The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-12-15

name, either Rowley or Dolen. lie
added, that, after he learned OF all
these accounts being run by clerks,
he had forbidden speculation by his
stan The clerks were invariably bad
guessers, II seemed from the testl'
mony.
Goes After Case Hard.
Attorney Stevens then marshallea
the list OF fictitious accounts or the
clerks and went after Case himself Tor
trading Ia several accounts. lie be-
gan 10 lead up TO The big attack OF the
morning by questioning Case closely
as 10 the purpose or the stocks anu
bonds account in the ledger. The
witness said that IL was for proht
and loss and for purchases and sales
OF stocks 10 protect the firm against
losses through margin customers. The
firms own stocks were also sold
through this account.
On July is you should have had
I'm the vault or in the hands OF Hayden.
Stone * Co. 1920 shares OF Amalga-
mated copper stock" began Stevens.
You actually had none at all, but
were short 81 shares. What can you
say regarding those facts?'
Someone was short replied Case.
Those stocks were worth sl06.000.
can't you remember what became OF
them" inquired Stevens.
They were disposed OF in the regu-
lar course OF business. Some custom
or might buy that stock and another
customer sell the same kind OF stock
short: then there would be no stock
on hand. the deals balancing each
other but the contracts would be
binding on us
What about 1881 shares OF this
stock sold short In the stocks and
bonds account by the firm? Was that
TO protect you against losses on In
sufficient margins
II do nor recall.
Can you name a single customer
in Amalgamated who failed 10 re-
spond TO call for margins said
Stevens.
Burton Parker, for one" replied
Case
That account for 100 shares" said
Stevens. Now what about the rest?'
Case could not recall. Then Stevens
asked questions about Union Pacific
stock, the books showing that there
should have been S95 shares of this
stock on hand at the time OF the fail
ure. as he figured II. while there were
only l65 found by the receiver.
The books show 500 shares OF this
stock charged TO the F. w. Mette &C
count" asserted Stevens. Who go.
the credit
Case declared that there was no
real credit, the stock having been de-
liVered 10 cover a short sale.
More Stock Lost in Shuttle.
Did you not indulge in Just such
transactions 10 increase your margin
With Hayden, Stone 4 Co. when they
demanded money!" inquired Stevens
He then went on 10 assert that OF the
80 shares OF e. p. stock that was
lost in this shuttle not one was car
ried In the account OF a customer who
was short in his margins
Some similar deals in Osceola were
then gone into, there being shortage
OF 555 shares in this stock, while the
sales were shown in stocks and
bonds" error" and NJ J. Bourke &C
counts.
THAT was perfectly straightforward
and legitimate" said Case
II am getting tou Understand what
YOU consider straightforward and legit-
innate brokerage retorted Stevens
sarcastically
IL sold II that's all. said Case when
asked 10 explain.
"A man would come TO you with
money 10 invest in stock and later find
that you have used that stock in pure
" speculative transactions. asserted
Stevens. IF that is the case, the pub
lie ought 10 know it
He then cited the T. H. Simpson
account, which was fully marginned
and asked Case II he thought he had
Their light to include Simpsons stocks
in his general accountw it'll Hayden.
Stone & Co.
"Mostc ertainly," was the reply
what can't you do with a custom
er's stock?"
There is very little a broker can't
do"
In analyzing some shrinking figures
I'm regard 10 the amount OF Cumber-
land Ely stock that ought TO have been
on hand at the time OF the failure and
was not, Stevens made the witness an
cry by saying:
Doesn't II mean that you got hard
up and told Hayden. Stone a. Co. 10
sell certain stocks without regard to
whether they were yours or not ?"
you know nothing about II. Don't
stand there and say that TO me" re-
torted Case.
Stevens closed the morning session
by reading correspondence showing
that Hayden. Stone & CO had pressed
hard for money at various times.
Why Firm Failed.
Conditions that revealed very clear
ly why the brokerage firm OF Cameron
Currie Co failed were disclosed
Monday afternoon In Cases testimony.
Ne testified that the members Of
the firm speculated in various names.
as also did the employees. and admitted
that various persons had been allowed
TO become greatly indebted 10 the firm
on account OF their losses. while still
speculating. until the failure
Transactions for prominent men
were carried on under assumed name 3
sometimes
The failure was brought on. Case
testified. by complete analysis OF
the underwater" accounts early in
July, which showed. for the first time