New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-06-07
WI. HUTCHINSON EXPELLED.


"oBvIoUs FRAUD his FORMER PARTNER Es-
CAPS BY AFEw VOTES ONLY.
After a th CROUCH investigation which has lasted
more than two months, William j. Hutchinson was
expelled from the Stock Exchange by the
vote of its Governing Committee yesterday. His
former partner George III. Kennedy, who fell under
similar charges was saved from the same fate by n
few votes only. The decision of the committee will
be announced formally at the Stock Exchange to-
day, when the sentence will go into instant effect.
The article OF the constitution of the Exchange
under which Mr. Hutchinson has been expelled
reads as follows:
which the Governing Committee shall he the Judge, he
shall upon conviction thereof by vote OF twOhirds OF
the members OF said committee present be declared ny
the president to be expelled and his membership shall
escheat to the Exchange.
Mr.. Hutchinson who has been found guilty of
the charge of "obvious fraud" has been we'll
known and active member of the Board for many
years. The firm of which he was until January a
general partner, Kennedy, Hutchinson d Co.,
and its operations in stocks have been at
times enormous. 1t was one of the largest
and most prominent brokerage firms in Wall Street.
1t was dissolved on January l, but in the new firm,
which was continued under the same name, Mr.
Hutchinson continued q special partner. lie be-
came at the same time special partner IN
another brokerage firm, Bowler & Wallace. 1t is
said that he put $4,000 capital into each firm.
The expulsion of Mr. Hutchinson from the Ex-
change is a sequel to the famous corner" In Han
nibal and St. Joseph common stock, which
eliminated in September of last year. The
corner" was managed by Kennedy, Hutchinson N
Co. in behalf of "a pool of which John X. Dut
of Boston. was the leading spirit. Mr.. Duff
had given his broker, Mr.. Hutchinson, general
power of attorney which is said TO have been ex-
rrl,1 itc Mr
littlo attention to the details of his operations. but
succeeded i'll establishing the "cOrneT" in HANNIBAL
and ST. Joseph. The price of the stock was al
vanced to $50, although many settlements were
made at considerably owerfgures. James X. keene,
who was caught " short" of nearly 1000 shares of
the stock settled at about $50. Amos H. Hopkins.
who was also short" a considerable amount, car
red the question into the courts but private set
Element was effected without a decision on the
The ;" corner" had been forgotten in Wall
Street. and the firm of Kennedy, Hutchinson
d Co. had been dissolved when several months
aiterward whispers III regard to the honesty
of Mr.. Hutchinson in his management of MIR
Duhs speculationS, began TO be circulated
quietly i'll the Stock Exchange. They were the
merest Whispers but they gained i'll volume gradu-
ally and early in March two angry brokers struck
each other on the floor of the stock Exchange One
Of them was member of one OF the firms OF winch
A MI and H''f'0S Soon was Became F P fhat
the cause of the trouble was remark which the
other had made about the honesty of Mr.. llutchin-
son. About the middle of the same month the scan
dial became public. After the dissolution of the
firm i'll January Mir. DUH who had not been salts
fed with the profits rendered HIM by ms
brokers, put i'll possession of informa-
ton regarding his account. dispute between
him and Mr. Hutchinson followed, and was
left to two weD-known members OF the
Stock Exchange for settlement. Alter
brief examination they decided that Mr.
$4,000, and this was done. The payment
was made partly. in cash and partly IN
securities. Thus fact soon became public
ana tho Stories affecting MF. Hutchinson be-
came more explicit. He denied the truth OF
them all and prepared for publication q
card which had been carefully drawn upon the adj
vice OF some of his friends. This he Withdrew say
ing at the time that his defence would take another
form. The firm shortly afterward challenged
an investigation by the Stock Exchange, and
a subcommittee in accordance with the request
was appointed. The committee consisted at first of
William Lumnis Joseph II. Stout and 5. V. White:
Shortly alterward two other members were added
Francis l.. Eames and II. T.. Alexander. The com
mittee took a large volume of testimony from Mr..
Duff and Mr.. Hutchinson and from Mr.. Kennedy, the
members OF the present firm ana from DINERS me
committee made careful examination OF the BOOKS
! OF the old firm The finding of the committee was
against Mr. hutchinson, and IN IT'S report II recon-
mendeu that charges should be presented against
him, and that according to the constitution OF the
Exchange he should be summoned before the full
| committee to answer them.
The trial has been in progress for several weeks.
| The committee at its first meetings read the esti
mony taken by the sub-cOmnitte tee and examined the
firms books and accounts. On Monday, at Il full
meeting Mr. Hutchinson presented his defence,
which was in effect general denial. He supple
meuted it with large number of letters and dis
patches purpOTting to have come from Mr.. DAFT,
| and was several hours In making his
! answer to the charges against him.
! Yesterday his former partner Mr.. Kennedy.
offered his answer and after that Mr.. Daft and
George II. BTOuwer, who Is a member of the present
| firm Of Kennedy, Hutchinson IL Co., were ex-
amined further. In his answer Mr..
| Hutchinson asserted that Mr. Duff had always
had access 10 lis sales book and that he was cOgn
zant therefore OF all of the transactions of the firm
on his account Mr.. Duff i'll testiiying yesterday
denied this statement positively and de
ciared that he had knowledge
OF the matters The last of the
witnesses left the committee-rOOm about 7 p III.
| The committee had been in session since 3:l5 p.
There were thirty-One members present. They be-
gun the discussion of the subject Immediately after
the witnesses had retired and reached their cOnclu
sion shortly before o'clock.
The details of the vote could not be obtained last
night because the members of the committee de-
clined to discuss the matter. President Lawrence
and Secretary bite said that they could not make
public any thing concerning the decision until after
IT had been announced to the Stock Exchange to-
day. IL Is understood that the vote in the case OF
Nh Hutchinson nearly unanimous against him.
The doubt whether Mr. Kennedy was fully ac-
quainted with the dealings of his partner saved him
from fOrleitng his membership in the Exchange.
Whether the matter will rest here is not cOnsld-
cred certain by many persons acquainted with the
whole subject. 1t is thought TO be not impossible
that Mr.. Hutchinson will carry the question into
tie courts
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