New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-17
KEENE GETS ANGRY
AGAIN ON STAND IN
HOOKING INQUIRY.
Says Short Sales Traced to
Him H'ere Made by His
Brokers for Themselves.


about four thousand shares of the stock
neld by him in the Hooking pools had
been used for delivery in short sales
mace by his brokers On January rs and
i9 But ne insisted that the brokers
sold the stock short for their own ac-
count. and merely borrowed his stock for
delivery under an agreement Of five
years standing. He did not know the
transactions had taken place. he testi-
flet. until February -, when the brOk-
ers pressed by the receiver for J. NJ
Fi,ke a. Co. revealed their entire deal
inGs i'm Columbus and Hooking Coal and
Iron stock
II was on January Ia that the Hook
iiE pools collapsed the stock falling
about GO points. and involving in hank
rlptcy three Stock Exchange houses.
The charge was freely made at the time
tlat friends of the two pools had sold
them out Ralph Wolf. counsel for
Irving L. Ernst. receiver Of J. NJ. FisSe
& Co. one Of three firms which collapsed
with the stock. has been trying 70 find
out from Mr. Keene whether this was
true MI Keene was manager Of both
pools
Angry al Pointed Questions.
You have ferreted out every broker
who sold one hundred shares of the
stock" said Mr.. Keene. further strain
ing his voice when reused 10 anger by
Ir VOLTS pointed questions and you
ought 10 know that the participants in
the pool were selling right and left. Now
let me tell you something My brokers
were az ne for a month before the col
lapse of the pools 10 sell my stock. which
absolutely refused TO do. on the ground
that il would bankrupt participants i'm
the pools. You must know as we'll as
do that the gentlemen for whom you are
acting held eight thousand or nine thou
sand shares Of Hooking and other rail-
road stocks and had only S1O.OO against
them. I might have sold 1.Sl9 or 1900
shares. hut a point drop would have
ruined them.
Mr. Wolf said 50 far he had been un-
able 10 discover that "any other partici-
pant in the pools had failed to live up
20 his agreement not TO sell his pool
stock Edmund L. Mooney, counsel for
Mr.. Keene. Immediately demanded
whether he meant to say that Mr.. Keene
had failed 20 keep the agreement
That is just what / do mean 10 say"
replied Mr.. Wolf.
Then YOU have got 10 prove IT," re-
torted Mr.. Mooney.
Il think I have" said Mr.. Wolf.
Says Deaf Was Not Keene's.
Mr.. Wolf wanted 10 know il the
short sales of the four thousand
shares Of Hooking stock had not netted
a profit 81 approximately S:EhNO but
Mr.. Mooney objected. on the ground that
the witness had had nothing To do with
the transactions. and the question was
not allowed. The stock is supposed 10
have sold above ~ II is now quoted
around 13.
The records which Perley Morse, ac-
oountant for Mr.. Wolf. has collected
show that Mr. Keene's brokers sold
about six thousand shares Of Hooking
stock short on January ~ and 10. but
were able 10 deliver only about four
thousand because OF the failure Of Rob
.rts. Hall & Criss. another of the Stock
Exchange firms which Nent down with
tho pools Mr. Keene was asked if his
brokers were selling other stocks short
al the time. and replied that he supposed
they were. as every body was doing So.
Were YOU selling other stocks short
yourself?' asked Mr.. WOlf
certainly I was" ne replied.
Nr. Wolf Yesterday began his exam
nation. which was held before Commits
sioner Alexander in the Federal Build
ing. with a series Of questions about the
agreement between tho pool members
with regard 10 the sale Of their poo
stock Mr.. Keene said ne understood
that they we're not To sell their 200
stock. and had called for certificate mum
bsrs on December . 70 check what n
called a continual dribbling' Of the
stock on the market
Without His Consent.
Has YOUR own stock been sold." h'
was asked.
4 don't know as to that" replied The
witness.
Haven't you been told that on the 18th
and 18Th Of January some Of your stock
had been used in short sale deliveries
Il have been told So. but they were
used for delivery on sales made 10 ih'
brokers own account ! didn't know
about il until February s3. II was done
without my consent
How many of your shares were de-
iiNcred-"
II was so amazed and astoundod tha
did not go into particulars. About fouI
thousand i should say
Mr.. Kccne explained that ne consid
cred MS brokers had done him an injury
until they brought To his attention th'
existence Of an agreement he had mad'
with them verbally nve years ago. tina
"A an times they should have the Tigh
IN sell any Of the stocks he might b'
carving with them. and on which thel
mad advanced him money. provided tina
IN uaymcnt Of the money by him the.
sb,,,Id return the stock within twenty
C.ir hours. n is an old rule I'm Wal
street that brokers may hypothecate tn
stock of customers who are trading oI
MARGIN 10 the amount Of the none
ybicl, they advance 20 the customers al
such stock.
Had Forgotten Agreement
AR Kcene said his brokers had ha
,....,,,se 20 this agreement with him Il
email transactions In other stocks. th