The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-11-09
BALTIMORE MAN
SOUGHT BY SEC
IN BOND PROBE
Look for H. H. BIaustein
In Investigation OF
Organizations.
BIZ Tnttcd Prose-


tiles and Exchange Commission in
vestigators of bondholders' protec-
tive organizations revealed today
they are attempting to locate H. N
Blaustein, Baltimore.
Blaustein is TO be questioned in
connection with organization activ-
tiles of the Stanley Committee in
terested in Peruvian bonds. He is
said to be employed now by the
House committee headed by Rep
Adolf j. SABBATH ID, IlJ. also in
vestigating bondholders' protective
organiza tions.
w. o, Douglas of the SEC, said
that to date efforts TO locate him
have been unsuccessful.
Charles A. Douglas, Washington
lawyer for the Stanley Committee,
testified that Blaustein is employed
by the Sabbath Committee.
Interest Aroused by Letters
SEC interest in Blaustein was
aroused by letters taken from files
of the Stanley Committee in which
Blaustein claimed responsibility for
initiating organization of the Peru
Wan bondholders' protective commit
tee with Morris A. Rome of the law
firm of Rome & Rome of Baltimore.
more.
Witnesses today denied knowledge
Of BlauStein's initial activities, al
though Blaustein, in letter intro
duced into the record, stated that he
was responsible for approaching
Morris Rome and for selection of
A. o. Stanley, former United States
Senator, Ex-Governor of Kentucky
and now member of the Canadian
United States international Joint
Commission, as chairman of the
committee.
The line of questioning followed
by the SEC examiners today indi-
Gated clearly that the commission is
endeavoring to determine whether
the Stanley Committee was organ
lied primarily for the protection of
American holders of Peruvian bonds
in default or for the purpose of su-
ing bankers.
Senator Stanley, Chairman
Blaustein, in a letter addressed to
Rome, dated March 81, 1888, said:
When proceeded to organize
the committee for the holders of
Peruvian bonds, it was with the
definite thought in mind that I
would be permitted to take full
charge of the work of the committee
and be paid a reasonable weekly SAL
airy, of course, contingent upon the
committee coming into funds, and
subject to the approval Of the COM
mittee and counsel"
Il got Senator Stanley to act as
chairman Blaustein wrote, land
you procured the other members of
the committee from Baltimore"
Blaustein wrote that he selected
Charles A. Douglas of Washington
as counsel.
Denies Familiarity With Statements
Duglas denied knowledge of this
BlauSteln told Rome that "at the
outset the policy of this committee
was to have been guided by yourself
and counsel fees that would be paid,
1t was understood between ourselves,
would be divided equally"
In order that we may be reward
ed for our efforts and your invest
ment in this committee protected we
must proceed very vigorously and
without delay and this of course
can not be done without money"
Blaustein wrote.
Maurice p. Davidson, New York
counsel for the Stanley Committee
denied familiarity with Blausteins
statements. Later informed that
the letter came from his files, Da-
wilson admitted that he might
have seen it,"