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Mr. Day. Yes, sir.
Mr. PECORA. Who is W. P. Chrysler ?
Mr. Day. I understand Mr. Chrysler is in the automobile business.

Mr. Pecora. I think I have heard that. Kuhn, Loeb & Co. we know something about, because one of the partners of the firm-in fact several of the partners of the firm-have been witnesses before this committee. Wright & Sexton we know something about through the testimony we heard yesterday, Who organized this group or syndicate that got the option that has been offered in evidence here in the name of Redmond & Co.?

Mr. Day. My recollection is that it was organized by Kuhn-Loeb.

Mr. PECORA. Do you know which particular member of that firm actively dealt with the organization of this group or syndicate!

Mr. DAY. I think Mr. Elisha Walker.

Mr. PECORA. Who managed whatever operations or transactions were conducted in behalf of this group or syndicate under this option ? Mr. Day. Redmond & Co.

Mr. PECORA. What particular member of that firm had charge of those transactions or operations?

Mr. Day. I suppose I had the most to do with it--not all. Mr. PECORA. What was the purpose of this group or syndicate in obtaining this option and operating under it? Mr. Day. To distribute the stock and make some money.

Mr. PECORA. The stock was listed on the New York Stock Exchange at the time. Mr. Day. Yes, sir; that is my understanding.

Mr. PECORA. Have you a copy of any agreement evidencing the respective rights and interests of the different members or participants in this group or syndicate, Mr. Day?

Mr. Day. I have a memorandum here from which I gave you the names of the members. I think it is the same one, probably, which you hold, showing a 5 percent interest for the Hyva Corporationam I answering your question?

Mr. PECORA. You do not mean 5 percent interest, do you? Mr. Day. I mean 5/65ths; Lermann Brothers, 61/2/65ths; Bell & Beckwith, 10/65ths; Walter P. Chrysler, 5/65ths; Joseph P. Kennedy, 10/65ths; Kuhn-Loeb & Co., 1312/65ths; Wright & Sexton, 5/65ths; Redmond & Co., 10/65ths.

Mr. PECORA. Was there not a formal agreement which defined the participations, rights, interests, and liabilities of the various members of this syndicate or group?

Mr. Day. Unfortunately, Mr. Pecora, I have not that with me. Mr. PECORA. There was such an agreement, however? Mr. Day. There was such an agreement, however. There was a letter sent to each one defining it. Mr. PECORA. Have you a copy of any such letter? Mr. Day. I am afraid that they did not bring me a letter on that, but I have a subsequent letter, I think, on the second one. I think this is the second one [handing paper to Mr. Pecora].

Mr. PECORA. I notice, in the option agreement which has been offered in evidence and which has been marked “ Committee's Exhibit No. 67", the following provision, marked paragraph 9 (reading! :

The undersigned (meaning Libber-Owens Securities Corporation] agrees that it will not so long as any of the above options shall be in effect, sell any other shares of common stock without par value of Libber-Owens-Ford Glass Co, which it may own, except at a price in excess of $35 per share.

Mr. Day, what was the reason for the inclusion of that provision in this option!

Mr. Day. Because, as I recollect, or as I was told, their holdings were very large, and if they were selling while this group was trying to constructively liquidate their block, their holdings would have made it so large, so impossible, at the same time, that a price of $35 was fixed.

Mr. PECORA. In other words, it was designed to keep off the market, during the operations of the group or syndicate that was formed to constructively, as you have said, dispose of the shares covered by this option, such other shares of the stock as the Libbey-Owens Securities Co. owned?

Mr. Day. I think that would be correct; yes, sir.

Mr. Pecora. I assume that that provision was put in there at the instance of the optionees.

Mr. Day. Yes, sir.

Mr. PECORA. And in order to facilitate them in effectuating their purpose of disposing of this optioned stock at a profit to themselves?

Mr. Day. Yes, sir.

Mr. Pecora. How was it contemplated by this group, or the managers of the group, namely, Redmond & Co., to dispose of the stock covered by this option?

Mr. Day. On the market.
Mr. PECORA. That is, through trading in the open market?
Mr. Day. Yes, sir.

