ramsay.
Ferdinand Pecara, committee |
counsel, asked:
"Why was the $1,000 en-
tered in the ledger simply as
expenSeS?"
Sylvester replied:
II understand the loan would
be repaid soon."
"And you don't know whether
any part of it has been re-
paid?"
'T don't know that"
(which officer Of this COM
pany would be best able to
tell US whether any interest
was paid on this loan or
whether any part has been
paid?"
"Why, Mr.. Barrett"
Barrett was next placed on the |
stand. Pecara asked:
"How long have you known
John Ramsay"
Barrett replied:
"The National City Company
would have gotten it," the wit |
ness explained, IF anything was |
left over from the expenses.
"Why did you make it your
business to see that the $1O,-
O2O loan was properly set up
and paid?"
'T saw that it was charged
90 the reserves expense fund
and stopped there"
The witness said he simply |
authorized the loan and left
Barrett to attend to the details.
II knew him socially. Mr..
Ramsay told me he was pressed
for money and asked me if /
knew where he could get loan.
He said he didn't expect the Ma
tiOnaI City Bank to make the
loan because if his association