United Aircraft & Transport Corporation capital stock, short interest on December 29, 1933, 3,435 shares, and on January 31, 1934, 11,926 shares.

Wright Aeronautical Corporation, certificate of stock, short interest on December 29, 1933, nothing, and on January 31, 1934, 130 shares.

Senator CAREY. Mr. Whitney, you don't know whether these lists come up to the time that the contracts for the air-mail lines were canceled or not, do you?

Mr. WHITNEY. These lists I have just given you do not. They only come to January 31, 1934, whereas it is my understanding that the air-mail contracts were canceled on the 9th of February.

Senator CAREY. Well, the list of sellers that you will furnish the committee, will they come up to February 9?

Mr. WHITNEY. Yes, sir.

Senator McADOO. You didn't give us the T.W.A., did you?

Mr. WHITNEY. That was not asked for, and, besides, I do not think it is listed on the exchange.

Senator MCADOO. Or American Aviation.

Mr. WHITNEY. No; I do not think it is listed on the New York Stock Exchange.

Senator MCADOO. Those are not listed on the New York Stock Exchange?

Mr. WHITNEY. No, sir; I think not.

Senator KEAN. Then we could not ask for them. But, Senator McAdoo, there is another man coming on here from whom we will ask that information later. But we could not ask for that in this examination.

Senator MCADOO. All right.

Senator KEAN. Now, Mr. Whitney, in regard to these air stocks, I hand you herewith what purports to be the notice to the members of the New York Stock Exchange, asking them to report on the matter. That is a correct copy, is it not?

Mr. WHITNEY. That is a correct copy of the notice sent out to the members on February 15, 1934. I have here, Senator Kean, a list of those items that were asked of me.

Senator KEAN. Mr. Chairman, I should like that paper filed as a part of this hearing.

Senator McADOO. Why not read it into the record?

Senator KEAN. All right. I will do that. [Reading:]

(The paper was marked "Whitney Ex. no. 1-A doe Identification, Feb. 5, 1934.")

To the Members of the Exchange:

NEW YORK STOCK EXCHANGE, COMMITTEE OF BUSINESS CONDUCT, February 15, 1934.

The committee on business conduct directs me to request that you furnish it by noon, Monday, February 19, 1934, with a list of all sales made by you in the following securities during the period from January 26, 1934, to February 9, 1934, both inclusive (trade dates), giving the volume and prices, the names of the members or firms with whom the sales were made, and of the customers for whom you acted:

The Aviation Corporation of Deleware common stock.

Bendix Aviation Corporation common stock.

Curtiss-Wright Corporation common stock.

Douglas Aircraft Co., Inc., capital stock.

North American Aviation, Inc., capital stock. 175541-34-PT 15-28

United Aircraft & Transport Corporation common stock.

Wright Aeronautical Corporation capital stock.

Please indicate in each instance whether the sale was for long or short account.

This information is to be sent in a sealed envelope addressed to the committee on business conduct. Delivery should be made at the incoming window, annex department, 18 New Street, New York City.

Please note that this request calls for a reply from each member of the exchange to whom it is sent, regardless of whether or not he has any information to submit.

ASHBEL GREEN, Secretary.

And I ask that that may be made a part of the record. Senator ADAMs. All right. You have read it, and the committee reporter has taken it down and made it a part of the record.

Senator McADOO. Why did you fix January 31, 1934, as a date instead of a later date, just preceding the cancelation of the airmail contracts?

Senator KEAN. Well, as I understand it, that is covered by data to be given here. And that took place on the 9th of February, as I understand it.

Mr. WHITNEY. There is furnished here the period between January 26 and February 9, 1934, both inclusive, approximately 2 weeks, sir.

Senator McADOO. All right.

Senator KEAN. Now, Mr. Whitney, I asked the chairman and I now ask you for that copy of that questionnaire. Will you have that questionnaire put in the record?

Senator ADAMS. Do you mean the letter that was just read?
Senator KEAN. Yes.

Senator ADAMS. That will be made a part of the record by the committee reporter, just as you read it.

Senator KEAN. Now, Mr. Whitney, I find here a letter from Mr. Redmond, which enclosed that, written on Saturday, and in which he says:

Mr. Whitney requests that I send you the enclosed copy of the questionnaire sent to members of the stock exchange in regard to short sales of aviation stocks.

I received that letter with the enclosure on Saturday, and I replied as follows, which I should like to go into the record, if I may have it done.

Senator ADAMS. All right.

Senator KEAN. The letter is as follows:

UNITED STATES SENATE, COMMITTEE ON BANKING AND CURRENCY, March 3, 1934.

