Show i r HEARD IN FRAUD CASE I NEW EW YORK June 2 UP H. R-H. H. H B B. of Detroit described today at GroW securities exchange commission a hoW he and his associates hearing control of ot the First Income lost last an investment Ending corporation I Trading adi g N to men who used the corporationS corporation'S corpora- corpora trUst own portfolio of marketable u tion'S les to negotiate a loan Grow r told Trial Examiner Adrian AdrJan ti and David r G Humphreys counsel he had no idea of ic SEe E PC C S Jb directly under happening what was s last August It was not nose bi his n until foul seven months month later he said 1 that he was apprised of the real situation Three Named Three re e of the men involved in the deal through the testimony of Grow tM and nd another witness w were re Vincent VincentE IE E Ferretti New York YOk lawyer phIlip p. p F F. Frear a securities dealer rind and Ralph H. H Robb Boston lawyer Tb These se three with i. i h three other me meare men fin under indictment in District Attorney are Thomas E. E Dew Deweys Dewey's ys y's Investigation investigation of of what he called an investment in- in vestment trust ring which through Hi an original investment of 5 gained control of seven even trusts he said with irith c combined assets of bich were looted Ferretti arrested yesterday was released in bail today Frear lis f under arrest in Washington and Robb and a fourth man Thomas W. W Morris a a. a lawyer were arrested erday i in n Boston yes t n no t n no yes Lf Owned Stocks Grow said his corporation owned a locks of the New York stock exchange exchange exchange ex ex- ex- ex change with an approximate value I of and an immediate forced liquidation value of last summer Eummer when he advertised for r ready ady money in connection with a another other company All Ali but of the m money ney represented represented in the First Income Trading c corporations portfolio he said was J oney invested by the general public gHe He testified a man answered his advertisement and referred him to Ferretti who in turn introduced him t to Frear and George H. H Clayton I Had No Suspicion Grow said he was told that some big tig New York financiers were putting putting put put- ting tig their money in investment il trusts busts and were to operate them under the control of one agency while mobile permitting each trust to keep ItS iii identity and protect its own portfolio He never suspected he laid id what was going to happen IH He said he made a contract turning over management of the First Income Trading corporation I t to th the group for to be paid to to him and several associates He and one of the associates A. A S S. Wicks were were- tl tb get contracts for of which was to be paid immediately and the rest at atI I a year for service as technical t advisers The deal was completed and the transfer was to be made madeA A August st 4 he he- said V |