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Mr. SINCLAIR. Presumably so.

Mr. PECORA. Are you familiar with the mechanism or procedure by which your companies made those call loans during that year?

Mr. SINCLAIR. The loans were made through our banking connections for us.

Mr. PECORA. Had it been the custom or a part of the business of your companies to make such call loans generally for any period of time prior to 1929 ?

Mr. SINCLAIR. Yes. We made call loans in 1928, and I do not recall the other years.

Mr. PECORA. Have your companies made such call loans since 1929 ? Mr. SINCLAIR. Yes, sir.

Mr. PECORA. What would you say was the amount of those loans made by your companies during the year 1929, as to this point: Did they far exceed any amount of similar loans made in any other year!

Nr. SINCLAIR. Yes, sir.
Mr. PECORA. And what was that due to?

Mr. SINCLAIR. I would say partly on account of interest rates and partly on account of demand. And also the fact that, perhaps, our corporation did not have funds at other times.

Mr. PECORA. During the year 1929, as you recall it, would you say that the amount of speculation in securities far exceeded that which was witnessed in any other year in recent times, or, say, within as much as a decade or two?

Mr. SINCLAIR. I think so.

Mr. PECORA. This paper, which is committee exhibit no. 91, also states that as of June 15, 1929, there were outstanding 3.563,502 shares of the common capital stock of the Sinclair Consolidated Oil Corporation, and that certificates representing 2,891,805 of those shares were on that date outstanding in the names of brokers or brokerage firms. That is correct, isn't it, Mr. Sinclair!

Mr. SINCLAIR. Yes, sir; I think so.

Mr. PECORA. The questionnaire addressed to your firm in behalf of this committee asked, among other things, for the following information:

1. The total number of shares of the common stock of your corporation transferred on your books from one ownership to another.

Can you give us that figure, Mr. Sinclair?
Mr. SINCLAIR. Yes. It is 8,910,126.

Mr. PECORA. No. That is the total number of shares transferred on the books. But what was the total number of transfers.

Mr. SINCLAIR. We do not have that information here, Mr. Pecora.

Mr. PECORA. But the total number of shares of common stock transferred on the books during the calendar year 1929 was 8,910,126.

Mr. SINCLAIR. Yes, sir.

Mr. PECORA. About two and a half times the total amount of common stock outstanding.

Mr. SINCLAIR. I think so.

Mr. PECORA. Do you know the total amount of trading that was done in the market in the common stock of the company during the year 1929?

Mr. SINCLAIR. I do not.

Mr. PECORA. Have you any figures that would give us that information ?

Mr. SINCLAIR. I have not.

Mr. PECORA. On what securities exchange was the common stock listed at that time? Mr. SINCLAIR. The New York Stock Exchange. Mr. PECORA. Can you get the figure showing the total amount traded in as to that stock for that year? Mr. SINCLAIR. I think so. Mr. PECORA. Will you send it to our office in New York ? Mr. SINCLAIR. All right.

Mr. PECORA. Can you give this committee now the total amount received by these companies affiliated with the Sinclair Consolidated Oil Corporation, and by that corporation itself, in the year 1929 by way of interest on those call loans ?

Mr. SINCLAIR. We have the information for all of our companies except the Crude Oil Purchasing Co. and the Sinclair Pipe Line Co., whose books are in Tulsa, Okla., and we did not have time to get it for them.

Mr. PECORA. Will you give us the figures so far as you are in position to do it now!

Mr. SINCLAIR. The figures show $833,593.24. Mr. Pecora. That is exclusive of interest paid to these other two companies ? Mr. SINCLAIR. Yes, sir. Mr. PECORA. That is all that I want of Mr. Sinclair, Mr. Chairman. The CHAIRMAN. Then you are excused, Mr. Sinclair.

Mr. PECORA. Mr. Sinclair, is there anything that you would like to give to the committee on the subject of these call loans at this time without being specifically questioned thereon!