Mr. PECORA. This group or syndicate really constituted a pool, did it not, to trade in this stock under this option?

Mr. Day. The word “ pool” has been used in reference to so many things—it was certainly a syndicate to distribute this stock.

Mr. PECORA. Such syndicates have commonly been called pools, have they not?

Mr. Day. Yes, sir.
Mr. PECORA. And this is that kind of a syndicate?
Mr. Day. Yes, sir.

Mr. PECORA. In connection with the purposes of this pool, to dispose of the stock covered by this option, was it intended that the pool should both buy and sell in its trading?

Mr. Day. Yes, sir.

Mr. PECORA. Why was it necessary to buy and sell in order to enable the pool to dispose of this optioned stock at a profit? Mr. Day. To have a free market in the stock.

a Mr. PECORA. Was not the market free? Mr. Day. There was practically no market in the stock.

Mr. PECORA. Was it an inactive market on June 1 last, when this option was obtained ?

Mr. Day. It was not an inactive market, but it was not a big market.

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Mr. PECORA. And it was deemed necessary by the managers of the pool to have a big or active market in order to enable the pool to dispose of its optioned stock at a profit?

Mr. Day. Yes. Mr. PECORA. In other words the operations of the pool contemplated, among other things, buying and selling transactions in this stock so as to create at least an outward appearance of activity in the stock?

Mr. Day. That was very largely left to the man who was operating it on the floor.

Mr. PECORA. Who was that man?
Mr. Day. Mr. Charles Wright.

Mr. PECORA. Were the trades, including both buying and selling, conducted by the pool in its efforts to dispose of this option stock at a profit left to the discretion of Mr. Wright?

Mr. Day. At times; yes, sir.

Mr. PECORA. And when those trades were not made in the exercise of his discretion in whose discretion were they made!

Mr. Day. Well, when he made them they were always accepted. Mr. PECORA. No; but when he did not make them whose discretion controlled the trades that were made by or in behalf of the pool ?

Mr. Day. Whoever happened at that particular time to be in charge of it or looking after it.

Mr. PECORA. Who other than Mr. Wright was ever in that position? Mr. Day. Well, I think—this is purely from recollection-Mr. Bliss.

Mr. PECORA. Mr. Frank E. Bliss?
Mr. Day. Yes, sir.

Mr. PECORA. And did he handle many of these operations or trades?

Mr. Day. He handled some.
Mr. Pecora. Who handled the greater part of it?
Mr. Day. Charlie Wright.

Mr. PECORA. Were any other brokers or floor members of the stock exchange used in executing the orders or putting through the trades in behalf of this pool ?

Mr. Day. I think undoubtedly there were others. Mr. PECORA. Who were the others? Mr. Day. I think Mr. Lansburgh was. Mr. PECORA. Lansburgh? Mr. Day. Yes. Mr. PECORA. Do you know what firm he is connected with ? Mr. Day. Lansburgh & Co. Mr. PECORA. What other brokers were used ? Mr. Day. Those are the principal ones that I can think of. Mr. PECORA. Why was it necessary to use more than one brokerage firm or more than one floor trader or floor member?

Mr. Day. Well, very often Charlie Wright, who I would ordinarily look to to look after the floor operation, would be away.

Mr. PECORA. In you experience and activities as a stockbroker,
Mr. Day, have you heard before the term “jiggling” used in con-
nection with stock market tradings and activities?
Mr. Day. Yes, sir.

Mr. PECORA. And what does that term signify to you?
Mr. Day. Trading [a pause) in an entirely un—in a very big way,

Mr. PECORA. Is that the kind of trading indulged in in behalf of this pool ?

Mr. Day. Not as generally would be considered jiggling as I understand it.

Mr. PECORA. Now, what is fully comprehended by you in the use of the term “jiggling” as applied to stock market trading or activity, Mr. Day?

Mr. DAY. In the limited time I have been there and limited knowledge that I have, I would say taking something that was perfectly dead and just kicking it all over the place.

Mr. PECORA. That is, galvanizing it into life by buying and selling?

