25. Photostatic copy of intra-Group memorandum to F. M. Brandon, presi- 26. Intra-Group memorandum dated Sept. 28. 1931, from F. M. Brandon, president City National Bank & Trust Co., Niles, Mich., to A. A. F. Maxwell, secretary Guardian Detroit Union Group Inc.- 27. Photostatic copy of intra-Group memorandum dated Sept. 29, 1931, to Frank M. Brandon, president City National Bank & Trust Co., Niles, from A. A. F. Maxwell, secretary Guardian Detroit Union 28. A letter dated Oct. 8, 1931, from F. M. Brandon, president City Na- tional Bank & Trust Co. of Niles, Mich., to B. K. Patterson, execu- 30. A letter dated Mar. 4, 1930, to Warren J. Rachow, president Union State Bank, Dearborn, Mich., by R. O. Lord--- 31. A letter dated Mar. 7, 1930, to R. O. Lord, written by Warren J. 32. Typewritten statement showing amounts of dividends declared by various bank units of the Group during the years 1929, 1930, 1931, and 1932, respectively, 4318---- 33. Typewritten statement referred to entitled “Guardian Detroit Union Group, Inc., Summary of Cash Dividends" 4318----- 34. Copy of proposed Annual Report of Guardian Detroit Union Group 35. Photostatic copy of intra-group memorandum addressed by R. O. Lord to the directors of the Guardian Detroit Bank under date of Jan. 21, 1931, 4321- Pag 4306 4333 36. Annual report Guardian Detroit Union Group, Inc., Dec. 31, 1930 37. Letter, Sept. 17, 1931, Walsh to Robertson__ 38. Letter, Sept. 17, 1931, Walsh to Brandon_ 39. Letter, Sept. 16. 1931, Brandon to Walsh. 40. Letter, Sept. 19, 1931, Robertson to Walsh. 41. Letter dated Sept. 18, 1931, from H. S. Reynolds to James L. Walsh. 4358 42. Letter dated Dec. 31, 1930, from James L. Walsh to Herbert S. 43. Letter dated Jan. 5, 1931, from F. M. Brandon to James L. Walsh 44. Letter dated Jan. 6, 1931, from James L. Walsh to Frank M. Brandon. 45. Photostat of telegram dated Dec. 30, 1930, from James L. Walsh to 46. Intra-Group memorandum dated Dec. 31, 1930, from James L. Walsh 49. Photostatic copies of ledger sheets of the account of the Union Indus- trial Trust & Savings Bank, Flint, Mich.. on the books of the 54. Photostatic reproduction of Annual Report of Guardian Detroit Union Group, Inc., for the year 1930, filed with the Michigan Securities 55. Photostatic reproduction of Annual Report of Guardian Detroit Union Group, Inc., for the year 1931, filed with the Michigan Securities 56. Photostatic copy of Annual Report for the year 1932 filed by the Guardian Detroit Union Group, Inc., with the Michigan Securi- 57. Photostatic copy of memorandum dated Dec. 18, 1931, addressed by Mr. Patterson to Messrs. Lord, Kanzler, Covington, and Walsh... 58. Letter dated Jan. 10, 1929, from Mr. Proctor to National Bank 59. A photostatic copy of a report made for the year 1929 by the Guar- dian Detroit Union Group, Inc., to the Michigan Securities Com- 60. A photostatic copy of a report made for the year 1930 by the Guard- ian Detroit Group, Inc., to the Michigan Securities Commis- 61. A photostatic copy of a report made for the year 1931 by the Guard- ian Detroit Union Group, Inc., to the Michigan Securities Com- 62. A photostatic copy of a report made for the year 1932 by the Guard- ian Detroit Union Group, Inc., to the Michigan Securities Com- STOCK EXCHANGE PRACTICES TUESDAY, DECEMBER 19, 1933 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON BANKING AND CURRENCY, Washington, D.C. The subcommittee met at 10:30 a.m., pursuant to adjournment on Thursday, December 7, 1933, in Room No. 301 of the Senate Office Building, Senator Duncan U. Fletcher presiding. Present: Senators Fletcher (chairman), Gore (substitute for Barkley), Adams (proxy for Costigan), Couzens, Townsend, and Goldsborough (substitute for Norbeck). Present