Mr. SINCLAIR. I believe not. Mr. PECORA. All right. That is all. The CHAIRMAN. That is all, Mr. Sinclair, and you are excused. Mr. SINCLAIR. I thank you, gentlemen. (Thereupon the witness was excused.) Mr. PECORA. Now, Mr. Chairman, there were sent questionnaires similar in form to those which have been put in evidence here today, to various other nonbanking corporations. The questionnaire called for information concerning call loans made by the corporations to which they were addressed, during the year 1929, and for certain details with respect to such call loans. We have here the answers made to those questionnaires, which I will put in evidence. But before proceeding directly to put these documents in evidence, I want to offer in evidence a recapitulation of the information conveyed in those questionnaires with respect to Street loans made by these corporations during the year 1929 in the call-money market of New York City. This recapitulation has been prepared from the information embodied in the questionnaires, by members of the investigating staff of the committee, and I believe they will be found to be accurate.

The CHAIRMAN. The statement will be admitted in evidence. (The recapitulation made by members of the investigating staff of the committee, entitled “ Total number and amount of Street loans made by private corporations for the year 1929 in the call money market of New York City”, was marked " Committee Exhibit No. 92, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. Mr. Chairman, the corporations referred to in this recapitulation, which has been marked in evidence “ Committee Exhibit 92”, are as follows:

American Founders Corporation and subsidiaries; American & Foreign Power Co., Inc., and subsidiaries; American Can Co.; Anaconda Copper Mining Co.; Auburn Automobile Co.; Bethlehem Steel Corporation and subsidiaries, Chrysler Corporation; Cities Service Co.; Consolidated Oil Corporation; Electric Bond & Share Co. and subsidiaries; General Foods Corporation; General Motors Corporation; International Nickel Co., Inc.; Pan American Petroleum & Transport Co.; Radio Corporation of America and subsidiaries; Radio-KeithOrpheum Corporation ; Standard Oil Co. of New Jersey and subsidiaries; Tri-Continental Corporation and affiliated corporations; the United Corporation; the United Gas & Improvement Co. and subsidiaries.

Mr. Chairman, I now offer in evidence and ask to have spread on the record, the answers to the questionnaires submitted to the corporations which I have named, in behalf of this committee, and which give details with regard not only to call loans made in the year 1929 by such corporations, but also give detailed information with respect to the number of shares listed of the capital stock of such companies that were transferred on the books of the companies, respectively, during the calendar year 1929.

The first answer to the questionnaire is that of the American Can Co., which shows a total amount of call loans in 1929 of $149,000,000, with an average amount outstanding of $9,424,000, and with the total number of call loans made, 374. The maximum amount outstanding at any one time was $16,000,000, which was for a period of 8 days, January 17 to January 25, 1929.

The CHAIRMAN. Let it be admitted.

(The answer of the American Can Co. to the committee's questionnaire was marked " Committee Exhibit No. 93, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. Mr. Chairman, the next one is the return to the questionnaire made by the Anaconda Copper Mining Co., and it shows the total amount of Street loans made in the call money market of New York City was $32,500,000, and that the total number of Street loans made by the corporation was 147.

The CHAIRMAN. Let it be admitted.

(The answer made by the Anaconda Copper Mining. Co. to the committee's questionnaire was marked " Committee Exhibit No. 94, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the answer made by the Auburn Automobile Co., and it shows that the total number of Street loans made was 13, and that the total amount was $1,600,000.

The CHAIRMAN. Let it be admitted.

(The answer by the Auburn Automobile Co. to the committee's questionnaire was marked “ Committee Exhibit No. 95, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next return made is in behalf of the Bethlehem Steel Corporation, and, Mr. Chairman, I might call attention to the fact that in this return to our questionnaire, the Bethlehem Steel Corporation stated that the peak amount of call loans out

standing at any one time in the year 1929 was $157,450,000, and that the total number of loans made was 517.

