The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-01-24
Eleven Hundred New York
Brokers Face to Face With
Revelation or Jail
GOVERNORS NOTIFY
MEMBERS TO ACT
In Face of Dragnet Demand
Which Asks Confidential In
formation Wall Street 10 In
Real Ferment

New York, Jan. 2s.--Eleven hum
dred members of the New York Stock
Exchange are face to face with the
alternative OF revealing their conf
Dental relations with customers OF
going to jail for contempt of Con-
greaA.
Under pressure Of the House Rules
Committee, which begun investigation
IN the Custom House today of the al
legged "leak'' OF President Wilson's
peace note the governors OF the ex-
change late this evening called upon
the entire membership to furnish fol-
the use Of the Investigators the fol-
lowing information:
Between Decent Der 10 and 20. In
elusive. OF what clearing house stocks
was each customer short at the end OF
each day with the names OF the Gus
toners the stocks and the numbers
OF shares OF each?
What clearing house stocks were
borrowed when and from whom Dor
row and when returned7
What Information Was Rcceivcd2
What information, IL any. was re-
ceived by cable. wireless, or other
sources from abroad with reference
10 the Presidents note?
The demand Is a dragnet 1t has
spread CONSERVATION among members
OF the exchange. Optn revolt IL
threatened It calls for the uncover
ing Of the stock dealings OF every man
and woman operating in the market
trusted clerk, unsuspected cashier
government official, or foreign diplo-
mat Exact compliance with the de-
mand may blow the Nd of a very
pandora box Of financial dealings
with widespread consequences.
Stock Exchange men who were In.
terviewed tonight declared that there
was no authority on the part OF the
board OF governors to compel com
piinnce with the demand for this pro-
duction OF accounts. On the other
hand they defed the committee OF
Congress TO SO compel them.
Says il Would BE Suicidal.
1T would be suicidal" declared one
prominent operator. who Is represen-
tative OF the group that would be
most affected by the demand. "Whe
would deal again with a man who re-
vealed secrets which are Just as con-
fdential as those between lawyer
and his client or a physician and his
patient? III so TO Jail first"
Nevertheless, the committee and
Sherman whipple, its counsel. made
change members decline to comply
with the request OF the governors
and produce the records. subpoena
will be served upon every member
OF the exchange. and a demand Will
he made upon them on the authority
of the Congress OF the United States
TO produce their accounts. Failure &c
comply. OF course. would be a con.
tempt of Congress.
of to a flying start, the investiga-
ton developed this sensation with the
close Of the first days session. OF
only secondary Importance was the
quick development OF the inquiry into
a frank investigation of the stock
Exchange
Wmppic and Noble Lock Horns.
with the probe only under an
hours Roadway. Inauisitor Whipple
and President Noble. OF the exchange
locked horns over the morality Of
pools to sell stocks short.
whether 1t can be prevented. '
cried the Boston lawyer CURLY, may
be matter for the House, OF which
this committee 10 the representative
to decide. We may take that matter
up later as a basis for congressional
action"
For the rest, the days proceedings
WeIS ucfVtCt ~ laying eAic
work for what is to come.
Probe Made Of Methods.
H. G. s. Noble. president, and Sam
uel F. STREET.. chairman of the clear
ing house committee of the exchange
were the only witnesses examined, and
their testimony was confined exclu-
stvely to Stock Exchange methods
with an exhaustive disquisition by the
latter witness in the afternoon on the
method of dealing in stocks.
Midway In the morning session q
hint was thrown out by Representa-
tive Campbell. of Kansas, that there
have been other leaks--other impor-
tant Information secretly conveyed tc
the same men who are charged with
having profited by the December
crash. Whipple was fixing the dates
between which he wanted the drag.
net spread.
Let it always be borne In mind.
said Campbell that this committee
has jurisdiction back to March 4
1915"
He refused to make any explana-
tions, but 1t was learned later thai
before the committee Is through
maybe by the evidence it Is hoped 10
secure through the dragnet--it will
he shown that a group of WELDON.
nected operators have been playing
the market long and short for the
past two years on private information
OF events to come.
An incidental development was the
revelation to the members Of the com.
mittee, who were interested listeners
to Mr.. Streits lesson on how to OPP.
erate in the market, that an limo
cent purchaser in stock on the Street
signs contract which enables hi,
u t~zl.. -
buys In a short deal participated III
81 another investor which can only
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