New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-18
URGES SUING KEENE
Committee Thinks Crisis Cred
ifors Can RecOUer Losses.

Creditors Of J. A. FisEe Co and Rob
erts. Hail A. Criss. two or the stock EX-
change firms that failed as a resgl- 81 the
collars, ~ IRE columbus and Hooking pool
on Janrarv -. Il was learned Yesterday,
viii nrobabiy institute suits against James
r. Ecene. and perhaps bis fellow members
al th,. pooi I'm en- EFFORT 90 recover some 81
tne losses they sustained
The action by tire Flsle creditors. IL Is
said. will BE- brought through a trustee. and
viii be directed against Mr.. kecne indi-
viduauv in an attempt 20 secure "a cne-hfth
part OF tie profits be is alleged 20 have
made through the short sale % $500 shares
Of Columbus ard Hooking stock belonging 70
the pooi
According 70 NJ Keene's testimony On
WEDNESDAY. his brokers sold this stock
short without IFS knowledge or consent foR
their own account hy virtue OF verbal
agreement which ne made with them ava
years ago, to the effect that they mi-ht
use stock carried Tor him Tor any purpose.
provided they were ready 10 make delivery
% him upon treaty-fcur hours notice. The
creditors believe. however. n is said. tnat
~. Eaeae was the real principal IN the
TRANSACTION. ard that ne benefited from il
70 tie extent OF al least Se55.0 and pos
sibly sS5o.00Q. Tie Tiske hrms share Of
these profts from tie sale az POOL stock
would be one afth, CT from s5l.0 600 70
S7oece ard IL is this amount that the cred
ltors OF the hrm purpose 70 recover.
Tie creditors Of the firm OF Roberts. Han
& Criss viii decide an a meeting 10 be held
next Monday whether or NOT 20 bring suit
against Ar Keene and the other POOL mem
bers 10 recover the losses they suffered
Through the failure ~ the firm. AZ that
meeting the committee u three. corsisting
OF John g. SAKE, Charles Lee Andrews and
James II Wainwrigar. which was appoint
ed a. q meeting OF the creditors N March
. 70 inyestigats The failure VII make It's
report
Copies cf this report were made public
yesterday, and IN II The committee puts TIE
elaine for The failure n the Crisis firm
s1uarely up 70 AIr. Rsene
In our opinion" u SAYS "tne present
condition 81 alr. Cr.ss and his n-ln Is not
due 10 any WrorEdoing on his rart. but IS
cue 70 the n-aniPulations OF James r
Aeene- Individually and as manager OF two
certain pools II Hooking stock. ana that. in
eqlit- and Justice. 3Ir. Kesne and the mem
oers or these pools should bear the losses
which YOU have suffered. rather trar Alr.
'.'-" -.-- AllrL-.# as Lllt - E5-euf-
Tho report goes On 10 say that tl.e com
mittee is advised Dr. counsel that the liz
billy ~ specialist. such as RI. Cr.ss. ess-
outins orders on tie stock Exchanre. IS. not
exclusive. and that the creditors nav n
they wish elect 20 hold responsible ire
principal OF prir ,ipals who gave him the
orders 70 buy
II acds that the committee was Informed
b. ar Haskins. N,o n-1naEsd tie roorz
ope-a fion5 on the floor Of the exchange that
ny heene re-Soralir gave him Tie ogters
executed lr ,ir C~lss o1 the dav or tie
collapse, ana thar II is the opinion NJ TIE
committee tlat either 1Ir keene and his
iello" members ~ the pool are Jointly and
seFeral'T liable - principals. on. IN ar-
hsene exceeded his authority ss manager
ot The pools, Dc az LEASE is lIaols 10 the
creditors. and o. strongly recommends tho
institution ~ prorer litigation against hi-,
or the members ~ the pools
The committee suggests that the ~ressr,rs
retain general counsel % decide a. ~ trs
nature and form or The litigation it g. mo-
posed fo institute