The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-01-23
Committee Investigating AL
legged "Leak" on Peace
Note Asks Head of Ex-
change to Submit Records
of All Transactions.
Real Names of Customers
Will Be Sought, Rather
Than Business Numbers
or Applications -Whipple
Conducts Inquiry.

| llgntS OF the mouse RUE COLL
mittee into the leak said to
have occurred in connection
with the presidents peace note
are to be turned. Immediately
on all the "short'' deals which
took place on the stock ex-
change from Dec. 10 to Dec. %.
It was on such speculation, If
any, that profits were made on
advance information regarding
the presidents recent peace
note, it is averred.
That this feature of the inquiry may
be expedited, the committee at it's first
session today ordered H. G. S. Noble,
president of the stock exchange, to
request the governing board Of the
exchange to ask it's members to sup
ply the committee forthwith with
list of all of their transactions be-
tween Dec 10 and Dec. %, designat-
ing all customers by their real names
and not by numbers of appellations.
Noble was the first witness today.
Mr. Noble was called, as explained by
Sherman L. Whipple counsel for the
committee to explain the workings OF
the stock exchange and to aid in de-
termining the possibility under its
rules for engineering deals for large
profits ~.
In brief statement of the purpose
Of the inquiry Mr.. Whipple made it
plain that extraneous matters, such as
a general investigation of the stock
exchange, will have no place in the
Inquiry at present.
The Investigation, according to the
plan Whipple outlined. will seek to
determine first of all three things:
What were the activities on the ex-
change during the week. of Dec. 1S,
when the leak on President Wilson's
peace note is said to have occurred
and the possibilities for causing losses.
Who are the brokers responsible for
the. transactions during this period.
Who made the profits.
The second inquiry, Whipple said,
should extend both to profits and
losses.
"After that he said, ''the commit
tee may feel that it is in a position
where it may intelligently inquire
about those who profited and it seems
likely that those who prof1ted may be
those who obtained advance informa-
tiOn''
The entire committee was present.
Less than a dozen spectators were in
the room. The familiar face of
Thomas w. Lawson was missing. The
arrangements were those Of a court
ca af nf no
counsel table and the witness chair
was at the other
He outlined briefly the events lead
ing up to the inauguration of the in
quiry and the scope it probably would
take.
Announcing that Mr. Noble would
be the first witness, he said, among
other things that he would question
him as-to the capacity of certain in
dividuals cooperating together" in
the stock market to profit thereby at
the expense Of those unable to CO..
operate.
Mr.. Noble first was asked to describe
for the benefit of the committee the
organization of the stock exchange,
the personnel of it's management and
its rules and regulations.
Mr. Noble described in detail "tla
activities of the market on the. floor Of
the exchange on sample day" He
characterized the New York exchange
as "a great world market empha-
sizing that substantial proportion Of
it's business came from abroad.
The exchange itself, he said, made
no record of the daily transactions as
they occurred, this being done by the
exchange ticker. If errors were made
they were usually checked by Inter
ested brokers' and a correction would
be sent out by the ticker. The stock
exchange clearing houses, however,
did receive at the end of each day
from each brokerage house a state
ment Of it's purchases and sales, ex-
planned the witness.
'"Then the stock exchange has abb
solute knowledge Of what occurs on
the f1oor?" asked Whipple.
'"rhat is right" Noble replied.
And those are accessible to the
committee?"
Eyes"
The board of governors of the e1l-
change, said the witness, can enforce
penalties for the violation by any Of
the members of the standards of
commercial morality and personal
honor"
Mr.. Whipple questioned the witness
as to the difference between specula-
tive and investment securities and
the speculative stocks offered the best
for manipulated move
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