Evening Star Newspaper, July 6, 1933, Page 5

B0VD IS DUEHERE TODAY FROM AT Transatlantic Flyer and Com- panion Left Port au Prince / Late Yesterday. SAVANNAH, Ga., July 6 (P.— Oapt. Errol Boyd and Co-Pilot Rob- ert Lyons, flying from Haiti to ‘Washington, hopped off from Hunter Field, Savannah, at 11:25 a.m., East- ern standard time, this morning after refucling. They had planned a non-stop flight from Haiti to Washington but stopped at the Savannah airport about 40 minutes. They reported fighting storms all the way from Port au Prince, where they took off at 6:3) p.m. yesterday afternoon, until they reached Savannah this morning Capt. J. Erroll Boyd, transatlantic fiyer and ho! ington-Hoover Airport today on a non- stop flight from Port au Prince, Haiti. | Capt. Boyd, accompanied by Robert G. Lyon, former Navy fiyer, according to| dispatches received here, is bearing a message from President Stenio Vincent | of Haiti to President Roosevelt. Capt. Boyd took off from Haiti at 6:20 pm. 3 according to As- sociated Press dispaiches. This sheuld permit him to reach Washington early in the afternoon if weather conditions | prove favorable along his route, most oi| which lies over the Atlantic. | Dr. Dantes Bellegarde, Haitian mi.n-‘ ister, will head a party from the Haitian legation which will meet Capt. Boyd | at the airport. An informal reception | for the fiyers has been planned for late | this afternoon, depending on the time | of arrival, at the legation building, 1818 | . FRANK E. TAPLIN, of a number of distance | Cleveland capitalist, on the stand relating details of his sale of railway stock to recerds. is ewpected to arrive at Wash- | the Pennroad Corporation in 1929. Left to right: Taplin and Senator Townsend, | Republican, of Delaware, member of the Senrte committee making the banking | | and stock market investigaticn, Taplin’s testimcny being a phase of that inquiry. ING STAR, WASHINGTON, D. C., THURSDAY, —A. P. Photo. CAPITALIST TELLS PROBERS OF PROFIT IN RAIL STOCK DEAL (Continued From First Page.) 1924, Taplin said, and was subsequent- 1y renewed or extended several times. Taplin said the last extension of the syndicate agreement was on July 16, 1928. ‘What was the object of the syn- dicate?” Pecora asked. “To make money on the purchase of the stock,” Taplin replied, adding it the plan to hold the stock until it appreciated in value and then sell. During the early part of the nego- tiations, Taplin said he was unwilling to sell at the price sought by Atter- bury and county. Taplin then told of letters sent out by him, beginning in June, 1927, to stockholders not in the syndica fering them a chance to “tie up” with 1 him and benefit the same as those in the syndicate when the stock was sold. As a result of these letters, the first |of which went to John Atwater of Cleveland, Taplin said he gained con- trol of from 70 to 75 per cent of the Pittsburgh & West Virginia’s outstand- ing stock. Members of the syndicate paid an average of $52.50 for their stock. In addition, he obtained control of other stock from holders who “tied up” with him. Taplin negotiated with several roads for sale of the stock, including the and the Van Sweringens. In the origi- nal discussions he demanded $200 a share, but none of the roads showed lnlllch desire to buy the stock at this price. The witness testified in a conver- sational, soft voice, apparently at ease. ‘The witn en said there was very little trading “and none after 1926” by the syndicate. After again saying the idea of the syndicate was to purchase control of the Pittsburgh & West Virginia and “sell it at a profit,” Taplin was asked if he xsegugned with any other roads to uy it. 5 He said he did not talk with the Balti- more & Ohio, but did discuss it with the Van Sweringens “off and on over three or four years.' He added he first proposed that the Pennsylvania buy the stock at $200 a ;}:l;e. but “they thought that was too igh.” He agreed he took the initiative in the investigations when the Pennroad Cor- poration was formed, but said he was not a stockholder in Pennroad. He finally “conceded,” if he could not i{et $200 a share he would “take a little ess.” “What