Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-03-10
WH|TNEY'S STOCK
DEALINGS Barred
Revealed as Controlling
Shares of Distilled
Liquors Corp.
By the Associated Press.

NEW YORK. March 10.-Richard
Whitney and the other partners in his
bankrupt brokerage firm, have possess
sion of all but $3.50 shares of the
outstanding stock Of Distilled Liquors
Corp, it was brought out today at the
State attorney generals investigation
Of the prominent Wall Street houses
collapse. :
Martin ]. Keena, assistant secretary
Of the New York Curb Exchange, sub
poenaed by Assistant Attorney Cen
eral Ambrose V. Mccall, testified that
there were 10000 shares of the stock
authorized and 148,750 shares out
standing.
IF were to tell you a certain
group owned 10000 shares of this
stock would YOU characterize that as
q corner?" Mr.. Mccall asked.
Mot necessarily" Mr.. Keena re-
piled, 'but the floating supply would
be considerably reduced"
But there would only be $3.50
shares available for public transaction.
and you don't think that corner?"
Mr.. Mccall asked.
Il say it's a very reduced number
Of shares" the curb Official replied
1T doesn't seem to me that you
would need much more to have a
complete corner" Mccall said, to
which the witness made no reply and
was excused
Purchased at SIS per Share.
The common stock Of this corpo-
fation-of' which Mr.. Whitney and
another partner. F. K. Rodewald, are
directors-has figured prominently In
the Whitney investigation because OF
the controlling interest held by the
broker and his partners. This stock,
according to previous testimony, was
purchased by the partners at between
SO and $40, or at an average price of
SIS share. It is currently selling
around 1887.
The curb official was succeeded on
the witness stand at the public hear
ing-which is being held In the at
torney generals office-by Percy r.
Harrington, partner in the accounting
firm of Jasper & Harrington. who has
charge Of the audits of the accounts
of the New York Yacht Club, of which
Mr.. Whitney was treasurer.
1t was brought out at yesterdays
hearing that Mr.. Whitney had caused
to be delivered to him securities with
market value of around $l25,0O0
belonging to the Yacht Club, without
notice to the club.
MIR. Harrington said he had been
engaged for several weeks in trying to
audit the accounts of the yacht club
Tor the year ended December 81, 1887.
He was shown list of securities
those which Robert T. Rosenthal,
cashier of the brokerage firm, testified
yesterday he had turned over to Whit
ney out Of the yacht clubs account
and identified them as property of the
club.
II have been endeavoring since the
middle of January" Mr. Harrington
said, Ito get an appointment with Mr..
Whitney to count those securities. I
have tried to see him at his office and
have called his secretary numerous
times, but never was I able to see
him."
The distilled liquors concern manu-
features applejack brandy, cider and
vinegar and has plants at Mount Kisco
ana Lyons, N. Y, and Pennington,
N. j.
Cashier Is Recalled.
Robert H. Rosenthal. cashier for
Whitney e. Co., was recalled to the
stand after testifying yesterday. He
1oentlf1ed several papers on Mr.. Whit
ney's stationary, among which was a
receipt signed by Mr.. Whitney for
STOCK ne RosenthaD had turned over
70 Mr.. Whitney to be placed in the
Elchard Whitney control account.
yesterday Mr.. Rosenthal testified
that he couldn't recollect having re-
celved receipt from Whitney for the
stock. The stock was that of the
Mary Stephen Baird account In
which the customer had an equity OF
approximately $4,000 and debit
balance of about $4,000. This stock
was turned over TO Mr.. Whitney de-
spite the fact it was supposedly seq
regated to protect the balance. the
witness said.
Asked if he had delivered any stock
prior to January Is from the board
account, Mr.. Rosenthal replied, NO"
MAX Furman. the senior accountant
in the Attorney Generals Office here
asked Mr.. Rosenthal If the long"
stocks in the Baird account were in
the Whitney Office.
Mr.. Rosenthal said they were not In
the Office and he didn't know where
they were. He said, Il delivered them
to Mr.. Whitney"
Have you any knowledge if any
OF them have been hypothecated for
loans?"
I wouldn't be surprised if they
WERE" Mr.. Rosenthal said.
Bernard Abramson securities &C
countant for the attorney general.
testified he had found on January 26,
1888, there had been delivered out of
the Baird account to the Richard
Whitney control account stocks valued
at $ll0,91976. He estimated that as of
January 26, 1898, the total values of
securities listed In the control account
OF Richard Whitney was $798, 37626.
That included the securities belonging
to the New York Yacht Club, the
receipt for which was identified earlier
in the hearing. The Yacht Clubs
securities were valued at $l03,2l9.
c ondress in Rriaf