Mr. HARRIS. Of course, that is divided up among 24 employees, Mr. Pecora.

Mr. PECORA. No; it is 24? Mr. HARRIS. I am sorry. It is 15. I was adding in the department of the economist.

Mr. PECORA. What sort of services are performed by these 15 employees of the committee on publicity?

Mr. HARRIS. They have a great deal of statistical work to do. They are getting up data of all sorts all the time. There are these educational pamphlets that are sent out which have to be prepared and very carefully gone over, which requires a great deal of time and a great deal of work.

Mr. PECORA. I notice that most of the pamphlets sent out during the year 1931 were copies of two addresses of Mr. Whitney.

Mr. HARRIS. Yes, sir. Mr. Pecora. Those addresses were not prepared by the employees of the committee on publicity, were they?

Mr. HARRIS. No; those were not.
Mr. PECORA. Or any of them.

Mr. HARRIS. A great many of the pamphlets are. Of course, the year book, Mr. Pecora, takes a great deal of work, and there is a great deal of mail constantly coming into that department that must be answered, various members of the public asking questions.

Mr. PECORA. I show you, Mr. Harris, a typewritten statement entitled “Schedule C. Committee on Publicity”, covering items of expenditures for the years 1929 to 1933, both inclusive. Will you look at it and tell us if it is a true and correct statement of the items referred to therein? Mr. HARRIS (after examining paper). That is a true statement. Mr. PECORA. I offer it in evidence. The CHAIRMAN. Let it be admitted. (Copy of statement entitled “Schedule C, Committee on Pub

1929, to 1933, both inclusive, was received in evidence, marked - Committee Exhibit No. 109 ", Feb. 23, 1934, and the same will be found at the conclusion of today's proceedings.)

Mr. PECORA. The document has been marked in evidence as “ Committee's Exhibit No. 109” of this date, and shows the moneys expended by the committee on publicity for each of the years in the 5-year period, 1929 to 1933, both inclusive, as follows: For the year 1929, $174,846.11; for the year 1930, $243,964.91; for the year 1931, $284,863.94; for the year 1932, $206,439.25; for the year 1933, $92.970,51.

Mr. HARRIS. Mr. Pecora, that is only up to September 1. Mr. PECORA. That is, for 1933 ? Mr. HARRIS. For 1933. Mr. Pecora. That makes a total for that approximate 5-year period of $1,001,084.72, if our calculation is correct. Mr. HARRIS. I have not totaled it here yet. Mr. PECORA. Subject to correction, I think you can safely accept that total.

Now, I notice in this statement or recapitulation marked “Committee's Exhibit No. 109 ", an item of expenses attributed to "yearbooks, miscellaneous, other publications, gallery pamphlets, motion


picture expenses, postage, et cetera.” What are the motion-picture expenses included therein?

Mr. HARRIS. Several years ago the exchange had two films showing the trading floor of the New York Stock Exchange, and actual trading conditions as they existed, and those have been shown in various theaters throughout the country.

Mr. PECORA. What were the titles of these two motion-picture films? Mr. HARRIS. I am sorry.

I have seen them both. They have slipped my mind. One was called “ The Nation's Market Place.”

Mr. PECORA. When was that film made?
Mr. HARRIS. Several years ago. I have not got the exact date.
Mr. PECORA. What is the title of the other one?
Mr. HARRIS. I do not remember. I have no recollection.

Mr. PECORA. Isn't it The Mechanics of the Nation's Market Place, Part I, The Training of the Boys?

Mr. Harris. Yes; that is right.
Mr. PECORA. When was that picture made ?

Mr. HARRIS. Likewise several years ago. There have been new cuts put into it within 2 years, but it is an old picture.

Mr. PECORA. It was brought down to date, that is, up to 2 years ago, by revisions. Mr. HARRIS. I believe so. Mr. PECORA. Are they sound pictures?

Mr. HARRIS. The original picture was not a sound picture. I believe the second picture is a sound picture—at least parts of it.

Mr. PECORA. How are these two pictures exhibited, under the direction of the committee on publicity?

Mr. HARRIS. They were shown in various theaters throughout the country. One concern had exclusive rights. They were shown where there seemed to be a demand in any locality. If there was a demand for a stock-exchange picture, this picture was put on.

