The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-01-13
TWO BROKERS ARE
MADE SCAPEGOATS
Members of Firm of Chaplin &
Go. Suspended for Only
Short Period.
RESULT OF INVESTIGATION
OF ROCK ISLAND FURRY
Men Claim They We're Only Elk
ecuting Orders and Follow
ing Instructions.

NEW YORK, Jan. 12.-Simcon b. Chap
In, head OF the New York and Chicago
firm of S. b. Chaplin & Co, was suspend
ed from the privileges of the New York
stock exchange today for period OF
sixty days for participation on the Rock
Island d-Frisco deal of December %, when
| alleged manipulation sent the common
shares OF the Rock Island company from
| 80 to 81 and back again in a period Of
twelve minutes
+, d. Countiss, one of Mr.. Chaplin S
partners. and the only other board MEM
Der OF the firm, was suspended for thirty
days.
Notwithstanding recent rumors concern
| ing the Rock Island deal, involving the
| name of Daniel G. Reid chairman of the
board of directors of the Rock Island COM
| pany, for whom II is said Chaplin &c Co.
| executed their buying orders, the verdict
| OF the stock exchange governors indl-
Gates that the infractions Of the sus-
| pended members are not regarded very
| seriously They were found guilty as
announced OF "acts detrimental to the
welfare of the exchange" for which the
| constitution OF the exchange prescribes
suspension OF not more than one year
None Other Punished.
Contrary to general expectation. no
| other members OF the exchange are to
be punished, though it is known the in
veStigation of the special committee ap-
| pointed by the government. brought out
| facts supposed TO have involved several
other firms. The sessions of the inves-
tigating committees were executive and
the inside" OF the entire transaction
is thus kept from the public, AS Wall
street has analyzed the situation. how
ever, S. B. Chaplin & Co, acted for Mr..
Reid or others in, the purchase OF Rock
order was not forthcoming, thus nipping
an intended. match sale" that would
have threatened corner. The firm OF
5. b. Chapin & Co was organized In
| the latter part OF 1901.
Their main Offices are in Chicago and
| the connections have always been of a
powerful and profitable character. They
Harris Gales s. Co. when that firm dis
solved several years ago. In addition
10, Messrs; Chaplin and Countiss. III, the
liam L. Ewald, Ira J. Couch and Oliver
?. Cooke.
The firms clientage is largely from
| the west and It's wire connections have
made 1t prominent in the list OF com0
| mission houses.
Chapin's Statement.
s. B. Chaplin 6, Co. issued the follow
ing statement tonight:
| 1--WE received order on December
% from customer to buy $4,000 snares
OF Rock Island common at the market
| at the opening and were expressly In
structed TO give IL out to twenty bro
kers to buy 1000 shares each. The eNecu,
| ton OF the orders caused trouble and
confusion, but in doing this, we simply
acted as directed and our customer paid
for the stock the following day.
| 1--WE were left without any discretion
| in the matter. We had no reason to be-
lieve there was any purpose or design
on the part of the customer except tc
acquire the shares mentioned and in the
manner covered by hts instructions to
me, nor did we have the slightest In
tnation on the subject The result was
purely an accident: which has not hap
ance could not possibly have been fore
seen and a similar occurrence is un-
likely TO ever happen again
"There has been no imputation OF
suggestion OF wrongdoing on our part,
1--WE will continue to conduct our busi-
ness as usual, but will give out our or
ders for execution on the New forh
stock exchange to other brokers during
| the interval