price did they offer?” Pecora asked. “I don't think they ever made an offer.” Pecora then took up a loan of $1,950,- 000 made by the Pennroad to Taplin in June, 1929. s Taplin said that was the first formal business he had with Pennroad, all the stock sale negotiations having been eon- ducted by “word of mouth.” ‘Taplin said he and associates owned a majority of the Wheeling and Lake Erie stock, after s ‘“great scrap” with the Van Sweringens. In 1927, his group controlled 190,000, or a little less than the majority con. trol when Clarance Reynolds of Louis- ville offered to tie up with him a block of 32.500. This was done, giving the group a little over half the outstanding stock of the Lake Erie. Says Hc Was ‘Hooked.” In June, 1929, Taplin ‘said, Reynolds said he was going to sell that block to the Van Sweringens. “That’s how they hooked me,” Taplin testified, inasmuch as he had to buy the Reynolds block to maintain con- trol, paying $3,900,000, half in cash. This represented $120 a share He New York Central, the Pennsylvania,|the cash and his associates had paid about $65 for the stock they owned. Taplin said the borrowed $1,950,000 from the Pennroad Corporation to mal payment to the Réynclds group. “I knew_the Pennsylvania did nct want the Van Sweringens to get the Whecling & Lake Erle,” he said, add- ing he made no agreement with the Pennroad Corporation to sell the Pitts- burgh & West Virginia stock at the “mftd the loan.m - H “It was an entirely separate opera-| tion,” he said. “Was there any agreement you would turn the Lake Erie over to the Penn- road Corporation?” “No,” Taplin replied. “We have it “Did you le interest on the loan?” Pecora asked. ure,” Taplin replied emphatically. per.cent?” Pecora asked. ‘Mr. County never loaned any money for less than 6 per cent,” Taplin re- plied, as he looked through his papers for the exact rate. Evidence that Kuhn, Loeb & Co. loaned more than $88,000,000 to 175 stock brokerage firms in the five-year period that saw the stock market boom and crash was made public yesterday by the committee. 3 ‘The evidence was contained in an exhibit submitted last week at Pecora’s request. Pecora has been endeavoring to find out all sources cf loans for stock market purposes up to and immediately following the 1929 debacle. ‘The exhibit, covering the years 1927. to 1937, inclusive, also listed nine loans, totaling more than $73,000,000, by the New York private banking house to fore and domestic corporations, - in which the collateral pledged consisted of securities in the issuance of which Kuhn, Loeb & Co. participated. ‘The nine Kuhn, Loeb loans were made to seven corporations, as follows: | Fujimoto Securities Corporation of | Japan, $1,000,000; United States Rubber Friday Special I Breaded Veal Cutlet Sea Food Plate 50c Broiled Lamb Chops Other Dinners, 55¢, 65c, 75¢ : pfli@ffififi OOLED DINING ROOM Rd. 1521 K St. N.W. e SOFT e LIVE o COOKED Crabs are now at their best st Elis’. Why not drive down today and get an order . . . served over our bar, or to take home. Prices are most reasonable. @ All cooked crabs personally || supervised by Mr. G. C. Ellis. JULY 6, 1933. Co., $1,400,000; Pennsylvania Co., sub- sidiary of the Pennsylvania Railroad, Delaware & Hudson Co. $62,500,000; ke | $113,743; Lenox Corporaticn, $841,1! Wel thr Finance Toena Soaling $5.954 821 Adoiph Zakor, $2,423,022, B “Hobby shops” have caught the fancy of Londoners who like to build things, materials for making toys, radios and small furniture being sold. NO DOWN PAYMENT SHOOTING VICTIM DIES ‘Watchman Held Pending Probe of Disturbance at Resort. James Briggs, colored, 21, of the 4600 block of Hunt place northeast, who was shot in the side during a disturbance at Suburban Gardens, Fiftieth and Grant streets northeast, late Sunday night, oner from him. The new Frigidaire line has broken all former sales records. Thousands have bought—thousands more are buying. Now, when prices of materials are going up, Frigidaire is attempting to hold prices down as long as possible in spite of advance in costs. Frigidaire prices are still the lowest in Frigidaire history. 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