The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-01-24


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the tickcr. The Stock Exchange
clearing house received at the end of
each day from each brokerage house
a statement OF it's purchases and sales.
/ Then the Stock Exchange has alb
solute knowledge OF what occurs on
! the fioor?" asked whipple.
That is right" Noble replied.
And this is accessible to the COM
mittee?"
Yes"
Governors Can Enforce Penalties.
/ The board of governors, said the
witness, can enforce penalties for the
violation OF any of exchange mem
bers Of the standards OF Commercial
morality and personal honor"
Mr.. WhIpple questioned the wit
ness Hs 10 the difference between spec
ulative and investment securities and
asked II II was not true that the
speculative stocks offered the best op-
portunities for manipulated move
ments'
Witness and attorney fenced over a
definition of manipulation" Mr..
Whipple said he would bring up the
subject later and advised Mr.. Noble
meanwhile TO give an answer to the
question 'pr-ayerful thought
The witness. however, willingly
furnished the committee with list
OF what he regarded as speculative
stocks--United States Steel, Ana
Conda, Marines the Industrial stocks
which had profted by tho war"
WHY'S Overland Reading and Union
Pacific.
MIR. whipple inquired what there
was about United States Steel that
| the public did not know which would
make It speculative
Mr.. Noble replied that II was not
so long since United States Steel did
not pay dividends. He explained that
/ the doubt was about the profits the
stock would make opinion differing
| as TO tbs
Whipple asked Mr.. Noble II he ever
had sknown OF preconcerted move
I ments by operators to drive down
the markets by accentuating unfavor-
able news that they might take short
profits
Has Heard or Bear Movements.
Il have heard of such things" Mr.
Noble replied; but / never know Of
case to my own personal knowl
edge"
In all your years as member OF
the governing board OF the exchange
YOU have never believed that there
was n depression due to concerted
movement for short selling7" Mr.
Whipple asked,
Noble replied that he had no per-
sonal knowledge OF such a transac-
ton.
whipple asked II the governing
body Of the exchange ever had made
an investigation TO determine II there
had been short sales plots" Noble
replied that there had been investi-
cations to determine II its members
had done Illegal acts or had made
wash" sales"
Would you and the men who
stand for the best that there is on
the exchange approve the action of
men subscribing large sums OF money
to he used in making short sales,
using unfayorab}e news and accentu-
ating that news TO drive the market
down and then buying in stocks at
low figure IN order to increase their
prohts?" Whipple asked.
Your question seems TO imply"
Noble answered. that there is some
IMPROPERLY In men getting together
and selling on some news they think
unfavorable."
He said operators had the right to
sell II they thought the situation
warranted 1t and tho exchange could
do nothing about It
Il don't see how IT could be pre-
vented" added the witness
Il ask You whether it would be In
accord with the moral standards OF
tho stock Exchange" insisted Whip
pie.
II can't see how Il could be disap-
proved as long as 1t Is legitimate
transaction"
The board OF governors, Noble said.
was willing to produce the clearing
house records showing the daily
transactions Of the exchange. but az
70 directing each firm TO produce
| transcripts OF the accounts of their
customers the witness said he would
have to confer with the board OF gov
ernors. Mr.. