Evening star., 1934-02-26
STOCK FINANCIAL
DATA TO Be GIVEN
Counsel for New York Ex-
change Agrees to Pecora's
Demand for Report.
By the Associated Press.

BY the Associated Press.
The closely guarded financial bal
ance sheet of the New York Stock
Exchange was called for today by the
Senate investigators.
Rowland Reomond, counsel fer the
Exchange, agreed TO produce the
statement tomorrow at the request OF
Ferdinand Pecora, counsel for the
Senate Banking Committee.
He protested however that the Ex-
changes financial report had never
been publicly disclosed"
Pecora had questioned George U.
Harris, a member of the Governing
Committee, about the last financial
report. but had obtained no informa-
ton about it except that it showed
a deficit.
Says Letter Stated Facts"
Previously Harris said letter sent
by Richard Whitney, Exchange presi-
dent, was not an attempt to line
up opposition to the bill but to state
1.-The facts as seen by the Exchange.
Harris testified the Governing Com
mittee had approved the compromise
bill offered by Whitney to the House
committee, but had not acted on
Whitneys letters to members of the
Exchange and to Exchange Listed cor
porations in opposition to the Fqetch-
er-Rayburn bill
He added that his firm, with
branches widely spread over the
country. had distributed the Exchange
literature against the bill.
Whitney, scheduled to appear today,
will not testify until later.
Whitney indicated he would try to
convince the Senate Stock Market
Investigating Committee the Fletcher
Rayburn Federal control bill would
strangle the market and have a dis
astrous effect on business.
Pecora had figures designed to show
the measure was necessary to prevent
the repetition of abuses which have
permitted insiders to reap huge profits
at the expense of the investing pubic.
Whitney Wins Hartman.
Whitney had a new ally on his
side of the argument. Henry l.
Hartman. president of the Chamber
of Commerce of the United States.
sent letters TO all chambers through
out the country opposing the measure.
Close study of the bill, Hartman
asserted. disclosed its chief effects
would fall upon the companies that
perform the greater part of the coun-
trys business.
No standard was set, he declared,
to control the Federal Trade Commits
sions discretion" in supervising the
exchanges Violation of the regula-
tions. he pointed out, might be pun
ishable by a $4,000 fine and i'm
prisonment up to 10 years.
Every company must enter
into an undertaking. Hartman said,
ito observe all the provisions Of the
bill-in other words. it must sign
away its constitutional rights to pro-
tect its property rights from being
taken away from it without due proc
ess Of law"
Committee Wiser.
1t was almost two years ago-at
the opening Of the committees long
market investigation-that whitney
appeared before the same group to
defend stock market practices
1t was a much wiser committee he
faced today, one which had listened
to millions of words of testimony
about Wall Streets ways, including
pool operations and other manipula-
tive practices on the Exchange.
In his first appearance, Whitney
displayed little knowledge of pool op-
erations and said he knew Of none
during the boom days of September
and October, 1929. The committee
was prepared today to show him evl-
dence of them. then and since.
Pecora spent the week end studying
the compromise bill the Stock Ex-
change head submitted last week.
Before beginning the formal hear
ing on the bill with Whitney's testi-
mony. however. Pecora planned to
give the Stock Exchange head a few
facts about market operations which
even he may not know.
1t was an analysis of data sub
lnitted to the committee by members
OF the Stock Exchange in reply to
a ouestionnaire on market operations,
disclosing. for the first time, the
total number of pool operations in
recent years, and other statistics
never before collected.