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.) COMMITTEE EXHIBIT NO. 86, FEBRUARY 23, 1934 Mr. FERDINAND PECORA, CITIES SERVICE COMPANY, SIXTY WALL STREET, New York, N.Y., November 1, 1933. Counsel, Committee on Banking and Currency, 285 Madison Avenue, New York, New 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, WAJ:g W. A. JONES. QUESTIONS AND ANSWERS REGARDING CALL LOANS OF YEAR 1929 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 your questionnaire but which we thought might be of value or interest. (a) Maximum amount of call money, one day---. $41, 900, 000.00 10, 375, 778. 23 312, 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. 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 1929 when call loans were in the largest amount. The list attached indicates to whom loans were made and the amounts involved, the total of which was $41,900,000. In respect to your inquiry regarding the total number of shares transferred in 1929, we wish to advise that from January 1, 1929 to May 1, 1929, 3,936,159 shares of $20 par value stock were transferred; and from May 2, 1929 to December 31, 1929, 49,500,528 shares of no par value stock were transferred. Yours very truly, W. B. S. WINANS. DETAILS OF MAXIMUM CALL LOANS OUTSTANDING ANY ONE DAY 1929-SEPTEMBER 25, 1929 Amount $100,000.00 100,000.00 200, 000.00 100,000,00 2, 000, 000, 00 300,000,00 Name: Anderson & Fox-- Annenberg Stein & Co.-. Appenzeller, Allen & Hill Buell & Company-. Campbell Starring & Company Carreau & Snedeker___. S. B. Chapin & Company. Frank B. Cohn & Company. De Saint Phalle & Company.... De Basque & De Witt & Company. Eric & Shrevers_. Walter J. Fahy & Company. Faroll Bros.-. Fenner & Beane_. Frazier Jelke & Company_. Gardner & Company-. Lamborn Hutchings & Company. Ludwig Robertson & Company. Munds & Winslow Newburger Henderson & Loeb__ FERDINAND PECORA, Esq. AMERICAN & FOREIGN POWER COMPANY, INC., Counsel Committee on Banking and Currency, United States Senate, 285 Madison Avenue, New York City. DEAR MR. PECORA: In accordance with the request contained in your letter of October 17th, I desire to report as follows in answer to your questionnaire: A.-1. The total number of shares of the Common Stock of American & Foreign Power Company Inc. appearing on our records as of March 1, 1929 in the name of such stock brokerage firms as we were able to identify as stock brokerage firms was 345,250. 2. The total number of such brokers and brokerage firms as we were able to identify as brokers and brokerage firms appearing on the records of American & Foreign Power Company Inc. as of March 11, 1929 as the owners of Common Stock of that Company was 340. 3. The total number of shares appearing on our records as of March 11, 1929 in each of the names of such brokers or brokerage firms as we were able to identify as brokers and brokerage firms and who are the first ten largest broker holders of record of shares of Common Stock was 104,977. The designation by number in order of numerical holdings is as follows: 1 2 104, 977 3... 5... 6... 10, 410 Total B.-1. The total number of shares of the Common Stock of American & Foreign Power Company Inc. transferred on our books from one ownership to another during the year 1929 was 1,930,679. 2. The Common Stock of American & Foreign Power Company Inc. from one ownership to another for the year 1929 Was 32,159. A-1. The total number of street loans made by American & Foreign Power Company Inc. in the call money market of New York City for the year 1929 was 91. holders' list as of Mar. 11, 1929, and had it available. We already had a stock 2. The total amount of street loans made by American & Foreign Power Company Inc. in the call money market in 1929 was $57,610,000. The peak amount on loan, at any one time, however, was $30,321,000 and the daily average for the year was $6,477,729. This includes loans made by American & Foreign Power Company Inc. and by any and all of its subsidiary holding companies, entities or any other agency under direct or indirect control and management of American & Foreign Power Company Inc. For your information, the amounts included herein are also included in the answers to the Questionnaire filed by Electric Bond and Share Company. 3. All of the above call loans were made through commercial banks. Very truly yours, AMERICAN & FOREIGN POWER COMPANY INC., By A. C. RAY, Treasurer. Mr. DAVID SCHENKER, AMERICAN & FOREIGN POWER COMPANY, INC., Associate Counsel Committee on Banking & Currency, United States Senate, 285 Madison Avenue, New York City. DEAR SIR: In accordance with the request over the telephone today from your office, I wish to confirm that the peak amount of street loans in the call money market of New York City at any one time during the year 1929 for American & Foreign Power Company Inc. and by any and all of its subsidiary holding companies, entities or any other agency under direct or indirect control and management of American & Foreign Power Company Inc. was $30,321,000, and the lowest amount during the year 1929 was $100,000. As previously stated in our letter to Mr. Pecora dated November 9, 1933, all of the above call loans were made through commercial banks. Very truly yours, AMERICAN & FOREIGN POWER COMPANY INC., COMMITTEE EXHIBIT No. 89, FEBRUARY 23. 1934 Honorable FERDINAND PECORA, STANDARD OIL COMPANY, New York, November Third, 1933. Counsel United States Senate Committee on Banking and Currency, 285 Madison Avenue, New York, N.Y. DEAR MR. PECORA: Reference is made to your letter of October 17th, 1933, requesting certain information in response to the two questionnaires enclosed, and to your letter of October 26th, 1933, relative to the same matter The first questionnaire dealt with the matter of call-money loans and the second questionnaire with ownership and transfer information in connection with our capital stock. Answering these requests for information in that order, the following is submitted: I. CALL-MONEY LOANS The business of this Company has required at all times the maintenance of a substantial working capital in liquid form. Beyond our actual cash needs, it has of course been important to us to keep this profitably invested to the extent possible; and to that end we have been accustomed to buy federal. state and municipal short-termed obligations and also to avail ourselves of the even more liquid field of the New York call-money market. For the latter purpose, during 1929, the loaning of our surplus funds was handled under arrangement with a brokerage firm, members of the New York Stock Exchange. We attach hereto as Schedule "A" (13 pages) a statement showing, for each day of the year 1929, the total number of borrowers and the total amount of the funds of this Company and its subsidiaries and affiliates thus outstanding |