Mr. Day. Yes, sir. In great big spreads.

Mr. PECORA. Was this stock at the time you took this option almost dead so far as the market trades were concerned ?

Mr. Day. No, it was an inactive stock.

Mr. PECORA. An inactive stock as distinguished from a dead stock?

Mr. Day. Yes, sir; and an inactive stock as distinguished from Steel or Can or others.

Mr. PECORA. For which there is always an active market?
Mr. Day. Yes.

Mr. PECORA. Standard stocks for which there is always an active market?

Mr. DAY. Yes, sir.

Mr. PECORA. As a result of the activities of this pool, Mr. Day, would you say that the stock became much more active?

Mr. Day. Yes, sir.
Mr. PECORA. Not active enough to amount to a jiggle, though?
Mr. Day. No, sir.

Mr. PECORA. Do you know the volume of trading done by or at the instance of this pool in this stock under this option?

Mr. Day. The approximate number of shares? Mr. PECORA. Yes. Mr. Day. I think I have got it about. I think it is on that piece of paper there. About a million shares.

Mr. PECORA. That is during what period of time? Mr. Day. June to October. Mr. PECORA. That is a period of about 4 months? Mr. Day. Yes, sir; approximately 4 months. Mr. PECORA. Do you know what the total trading on the New York Stock Exchange was in the stock of Libbey-Owens-Ford Glass Co. during that period?

Mr. Day. I do not, sir.

Mr. PECORA. Do you know what proportion of the total trading represented the transactions in behalf of this pool?

Mr. Day. No, sir.

Mr. PECORA. How many different accounts were handled by this pool in the course of its operations?

Mr. Day. It was all one account, but it was broken up into six parts.

Mr. PECORA. And how were those accounts designated ?
Mr. Day. L.O.F. Syndicate, syndicate nos. 1, 2, 3, 4, 5, and 6.

Mr. PECORA. Each of these accounts represented the operations of this pool or syndicate?

Mr. Day. Yes, sir.

Mr. Pecora. In account no. 1 of that syndicate, do you know how many shares were bought and how many shares were sold for that account?

Mr. Day. There were 81,500 bought and 81,500 sold, according to the record handed to me.

Mr. PECORA. You are not referring to market trading now, are you, to the extent of 81,500 shares bought and sold ?

(Mr. Day conferred with associates, but made no response.) Mr. PECORA. Those 81,500 shares to which you have just referred

Mr. Day. Yes, sir.

Mr. PECORA continuing). Relate to the shares that were bought from the optionor?

Mr. Day. Yes, sir.
Mr. PECORA. Isn't that so?

Mr. Day (after conferring with associates). The amount of shares, so Mr. Gibson tells me, of the bought side is included in the 81,500 shares, which I think is what your statement was.

Mr. PECORA. Included in the 81,500 shares both bought and sold in account no. 1 of this syndicate

Mr. Day. Yes, sir.

Mr. PECORA (continuing). Were the 65,000 shares as to which Redmond & Co., in behalf of itself and its pool associates, made a firm commitment to purchase from the Libbey-Owens Securities Corporation in this agreement of June 1, 1933, at a flat price of $26.50

per share.

Mr. Day. Yes. Mr. PECORA. Isn't that so? Mr. Day. Yes. Mr. PECORA. How many shares were traded in under account no. 1 of the syndicate ?

Mr. Þay. Twenty-six thousand nine hundred bought and 26,900 sold, according to this statement.

Mr. PECORA. And what was the amount of trading done by the pool under account no. 2? Mr. Day. Bought 104,723 and sold 104,723.

Mr. PECORA. And what was the amount of trading done under account no. 3 of the syndicate?

Mr. Day. Two hundred sixteen thousand seven hundred bought and 216,700 sold.

Mr. PECORA. And what was the extent of the trading under account no. 4 belonging to the syndicate!

Mr. Day. Forty-eight thousand seven hundred bought and 48,700 sold.

Mr. PECORA. And in account no. 5? Mr. Day. Forty-one thousand one hundred bought and 41,100 sold.

Mr. PECORA. Account no. 6?

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