The CHAIRMAN. Let it be admitted. (The answer by the Bethlehem Steel Corporation to the committee's questionnaire was marked “ Committee Exhibit No. 96, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return to our questionnaire made in behalf of the Chrysler Corporation, showing that the loans were made through three banks, and that the largest amount made through the first bank was on September 26, when there were 114 loans amounting to $60,150,000; the largest amount through the second bank was on October 9, when there were 26 loans amounting to $15,000,000; and the largest amount through the third bank was on October 28, when there were 33 loans, amounting to $15,400,000. The CHAIRMAN. Let it be admitted.

(The answer by the Chrysler Corporation to the committee's questionnaire was marked “ Committee Exhibit No. 97, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return to our questionnaire made in behalf of the General Foods Corporation, which states that the loans were all made through banks, and that the total number was 187; that the total amount of Street loans made by the corporation in the call-money market of New York in 1929 was $36,000,000. The CHAIRMAN. Let it be admitted.

(The answer of the General Foods Corporation to the committee's questionnaire was marked " Committee Exhibit No. 98, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return made in behalf of General Motors Corporation and subsidiaries, in the year 1929, and shows a total of $103,700,000, and the General Motors Truck Corporation made four loans for a total of $2,000,000. The CHAIRMAN. Let it be admitted.

(The answer of the General Motors Corporation and subsidiaries to the committee's questionnaire was marked " Committee Exhibit No. 99, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. Pecora. The next one is the return to the questionnaire made in behalf of the International Nickel Co. of Canada, Ltd., and shows for the year 1929 they made 14 Street loans in the call-money market of New York City for a total of $3,000,000. The CHAIRMAN, Let it be admitted.

(The return made by the International Nickel Co. of Canada, Ltd., to the committee's questionnaire was marked“ Committee Exhibit No. 100, Feb. 23, 1934”, and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return to the questionnaire made in behalf of the Pan American Petroleum & Transport Co., which shows a total of $9,500,000. The CHAIRMAN. Let it be admitted.

(The return made by the Pan American Petroleum & Transport Co. to the committee's questionnaire was marked “ Committee Exhibit No. 101, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

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Mr. PECORA. The next one is the return made in behalf of the Radio Corporation of America and subsidiaries, and shows that loans were made through three banks in New York City for a total of $18,600,000.

The CHAIRMAN. Let it be admitted.

(Return made by the Radio Corporation of America to the committee's questionnaire was marked “Committee Exhibit No. 102, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return made in behalf of the Radio-Keith-Orpheum Corporation, and states that the largest amount invested in the call-money market by that corporation and its subsidiaries and affiliates was in March of 1929, when $8,000,000 was so invested. The CHAIRMAN. Let it be admitted.

(The answer submitted by the Radio-Keith-Orpheum Corporation to the committee's questionnaire was marked " Committee's Exhibit No. 103, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return made in behalf of the TriContinental Corporation showing an aggregate of call loans made $86,525,000.

The CHAIRMAN. Let it be admitted.

(The return made by the Tri-Continental Corporation to the committee's questionnaire was marked " Committee's Exhibit No. 104, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return made in behalf of the United Corporation, which states that it did not make directly any Street loans in the call-money market of New York City during the year 1929, but that on January 25, 1929, the United Corporation obtained an interest through J. P. Morgan & Co. to the extent of $7,400,000 in six such loans.

The CHAIRMAN. Let it be admitted.

(The answer made by the United Corporation to the committee's questionnaire was marked " Committee Exhibit No. 105, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

Mr. PECORA. The next one is the return made by the United Gas Improvement Co. and subsidiaries, and states that the maximum amount loaned by way of Street loans at any one time was $3,600,000.

The CHAIRMAN. Let it be admitted.

(The answer made by the United Gas Improvement Co. to the committee's questionnaire was marked " Committee Exhibit No. 106, Feb. 23, 1934 ", and will be found at the end of the day's proceedings.)

The CHAIRMAN. May I ask you, Mr. Pecora, if those are what are known as “ bootleg” loans, or if they represent what are called “ bootleg " loans.

Mr. PECORA. Mr. Chairman, they have often been called " bootleg ” loans, not only in the parlance of the Street, but I think some textbook writers have referred to brokers' loans as “ bootleg” loans as distinguished from loans made by banks.

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