What did they have in 1932? $33,000,000, and in our opinion, nator, a good part of that loss was of course attributable to the ock market decline, but another part of that loss was because they id such large funds to invest. What was the result? This was the sult: This chart, which I would like to introduce in evidenceSenator WAGNER (chairman of the subcommittee). That may be ade a part of the record.

(The chart entitled "The Goldman Sachs Trading Corporation" is ade a part of the record.)

Senator WAGNER (chairman of the subcommittee). You may oceed, Mr. Schenker.

Mr. SCHENKER. This chart is the result. In their prospectus what you think they said the nature of their business was going to be? trade in securities. What did they wind up with? They wound up th a 32 percent interest in the Manufacturers Trust Co., upon ich they lost in 1932 and 1933 $70,000,000. They wound up with a percent interest in Frosted Foods, which cost them $13,000,000 d which they lost almost completely. They wound up with urance companies and banks and promotional adventures. If you will take a look at this, and I consider this a matter of some portance, and Mr. Waddill Catchings who was in charge of that poration denied this; but if you will look at this picture, what do find? They had the investment trust buy institutions which re big purchasers of securities, banks, and insurance companies. Now, Goldman, Sachs & Co. had been bankers for a great many ustrial companies, but they had never been bankers for any public lities. Well, we find that suddenly they put up a large sum of ney to build a Mississippi barge line. You also find that they umulated, or had the investment company acquire, some of the gest distributing agencies for securities throughout this country, one of the largest wire houses throughout this country. You will that they took a half interest in the company which was going to Add properties in New York.

ISSISSI

UST CO. hial

ORP.

You may say that is fantastic, but you have a case where the dman Sachs Trading Corporation may have been using the funds the public essentially to help Goldman Sachs & Co's. banking iness.

Ine of the investments they made, or that they had the trust make, in the Greyhound Corporation, a bus company. In the files find this letter, which they furnished to us. After the analyst ribes the investment as a very speculative one, we find this agraph:

In

he connection with the company should prove valuable in other ways.
first place if the industry develops as it gives promise of doing the contact
ld prove of material value to Goldman Sachs & Co.

Jou do not see any statement to the effect that the contacts
ld be of value to the investment trust:

ith the expected stabilizing of the industry, the connection should give to financing opportunities. In the future the Motor Transit Corporation original name of Greyhound Corporation] may be expected to require capital additional expansion, the simplification of its present capital structure, and possible acquisition of a larger interest in the two western holding companies. ow, that is all that section 11 of the bill says. Section 11 says these are institutions in which the public puts their savings to ive diversification and expert management. That is the primary