AVIATION FORTUNES

Otago Daily Times, Issue 22219, 23 March 1934, Page 9

AVIATION FORTUNES

CANCELLED CONTRACTS ALLEGED LEAKAGE’ OF SECRETS. WASHINGTON, March 2. After the very rough “grilling” concerning market manipulations to which Wall Street has been subjected by the Senate committee of investigation, it looks now as if Wall street is going to bit. back. Mr Richard Whitney, president of the New York Stock Exchange, who has been the target for the last few days, threatens to make revelations to show that Washington itself knows something about “ rigging ” the share market. Mr Whitney turned on the committee to-day. Without any urging, he agreed to supply information with, a list of names of everybody who “ sold short ” shares in aviation companies immediately before the contracts were recently cancelled. High politicians are involved in the serious implications. The Postmaster-general, Mr James A. Farley, issued his famous, order cancelling the air mail contracts on February 0. Before that, his intentions were supposed to be a dark secret. Early in January, “short"’ sales of aviation shares on Wall street averaged a mem 4000 a day. On January 31, “short selling” suddenly leaped to 4(5,000 shares in one day, A tremendous volume was recorded duty ing the first week in February.

It is asserted that “ insiders ” with improper knowledge of President Roosevelt’s intention made huge fortune* when air shares fell heavily.