The Willard Hotel, Washington, D. C.

ROLAND L. REDMOND, Esq.,

MY DEAR MR. REDMOND: Thank you for your letter of March 3, enclosing the stock-exchange questionnaire of February 15 in regard to aviation corporation.

If possible, to save space in the record, I would like Mr. Whitney to be prepared to answer the following questions:

The total number of sales of each of these stocks on the days mentioned, the firms that sold long stocks and the firms that sold short stocks, and the names of the clients for whom this stock was sold.

My object in asking for this information in the first. place is to show how competent and what control the stock exchange had over their members; second, to find out whether the officers or directors of these airplane companies had taken advantage of the public in selling the stock short; third, to find

out whether any public officials had betrayed their trust in giving out information that led to short sales.

Yours very truly,

And I submit that for the record.

Senator ADAMS. Very well.

(Signed) HAMILTON F. KEAN.

Senator McADOO. Senator Kean, you did not ask him the question as to whether any public officials had, either directly or indirectly, engaged in selling air stocks short.

Senator KEAN. I do not think Mr. Whitney could answer that question, Senator McAdoo.

Senator BULKLEY. Is Mr. Whitney going to submit the names of all who sold stocks short as to these aviation stocks?

Senator KEAN. Yes.

Senator BULKLEY. Then we can determine whether they are public officials or not.

Senator MCADOO. But, Senator Kean, I notice that you confined it to officials of the corporation.

Senator KEAN. Officials and directors.

Senator McADOO. Of the companies.

Senator KEAN. Yes; and also public officials.

Senator McADOO. Well, as to whether or not any of those gave out information I do not know that Mr. Whitney could answer. But as to purchases and sales by others than officers and directors of the companies, I did not get any such request from your reading of the letter.

Senator KEAN. Oh, that is in there, all right.

Senator MCADOO. All right.

Senator CAREY. Mr. Chairman, I should like at this time to make a motion if I may.

Senator ADAMS. All right, Senator Carey.

Senator CAREY. I move that Mr. Pecora and his investigators of this committee be instructed to check the lists furnished by Mr. Whitney and to make such investigations as may be necessary to ascertain:

(1) If any of those making sales of stocks in air lines are holding political office or are related or associated with any person in an official position;

(2) If any sales were made either through fictitious accounts or on behalf of others, to ascertain the name of the actual seller; and (3) To report to this committee the result of such investigation. Senator ADAMS. Is there any discussion in reference to the motion? [A pause, without response.] All in favor of it will say "aye." [Several ayes.] Those opposed will say "no." [Silence.] The motion is carried and Mr. Pecora will go ahead and make the investigation and furnish the information desired.

Mr. PECORA. Well, the temporary holiday seems to have come to an end. We will proceed. Now, Mr. Chairman, I should like to suggest as a necessary preliminary that Mr. Whitney at this time. produce for the record such data as he was subpenaed to present here this morning; and after they shall have been presented I will see if, as a foundation for the investigation that Senator Carey's motion covers, we are prepared to proceed.

Senator ADAMS. Very well; that may be done.

Senator KEAN. Mr. Pecora, before that is answered I should like to ask Mr. Whitney whether he will produce, for the benefit of the

committee, one of the lists of the stock exchange members, with their partners?

Mr. WHITNEY. Yes, sir; the directory, do you mean?

Senator KEAN. Yes.

Mr. REDMOND. I have one at the hotel but not here. But I think that Mr. Pecora has a directory.

Mr. PECORA. We have the 1933 directory.

Mr. REDMOND. You haven't one as of January 1934?

Mr. PECORA. No.

Mr. REDMOND. There is one for January 1934, and I will furnish you a copy of it.

Mr. PECORA. All right.

Mr. WHITNEY. Do you now wish me to submit these various papers in accordance with the subpena?

Mr. PECORA. Yes; produce them and they will be marked in evidence, or for identification, but they need not be spread on the record at this time, because I see that the documents you are going to produce are of a voluminous character. But we will introduce them in evidence and then take them up.

Mr. WHITNEY. Well, I have here the graphs that Senator Kean referred to.

Senatar KEAN. And which I asked, Mr. Chairman, be made a part of the record.

Senator ADAMS. That has been ordered.

(Seven graphs, covering the Aviation Corporation of Delaware common stock, Bendix Aviation Corporation common stock, CurtissWright Corporation common stock, Douglas Aircraft Co., Inc., capital stock, North American Aviation, Inc., capital stock, United Aircraft & Transport Corporation common stock, and Wright Aeronautical Corporation capital stock, as requested by Senator Kean, are as follows:)