The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-02-17
REPORTERS ARE BARRED
FROM HIRE BY BROKERS'
Stock Exchange Resolves, In View Of
Recent Leak, to Forbid Members to
Retain Press Representatives.
wHIPPLE KNOWS ALL FACTS
Wants am Exhaustive Report From
Committee, and Hopes For Legisla-
ton to Govern Short Selling in
Stock Market.

New York, Feb. i6.-Recommen-
dations against short selling" with
a possible condemnation of marginal
trading in stocks are among the fea-
lures OF the report of the peace leak
investigation. which is being cousid-
cred by the rules committee of the
house of representatives.
1t Is certain that whatever else the
report may contain. it will acquit
wholly any official in Washington or
any close friend or relative of any Of
fetal of any completely in the advance
notification which undeniably was re-
ceived- by several fortunate ones of
the presidents peace message of De-
cember 20.
The committees report will place
the responsibility for the leak with
J. Fred Essary and William Price,
the Washington newspaper reporters,
who were In the employ Of the brok-
erage firms which first gave circula
ton to rumors of the peace message.
In that connection the governing
committee of the New York Stock ex-
change. at a special meeting today.
adopted the following resolution.
Can't Employ Reporters.
Whereas. it appears from the
pending investiga ton by the commit
tee on rules of the house of repre-
sentatiyes that certain members of
the New York Stock exchange have
employed newspaper reporters for the
purpose of obtaining confidential or
privileged information. Therefore.
be 1t
Resolved. That the direct or in
direct employment of representatives
OF the press by member of the
New York stock exchange. or by his
Arm for the purpose of obtaining con-
fdential information is an act detri-
mental to the interest or welfare of
the exchange"
1t was explained today, with regard
to the newspaper men whose names
were mentioned as having circulated
The nrst- reports of the peace mes
sage. that neither was present at the
conference with Secretary of State
Lansing at which he told reporters in
confidence that an important state
ment was coming 1t was also said
that no effort has Neen made by the
committee to go behind the two news
paper men to ascertain whence their
information came.
Summing up the accomplished re-
suits OF the leak investigation. Sher-
man l.. Whipple, counsel for the COM
mittee, said tonight:
The committee has cleared the at
mosphere and demonstrated to a nice
ty where the advance information
came from and who in a general way
profted by 1t. It has esta blished. first
where the information came from,
second, who was in possession of It,
and third, who proflted by 1t"
Whipple Wants Details.
Mr.. Whipple will follow the members
of the committee to Washington to-
morrow. 1t Ia understood that no
more evidence viii be taken There
will be a meeting OF the committee in
Washington on Monday morning at
which the work of preparing the re-
port will be parcelied out Mr. Whip.
pie said today that he had no idea
whether the report will be long or
short. Personally he prefers an ex-
haustive report which will go into the
matter of short selling. But he de-
clined emphatically to talk for pub
lcation on this phase of the report
He repudiated all published express
sions on the subject attributed to
him
Whether legislation will he recon
mended, he said. was a matter wholly
for the committee to decide. II Is
known. however. that he believes the
investigation has demonstrated that
the outsider. or general operator, has
uttle chance In the stock market, and
that the revelations OF the investiga-
ton as to the manner in which the
longs may be squeezed by the shorts
through the use of their own stock
will so Impress the country that a
great demand for legislation will be
voiced