Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1909-1911, 1910-01-14
FIRM SUSPENDED
FROM EXCHANGE
s. B. CHAPLIN AND F. D. COUNTESS
ARE DROPPED FROM TRADING
IN NEW YORK.
FOR THE ROCK ISLAND DEAL.
Punishment Is Result of Part Taken in
''Sky- Rocketing" of Stock After
Christmas.
OTHERS WILL BE DISCIPLINED.
FOR THE ROCK ISLAND DEAL
OTHERS WILL BE DISCIPLINED.

NEW YORK, Jan. Is. - Suspension
from the New York Stock Exchange for
sixty days in the case of Simeon Is. Cha
pin and thirty days in the case of Fred
erlck ID. Countiss, board members of the
Chicago and New York brokerage house
OF ). b. Chaplin x Co, was the punish
ment meted out to the firm for its par
ucIpatlon III the dealings which led to
the corner in Rock Island shares on
Christmas Monday. This is practically
a thirty days suspension for the firm. as
the house will be able to avail itself of
the tull privileges of membership after
the expiration OF the period of Mr.. Coun-
lss' suspension.
The sentence is a lighter one than
Nall street as whole was prepared
TO hear. What penalties were prescribed
by the governing committee for other
members OF the stock exchange involved
III the Rock Island corner transaction
were not announced this evening.
Others to Get Disciplined.
The formal statement of the result
OF the investigation of the special COM
mlttee appointed to look into the scandal
OF December - and the findings of the
governing committee at its meeting was
made at II o'clock this morning from the
fostrum of the stock exchange, accord
ing to the established custom in such
cases. An exception was made in the
case OF the Chaplin firm on account of
the widespread public interest i'll the
matter. 1t is the understanding that
sehSf5i other members of the exchange
viii be disciplined
All | can say at this time" said Sec
rotary Ely Thursday, is that MIR. Cha
pm has been suspended for sixty DAVIS
and Mr.. Countiss has been suspended for
thirty days. The announcement in it's
entirety would have been withheld until
after the opening of the exchange. ac-
great interest III the particular case of
the Chapln firm: Further than this /
can say nothing"
). Il. Chaplin & Co. issued the follow
ing statement:
We received an order on December 81
from customer To buy 10000 shares of
ROCK Island common at the market nj the
opening, and were expressly dfrected TO i've
IL out TO twenty brokers to buy 200O shares
each. Ihe execution 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
We were left without any discretion in
the matter. We had no reason to believe
mere was any purpose or design on the
part of the customer, except to acquire the.
ShareS mentioned and in the manner coy
cred by his instructions to us nor did we
nave the slightest doubt on the subject
'-AN ANSulJ was purely an 9CclQent, which
mas not happened i'll a similar case The
disturbance could not possibly have been
i0feseen, and a similar occurrence is un-
likely TO ever happen again
There has been no imputatiOns or sugges.
ton OF wrongdoing our part.
we VIII continue to conduct our business
as usual, but will give out our orders for
execution on the New York Stock exchange
10 other brokers during the interval
Involves D. G. Reds Name.
Notwithstanding all the recent rumors
concerning the Rock Island deal, involv-
ing the name of Daniel q. Reid, chair
man Of the board of directors of the Rock
Island company. for whom. it is said
Ghapln u Co. executed their buying or
ders. the verdict of the stock exchange
governors indicates that the infractions
of the suspended members are not re
garded 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.
The sessions of the investigating com
mIttee were executive and the inside
OF the entire transaction is thus kept
from the general public. As Wall street
has analysed the situation. however S.
b. Chaplin & Co. acted for Mr. Reid or
others i'll the purchase of Rock Island
stock, while a looked for selling order
was not forthcoming, thus nipping an in
tended match sale"