American Stock Exchange Sensation

Manawatu Times, Volume 63, Issue 60, 12 March 1938, Page 5

American Stock Exchange Sensation

BICHABD WHITNEY UNDER ARREST United Press Association—By fiisctrlo Telegxapn.—Copyright. Received Friday, 8.15 p.m. NEW YORK, March 10. Richard Whitney has been placed under formal arrest, and his finger prints and photograph taken. He was then released on bail and will appear for pleading to-morrow. It is announced other indictments may follow but a complete investigation has not yet been made. Rumours that Whitney’s losses may total 10,000,000 dollars were current but could not be verified. It is indicated that Whitney’s effort to corner •the stock of distillers which in itself is against the law, was basically responsible for the firm’s predicament. He paid as high as 45 dollars a share for some of the stock. The Richard Whitney Co., one of the most important brokerage firm# in the United States, has been suspended from the Wtock Exchange on the ground of insolvency after Mr. Whitney’s admission that he was unable to meet his obligations. Mr. Whitney was five times president of the New York Stock Exchange, was formerly a broker for Mr. J. Pierpont Morgan, and has been a member of the exchange since 1912.