Bisbee daily review., 1917-01-24
TO PROBE BOOKS OF
 N. Y. STOCK EXCHANGE

exchange to produce their records. Noble's counsel. Samuel Taylor, also explained that the brokers were great ly averse to submitting their records to the committee through fear that many innocent" purchasers names would be made public Relations be- tween broker and client were regard ed in Wall Street, he said. quite as confidential as those of lawyer and client.
 It was explained that it was not the committees desire to make public the names of any whose transactions would not tend to throw light on the leak" rumors
 An offer to receive the names in sealed envelopes apparently appealed to the board of governors. for in set of resolutions adopted at their hur- riedly called second meeting, the sug- gestion virtually was accepted.
 The resolutions asked specifically that the members furnish the chair man of the clearing house committee with statements showing on what stocks customers were long and short at the end of each day between De cember 10 and December 23. the real names of the customers, the stocks they dealt in, and the number of shares each. What clearing house stocks were borrowed, when, and from whom borrowed, and when re- turned, also are to be included.
 Members further are requested in another resolution to advise the sec retary of the exchange if they receiv- ed any cable or wireless communica- tions from abroad with reference to the Presidents peace note before it vas made public here. The request was in keeping with resolution 7aopted by the rules committee today
 The committee, advised by tele- phone of the action taken by the board of governors at their second meeting, exhibited suspicion. Not wtihstanding the action of the board, doubt still exists in some quarters, as to whether the members will furnish he desired information
 NEW YORK, Jan, 23.-Mr Whipple, expressed the view that the constitu- ton of the exchange provided for fore ing the production of books at such m inquiry as the present one.
 MT. Noble and Samuel F. Streit, chairman of the New York Stock Ex- change clearing house committee, were the only witnesses examined to- day They were questioned by MT Whipple as to the power of expert onced speculative cliques to fnanipu- late the market by short selling at the expense of the public" and to take advantage of ''unfavorable news" in order to depress prices and cover" 9t a profit. short sale" spectators are alleged to have been the lot" Nenefciaries. The attorney elicited he information that it was the prac- tice of brokers with the consent of their customers, to loan stocks bought on margin to other brokers, who in turn used them for ''short sales tranactions. Thus, it was alleged, the stock of the customers who hoped to profit by a rising market could be- come weapon in the hands of the short sale" speculator, who hopes for falling market
 That is," pursued MT. Whipple, man may furnish the petard on which he is hoist"
 That is possible" MT. Streit con- ceded.
 Mir. Streit defended short selling as a necessary requisite to a free market" and said that experience in Germany and France had shown it was inadvisable for economic reasons to dispense with it He conceded, however. that if "short" selling should be abolished there would not be so much speculation.
 The short sale, then" remarked MI. NHippit, lS lLt lOuHUdtlOH .Ol speculation"
 'I would not say that" MT. Streit replied. q meant that there would not be such a volume of speculation, and. incidentally. the speculative risk would be greater"
 ! Turning to Mir Noble's personal i views of the ethics of the market. MT. Whipple inquired diligently in many different forms if he considered short sale operations designed to ac- centuate unfavorable news in order to depress prices and take profits were immoral" The witness finally conceded he saw no impropriety in these operations. but in resuming the stand at his own request later in. the day, amended his answer. He said he had misunderstood the tenor of MT. Whipple's question and explained that he did not approve of concert ed action of conspiracy to depress the market artificially."