New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-24

I change during the week of December
| IS, when the "leak" on President Will
sons peace note is said to have oc-
Cured, and the possibilities of causing
/ losses?
Who are the brokers responsible for
/ the transactions during this period?
! Who made the profits?
The second inquiry, Mr.. Whipple
| said, should extend both TO profits and
| losses.
after that" he said. "the committee
may feel that it is IN a position where
: it may intelligently inquire about those
who Drofted, and il seems likely that
/ those who proiited may be those who
/ obtained advance information
Defiant Broker Once Jailed
In connection with the request of the
/ Rules Committee for the names Of
! brokers' customers, it is recalled that,
J in the course of a Federal investiga-
ton. conducted about twenty years
/ ago. member of the New York Stock
/ Exchange went 70 Jail rather than re-
veal the names of his firms customers.
This investigation was held about
/ the time the sugar tariff law was be-
ing enacted. There was a very active
market in sugar stocks at that time,
and il was charged that certain United
States Senators were specializing on
information they had obtained in re-
gard to legislation.
f. K. Chapman, who at that time
was the board member OF the firm of
Moore & Schley, was subpenaed 10 tell
the investigating committee the names
of Senators who transacted business
through his firm. He declined TO re-
veal the names.
His refusal resulted in his being
sentenced 70 serve thirty days in the
Washington jail on the charge of con-
tumacy. After he had served about
twenty-five days the life Of the COM
mittee expired and the broker was
automatically released. Chapman in
stalled a desk and telephone in his
cell, and while in Jail conducted bust
ness.
Why Exchange Hesitated
Il is this extreme reluctance of Stock
Exchange brokers TO violate the pri-
vacy of their relationship with their
customers which gave the board Of gov
crnors pause yesterday afternoon and
created a terse situation at the leak
hearing. Their reluctance TO grant the
committees request, as expressed by
President Noble and Walter F. Taylor.
of Carter. Ledyard e. Milburn, counsel
for the Stock Exchange. was compli-
Gated with Mr.. Mobiles assumption that
he would find it almost impossible to
reconyene the governors before this
morning.
The committee felt snubbed and Mr.
Whipple's lighting face" took on a
rather dangerous look as he said:
at is most unfortunate. in view of
the request of the committee and the
counter request of the governors for
its modification, that the latter did not
remain in session TO receive the answer
OF the committee"
Mr.. Noble was impressed and prom
ised TO do his best TO reconvene his
colleagues last evening. The necessity
for this was impressed upon him By
several members of the committee as
well as By counsel. In addition, he was
given 10 understand that the commit
tee would stand on its original reques.
The entire Committee on Rules at
tended the hearing yesterday, sitting
at long oblong table against one side
of the big room. near the centre. At a
little table adjoining sat witness and
counsel. facing each other from either
end. large percentage of the re-
naming space was taken up with tables
for reporters, representing not only
the city's papers and the big news
agencies, but Philadelphia and Boston
publications.
Spectators Forced to Stand
4 few rows of chairs for witnesses
at the right Of the big committee table
comprised the rest Of the furniture
Most Of the spectators and as the day
wore on there were a good many Of
them-had to stand about on the outer
fringe. These were all men, and most
~ young men. Just one woman. the
wife Of Representative Patten, OF New
York, appeared during the day, in
striking contrast TO the numbers of
them who oyerran the committee table
at the Washington hearings in their
eagerness to approach the witnesses.
Thomas W. Lawson's familiar face
was conspicuous by its absence. but
Bernard Baruch, who is popularity sup
posed 10 have cleaned up" on United
States Steel in the downward plunge
Of the market about the time of the
peace note, was there. He had come
with his records prepared TO testify.
but he was not called upon. He must
have overheard, however, a question
which Representative Bennett put 20
Mr.. STREET. along toward the last of the
latter's testimony after he had been ex-
planning the procedure in short selling
why" ssked Mr.. Bennett. did all
the men, including Bsrueh. who came
10 US in Washington 10 volunteer their
testimony tell us they had never sold