"Badly Run Down"

When they think the stock of their companies is selling too high, conscientious tycoons will often sound a warning. But mum is the traditional word when they deem it is going too cheap. Last week this convention of high finance was crisply broken by potent, unconventional Viscount Rothermere, dynamic chairman of the largest chain of British newspapers and allied interests.

"Just now the Stock Market is badly run down," pontificated the Viscount in his Daily Mail, Britain's daily of largest circulation (1,989,043). "I am sorry to see that the wave of apprehension . . . is deluding some of the shareholders in my group of companies into throwing away their shares at prices which I can assure them are much below their real worth. . . . It is almost tragically humorous."

In common with most British fiscal authorities Viscount Rothermere blamed the present London Exchange break--which has undoubtedly depressed many sound shares below their real value--on "the Hatry crash and the increase in the Bank rate."* Throughout the week all Britain continued agog over the astounding collapse of the numerous corporations fathered by daring, astute, masterful Clarence Charles Hatry. He sat in jail. But so many great personages are involved (Exhibit A: the Marquis of Winchester, chairman of one of the companies in the Hatry group) that details of the liquidation were kept hushed with a success only possible among the clannish businessmen of Britain.

In suspending shares of the Hatry group from listing on 'Change the august Stock Exchange Committee loosed a thunderbolt not previously hurled at any British corporation, a dreadful weapon supposed to be reserved for interloping foreigners. The crash of Hatry shares has been estimated to involve a $30,000,000 loss. Members of the Committee were said to have discovered that Hatry had obtained a loan of over $1,000,000 by depositing as collateral fictitious bearer script certificates of City of Wakefield 4 1/2% stock. Four Hatry group companies are now going through liquidation: General Securities Ltd., of which the Marquis of Winchester is chairman; the Austin Friars Trust, Ltd., Dundee Trust, and Oak Investment Corp., Ltd. Also under strictest Stock Exchange Committee investigation were Associated Automatic Machines Corp.; Drapery Trust; Retail Trade Corp.; Photomaton Parent Corp. and Far Eastern Photomaton Corp.--both companies operating coin-in-the-slot camera booths, unconnected financially with the U. S. exploiters of the same Photomaton machine.

While the liquidation and investigation are afoot, Britons outside the mum financial circle are telling what they know about Clarence Charles Hatry.

Jewelers remember him as the sallow, baldish, unhealthy looking little man who bought $2,500,000 worth of jewelry for his wife, pawned and redeemed it again and again as he traversed a career as full of ups and downs as a picket fence.

Smartchat writers remember the parvenu whose Mayfair mansion stands near that of the daughter of George V, King & Emperor. They remember the bathing-suit parties in the swimming pool on the roof, Hatry's passion for ornate bathrooms even at his office, the fact that he nibbled his food like a woman.

Yachtsmen remember the Westward, once the largest yacht in British waters, Hatry's dives from her bowsprit, his remark: "Swimming is the only sport that I, personally, enjoy."

Shrewd fellow-promoters remember that "Clarence" made his first killing in silk, recouped the ensuing bankruptcy in insurance, found the War a golden chance to profiteer, emerged in 1921 the respected director of 15 corporations. Then three years later his Commercial Corporation of London failed for $3,750,000. but Hatry was able to shoulder and pay off this debt. Early this year he worked out his greatest project, a merger of steel and iron concerns into the $40,000,000 United Steel Companies. Just as this deal was to be consummated the Stock Exchange Committee caught him borrowing a paltry $1,000,000 on worthless paper.

*In an effort to check the world trend toward abnormal credit inflation forced by the rapid post-War expansion of business, nearly all the great central banks of issue have raised their discount rates in 1929. Federal Reserve, 5% to 6%; Bank of England, 4 1/2% to 6 1/2%; Reichsbank (Germany), 7% to 7 1/2%; Banca d'ltalia, 6% to 7%; Austrian National Bank, 6 1/2% to 8 1/2%; The Netherlands Bank, 4 1/2% to 5 1/2 the Bank of Poland, 8% to 9%; National Bank of Hungary, 7% to 8%; National Bank of Rumania, 6% to 9 1/2%; National Bank of Bulgaria, 9% to 10%; National Bank of Belgium, 4% to 5%; the Danish National Bank, 5% to 5 1/2%; the Bank of Norway, 5 1/2% to 6%; Bank of Sweden 4 1/2% to 51/2 1/2%.