New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-15
o,,tners Absent, He Says
Committee Will Give In
frrences to Congress
WALL STREET HAD
.5OO,OOO,OOO TIED UP
Racine Tells of Critical
Market Condition Pre-
ceding Peace Break

A.. billion five hundred million dol
!, in round figures, the amount
-. Wall Street had outstanding in
- 70 SPECTATORS in that hectic fort
-, last December when Germany
- wilson launched their peace pro-
possls -. ..
a., Committee Of the House, which
...r,,ss the leak inquiry at the Custom
u.r,s Yesterday. is the authority for
~, estimate. His own brokerage firm
.l,,s Mr. Bsche said, had reached the
L,gsr point with loans TO customers
:. .oeeulative accounts amounting to
100000.
This figure was reached on December
=, the day Won Bethmann-HOllweg
-,Ss his peace speech 20 the Reichs-
=, On the evening of the day follow
~ December 13, sixteen brokers, rep
,.s.iug the larger commission houses
y he Street, met in conference at the
v..-opolitan Club to consider the grav-
~ az the stock markets over-infation.
n, Bsche vas one of the sixteen. AL
.,-se1 that the situation was critical
4, Bsehe said that one Of its worst
ss,tures 70 him. was the insignihcance
4 the short" interest.
On this latter point the broker wit
sesses before the committee appeared
rrsuimous. With Jules 5. Bache &
"a 4 was 8 per cent Of their "long'
interest J. Horace Harding, Of c. d
Barney & Co.. testified that with his
irm the short sales at the time in
s,estion amounted TO only per cent
u the whole. Lewis Y. Sterling, oil
logan & Bryan, estimated the short
irtsrest among the customers of his
i'm az per cent
Whipple Scores Hutton Firm
None Of these witnesses would admit
hat bis firm lad a single customer
smong government officials, or had re
,sired any advance information regard
az the Presidents peace note. They
la had no dealings with L. (. Hutton
{ Co.. recipients of the leak message
during this period except on the floor
q the Stock Exchange.
George A. Ellis, jr., a member Of the
Hgtton firm. was put on the witness
card a. the beginning Of the morning
session. He testified that his partner
J. Barrett. who had received tho
Wellington message. had gone 70 Mem
ss-. Team. 20 visit sick uncle. Bar
ri. had been described recently as so
.w that II summoned 20 appear before
ae committee he would have 20 be
tsourht n re inquiry on a stretcher.
g f. Hutton. Ellis told the commit
~ left New ork Tuesday for Palm
Beach. Ellis himself, il will be re-
a.led. was sick IN Georgia when FIRST
waited as @ leak witness.
Sherman l. Whipple, counsel 70 the
tonnittee. addressed the committee as
fellows at the opening Of the afternoon
session:
when last in New York before this
rommittee Mr.. Connolly testified that
he personally was the author Of tele-
gram which had recently been produced
before the committee, and impressed
hem as giving advance information.
w Hutton was present IN the CITY, am
think IN the room, and knew what MI
Connolly had testified under oath. IL
appeared later in Washington that Mr
Coznolly not only did not write this
islsgTsm, but he was not even in the
sSee when IL was sent out, but that a
w. Essary. Of The Baltimore SUM- had
osuposed Il, and caused q telegram 20
b sent over the private wire Of Hut
;ss & Co. in the absence Of Mr.. Con
,sly.
1t appears that that telegram was
~; ip the name Of Essary. The con
tgsion and inference, therefore, are
irresistible that Mr.. Hutton, whose
lzrtneF testified this morning that Mr..
a.i;on saw the telegram, knew that
~. Connolly was making a mlsstate-
Ls1t With regard 20 IL, and the in
i'rerce is that he must have known the
iszson which actusted Connolly IN so
a1ing.
Will Not Subpoena Hutton
Il would, OF course, be Of great as
is1nee % this committee If Mr.. Hut
% could come here promptly and make
ssre statement that would reconcile
~ position with honesty and good
tiia. Under the circumstances, how
"s'' i does not seem 20 me that II
you'd be a wise exercise of the power
y me committee 20 compel Mr.. Hut
Hh % return If he does not see fit 70
% So
his committee in its report can
-~ts the differences which circum-
s~aees and the absence Of Mr.. Hutton
sesia seem % Justify, and thus Con
nsi' vii have all Of this matter that
sas necessary for 10 % deal with.
% WITH Mr. Barrett. who, II ap-
c-ti'' was ID when the committee was
! Aev York before, but has 50 recov-
- nat he has been able 20 make a
~ 70 the South, where he now H.
poh the evidence nov before the com
.pss Ar. Barrett. az Is shown by .
-.syrsm which he himself sent 20 Chi
Ns'' Was selling stocks again at