The sun., 1910-02-18
KEENE FREE TO SELL HOOKING
UNDERSTANDING WITH THE
roof ABOUT MS OWN STOCK.
something wrong with the Figures G
They show ISIm as Delivering More
POOl stock Than Tee ReccIX ed-He
Tells OF the Organization OT tire Poet.

Besides en- accountants conclusion
that James 4. Keene as manager Of the
Hooking pool had distributed to the
members 2.7OO more shares than appeared
tp have been bought for the pool account
conclusion which MIR. Keene said
was wrong and must be based on some
.>istske-the feature OF his examination
yesterday in the bankruptcy proceeding
against J. NJ. Fjske Il Co. was this narra-
tive by him:
when the pool was first made up and
probably before the agreement was signed
there was a meeting OF the pool members
AT the Office Of Lathrop, Haskins a Co.
They asked Ine to come down. and there
was discussion of the project by all.
| think before anything had been done.
The question was raised by some Of the
fifteen or twenty present as to who were
the biggest stockholders of Hooking.
which had lain dormant for two or three
years.
Il replied that the Lathrop estate must
be the largest holder. and turning to
Mr. Haskins. Mr.. Isthrop's son-in-law.
| said: How much have you got? He
said: No one shalt ever know how much
said: What harm will there be for these
people to know how much you controlr
and he said: No. won't tell any one
asked him what he was going to do with
his stock, and he said that at present
he had no intention OF doing anything
with il. He said he wanted more money
thar the stsck would bring at that time.
Il said: I've got 5000 or 1000 Of those
shares and I'm going to keep them while
buy aud sell for you. think can make
some money for you. because the pros
poets for oil are gradually increasing
and are likely to make the venture profit
able. Until I sell the stock I buy for
you I will not sell a share of my stock.
but when sell your stock give you
full notice that I shall sell whenever l
please, and I've given you full warning
that have about 7 900 shares
After sold out the first pool. in April
l think it was, got letters from all the
MENTORS OF the pool objecting to my
selling my own stock and offering to
give me what paid for il. 1 said to
them: No. I am free OF the pool and
want my stock to be free knew that
the peol members and all their camp fol-
lowers were going into the same kind
of pool again"
What was the next step you took?"
dShcN ASuith "Chs SOuAASOA AOa AeSN0aNOh
Ernst of the Fiske firm.
Il was entirely free and the stock was
free. l sold $500 shares OF my stock
the JcoI.
sir. Ke@ne said that the first pool was
rcn Sursted within few days after he
~ -j.A IL out with a profit to the menu
,~,' oI S.50, coo. de said that by June 1,
tsh. Lne pool had accumulated about
G.vlJ .,as.res OF stock.
rms stock then showed profit to the
pool vi $s5OOO0 and ! was m favor OF
selling IL out Cgam. because thought
ooulo dispose OF all the stock in one day
vita =. pretty fair market, said Mr..
keene. the pool members woul dn I
ILJen to me. however. insisted that
81 v, - quite high enough for the sale,
but they vented 10 60 ON, and then
to.d them that they must do Il on their
own responsibility ana not rely on me.
1 only consented to go into the pool
second time because l YVES friend OF
h; skins"
You took an interest in the pool again.
though, dion't your
Yes, lots of people do things 10 make
money. i wasn't overwhelmed by the
ciEmor of other people into going into
the pool. es one Of your questions implies
side who he'd bought the stock end felt
that ought to help them
when the second pool came into exis-
tence in July you he'd only 100 shP.res
later. Had you told the Others that you
had sold the 200 sharesr'
Il told the people in the pool nothing.
They were q nonentity so far as what
did with my own stock after l had sold
out the pool was concerned.
Did you tell them subsequently that
you had sold your stock?"
NO, { didn't. l don't tell anybody my
own business. They knew l was going
TO do it. Fiske knew il and Hsskins knew
IT, Haskms told me had a right TO sell
whenever I pleased, and ! said. :! don't
have to be told. / couIdn I possibly be
engaged in u business where both OF my
arms were cut OF end l was constantly
making heavy commitments without
being able to buy or sell 100 shares OF
stock. didn't talk with any OF the mem
bers after the pool went on again about
what was going TO do at all. 1t was on
that basis that I went into it the second
time. 1 wanted TO be free.
Mr.. Wolf then had merked in evidence
the transcript Of MIR. Keene's books show
ing the sale Of the 300 shares OF his own
stock in the summer OF 1000. He sold 600
shares on April 20 and the same on April
%, but there WIS no further sale until
May 10.
When asked il anything further hap
pened at the early meeting Of the pool
Il remember saying that IL Mr.. Haskins
wouldn't tell how much stock he had
] guessed there was no danger that ne
would sell it.
When the pool came into existence
again what was said to you about your
right 10 sell your stock
Nothing" said Mr.. Keene before the
question was half framed.
Did you have to be persuaded to go
back into the pool when it was rehabili-
tated?7
Il don't know. | suppose | went in
because | didn't want TO disappoint a
lot of people l can't say went in re-
uctantly. but I went in with a pretty
,li1 belief that they would all come to
grief"
How long did this belief continue?"
Ii went along until we heard about
tho oil prospects, Then the matter be-
came more hopeful That's why ! went
INTO the second pool to acquire 10000
s1ares considered that the situation
gad cleared up"
Can you tell me whether the holdings
oi he Two pools increased or decreased
itp ftV,na vvanf nVa9H