Lamb

To Washington, D. C.; last week journeyed Ernest W. Stirn, student in the University of Chicago's graduate school. He wanted to tell the Senate Banking & Currency Committee, still prowling into the affairs of Wall Street, about the Radio-Keith-Orpheum reorganization last year. To guide Shareholder Stirn in the telling, along went William John Morgan, onetime Attorney General of Wisconsin.

The RKO reorganization which followed much short-selling of the stock, provided that each shareholder invest $5 a share in RKO shares or have his interest in the company reduced by 75% (TIME, Dec. 21). Mr. Stirn said this "assessment'' was illegal, to the advantage of Radio Corp. which controls RKO. "The most drastic squeeze-out in history,"' remarked Lawyer Morgan. Observed Chairman Norbeck of the investigating committee, "Mr. Stirn is the first lamb we have heard."

Because the Committee has used up its $50,000 appropriation it was expected last week that the hearings would soon stop. But it was thought that Stock Exchange President Whitney might reappear to "make a statement," that Fox Film Corp. transactions might be aired. Last week the Committee received a $34.04 bill for "witness fees and expenses" from Walter Edward Sachs, president of Goldman Sachs Trading Corp., reticent witness of last month.

This file is automatically generated by a robot program, so reader's discretion is required.