Mr. PECORA. How would that demand become manifest to stock exchange's committee on publicity?

Mr. HARRIS. The agent of these pictures would get a demand from a certain theater for a picture of this type, and would then write the stock exchange about it.

Mr. PECORA. Would he get the demand, or would he go out and create it?

Mr. HARRIS. I cannot speak for the agent, Mr. Pecora.

Mr. PECORA. Was the use of these films made available free of charge by the stock exchange?

Mr. HARRIS. It was.

Mr. PECORA. Do you know throughout what area they were exhibited ?

Mr. HARRIS. Practically throughout the country.

Mr. PECORA. Were they exhibited in motion-picture houses principally?

Mr. Harris. Principally motion-picture houses.

Mr. PECORA. Have you any notion that the owners of motion-picture houses observed any demand on the part of their patrons for the exhibition of these pictures ?

Mr. HARRIS. Yes; from time to time the committee on publicity has had letters from various theaters saying that there was a demand from the public for one of these two pictures.

Mr. PECORA. Have you available to you any records or statistics showing the aggregate number, approximately, that composed the audiences to whom these pictures were exhibited during the year 1931 ?

Mr. HARRIS. I have not, Mr. Pecora, but we might be able to furnish you with those figures.

Mr. PECORA. There is a yearbook issued annually by the New York Stock Exchange, is there not? Mr. HARRIS. Yes, sir. Mr. PECORA. Don't you know that that yearbook contains those figures? Mr. HARRIS. As I say, I came down very hurriedly and, as this was not specified, I did not bring it. Mr. PECORA. Have you ever read the yearbook? Mr. HARRIS. I do not think I have read it word for word, but I have always gone through it yearly as it comes out.

Mr. PECORA. Do you recall that at one time, or at any time when you have read the yearbook, reference was made to the number of exhibitions of these motion pictures as a part of the work done by your committee on publicity? Mr. HARRIS. Yes, I believe it is so mentioned.

Mr. PECORA. I have what purports to be a copy of the yearbook of the New York Stock Exchange for 1931 and 1932. From page 73 thereof let me read as follows (reading]:

Two motion pictures of the activities of the exchange have been made under the supervision of the committee on publicity and are now available for exhibition purposes. The two films are entitled “The Nation's Market Place and * The Mechanics of the Nation's Market Place, Part I, The Training of the Boys." By the way, who picked out that title? Mr. HARRIS. I do not know. I did not. The CHAIRMAN. Who was the agent who handled these films? Mr. HARRIS. The committee on publicity controlled the pictures. The CHAIRMAN. You made your contract with some agent for the handling of the films. You did not go about the country exhibiting them yourself. Mr. HARRIS. Oh, no. It was a company that acted as our agents. The CHAIRMAN. I am asking who that was. Mr. HARRIS. They recently went bankrupt, Mr. Chairman, and we had to get the films back from them. I cannot think of their

Mr. PECORA. Apparently the demand for these films has died down. Mr. HARRIS. I do not think that is what caused their bankruptcy. The CHAIRMAN. That does not quite identify them. Mr. PECORA. In the title of this second picture, called “The Mechanics of the Nation's Market Place, Part I, the Training of the Boys”, does the word “mechanics” refer to the machinery of the exchange, or to any of its members?

Mr. HARRIS. They are more or less combined. It refers to the general operation, the general mechanism of the exchange.


Mr. PECORA. I will read further from page 73 of this yearbook for 1931 and 1932 [reading] :

The first film tells a connected story of the methods by which business is done on the floor of the exchange; and the second film deals with the personnel of the exchange, showing the thorough training of its employees, as a result of which the exchange's high standard of public service is maintained. Since December 1928, when the film “ The Nation's Market Place” was produced, it has been shown to audiences throughout the United States totaling more than 3,500,000 people. During the last year a sound track lecture has been added to this film. Arrangements are being made to show this film both theatrically and nontheatrically throughout the United States. Requests for prints of this film have been received from Japan, Czechoslovakia, and other foreign countries. The projection time of “The Nation's Market Place" is approximately 12 minutes; that of “ The Mechanics of the Nation's Market Place” is 20 minutes. These films may be obtained for exhibition upon application to the committee on publicity of the exchange. There is no charge except the express costs of transporting the film from New York and back.

