New-York tribune., 1908-12-25
TWO BROKERS PUT OUT
STOCK EXCHANGE 4CTS.
Marshall, Spader 8 Co. Disciplined
for Cosfer. Knapp s Co. Deals.

The .rsna,eior of William H. Martin and Thomas
w Moorehead the board members OF the hfh
Of Marshall Spader & Co. for a period OF three
years was announced on the floor OF the STOCK
Exchange yesterday morning. This action whlch
had decided on by the governing colnl'h''ee
at its prolonged session on "Wednesday aiteIhoon'
WAS based on the opinion of that body. as the re
suit of detailed inquiry that the members named
had been proved guilty of doing business IN a
manner inconsistent with just and equltaoie plu-
ciples OF trade" the transactions forming the
grounds of the charges having been those between
Marshall Spader & Co and the failed firm OF Cos
ter, Knapp & Co.
At the office of Marshall. spader Co the fol-
lowing statement made:
The governing committee has disciplined the M I'm
by denying US the privilege of the exchange iu1
a period of three years charges OF vlolat'9n v t
do with financial responsibility NO HaUu -
charged. No one has suffered a loss
The suspension of the Stock Exchange members
does not necessarily involve the retirement OF Mar
shall Spader & Co. from business, but II the HIIh
continues it will have to pay the fuh coini,sI Jt
of S12 20 on each hundred shares OF STOCK pouen'
sold for its account by other proNeIs, e 80
the same position : 10 commission rates a.
the customers of houses which enjoy the privieses
Of the exchange =,
The formal statement of the Stock Exchange f'I-
lows:
In investigating the affairs of the late firm OF OF
transactions were had etween said @ firm and inc
COMMITTEES APPOINTED special COMMITTEES to IN m
matter
retar7| Of the exchange was Instructed to prefer
charges against Thomas W. Mooreheaq aIIu @ Ia ,,J
members a Of said frm Of Marshall spader CO;
in regard said transactions Win d M srtis5
n6e2 sscton t of Article XVII of the constitution
more partcuiarly on or about the dates mehtloned
in the specifications OF T!Hi,.rS Sai1 Gd n Martin
had been guilty of conduct ana proCecjtIIe roCtjIIes Of
conse4t with just and fios Hqu21I2f X12f Of the consti
tuition reads as follows; ,,, bave heen ad-
Judged by majority Of all the eXlstilS iI(iI
bers Of the governing connllttee ne he exchange or
of any resolution of the governing colnher or Gf
am Conduct or proceeding inconsistent "llh yuI
and equta BILE principles of trace NC NAV de-
iermne unless some other penalty Is eApieS''S
prpbcITe pTbonoas " Moorehead and William n Marin
appeared before the governing collLIr ,oitta IN
nersoT to examine and cross-examine all Wines -
produced before the committee ai!u tion siS as they
such testimony defen0e OF eAt'''''-
;Tba gdvernng committee determined that they
-ore r7IiIty Of three specifications OF sad cnalsF
of the charge itse n6 and 1RfX Wiam r. Marin
for the period Of three years commencing 'Nl'
yesterday.
-rb. intimate relations between Coster. Knapp
70 +be senior member of which, Charles CQster'
,o,,,r,i++ed suicide at about the time OF the hTnl
failure and Marshall Spader & Co. We're Drousn'
out in the testimony of witnesses IN lIie 'ar ~
Lnann & Co bankruptcy hearings last summer
o.
Knapp & Co. had done more or less o"'AeH9
of orders was given
aoe5o, p wood of Marshall, Spader & Co. re-
r,sed N allow his FIRMS stock blotter the Only
&C. ~ -, 80 record containing entries IF trans
,,+ione between that house and Coster' hhdpp "
co 70 be inspected, and the referee IN oanh
+o,- Certified 10 the United States District court
nat he and his attorney guilty OF contempt.
nc l - ,.oa-irg before Judge Hough counsel Tor
tbe referee in bankruptcy said that an eXaiIila-
ton of the stock botter' Woulo oi9Iio 49, Ia-
tio1s transactions while the attorney -!
ta,dap+s declared that full report OF 'iie u
- Lo+,-eaD the two firms had already oeeh CIV eh
70 tine referee Judge Hough later dehleu 'ile % I
tion TO punish Mr.. Wood and ms atto''ies' W
ground that inspection of the book "ouiu s.ai
@io1atfon Of the firms right OF privacy IN oi9c.
w ta,ssctions with customers other than Mar
SHALL Spader & Co -. t +be OK
Nir Moorehead has been member c1 Ile -
change since March %. 1899, and MI MarIn So
Inc 97 1901 The other members of the hrIh' winch
- 80 IN existence since April q. 1904, are James
{; Marshall John Marshall Wizard D. p5 opaG9-
and Iangdon B Wood Mr.. Moorehead' MI op@NSi
and James 6 Marshall were partners ~ ~ -. -
l,se of MCINTYRE & Marshall of when the la'e
,r1,or,or A MCINTYRE was the head, and upon lie
1issolut,on Of which the firms Of MarshaD' 0p"'
g % and Thomas A Mcintyre K 60. were 'I-
ganized. 49,, - r.-,. business
=. +o.,,s and in addition to its main Office AT No
u broadway the firm maintained accoi u''s ~ | ~
latest Stock Exchange directory hrahcheS az t"' C
+ou-n hotels in this city. and at Hot SPrlhss'
Va and in Baltimore, Chicago and Fhliaoell l,ni@
The Nrrn also holds memberships on the New i'iN n
carton Produce and Coffee exchanges tne Niioeso
pard of Trade and the Philadelphia STOCK Tx
change. ,-,tu,-,. oo,iop
Within the last few months disciplinary acuoh
has been taken by the governing committee III seN
eraI cases Of recent Stock Exchange taliutes- ne
80 of Iobn NJ Knapp board member OF Coster'
Knapn & Co was ordered sold in August step
oc,iI-alent to expulsion and a similar course was
pursued in September with John T.. Mclnlyre' Oh
-r1,o,,,,s A MCINTYRE & co. Two weeks after the
,,1,,,-r. case had been disposed of the eXpulsi on
- hIbart O Brown and Lewis G. Young. of A. o.
ced