New-York tribune., 1910-07-25
KEENE FACES ANOTHER
BIG HOOKING POOL SUIT
Partners of Lathrop, Haskins &
Co. Bring Action for $780,
600 Damages.
JUST OUT OF BANKRUPTCY
Still Another Method Devised in
Plan to Force Settlement
by Gray Fox of Wall
Street."

| Oh seeking a settlement from James r
keene as result of the crash of the
Hooking pools and three Stock Exchane,
firms on January 10. Henry D. Hotch.
KISS, trustee for the creditors of Lathrop
Haskins & Co, one of these firms has
already sued Mr.. Keene in the S11prem.
Court for an accounting of his aIIepef
profits in the sales OF Hooking made or
the day before and on the day of the
collapse, and now Henry S. Haskins and
/ Henry S Leverich, the firms partners
have entered suit against the gray fox
Of Wall Street" for S75O,OOO damages.
In the latter suit, Pepper & Sternbach
Mr.. keene's brokers, also are made de-
PENDANTS, as is Mr.. Hotchkiss; but the
| trustee is merely a formal defendant
named because he refused to bring the
present suit himself.
The summons and complaint have been
filed with the County Clerk by Abram
| l. Elkus and William S. MCGUIRE the
plaintiffs attorneys. The complaint
sets forth in brief the entire history of
| the Hooking pools as conceived by the
victims of the collapse. Keene and his
brokers are accused of conspiring to sell
| the pools out, contrary to the pool agree
ments, and Of conspiring also to ruin
the defendants to enhance their profits
Mr.. Keene's alleged plan of action, abet-
ted by his brokers, will be explained as
follows in court by his adversaries:
It was his intention, they will say, to
sell Columbus and Hooking Coal and Iron
stock for his own account in large blocks
after the operations of the pools had
boosted it to a fictitious value. and to
cause thereby such a break in the mar
to buy ii later for very little.
Plan to Involve the Firm.
This could not happen if Lathrop
Haskins & Co, who bought all the stock
for the pools, were able to continue to
buy and sustain the market Therefore,
as manager of the pools. Mr.. Keene, it
will be charged, had the Haskins firm
buy beforehand enough of the Hooking
stock practically to fl the allotments
agreed upon OF all the members of both
naents in the two pools, which amounted
to u. 600 shares
Loaded down with Hooking stock TO
this extent, Lathrop, Haskins & Co.
could not then sustain the market should
a lot of the stuff be dumped upon it at
once As a matter of record, it was un-
able to dc so when the test came. Under
the pressure Of the sales made by
Keenes brokers, followed by those of
so to below 50. It Will be alleged
The banks which had lent money to
J ethrop, Haskins & Co. sold the Hook
ing stock held as collateral at a sacrifice,
and the firm was unable t. make Up the
difference Furthermore, the firm was
unable to pay for the Hooking stock
Hugh F. Criss. Of Roberts, Hall & Criss,
was buying for it on the floor of the Ex
change under Keene's orders, and Mr..
Criss's firm failed. The other firm to
fail was ]. NJ. Fiske 6. Co, a member Of
both pools.
The Haskins firm, which was dis
charged from bankruptcy on Wednes
day. includes in the damage alleged to
have been done to it by Keene and his
brokers the loss of its good name
through insolvency, and of its business
and capital, including a Stock Exchange
seat and the collateral against its loans.
Pepper & Sternbach's alleged share in
all this. aside from the firms activity
simply as a broker executing keene's
orders. can be best understood by a brief
consideration of some of the evidence
adduced at the different bankruptcy pro-
ceedings.
keene's Testimony Recalled.
In the Lathrop, Haskins 81 Co. and the
J. NJ Fiske & Co. bankruptcy hearings
both Keene and Edward Pepper, of
Popper & Sternbach. testified that the
sales of Hooking stock on January IS
and 10 were made for the account OF
the brokers and not for Keene's ac-
count: that they were short sales, and
that Keene did not know who was re
snonsible for them until d month later,
although his stock was used for deliv
erv and the sales We're first entered
under his account in the firms books.
The entries We're so made, Pepper
testified. to deceive Mr.. Keene, who
GheN were dli dIl ilii5lit 4ctSh40'N LII
hlv should he find out who was selling
short the stock Of which he was long
several thousand shares.
He and his partners. so Pepper said~l
had become apprehensive over the fut-
IRE of Hooking back in December, and |
had besought Keene to dispose of some |
Of his large holdings of the stock. On !
his repeated refusal to do so, the broker |
declared his firm decided on January
1S 10 sell the stuff short and use keene's |
stock for delivery under an old agree |
ment. Some 1000 shares were disposed |
of in this way. he testified.
Keene said at the last Lathrop- Hask- |
ins hearing that he hadn't seen any of |
this stock since He said he did not |
know of the sales until February 23. |
after Pepper had testified to them in |
conrt He said he had been shocked by |
tbe discovery, but had Immediately re- |
the agreement between him |
and his brokers whereby they had a |
perfect right to dispose Of his stock in |
this way.
sWoPE CASE SPECIALIST DEAD.
Kansas City. Mo, July 24,--Dr. Guessing |
Hatred Chase Jordan, the self-styled South |
d. .,,,aricon sn.cialist" who figured in tina |