Show 1 I BROKER TEllS STORY I f J Slime Same Man Sold Sinclair Subsidiary Issue and Then Then Bought Back All Outstanding Shares i 3 WASHINGTON I Dec c. c 21 Jesse TeAse n. Jesse t u 1 New York stock stockbroker stockbroker I broker tod today odes pave gave the senate senat pun pub i lands lands' lands committee committee some In intimate e a details of t operations in Wall Wail all street Incidentally n u upset et popular belef be belief be- be I lief lef ai as ai to a ft brokers broker's Appearing ppe as' as a witness in the he in inquiry in- in the leasing of ot na naval al oil reserves er ef described the formation in Q October tober 1922 of ot art a ae ai rt i e rul UI tomake to to- to make a n. market for tor the stock of at th-o th Oil on company the subsidiary of ot Harry F. F Sinclair was was organized v organized to lo operate spot pot domo dome reserve C No 3 38 JAs As 8 a res result U of or an advertising I campaign the witness ess saId saiu public subscriptions were received to for jOO shares at 40 a share and Wp odo 0 shares were a allotted fd These a snares area subsequently w were ero repurchased chased b by tho the syndicate interested ted in cirt the issue le at prices ranging from tram m to 5 50 On the entire deal l said involving sale and i repurchase of ot more than 0 I worth of or stock his personal return n I was as ST STABILIZED ABi ZED MARKET r Wh Why did 3 you ou have to asked Senator Walsh Democrat l o To To furnish a n. stable market was Ute reply reply That was why I was wa s retained retained Many lany oft oti of the tho subscriptions re received received re- re the the witness explained were from prote professionals who were certain tain to let tine he stock go at al the first i to obtain a n. price higher than that of sue L there thero was agency age to take these of off offerings of- of rIngs f he the tho public would have havo no confidence ence I 1 lo t the issue Much tuch of ot Mr Mr Livermore's covered t o sauna ground as the senate investigation last spring into oil all prices Li LI whose failure to app appear ap- ap p pear ar before had caused postponement postpone postpone- ment of ot the hearings was vas emphatic t In denying that h ho had ltd made any effort to evade evade of ot tho comMittee com- com subpoena lie JIo had followed dally daily routine the tho past week the said at no time had there been hoen any apparent effort to make service upon him DENIES SEARCH MADE My Iy home address addre- is plainly listed In the tho city dIrectory director lie he continued continued con con- d. d and any brokerage h house libuse use would have told the United States marshal where he ne could find me So when he notes on the subena sub- sub gena ena after atter due and diligent arch he failed to find the required re required required re- re witness I am forced to the conclusion that no such liuch search was made 1 Livermore said sald the first Intimation intimation tion he had that has presence was wanted was the appearance of at an antem Item tem on the stock ticker to 10 that ef et- et Members embers of ot the committee Indicated indIcated indicated Indi indI- some seine difficulty in understanding understanding understand understand- ing the dual capacity In which tho the witness had served Mr Sinclair first as a a. distributor of ot the stock and finally as aft agent for its I cry cr ery Answering questions along this line said Sinclair had expressed disappointment over the results of ot efforts to create a a. market declaring n nt ne would rather pocket the loss loss loss' necessary to regaining regain regain- ing complete control than to allow lk few tv-few few thousand shares to remain tIt to be kicked about He IIo told me me to get all aU outstanding ing shares ing-shares shares for tor him as cheap as possible possible possible pos pos- sible Livermore said and this Jed to the second phase To pr prevent vent a a. runaway market I was forced to sell some stock now and then even when buying It In in Senator Smoot Republican of at Utah pointed to tho the witness witness' personal personal personal per per- record of ot transactions as showing that at one time he had repurchased re rep repurchased re- re purchased p actually more stock than 1 was outstanding I r Yes agreed Mr Livermore but I I never viewed this as a a. legitimate short Interest It seemed more I likely to be some insider selling short against stock held in his de deposit deposit deposit de- de posit box The Chase National bank and Chase Securities company will be represented before the committee Monday |