New-York tribune., 1909-01-08
GRANNIS SUSPENDED
Exchange Gusts Him for Three
Years for C0ster- Knapp Deals.

The governing committee of the New York STOCK
! Exchange. the result of a long ihQ"iS ~
| Quoted a a special meeting on Wednesod!' ioiio
ing detailed investg cation covering several weeks
found Arthur f. Grannis guilty on charges "'iiCn
! had been brought against him IN connection Win
| the transactions between the firm OF GrahhlS Z"
Lawrence OF which he had been the ooaro mem
ber and the failed firm of Coster. knapp ~
His penalty is three years suspension ms aC-
ton. which had been generally expected since '"e
three wear suepension lust before Christmas OF
the two Stock Exchange members OF MAJ shSi' :
Spader g. Co. against whom similar charges "~u
been pressed was announced from the rostruTn OF
the exchange Yesterday morning. and was ex-
planned in the following formal statement:
During the investigation OF the affairs of the
tanned that many transactions were na9 SetTegi Tsw
renee The governing committee appointed a
special committee to investigate the matter, Win o
the result that the secretary or tne ehcianksV a
instructed prefer charges against arthur T.
Grannis a member of the exchange ana ersDcs also =
under section of Article II Of the constitution
but me more particuiariy on or about the dates
toned in the speccai9n Of said GhaFge % tnS cn1ct
and proceedings inconsistent with Just anu eau'-
Arthur f. Grannis appeared before the govern
ing s0mmtee at special G 1eqson ts eIamne and
orosse9amne all witnesses produced before the
committee. and also presented sren roesT Iestn0"S
The governing committee determined that he
and Of the charge itself and suspended said AZ Ar
thur h. Grannis for the period or three years
commencing from yesterday
The section Of the constitution referred TO In the
roregosng statement provides for the suspension or
expulsion Of a member sdjudged by majority
OF the governing committee TO have been guilty OF
conduct Inconsistent with Just and equitable prn>
cipies OF trade"
In the bankruptcy proceedings in the matter OF
the firm Of Coster Knapp & Co. last fall' testl-
monv was given that stock sold by Grannls q
Lawrence TO Coster. Knapp Co. was not actually
delivered. by cleared by pairing orders. and
hat there was no record Of the use OF TRANSFER
stamps on certain OF these transactions
Marshall. Spader & Co and Grannis & Lawrence
were the only two houses prominently mentioned
in the hearings before the referee In bankruptcy
in the Coster Knapp & 90. case, but II IS under
stood that the governing committee mas NOT com
pleted its investigation Of the relations which eN-
listed between the latter firm and other stock hS-
change houses and that further disciplinary action
may be taken.
Langley & Lawrenc made this statement yester-
dav:
The suspension of Mr. Grannis has nothing 20 do
with this firm. which has never had any dealings
with Coster. Knapp GO.
Arthur p Graunis admitted as member
Of the Stock Exchange August Il. 1894. His firm
was originally Clark. Grannis Lawrence his
ting Lawrence with William Clark Langley as spe-
cial partner. ON January =. 1877, the firm OF
tirannis & Lawrence was formed the members OF
which were those who had constituted the firm Of
Clark Grannis & Lawrence. with the exception OF
Mr Clark The present firm OF Langley & Law
renee consists Of William &. Langley, Robert c.
Lawrence and Clinton NJ. Hall, who is the board
member II has branch offices in Hartford. Brook
Iyn Boston and Buffalo. according to the Stock tx
change directory.