HUGE RESERVES

Hokitika Guardian, 19 October 1933, Page 5

HUGE RESERVES

CREATED BY AMERICAN BANKS

EVIDENCE GIVEN AT INQUIRY.

(United Press Association—Electric Telegi ayh—Copyright.)

WASHINGTON, Oct. 17

Albert Wiggin, former chairman of the Chase National Bank, testified to the Senate Committee off inquiry today, that before retiring, last January, the bank voted him a salary of a hundred thousand dollars per annum for life, and tins despite severe losses in recent years. His salary before retirement was 202,000 dollars, plus bonuses. 9

1 Records were introduced which I showed that for the year ending last July, the bank created over 212 million dollars reserves against losses. Mr i Wiggin recounted the growth of the hank’s dollars in 1904, to two billion ‘in 1930. Mr J. R. Rockfeller, junr., I was identified as the largest stbekholder .in the bank, though he has not revealed the amount of his holdings. : Wiggin owned sixty-seven thousand shares last May, his family holdings totalling 117,000’shares.

Wiggin stated that of 6,158 million dollars worth of securities handled, by tlie Bank, 5.58 per cent defaulted. The , Chase Securities Coporation Subsidiary Bank was organised in 1917, with a capital of 2,500,000 dollars. In 1930, the capital was nintey-five million, with a surplus of thirteen million.

It was revealed that in 1929, securities affiliated secured control of the. internationally-known American Express Company.