Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-01-23
SEARCH[|GHT
TO Be TURNED
ON EXCHANGE
Leak" Committee Decides
to Inquire Into ''Sh0rt"
Deals.
TO COVER SALES
MADE AFTER LEAK"

York-Defends Transactions by Men
Who Have Inside Information and
Can Profit Thereby-5oard Of Man
ayers Asked to Order Books Shown.
New York Jan. 23.-Searchlights of
the house rules committee in the leak
inquiry are to be turned Immediately
upon all the short" deals which took
I place on the stock exchange between
( Dec 10 and Dec. %. 1t was on such
4 speculation. If any, that profits We're
made on advanced information regard
Ting the presidents peace note, it was
tiaverred.
II That this feature Of the inquiry may
3be expedited the committee today or
fdered II. G. 8. Noble. president Of the
stock exchange, to request the gov
perning board Of exchange to ask its
members to supply the committee
iforthwith with list of their trans
factions between Dec. 10 and Dec. %,
all customers by their
streal names"
The statements requested also are
Ito show the number Of stocks bor-
rowed by whom and to whom loaned,
and date returned.
!: With this information in hand the
i sIcommittee believes it soon can deter
tmine If there is any basis to the charge
/ of immense profit taking in "shorst
selling" by those in possession of leak
Information.
Whipple Outlines Plans.
Noble was the first witness called
after Sherman L. Whipple, counsel
for the connmittee, had made his open
ing statement, which was featured by
an outline OF the immediate plans OF
the committee contemplating inquiry
into nothing save the leak" said to
have occurred in connection with the
presidents PEACE note.
In brief opening statement Whip
ple made it plain that extraneous mat
.4ers, such as general Investigation
of the stock exchange, wall have no
place in tie inquiry at present. The
Investigation will seek to determine
first of all three things:
What were the activities on the ex-
change during the week Of Dec. IS.
when the leak is said to have occurred,
and the possibilities tor causing
losses?
Who are the brokers responsible for
the transactions during this period!
Who made the profits?
To Extend to Losses.
The second inquiry. Whlpple said,
should extend both to profits and
losses.
aAfter that" he said "the committee
may feel that it is in position where
it may iptelligently inquire about
those who profited and it seems like
ly that those who profited may have
obtained advance information"
Mr.. Noble described in detail the
activities Of the market on Sample
day."
The stock exchange clearing house.
he said, received at the end OF each
day from each brokerage house
statement of its purchases and sales,
and declared this material was ac-
cessible to the committee
Noble was questioned as to the op-
GRAFTON Of Short pools and the pro-
priety Of spectators accentuat!ng un-
favorable news by selling stocks in
order to depress the price and cover
at profit. He said he saw no I'M
propriety in such operations. He was
told that If the board Of governors did
not obtain the records desired the COM
mittee would be compelled to make its
own search.
UphoIds Selling Plans.
Mr. Wh;pp!e inquired what there was
about United States Steel which the
public did not know which would make
it speculative. Noble explained that
the doubt was about the profit the
stock would make, opinion differing as
to this.
Whipple asked II the governing body
OF the exchange ever had made an ex-
animation to determine II there had
been any short sale plots" Noble
said the question Of wash sales" had
been investigated.
would you and the best OF men on
/ the sxchange approve the action Of men
subscribing big sums Of money to make
| short sales, using unfavorable news
| and accentuating that news to drive
Y the market down, -and then buying in
\ stock at a low figure in order to in
crease profits?" Whipple asked.
"Your question seems to imply No
4 BILE answered, "that there is some i'm
propriety in men getting together and
.Sselling on some news they think unfa-
fvorable."
y Whipple worded his question differ
!, emily. Noble again failed to give di-
rect answer, saying the operators had
4 ! right to sell if conditions warranted
Y
Asks For Records.
Mr.. Wl1ipple then said the commit
II II tee wanted records for the period be-
!(tween Dec 10 and Dec. % which would
A show the names Of customers, how
Il their accounts stood day by day.
3Ewhether they were long or Short >
lIand how much. He said if the board
aIof governors failed to produce them it
u would require the committee to make
HTS Gown search" thru the various Off
= q :. sls and viii yci-w:,o
h Srufited, who lost and. perhaps, how
n .liey did it,
4 foble said he would put the matter
/ Us to the board OF governors this aft
r.noon
] The board Of governors Of the ex-
4