New-York tribune., 1911-02-15
Testified That Hooking Selling
Orders Came Over SpecuIa-
tors Private Wire.
ON DAY STOCK COLLAPSED
Assistant Cashier for Pepper q
Sternbach Flatly Contradicts
Testimony of Keene and
of His Employer.

not responsible for the sale Of large blocks
OF Columbus and Hooking Coal ana
Iron Company stocks, which caused
break IN the market on January ~. lSi"'
and resulted In the failure Of three StocN
Exchange firms. has been fatty contra
dicted by William Levey, assistant
cashier for Pepper & Sternbach' MI
Keene's personal brokers.
Leyey testified in the bankruptcy pro-
ceedings against Lathrop, HashihS
Co before Referee Stanle. w. Dexter
that Mr.. Keene himself on January ~
1910. directed the sale of various lots oi
Hooking stock over the private wiz
which connected his office with that oi
Popper e. Sternbach. The sale OF ''''
stock. Levey said. was charged 10 No'
I" account. although he was later or
dered to change that account by AIDING
the letter "P" to the NO. L. No. | ac-
count was admitted 10 be one ot MI
Keene's numerous accounts WIN Els
brokers.
Tho statement that the collapse OF the
Hocking pools was not due TO his actions
as their manager was made emphaucalIy
Inv James R. keene during his exam'ha-
,ion before United States Commissioner
Alexander in the bankruptcy proceed
ires against J. NJ. F'iske & co. Mr.
Keene said that he did not know that
Popper e. Sternbach had soid out his
holdings in the Hooking pools and testi-
fed that he did not learn of their action
till long afterward. He explained that
his brokers had made use OF a VerDai
agreement entered into with him hve
Years ago by which they could use any
of the stocks they carried for him to
make deliveries
Broker Backed Up Mr.. Keene.
Edward Popper. senior member of the
firm OF Pepper & Sternbach, backed UP
Mr.. Keenes testimony when he hlmseii
was examined. The broker said that the
transactions of January ID had peen
made for the account of the arn and
that Mr.. Keene did not know that his
liveries until some time later.
An alleged attempt to conceal the
change made in the name of the ac'
count was described by Levey. Wht
testified that members OF the firm hat
ASKED him TO say that ''P" had beer
there from the start and never was
changed.
! William s. MCGUIRE conducted MI
| Levey's examination in behalf OF VIII
lam D. Hotchkss. trustee for the cred
itors of Lathrop. Haskins e. Co.
You know the * 'phone?' counse
asked.
"Yes. 1t had a split bell on 1t; a very
peculiar sound" replied Mr. Lovey.
who operated that phone"
Miss Kelly"
Now. on January 10, 1910, do yol
recall anything concerning Columbus an'
Hacking Coal and Iron Company stock?'
asked counsel.
"About between 1870 and IL o'clocl
Miss Kelly got an order over the X
wire. and Mr.. Harkness, Mr.. LoeWi ant
7 we're facing Miss Kelly at the time,
replied the witness.
About ho,y far from her.
About six feet, possibly seven. ant
she spoke across to Mr.. Leewi
What did she say?" asked Mr.. Nc
CURE.
"'x' Selling Hooking Stock"
TX is selling his Hooking stock"
The examination continued as follows
O-What did you do? A.-Harknes
and | went out to the tape in the from
office and we saw IL break. We cam
| hack after a few minutes, and | saw Nj
Pepper there.
O-Where? A.-At Miss Kelly's left.
O.-What was going on on Miss Kelly
telephone when you came back? A.
Every few minutes an order came dow
10 sell three hundred or four hundred
whatever it was. because the orders wer
coming in small lots
O-How do you know that the order
,ame down? A-Well. the ''X'' 'phon
rang and then she told Mr.. Pepper tn
order that we got and he pointed 1t I
tho different monitors. and she told NJ
Coen. who ran the monitors, TO give on
the orders.
O.-And Coen operated the monitor
tn the Stock Exchange? A.-No, I
stock Exchange houses, to the differen
Stock Exchange firms.
Odd Mr.. Coen report the sale or IN
various lots of Hooking stock to Mis-
Kelly? A.-When the order was exc
cuted he told her OF il, and she reporte
il over the TX" wire.
Odd he report how much Hockihg
A.-So much sold, yes.
William Lovey then explained that a
though he had never seen James }
Keeue he knew that the "X' wire wer
IN his office. as he had talked over II
Mr. Koene's secretary and the other en-
Moves Of the Keene office. He said tina
all OF them had been visitors In Il
offices OF Pepper & Sternbach on variot
occasions.
Alleged Change in Books.
Mr. Mcclure then began his inquir
- into the change OF the account to whlt
I the transactions had been charged.
"Now. II has been testified that the'
I transactions in Hooking on the 18th ar
10Th were entered first under the No.
y account. Do you know anything abo'
! that"
, YES" said Lovey. Three or fo'
4 days later--that is, after the 19th-n
? brother was ort to luncheon and ! ke
[ his hook for him. Edward Pepper can
e 70 me and told me to put the p alon
!. side of II.
us that 'P' now on the book the