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Mr. PECORA. During the period of the activities of this pool were market letters issued recommending this stock by Redmond & Co. to its customers?
Mr. Day. I could not answer that, sir. I don't know.
Mr. PECORA. Is there anyone of your associates here that can answer it?
Mr. Day. That I don't know.
Mr. Day. Yes, sir. If I cannot do it tomorrow morning, why, I will probably be able to hand it to you by tomorrow afternoon, because I think the market letter writer will have probably gone by the time I will get him on the phone. Some people are fortunate. They have short hours.
The CHAIRMAN. The committee will take a recess until 10:30 tomorrow morning. All witnesses will report then.
(Accordingly, at 4:23 p.m., the committee adjourned until 10:30 o'clock on the following morning.)
COMMITTEE EXHIT No. 68, FIOBRUARY 21, 1934
Libbey-Owens-Ford Glass Company
395, 238. 12
June to Oct.
$2, 306, 562. 50
769, 272. 50
$2,496, 465.00 823, 781. 50
8, 084. 50
54, 509.00 15, 118. 55 98, 790. 52 23, 802.00 17, 708. 50
$6, 293. 50
525, 023 | 15, 740, 291. 93
16, 133, 829. 50
6, 293. 50
6, 293. 50
393, 537. 57
Legal services charged to L.O.F. Syn..
2, 536. 50
396, 074, 07
Check to order:
30, 402. 93
395, 238. 12
THURSDAY, FEBRUARY 22, 1934
UNITED STATES SENATE,
Washington, D.C. The committee met at 10:30 a.m., pursuant to adjournment on yesterday, in room 301 of the Senate Office Building, Senator Duncan U. Fletcher presiding.
Present: Senators Fletcher (chairman), Adams, Kean, and Couzens.
Present also : Ferdinand Pecora, counsel to the committee; Julius Silver and David Saperstein, associate counsel to the committee; and Frank J. Meehan, chief statistician to the committee.
The CHAIRMAN. The committee will please come to order. I believe Mr. Day was on the stand when the committee adjourned yesterday afternoon,
Mr. PecoRA. Mr. Day, will you please resume the stand?
TESTIMONY OF HENRY MASON DAY, SYOSSET, LONG ISLAND, MEMBER OF THE FIRM OF REDMOND & CO., NEW YORK Resumed
Mr. PECORA. Mr. Day, at the end of the session yesterday you were asked concerning market letters issued by your firm, and particularly as to whether or not in those market letters it was recommended to your customers that they trade in the stock of the Libbey-OwensFord Glass Co.
Mr. DAY. Yes, sir.
Mr. PECORA. And you said you were going to get in touch with your New York office with a view to ascertaining what the facts were with respect to that matter, and give us the facts this morning.
Mr. Day. Mr. Pecora, I have done what I could in that particular connection. Of course, when I got to the hotel last night it was rather late, and naturally, this being a holiday in New York, a majority of our force had gone home. However, I have done the best I could in that connection, and have had certain papers sent down to me. I, however, find, in talking directly with that department of the firm, that we discontinued all market letters on April 1, 1933.
Mr. PECORA. Well, in the market letters that had been issued prior to that time, did you find any mention of the Libbey-Owens-Ford Glass Co.?
Mr. Day. Did you say prior to that time?
Mr. Day. Well, I haven't got those letters. But I do not believe there was such mention.
Mr. PECORA. Now-
Mr. DAY (continuing). I have here what has been gotten up, just in analysis form.
Mr. PECORA. Have you been able to obtain, as you stated yesterday afternoon you would undertake to do, copy of a letter or of letters in connection with the pool in Libbey-Owens-Ford Glass Co. stock that was referred to you in your testimony yesterday afternoon!
Mr. Day. Yes, sir. I have here what is known to us as an exchange of letters relative to the purchase and distribution of this stock, dated June 1, 1933.
Mr. PECORA. Will you produce that letter, please?
sir. There are a number of similar letters, however. Mr. PECORA. That is, the form of letter that passed between your firm and the other participants in the pool ?
Mr. Day. Well, I should like to offer in connection with that letter, Mr. Pecora, a specimen of the letter that went to an individual.
Mr. PECORA. All right. The letter produced by the witness, Mr. Chairman, I now offer in evidence.
The CHAIRMAN. Let it be admitted.
(A letter dated June 1, 1933, addressed to Kuhn, Loeb & Co., was marked "Committee Exhibit No. 69, February 22, 1934 ", and will be found immediately following where read by Mr. Pecora.) Mr. PECORA. The letter reads as follows:
JUNE 1, 1933. Messrs. KUHN, LOEB & Co.,
52 William Street, New York, N.Y. GENTLEMEN : We have purchased for ourselves and associates, including you, 65,000 shares of the common stock without par value, of the Libbey-OwensFord Glass Company, an Ohio Corporation, at the price of $26.50 per share, and in accordance with previous understanding we confirm your interest in the above purchase to the extent of 13,500 shares at such price.
We understand that you will leave this stock with us for sale proportionate with the balance of said 65,000 shares, you to accept the average net avails of such sales as determined by us in our absolute discretion, less brokerages, taxes, and other expenses in connection therewith.
In connection with our purchase of such 65,000 shares of common stock we have obtained for ourselves and associates, options to purchase additional shares of such common stock, as follows:
Up to 20,000 shares on or before July 3, 1933, at $27.50.
Such options being, respectively, conditional on the full execution by us of the preceding option within the period specified.
We confirm your interest in the above options to the extent of 4,154 shares of such common stock out of each of said application of 20,000 shares.
And it is understood that to the extent to which we, in our absolute discretion, shall exercisé such options the said purchases shall be proportionately for your account, and that you will promptly make payment on our call for the shares so purchased for you.