New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-05-22
AIR. HUTCHlNSOA'S EXPULSION.

REPORT OF THE SPECIAL COMMITTEE.
ACTION OF THE STOCK EXCHANGE GOVERNORS
AN ACCOUNT WITHOUT PARALLEL IN WALL
sTEEET.
The Governing Committee OF the Stock tx
change at a special meeting yesterday voted 10 supply
members of the Ex change with copies OF the report oI
the specal committee appointed over year ago 10
investigate certain charges against the members
OF the firm of Kenn,dy, Hutchinson " Co. ILls
report was the basis Of the subsequent action OF the
Govefping Committee in expeling William j. Huchn-
,op fro the Exchange for " obvious fraud The mem
hers If TIE Beard called 10 order al 1850 M Wheh
BraytOn Ives, chairman OF tie LAW COMMITTEE SUD
mticd the report In presenting il lie reviewed the case
from tue beginning that the members OF the Exchange
should understand fully The present state Of the hiisa
ton e..tl ,y Mr. Hutchinson. Nh Ives spoke seven or
e:gl minutes; his language is sara t. nave pceh p"
and forcb Die Referring tn the injunction obtained 10y
MI Hutchinson Friday, he said in substance that MI
Hutchinsou had had nearly year in which to prove
himself an honest man, and at the end OF that
time he had Oined with the Exchange on
the most trivial tccAnicsliiles; that the committee
had found him to be a THIEF. not by the testl-
monv of other witnesses but by the mdisputabe evil
donce Of his books; that the Doodle had been
found in his possession, and after having gwen up
part Of it, lie unwilling to account loI
tire rest. Mr.. Hutchinson was entitled
by inc injunction, Mr. Ives said TO admission
70 he oor TX laage but inj motions anu courts
could not force The members to associate with thief
Pr,.idert Hatcl, following Mr. Ives, sad thai proper
legal efforts would he made to have the injunction
vacated and that il in ne meanwhile Mr. Hutchinson
entered the room, the members would be
advised from the rostru'n to their
duties and legal rights lie said that
in his Union the laws the land could compel the
ExCnal 80 admit improper man. or TO uOunsh In
its bosom fraud treachery aud ds-onOr The remarks
OF the president as well as those oil Mt Ives were Tc-
ceived with tremeudj Gus cheering.
The special committee of investigation was APP
pointed at the request Of William L. Hutchinson,
made in the The firm, on March 81 1852 IL ned
large number OF eeings at nearly all Of which Mr.
Hutchinson was present; Nj Kennedy attended two
meetings. Among the witnesses TANNED were i'm
r. DnA Of Boston. George II. Brouwer George ". Nc
Gown and T. NJ Mi chel, clerks Of Kennedy, Hutchin-
son & Co.; John Bloodgood, John ID. slay5ac6,
" I. Breese W. b. Smith and VI. c. Bowler. The
books Of the firm examined and large number OF
letters and teleerans from Mr. DUFF to the firm. The
committee in Its report says:
MI Duas account with Kennedy Hutchinson & Co.
was nlva-s kept il the of " W. j. Hutchinson,
Agent" NJ regular accounts were ever rendered 10
him. Nothing bat occasional memoranda Stang
balance of account ana stocks Land given
OF required No formal notices of purchase or sale.
qving prices and the names OF brokers', were
ever giIon or required. The account WAS
one of great magnitude long AZ times over
100000 shares Of st0cs Orders 10 buy and Ill twenty
10 h!tv thousand shares for quick terms without limit
were ot common occurrence. The commissions he
account we're enormous pr"Dabh amoGHlIng ~ Tue a :
gregatc one and half millions on d"ihr7 MI Duu >
reslance was Boston, aud large proportion o. his
orers came to Kennedy, Hutchinson Co. by letter OF
by telegraph. Mr.. Dun rcposed unlimited confidence u
Tie Judgment ability and fidelity a. the firm dele
gated to them almost fail power 70 operate and naupu-
late ms account. Probably his account Is Of cn8rac
ter without parallel lD tue history OF wall street
From tic testimony o. all the witnesses the mmittee
formulated charges against the firm and IN its report
these charges are supported by specific transactions
which were revealed by Investigate In regard
the famous Hannibal and ST. Joseph corner /"
the committee found that MIR. Hutchinson was
"saor on his account, at the time 4.lO0 shares
az the stock through his firm which sold az
average OF ABOUT -, and interested In short
count OF 600 sOd at SO To- ST. through BIeese
Smiih when he had guaranteed against loss FIVE days
after lie corner was developed Nh Hutchinson
knowedged to Mr. Daft that lac short 5000 shares
About three weeks afterwi the 100 shares short ia
Kennedy, Hutchinson a. CO.'S OHlce were covered ny
transfer from Mr. Duh's account at 80 Mt Dun de
MED mat he authorized this settlement. The
1000 d" short IN breese ~ Smiths ONCE were
covered par representations made by MI.
Hutchinson, Mr. Dun declared his ignorance OF t1e
iact that Mr. Hutchinson interested the account
At Ar. HutchiusOus suggestion john BOOugOOd X Co.
were permitted settle for about lSOO shares at 50.
Out of the total short interest Of nearly 600 shares
nearly half settled al from 50 10 par Mr.. Dun
asserts that he asseuted only 10 BcoagOOd Co.'S ieo0
shares ana unoef misrepresentation 20 Breeee SnIlh
1000 shares. The conclusion OF the committee That MI.
HutchinsOns influence used adversely 10 his Gus
TONER The committee discovered that Mr.. Hutchinson
had active personal John BoOdg nod &
Co, and that III many Mr.. Dufs stock 10
came from that account several Instances are specified
in the eIOr and the committee then remark: " We
deem II unnecessary 10 comment tlznsactiOIs
In conclusion the COMMITTEES reported:
"Ihat In the management Oi the account Of John Il
Dun William j. Hutchinson and George X. Kennedy,
composing the late firm Of Kennedy. Hutchinson CO..
unfaithiu TO lac trust repCsed IN them, and
guilty o. Improper ana illegal practices"