Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-09-14
SENSATION ON CHANGE
I1homas L. Hume Suspended
by Local Board.
FAILED TO TAKE DELIVERY
fShares of Washington Gas Stock
Sold "Under the Rule"
WAS LEADING BULL MOVEMENT
'Charges Against Mr. Hume Brought
by W. B. Hibbs-Price Declines
Six Points on Forced Sale.

TIE sensation or the season on the
Washington Stock Exchange occurred at
the noon session today. when $50 shares
of Washington Gas stock were sold under
the rule" and formal charges were fled
against Thomas L. Hume that he had
failed to take up this amount Of stock
when delivery was rendered. Hr. Hume
was suspended from the exchange until
such time as he pays over the difference
between the price at which he purchased
the stock a few days ago and the price
which II brought when the forced sale
took place today.
Charges against Mr.. Hume were made
by w B. Hibbs Of the firm Of W. B.
Hibbs & Co. and member Of the local
exchange. and 1t was from MIR. Hibbs that
Mr.. Hume made nearly, II not quite all, of
his purchases a few days ago.
This latest furry In gas occurred last
Friday, at the close Of business on the
exchange last week, when Mr.. Hume. by
steady bidding. forced the price from
I0A to 73. taking several blocks Of shares
on each upward jump Of the quotations.
Delivery was rendered promptly, but the
several thousands Of dollars involved in
the various transactions was not forth
coming.
Executive Session Held.
This fact was brought to the attention
of the governing committee Of the ex-
change at the opening of the meeting to-
day and President Flather at once called
an executive session.
The gallery was cleared and it was
ordered that the stock in question
should be sold under the rule" Of the
contracted for by a member and not
paid for when delivery is rendered prior
To o'clock in the afternoon on the next
business day following the purchase.
shall be sold to the highest bidder. and
that the difference between the buying
and selling prices shall be charged
against the member who has defaulted
Ia the original purchase.
The 358 shares Of gas concerned In
khe Hibbs-Hume transactions were
placed on the floor Immediately after
ahe ruling by the governing committee
that 1t should be sold. and 1t was taken
In twenty-fve-share blocks. opening at
So and dropping to 67A, at which price
khe closing sale was made. The differ
enoe, which can be roughly approx
mated at $1,400 on the entire lot, means
just that much loss to Mr.. Hume.
Following the regular exchange meet
Ing. the governing committee held an
other session. and 1t was ordered that
Mr.. Hume be suspended until this diff
ference is paid. Mr.. Hume was seen at
his office Immediately after this action
of the committee and after the stock
had been sold. but he declined to COM
ment on the matter In any way.
Leader in Bull Movement.
Washington Gas which has just now
eliminated has been tempestuous to q
degree. At various times 1t was term
ed "bulr' campaign, and Mr.. Hume
figured as the leading buyer from the
very beginning. He began the acQuisi-
tion of the stock about three months
ago. when the regular quotations were
lowering about the 20 mark.
For weeks he continued buying, and the
price mounted as high as 70. Reasons
were sought for the rise. but all of the
other brokers professed ignorance and
without exception they seemed willing to
let Mr.. Hume have all OF the stock which
their customers produced at figures rang
Ing all the way from 20 to the top notch
Of 70 Altogether Mr.. Hume secured
thousands of shares. Ample backing
seemed to be at hand for the buying
campaign, as the stock was paid for In
cash as rapidly as 1t was purchased.
The first halt came about a month ago.
when Allan Walker. another broker. sold
large block of shares to Mr.. Hume
and delivery was delayed for several
Hays At that time the matter was
placed before the governing committee.
and after an ultimatum had been writ
Ten and definite time specified beyond
which the rules of the exchange could
not be stretched, the cash required was
finally forthcoming and the incident
closed. Since then the Gas stock has
been comparatively inactive. and by
gradual stages the price drifted down to
.he normal level of 20 and II and small
fractions above those figures. where 1t re-
NAMED until Mr.. Hume undertook the
aew buying campaign last week.
What sympathy the local stock market
will show for this collapse in the Gas sit
nation cannot well be forecasted, though
il is believed none of the substantial val
ues of other securities will be affected
ather than temporarily.