New-York tribune., 1910-09-11
STOCK EXCHANGE ANGRY
Begins Inquiry Into ManipuIa-
tion of Leather Stock.
RESEMBLES HOOKING DEAL
Irresponsible Tipster Boosted
Price from 2412 to 80
Now It Is f9.

ANS IL SAAA 81 W. = -
Now It Is 19.
The New York Stock Exchange authori-
ties have begun a searching inquiry into
the recent manipulation which resulted IN
advancing the preferred stock OF the Amer
lean Hide and Leather Company, which
controls 10 per cent Of the upper leather
output Of this country. from 2+12 early in
July to 521s at the beginning Of this week.
From this figure the stock dropped TO 10,
following the publication of the company s
annual report last Wednesday. which
showed poor earnings and a big deficit for
the year. instead of the large earnings and
dividends which circulars sent out by the
manipulators OF the stock said were as
sured.
So far as has been learned. only d band
of irresponsible tipsters headed by George
i. Roner. an ex-convict. and T. d Thorn
burgh. who ives expelled from the Stock
Exchange in 1897 on the charge Of con-
/ Quoting a bucket shop, were behind the
movement to advance the price OF the
stock, but It IS rumored that when the
Stock Exchange authorities get through
with their investigation at least one man
of prominence in financial circles viii be
found to have been involved in the affair.
If any member Of the exchange is found
TO have had hand in the matter he will
have drastic punishment meted out to him,
as the exchange authorities are determined
to prevent repetition of anything like
the Columbus and Hooking Coal and Iron
deal.
Several officers and directors Of the ieatf1-
er company have called voluntarily upon
the governors of the exchange and offered
10 do anything in their power to help the
authorities find out just who was respon-
sibIe for the recent manipulation OF the
ccrupany's stock. An officer of the com
pany said yesterday that no one connected
with the management had any part in the
manipulation of the stock. and that all
they knew os the matter was what they
had read in the newspapers and through
the circulars that had come into their
hands.
Company Denies Manipulation.
We have all we can do he added, "to
look after the affairs of the company and
manage it In the interests of the stock
holders. We have made no mystery of the
fact that the last year was q bad one for
the company: our directors and stOckhold-
ers knew it. and even outside inquirers were
Informed before the annual report was pub
lished that it would not show up well.
How any one was foolish enough TO buy
the stock on the strength OF what was told
il the circulars that were sent out is more
than I can understand; probably such peo-
PIE were bound sooner or later TO lose their
money anyhow III some scheme or other,
but it was through no fault of ours that
they have lost It IL this instance"
Asked why the company had not done
OF Roner and Thornburgh, when it learned
through some of the circulars which came
into its possession the latter part OF July.
the nature of the campaign they were con
ducting. he said that it WIS then too late 10
do anything il the matter as the circulars
had been issued early in June, and that, be-
sides. II the officers should once begin issu-
ing denials Of all the stock market reports
that were sent out concerning the company,
they v-oud have time for nothing else
In the circulars that were sent out by
the tipsters 1t was said among other things
that nothing that can be thought of could
hold the stock below $3.50 & share after the
stockholders meeting on September Il, %
and investors were advised 10 buy quickly
before the great advance in the stock took
place. How even the most gullible could
swallow such q statement il connection
with stock. on which back cumuIa tive
dividends of Il per cent are still unpaid
almost passes belief, but from the way the
stock went up there were evidently plenty
Of persons who took the bait, hook and all.
The circulars were attached to what pur-
ported TO be Z copy OF the annual report OF
the company Of 2 year ago but which the
officers of the corporatiQe say was not an
actual copy OF tho report. but was made up
for the purpose.
Costly Campaign Carried On.
Altogether, it vas learned from z reliable
source yesterday, seven thousand or these
circulars, which fairly gIowed with de-
scriptions Of the wonderful prosperity Of
the company and extravagant statements
OF the showing It would make this year
were sent out The cost of printing and
circulating these circulars must have been
considerable, and, according TO informa-
ton in well informed quarters, neither
Ronaer and Thornburgh nor their associates
had enough money among them at the bc-
ginning Of their campaign even 70 pay the
postage on the mass of literature they sent
out.
This leads 10 the belief that they had
some one with money behind them, and the
identity of the person or persons is one of
the things that the Stock Exchange au-
thorfties are trying to discover. IF they
succeed the result may be as sensational
as anything that came out in the Colum-
bus and Hooking deal
The fact that the management. Of the
American Hide and Leather Company made
no effort to stop the circulation OF the cir
culars put out under their letterhead and
containing what purported TO be q copy Of
the company's annual report. notwithstand-
ing the fact that some OF these circulars
came into their possession as long ago as
last July, has caused considerable criticism
in brokerage circles and is something that
H. c+oclz L-vcbapga authorities will urob-