also: Ferdinand Pecora, counsel to the committee; Julius Silver and David Saperstein, associate counsel to the committee; and Frank J. Meehan, statistician to the committee. The CHAIRMAN. The subcommittee will come to order, please. You may proceed, Mr. Pecora. Mr. PECORA. Mr. Lord, will you take the stand? The CHAIRMAN. Please stand, hold up your right hand and bo sworn: You solemnly swear that you will tell the truth, the whol truth, and nothing but the truth, regarding the matters now under investigation by the committee. So help you God. Mr. LORD. I do. TESTIMONY OF ROBERT 0. LORD, DETROIT, MICH. Mr. PECORA. Mr. Lord, will you give your full name and residence and business addresses to the committee reporter? Mr. LORD. Robert O. Lord, 17 McKinley Place, Grosse Pointe Farms; business address, Penobscot Building, Detroit, Mich. Mr. PECORA. What is your business, occupation, or profession? Mr. LORD. Nothing at the present time. Mr. PECORA. What was it? Mr. LORD. Banker. Mr. PECORA. With what banking institution or organization were you last affiliated or connected? Mr. LORD. My last connection was as president of the Guardian National Bank of Commerce. Mr. PECORA, Where was that bank situated? Mr. LORD. Detroit, Mich. Mr. PECORA. When did you become president of it? Mr. LORD. I became president of the predecessor bank, the Guard ian Detroit Bank, in June of 1927, when that bank was opened. Mr. PECORA. Had you for a number of years prior to that time been identified actively with banking? Mr. LORD. From August of 1906 until May of 1927 I was connected with the Harris Trust & Savings Bank of Chicago, leaving it as vice president to go to that bank. Mr. PECORA. When did you sever your connection with the Harris Trust & Savings Bank of Chicago? Mr. LORD. The last of May 1927. Mr. PECORA. Where did you go from the Harris Trust & Savings Bank? Mr. LORD. Direct to Detroit. Mr. PECORA. With this Bank of Commerce? Mr. LORD. With the Guardian Detroit Bank, at the time when it was organized. Senator COUZENS. It was a State at that time, was it not? Mr. LORD. It was a State bank then, Senator Couzens. Mr. PECORA. Do you know of an organization or corporation called the Detroit-no; I mean the Guardian Detroit Union Group, Inc.? Mr. LORD. Yes, sir. Mr. PECORA. Were you identified with that organization? Mr. PECORA. When did you become president of the Guardian Detroit Union Group, Inc.? Mr. LORD. I became president of the Guardian Detroit Group, Inc., which was the same corporation as the one of which the name was finally changed to Guardian Detroit Union Group, Inc., in the early summer of 1929, when the group company was organized. Mr. PECORA. What was the nature or form of that corporation, Mr. Lord? Mr. LORD. I am not a lawyer, Mr. Pecora, but as I understand, the corporation was organized under the general corporation laws of the State of Michigan. In other words, it was a Michigan corporation. Mr. PECORA. As a holding company? Mr. LORD. As a holding company. Mr. PECORA. What kind of securities did it acquire and hold in its portfolio? Mr. LORD. Very largely the stock of banking and trust company institutions. Mr. PECORA. Were those banking and trust company institutions located exclusively in the State of Michigan? Mr. LORD. Yes, sir. Mr. PECORA. Where was the principal office or place of business of the Guardian Detroit Group, Inc.? Mr. LORD. In the Penobscot Building in Detroit. Mr. PECORA. Did you become the president of that organization at its inception? Mr. LORD. Yes, sir. Mr. PECORA. And also a director? Mr. LORD. Yes, sir. Mr. PECORA. What was the date of the incorporation of that company? Mr. LORD. I only have the month here, May of 1929. I cannot tell you the exact day of the month. |