The Washington times., 1917-02-05
PROBERS REVIEW
HUTTON co. SALES
Transactions Show Firm Sold
Stocks Before Essary Mes
sage Was Sent.
PRESENT MANY TELEGRAMS
New York Firm Rebuked Over
Wire From chicga for Vio-
lating Confidence.
PRESENT MANY TELEGRAMS

. ShOAl dN 4 L go ili-F NONNAA7
Der 20, which was some time in ad-
vance OF the hour the firm received
information from Chicago that a
peace note was coming
The hour at which Hosmer Barrett,
the member of the firm said, in a
telegram that he was selling stock,
was one hour and forty-two minutes
prior to the time J. Fred Essary, a
Washington newspaper man, sent a
telegram to the Hutton Company, in
dicsting that a peace note would be
issued later in the day.
Eleven Messages Sent.
Eleven kilograms, which passed
between Hutton & Co. and Clement.
Curtis & Co.. December 20, produced
at today's session by Attorney
Whipple, showed that at 1919 p. m,
or one hours and sixteen minutes be
fore the Essary message was sent,
Hutton & Co. informed the Chicago
brokers that they had received In
formation that a peace note was to
be issued.
The statements telegraphed at 1919
p. m. by Hutton & Co. that they had
1t--OA AAo1AOh " dS sent dllcT the
had been rebuked by the Chicago firm
Tor violating a confidence.
Ellis Only Witness In Morning.
The rebuke was couched in strong
terms, and the Chicago firm said
that the effect of putting its informa-
tion on the wire-which was based
on the telegram from w. W. Price, a
White House correspondent-woul
be to kill the source of our infor-
nation"
George A. Ellis, member OF the firm
OF Hutton & CO., was the only witness
on the stand today. He did not testi-
fy much, but most of his time was
taken up in Identifying messages
which passed between his firm and
Clement, Curtis & Co. The eleven
messages were copied off of the tell
tale" on the Chicago end OF the wire,
and furnished to Attorney Whipple
by Clement, Curtis G. Co. Efforts tC
get copies of them from Hutton & Co.
failed Attorney Whipple said.
May Hear Essary Again.
When the committee recessed at
o'clock to meet again at o'clock
this afternoon 1t was with the under
standing that ]. Fred Essary, who
began his testimony Saturday after
noon, would resume the stand before
today's session is completed.
WhippIe Renews Facts.
When George A. Ellis, of the frm
OF E. F. Hutton & Co.. resumed the
stand when today's session began, At
torney whipple, for the benefit of the
witness. reviewed the testimony
heard in New York regarding the
borrowing of stocks among brokerage
Arms.
Ellis said this was done frequently.
In response to a question relative
TO the value OF advance information
to a broker, the witness said:
This peace talk mentioned in the
message we got on December 20 had
been strongly discounted. As early
as November we advised our clients
to sell Industrial securities"
Attorney Whipple then showed the
witness four kilograms, and asked:
do these messages constitute all
the information your firm had regard
ing the peace note?"
"They do so far as l know" Ellis
replied.
The witness was asked If he knew why
any other messages dealing with the
peace note and received by E F. Hutton
& Co. should have been withheld from
the investigation committee.
Ellis replied that he did not know any
reason for suppressing any kilograms
which his Arm had received or sent on
December 20.
No "Ten Tale"
Replying TO a question. the witness
said there was no tell tale" on the
New York private wire his firm had.
but there was one on the Chicago end.
Attorney Whipple then read a du-
plicate of William w. Prices message,
originally sent to F. c. Aldrich in
Chicago, and later telegraphed to
Hutton & Co. by Aldrich. The mes
sage was timed 11:41 a. m. Chicago
time, December 20.
Ellis said he had never seen the mes |
sage. at was never delivered to
me-" he added.
The attorney next read the follow
ing message. timed 11:47. Chicago.
"E. F. Hutton & CO.
"Confidential. ] hear that State De- |
partment will issue a statement to- |
day on economic conditions in Eu- |
rope and rights of neutrals. What |
w gOu ~ ~ ~" 49, /
on stocks? CLEMENT.
After reading the two other mes
sages which passed between Hutton /
e. Co. and Clement. Curtis & Co. which /
came out at the New York sessions. 1
Attorney Whipple asked the witness
II he ever saw the following mes
sage:
"CIement, Curtis & Co.:
81 am selling stocks again"
Signed By Barrett.
whipple said the message was
timed at 11:53 a. m, and signed by
Hosmer Barrett, a member Of the
Hutton company.
Ellis said he knew nothing of the
He said Barrett had been
selling stock heavily six weeks before
December 20. The witness said the
sales were for clients, and not FOR
Barrett himself.
"If Barrett sold stock for himself,
he wouldn't be a member OF our firm,"
said the witness.
Whipple advised him not to "go
too fast along that line because Mr.
Hutton has already told us he clean
ed up an infinitesimaI So. 600"
The witness said this was due to
the "gyrations of the market"
Whereupon the attorney said advance