| Show EXPERT ASKS CORPORATION FACT BARIN Harvard Economist Urges Drastic Measures at Senate Hearing en Br Associated Press WASHINGTON June 14 Full 14 Full publicity publicity publicity pub pub- on the operations of corporations corporations corpora was recommended to the senate banking committee today b by Professor sor William Z Ripley of Harvard university uni uni- vcrs varsity it to prevent ent stock Ripley a R noted economist was called as a n surprise witness in in the thc committees committee's investigation of oC the New NewYork NewYork York stock market When a man tries to run a 1 bull buH pool or bear pool he does docs it by disseminating disseminating dis dis- false information he hes I s said said aid Ripley recommended that all corporations engaged in interstate commerce with assets of ot more than thana thann a n certain fixed amount be required to file me current reports on earnings depreciation and other operating facts with the government Senator Brookhart Republican Iowa 1 asked if it there had not been as much fluctuation in railroad stocks since they filed reports with the interstate interstate in in- commerce commission No Na Ripley replied Thc They have gone where they h had to go down so down Ripley said there was no uno reason In the world wh why the same rules that have been applied to railroads and telephone comp companies should not be required of or other corporations CITES KREUGER SALES The economist said a quarter of ot a billion dollars in Kreuger Toll stock was sold to the American public as an investment You can discourage speculation more e effectively by insisting on the disclosure of the earnings and real sta sta- sta than by taxation Ripley said If the re real 11 earnings of oC Auburn stock were revealed ever every quarter there would not be a blind pool and it would curb speculation You dont don't find Western Union pla played cd with as it was WitS in Goulds Gould's da day because it has to disclose its earnings to the interstate commerce commission commis commis- sion Ripley said of or corporations corporations corpora corpora- arc are sometimes compelled to buy the stock of oC the companies for which they work one of or the things thins's that will come out in the Insull ca case e in Chicago Chicago Chi Chi- ca cago o he added I have had letters from of ot corporations s saying they had to go along with th the boys or lose my job It ItIs Is Is specula speculation on of ot nn any legitimate value Senator Brookhart asked Not very much Ripley replied Why not set an arbitrary lim limitation limitation limita limita- ta tion tion the senator asked I If If we could Ripley agreed REVEALS BILL PLANS As Ripley testified Senator Couzens Couzens Cou Cou- zens revealed that he was preparing a abill abill abill bill along Ilon the lines proposed by the economist Ripley al also o recommended that officers officers om cers eelS of oC corporations be required to report publicly the number of oC shares they hold in their own corporations with a severe ere penalty for tor evasion b by bythe bythe the use of fictitious names One of the best tests of oC those who arc are looking for investments is er cr those in charge charse of or the ship are staying with it or whether they already al already al- al II ready arc in lifeboats and directing the ship by radio what happened in Gillette and Kreuger er TolL Ripley J. J added that in the latter case those responsible were not true case to their fiduciary responsibility I dont don't believe there was an any corrupt corrupt corrupt cor cor- rupt purpose in the men who placed the Kreuger Toll securities he added They were of great integrity but unbelievable stupidity Senator Walcott Republican Connecticut Connecticut Connecticut Con Con- commented on what fools the public are arc to invest in securities in which officers of corporations organize organize or pools and put on tremendous campaigns of selling One of the most infamous things we see in the situation today Ripley replied is of officers cers of corporations speculating in their own stock I Ire re recite recite cite the recent testimony of Percy Rockefeller before your committee in which he boldly stated his chief in interest in terest was buying and selling stocks Yes Walcott replied and the theman theman theman man who was helping him on the exchange exchange ex- ex change hange was a n specialist in the stock Ripley sharply criticised the operation operation operation opera opera- tion of security affiliates by banks I would not think of putting an estate estate es cs- es- es tate in the hands of a trust company compan tied up with art an affiliate he said Turning to the general subject of investments Ripley gave save the committee com com- committee a little advice from his long expel experience The rule with me is never to buy anything that any one wants to sell very cry badly he said The committee adjourned the stock market investigation until Thursday when it will inquire into operations of Continental Shares Inc an Investment Investment Invest Invest- ment company compan organized by C Cyrus rus Eaton laton of Cleveland |