Who prepares the yearbook for the exchange! ? Mr. HARRIS. The committee on publicity prepares the yearbook. Mr. PECORA. What particular individual or individuals, or employees?

Mr. HARRIS. Two employees. Mr. Jason Westerfield and Mr. Charles Klem.

Mr. PECORA. Do they prepare it in accordance with their ideas of what its contents should be, or do they prepare it under the instructions as to such content that they get from someone else!

Mr. HARRIS. There is more or less routine work, of course, that comes in yearly, and the balance is gone over by the president and the committee.

Mr. PECORA. Mr. Harris, how much has been appropriated for use by the committee on publicity of the stock exchange for the current year, 1934 ?

Mr. HARRIS. The budget figure for 1934 ?
Mr. PECORA. Yes.
Mr. HARRIS. $200,000.

Mr. PECORA. Has there been any appropriation made outside of that budget figure?

Mr. HARRIS. None that I know of. I believe the budget is the same as last year, when it was also $200,000, and only $92,000 was spent.

Mr. PECORA. What was the special occasion for calling this meeting of the committee on publicity day before yesterday which, according to your recollection this afternoon, is the only meeting it has held so far this year?

Mr. HARRIS. It was a very minor, unimportant matter, Mr. Pecora. It was a question whether or not the exchange would spend $2,000 to fix up an anteroom outside the gallery for vistors so that they could sit down while they were waiting to go in the gallery. That was the purpose of the meeting.

Mr. PECORA. Mr. Chairman, it is now very close to 4 o'clock.

The CHAIRMAN. Mr. Harris, does this committee do any more in the way of publicity than what you have mentioned? Do they furnish statements for the press, or anything of that sort ?

Mr. HARRIS. On rare occasions the committee on publicity does, yes. If there is an important announcement coming out, or a change in rulings, it is given to the press through the secretary of the committee on publicity.

Mr. PECORA. Mr. Chairman, I have not any other matters I want to examine this witness about. I will ask that he return here at the next session of the committee on Monday morning.

The CHAIRMAN. The committee will take a recess until Monday morning at 10:30. We will go on with these hearings then. In the afternoon of Monday we expect to take up the bill, but we will not reach that until Monday afternoon.

(Whereupon, at 3:34 p.m., Friday, Feb. 23, 1934, an adjournment was taken until Monday, Feb. 26, 1934, at 10:30 a.m.)




New York, N.Y., November 1, 1933. Mr. FERDINAND PECORA, Counsel, Committee on Banking and Currency,

285 Madison Avenue, New York, Nero York. MY DEAR MR. PECORA : With further reference to your inquiry of October 26th, you will find enclosed herewith completed questionnaire, which we trust you will find in order. Sincerely yours,



A. Give the following data for the year 1929 :

1. Total number of street loans made by your Corporation in the call money market in New York City.

Answer: The total number of street loans made in the call money market in New York City was 912.

2. The total amount of street loans made by your Corporation in the call money market in New York City.

Answer: The total amount of street loans in the call money market in New York City was $285,325,092.21.

Note: This amount represents the cumulative amount of street loans made during the year. You will appreciate that street loans may be made one day and paid the next day. Consequently the total amount represents the loaning of the same funds over and over again. The maximum amount of call money in any one day loaned by Cities Service Company was $41,900,000. This is shown, together with other data, in the listing shown below, which was not requested in your questionnaire but which we thought might be of value or interest.

(a) Maximum amount of call money, one day-- $41, 900,000.00 (b) Average daily amount of call loans outstanding--- 10, 375, 778. 23 (c) Average amount of each loan made---

312, 856. 46 3. State the manner or method in which the loans made in the call money market in New York City were effected; whether effected through commercial banks, private banks, or other agency, describing the agency, or directly to borrower.

Answer: The above loans were made direct to borrower.




New York, N.Y., November 11, 1933. COMMITTEE ON BANKING AND CURRENCY,

285 Madison Avenue, New York, N.Y. Attention : Mr. Ellis. DEAR SIRS: In response to your telephone request, we enclose herewith a statement accounting for the call loans outstanding on the day in the year

175541-34-PT 14—13

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