The sun. [volume] (New York [N.Y.]) 1833-1916, 1882-04-30
The Honesty of Stock Brokers.

munty tney were Trying 10 protect.
The Honesty of Stock Brokers.
The alleged misconduct of VIZ. WILLIAM.
HUTCHINSON of this city as the broker of Mr..
JOHN r. DUFF Of Boston continues to be u
prominent topic of discussion in Wall street.
Our recent article on the subject appears to
have disturbed some persons who are kind
enough to say that THE Sun cannot bulldoze
the Stock Exchange.
These gentlemen are under an entire mis-
apprehension. We would not think Of such
thing as trying to make men honest by
force. II the members OF the New York Stock
Exchange approve such business methods as
those which Mr.. HUTCHINSON has confessed
by the payment of $4,000, we have not the
least desire to influence any action they may
contemplate in reference to his transactions
with Mr.. DUFF.
II Is true, as some OF our contemporaries
have pointed out, that Mr. DUFF has not ap-
peared before the Governing Committee as
the accuser Of Mr. HUTCHINSON But why
should he?
Upon discovering the facts which eventu-
ally led to the restitution OF so large a sum
as three-quarters OF a million, MIR. DUFF
could have brought civil suit against his
broker to recover his claim, but this course
was rendered unnecessary by the satisfac-
ton Of that claim without suit. Mr.. DUFF
himself Is not member of the Stock Ex-
change. he is not forced to associate with
Mr.. HUTCHINSON. He Is not obliged to do
business through him as broker. He had
no occasion, therefore, to seek redress for
private wrong before such q tribunal as the
Governing Committee Of the Stock Exchange;
and II any public wrong has been committed,
the place to prosecute for that is before the
Grand Jury.
So Mr.. DUFF did not take any action against
Mr. HUTCHINSON. He had made that gentle
man acknowledge himself in the wrong to
the extent of $750,OOO, and he reflected with
complacency,. no doubt, that the money was
In his pocket, instead Of in his brokers' bank
account. He was rather better off than
though he had obtained the same amount at
the termination OF long lawsuit and he
must have viewed the situation with COM
parative serenity.
But Mr.. HUTCHINSON evidently did not
look at it in the same light. Somehow or
other, rumors Of the controversy and its
adjustment by the payment Of so large a
sum got abroad, and Mr.. HUTCHINSON him
self demanded an investigation by the Stock
Exchange, and thus made the matter one OF
general public interest.
We have asserted that this inquiry has
been conducted almost solely with reference
to the protection Of Mr.. HUTCHINSON who is
allowed to hear the testimony and cross.
examine the witnesses, while Mr.. DUFF en-,
Joys neither privilege, and has seen no por'
ton Of the record except that OF his OWL
evidence given when he attended before the
committee as an invited witness.
The answer Is made that the presence o.
Mr.. DUFF at the proceedings Or his partici
patton therein cannot be permitted, because
he is not a member Of the Stock Exchang,
and has not come forward formally as tn,
Gccuser Of any member.
This is simply saying that the method o
Investigation which the Governing Commit
tee pursues is not adapted to the ascertain
ment Of the truth. Mr. DUFF mas aske,
nothing Of the Stock Exchange. He nigh
have appealed to that body until the day o
doom. Yet it could never have made MI
HUTCHINSON pay him $75o,OOO. But tn
Stock Exchange has asked something of MI
DUFF. 1t has asked him to tell what h
information Certainly not for Mr. DUFF
sake, but to find out whether Mr. HUTCHIN
son had done any act for which his member
ship ought to be forfeited This was ques
ton in which Mr.. DUFF had no more interes
than any other member OF the community
but which did affect every person belongin
~ the Stock Exchange, If fair dealing is [
any importance in their business.
We understand that Mr.. DUFF stated hi
position clearly to the Governing Comntte
on Friday. He has characterized Mr. HUTCH
ISsoN's conduct forcibly and freely befor
the committee and elsewhere. He has state
the facts on which he bases his conclusions
He has no idea how Mr.. HUTCHINSON has eli
deavored 10 meet or evade those facts in tn
investigation, but before the investigate
he recognized their potency by tho pay
ment already mentioned. The matter col
Germs the Stock Exchange and its standard
Of morality and If the members are indiffel
ent TO the Importance Of such an inquiry q
ShAl develop the whole truth. irrespective