The Washington times., 1938-03-11
Whitney Bank Loan
Upon Securities of
Customers Barred
january Transaction
Is Disclosed at
Bennett Quiz
BY PAUL CALICO

BY PAUL CALICO
NEW YORK, March II Q.N.S0.
Richard Whitney got a loan Of
$3.50, 900 last January 26 from the
Public National Bank by putting
up $591, ,952 in securities that be-
longed to customers of his now
bankrupt firm, it was testified to-
day at Attorney General Benefits
Inquiry.
The loan since has been reduced
10 $3.50, 900, according to the testi-
money, and the bank, following
the whitney crash, sold enough
Of the securities to cover the funds
advanced to the financier.
The drama Of the sudden indict-
ment an darrest Of Whitney, presi-
dent and senior partner Of the
bankrupt and suspended brokerage
firm Of taht name, by the dynamic
Tom Dewey was continued today
ut the public hearing and investi-
CATION Of the firms crash being
conducted by Assistant Attorney
General Ambrose v. Mccall.
His hand forced by the entrance
Of county and Federal authorities
into the investigation, Mccall Will
call two Of the most important
witnesses, one living, one mute.
The living, F. K. Rodewald, 2lA
per cent partner Of the shattered
firm, the mute-subpoenaed bank
records which will show what dis
posal was made by Whitney Of
the $79S, ,376.26 worth Of bonds
and securities supposedly taken by
him from customers and clients
pf the firm.
MAY NOT APPEAR
Mccall had a tentative appoint
ment with Whitney for q volun-
tary appearance this afternoon for
questioning, but in view Of his in
dictment yesterday on the larceny
charge, it is doubtful whether he
will appear. In view Of the en-.
trance Of U. S. Attorney Lamar
Hardy into the criminal investiga-
ton aspect of the case, he would
have to waive immunity before
answering questions put by Mccall
Yesterday he refused to waive
Immunity before Dewey'S county
grand jury and his rapid indict-
ment resulted. fa1k&s Il
whitney, attended by his at.
tor1ley, Charles H. Tuttle, former
q. s. district attorney, surrendered
Ic District Attorney Dewey and
was arraigned before Judge VIII
iam Allen in general sessions
court. Bail was set at $4,000,
but Whitney was placed in
temporary custody Of his attorney,
md later arranged bail.
A telephone conversation be-
tween Whitney's attorney, Charles
II. Tuttle. and a representative Of
Dewey'S office resulted in post
ponement Of the financier's ar
raignment, tentatively scheduled
for this morning, until Monday.
On Monday. Tuttle plans to ask
for . weeks adjo- -rnment to pre-
pare his plea.
Postponement OF the arraign-
ment was due to the fact the in
dictment came at such a late hour
last night it was impossible to
place the hearing on today's cal
endar.
McCall's investigation may re-
Eult in serious charges.
MCCALL CRAMPED
Never before in the Stock Elk
changes history has . reputable
broker and one-time president of
the exchange had such a formid-
able posse Of Federal, State and
county agencies laundering at his
heels.
Entry of the added starters in
the race to expose the dealings
pf the famous brokers firm al
ready has cramped the pace and
style Of McCall's public hearings
ince there are now almost more
Investigators than witnesses, and
yesterdays session was adjourned
early when an expected witness
Jailed to appear because Of having
been snagged by one of the other
bodies.
Also 1t is now necessary for
Mccall, when examining partners,
TO ask that they waive immunity,
as he did in the case of e. D.
L. -