New-York tribune., 1909-12-29
PROBING STOCK RAID
COMMITTEE At WORK.
Nan Who Tainted at Losses
Has Uinner JFhen Retired.

The committee or three appointed by the
stock Exchange on Monday to make an
inquiry into the causes of that mornings
sensational furry in Rock Island common.
when il jumped more than thirty points
and declined to the same extent during the
first fifteen minutes of trading. held its
first session yesterday. All brokers who
were in any way identified with the move
naent had been summoned TO appear and
explain their part in the transaction.
cc5- sheets We're also examined. with
view TO ascertaining from whom the buy
ing orders came. The name of the Stock
Exchange house that distributed buying
orders among dozen or fifteen brokers in
amounts Of from 1000 TO 5000 shares
each. with instructions TO buy at the mar
ket" is known to the committee but II
wants 10 find out for whom this house was
acting.
While no statement of what occurred at
yesterdays session was given out by the
committee, and il is understood that none
will be forthcoming until the investigation
IS COMPLETED il was learned that the
brokers who appeared before the commit
tee were put through a severe cross-eXarni-
nation. They were asked particularly as
to the origin Of the orders, the amount of
stock ordered and the quotations and
what quotations were reported to custom
ers on orders transacted.
II was reported yesterday that several
suits were threatened by customers who
complained that their orders were improp-
erly executed. 1t is understood that the
investigating committee discussed these
threatened suits and reached the conciu-
sion that brokers may not be held liable
for the exercise of more than reasonable
care in the execution of orders. In the
Inevitable confusion resulting from such a
furry as that Of Monday there was no
proper basis, they held, for such COM
plants, and decided that if any such suits
were brought they would be contested
SAY SHORTS MADE RAID.
There we're as many theories advanced
YESTERDAY 10 account for the sensational
movement in Rock Island on Monday,
but the mystery only seemed TO deepen
One suggested explanation Of the transac-
tion was that il had been engineered by GER
tain interests that were short OF the gem
eral market and took this method Of bring
ing about q general decline If that was
the object IL was entirely successful, as
the panicky feeling il created brought
about a decline Of from two 10 five points
IN the general list.
While il is not doubted that the special
committee will make thorough investiga-
not hesitate TO recommend the punishment
of any member who may be found guilty of
having manipulated the stock, il is be-
lieved that the real principal, or prnci'
pals. behind the deal viii be found TO be
outsiders, in which case the Stock EX-
change authorities will have Jurisdic-
tion
The name Of a well known Wall Street
man was prominently mentioned in con-
nection with the episode yesterday, and it
was reported that he had been asked TO
appear before the committee and tell what
he knew about the movement. The man
referred 70 is not member Of the ex-
change. however. and the committee has
no power to compel his attendance
Daniel q. Reid. as OF the preceding day,
when the Rock Island transaction took
place. was absent from his Office. and il
was said there that he was still at his
home at Irvington and was not expected
down for day or SO
WON OUT BY PAINTING.
The Rock Island episode continued to be
the chief topic Of conversation in broker
age Offices Yesterday. and many stories
were told Of traders who were facing losses
Of thousands Of dollars when the turn
came in the market and they got out with
q profit.
One floor trader sold the stock on the
advance until he was short $500 shares
and had d loss of s45, 600 He became so
overwrought when he saw the market con-
nruins 10 go against him that he tainted
IN the arms of two messenger bows and
had TO be carried off the floor. 1t appeared
that he had been punging without much
capital, believing that the advance in Rocl,
Island was in the nature OF a bluff and
would soon change into decline The ND
turn vas so violent. however that he lost
his nerve and collapsed after shouting ont
that he was ruined.
when he had recovered his senses. after
having been drenched with cold water. and
returned TO the floor the turning point had
come and instead OF a $4,000 loss he coma
out with profit Of S. 4OG
Rock Island common opened 1,es,ars.,,
at oll@, the price al which il closed on
Monday II declined on small transa ctions
10 5o1=. rallied TO sos. dropped TO SO, ad-
Nsnced {. half point. again declined TO so and
men continued down until ii touched 4sz.
which was shortly after noon From, thar
point the stock recovered slowly, closing
al 4s1z. 4 net LOSE of TWO points for the dav
Tine total transactions were rs ss3 shares
The preferred on total transactions of
about 1000 shares, lost 1I1 points. closing
ef 90
MI Baldwin continued the cross-exan
ination Of Mr.. Brokaw when the trial was
resumed. ar S o'clock. The witness was
asked many questions in regard to his
fcrtune He said that he didn't have
check book noS, nor did he remember when
he last signed check or on what hank
~ was drawn. He said that he never had
his check book balanced since he was mar
rieo- Neither did he have any idea whar
amount he spent for Mrs. Brokaw during
the FIRST year after he Was married. nor
enat he is worth at present. He said that
he tnought he had net income of 49,