Mr. PECORA. And it was deemed nedessary 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.) Nr. 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. Ďay. 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


Mr. PECORA. Account no. 6?

pares is.

Mr. Day. Five thousand four hundred bought and 5,400 sold.

Mr. PECORA. Do you know what the resultant profit, if any, was to this pool from this trading?

Mr. Day. According to the statement it was $395,238.12.

Mr. PECORA. And that was distributed among the various members of the pool in proportion to their respective participations?

Mr. Day. That is right, sir.

Mr. PECORA. I show you a typewritten statement purporting to be a tabulation or compilation of the trading done for the account of this pool and the resultant profits. Do you recognize it to be a true and accurate statement or recapitulation thereof?

Mr. Day. I recognize it as a copy of the one that was given to me by our auditor. Mr. PECORA. And do you believe it to be accurate? Mr. Day. I have every reason to believe every statement he preMr. PECORA. I offer it in evidence. The CHAIRMAN, Let it be admitted.

(Tabulation of profits of Libbey-Owens-Ford Syndicate accounts was thereupon designated “Committee Exhibit No. 68, Feb. 21, 1934," and will appear in the record in full at the end of today's proceedings.)

Mr. PECORA. Operations of this pool, Mr. Day, were designed to create an agitation in the market in the shares of this stock so as to increase the activity in public trading, were they not?

Mr. Day. The object of this pool was to distribute this stock at a profit.

Mr. PECORA. At a profit. And in order to do that it had to make an active market!

Mr. Day. That was left to the floor operators.
Mr. PECORA. Yes; and that is what was done, wasn't it?
Mr. Day. There was a great deal of buying and selling.
Mr. PECORA. By the pool ?
Mr. Day. Both.

Mr. PECORA. Yes; and for the purpose of helping to make the market more active?

Mr. Day. For the purpose of distribution of stock of a security that was thought to be undivided.

Mr. PECORA. Didn't you say before that the market at the time this option was obtained under date of June 1, last, in Libby-OwensFord Glass Co, stock was inactive?

Mr. DAY. Comparatively.

Mr. PECORA. And that buying and selling was indulged in by the pool under this option in order to create activity in the market so that the pool might thereby be enabled to distribute, as you call it, the stock it had under this option at a profit?

Mr. Day. Yes, sir.

The CHAIRMAN. How was the stock quoted when the pool was formed? What was the quotation?

Mr. Day. Senator, I don't remember exactly, but I think it was within a fraction or a point or something of that kind of the price at which this block of stock was purchased.

The CHAIRMAN. Do you remember what that was!

Mr. Day. I think it was somewhere around 20. [Addressing an associate:) Have you it there? Around 27 or 2712. I don't know exactly.

The CHAIRMAN. What was the quotation when the pool was terminated ? Mr. Day. I am just getting it from the record, sir. (Mr. Day and associates examined records.) Mr. Day. I have not found the records yet exactly what it is. My recollection is that it was probably somewhere around 3242 or 33. The CHAIRMAN. What was the course afterward? Mr. Day. What was the course! It went up, sir. Mr. PECORA. What was the highest price it reached on the New York Stock Exchange during the period of the pool operation? Mr. Day. Approximately 37, as I remember it. Mr. PECORA. And what date was that reached, do you remember? July 18, wasn't it? Mr. Day. I imagine it was somewhere around there. Mr. PECORA. Do you know to what figure it had dropped by July 21? Mr. DAY. Around 22. Mr. PECORA. Around 21, wasn't it? Mr. Day. Well, 21. And at that time I bought on that decline, if my recollection serves me correct, approximately twenty-odd thousand shares. Mr. PECORA. For your own individual account? Mr. Day. No, sir. Mr. PECORA. For the account of the pool ? Mr. Day. Yes, sir. Mr. PECORA. All of which was subsequently distributed at higher prices, wasn't it? Mr. Day. Yes, sir. I hope so. I am not sure, but I think so. The CHAIRMAN. Where is it now? Mr. Day. I bought it the other day, Senator, for my wife's inrestment trust and paid 4142 for it, sir. It is approximately in the neighborhood of 40 today, or I mean as of yesterday. The company was carefully studied, full analysis taken of it, its directors

know them personally. I believed that the company had a great future, which is apparently true.

Mr. PECORA. Do you know who the specialist was in this stock on the floor of the New York Stock Exchange during the life of this pool !

Mr. Day. I have heard his name three or four times. I read it in the testimony last night. I don't know him.

Mr. PECORA. Was it a member of the firm of Hewitt, Lauderdale & Co.? Mr. Day. That I don't know, sir. The CHAIRMAN. Does the company pay dividends now? Mr. Day. Yes, sir. The CHAIRMAN. What dividends? Mr. Day. My recollection is that they are paying a dollar. Mr. PECORA. Redmond & Co. issue market letters for the information of their customers, don't they? Mr. Day. Yes, sir.

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