New-York tribune., 1910-01-13
RULED OFF CHANGE
DISCIPLINE FOR s. B.
CHAPLIN s co.
Rock Island FURRY Brings
Suspension to T7co Mem
bers of Firm.

ID. D.
Chaplin & Co, yesterday, for sixty days.
and Frederick d. Countiss, the other
board member of the firm, for thirty
days. In the announcement of the sus-
pensions no reference was made to the
offence of which the two members were
found guilty, and not even the clause Of
the constitution under which the PEN
alties were imposed was specified. In
accordance with the custom of the Stock
Exchange management for the last two
years or So formal announcement of the
governing committees findings and ac-
tion will be made at the opening of the
exchange this morning.
1t is an open secret that the disci-
plinary measures taken were an outcome
of the extraordinary movement in Rock
Island common stock on the morning of
Monday, December -, and that the firm
the two board members of which have
been suspended was the house which re-
ceived the order from one os the best
known large market operators for the
purchase of about forty thousand shares
OF that stock. and distributed buying or
ders for two thousand shares each
among about twenty other houses or
brokers.
The effect of the simultaneous effort
on the part of these brokers to execute
their orders for the purchase of Rock
Island common was to send the price up
about thirty points within ten minutes,
In the absence of any counterbalancing
selling ORDERS and when it was realized
that the first impression that an attempt
was being made to work a corner in this
stock. of which S9O,OOO.OOO is outstand-
Ing, could not by any possibility be cor
rect, the price shot downward as many
points as it had risen, and even more
rapidly.
GENERAL EFFECT OF FURRY.
Inc general market was thrown into
disorder by the erratic movement of
Rock Island common, most of the active
issues declining several points each, and
losses were suffered also in Rock Island
common by others than the man whose
Dig buying order had caused the trouble.
as their orders to buy ''at the market"
on Monday morning We're, in various
cases. executed many points above the
level at which they might reasonably
h,
many points higher than it has ruled
since the first few minutes of business
on December %.
me governing committee at its resu-
lar meeting shortly after the occurrence,
appointed special committee to make a
thorough inquiry into the facts This
committee, which was composed of
Ernest Groesbeck, Francis l.. Eames and
j. t. Atterbury. submitted it's report
within short time. and since then the
governing committee has had the sub
Ject under careful consideration. Strong
influences have been brought to bear
upon the governing committee. it is un-
derstood, in behalf of s. B. Chaplin &
Co, their friends urging that they should
be held guiltless of any offence. as the
part taken by them was not in viola
ton of any rule of the exchange and was
customary proceeding
The governing committee however il
was learned several days ago. felt that
1t was necessary to take such action as
would deter other houses from accepting
orders similar to that of the Chanin
hrms customers, the natural result of
The execution of which might have been
expected to be that which was seen on
the morning of December 81 which
caused a great amount of public crit
1c1sm OF the methods of trading permit
ted on the Stock Exchange
1t Is understood that the suspensions
ordered in the case of the members of
the Chapin firm have been decreed under
Section of Article II of the constitu
ton, which authorizes the governing
committee, by majority vote. to sus-
pend for period not exceeding one
year any member who may be adiudsed
guilty of any act detrimental to the in
terest or welfare of the exchange" Sec
tion of the same article also NAV cover
the case, this section providing suspen-
sion or expulsion as the penalty for will
ful violation of the constitution OF of
any resolution. or for ANY conduct or
proceeding inconsistent with Just and
equitable principles of trade"
HISTORY OF THE COMPANY.
The firm of S. B. Chaplin & Co. is
composed of Simeon B. Chaplin, Fred
erck D. Countiss Tracy L. Turner. Will
lam Ewald Ira j. Couch and Oliver p
COOKE. llS Offices are at NO. Ill Broad
way, and are those formerly occupied bv
the firm of Charles c. Gates & co
which went out of business in the spring
of 1907. Prior to its occupancy of these of
fees the Chaplin firm was at No. 10 Wall
street, and before that at No Il Broad
way. The firm has two branch offices in
Chicago. where Mr.. Countiss makes his
headquarters.
The latter has been member of the
New York Stock Exchange since August
13, 1908. Mr.. Chaplin was elected a
member of the exchange on December
IS, 1897 being then a member of the
firm of Chaplin & GayIor, of Chicago in
which Mr.. Countiss was also partner
In the latter part OF 1900 Mr. Chapin
disposed of his seat on the exchange. of
which he was again elected a member
on October 81, 1901, the present firm Of
s. B Chaplin & Co being formed on No
vember 4 of that year The firm also
has memberships in the Chicago Board
of Trade and the New York Cotton Ex-
change.
DISCIPLINED FIRMS DEFENCE
The firm gave out the following state-
ment last night
We received an order on December OF
from a customer 70 hnv An oao ,ha~a~ :. a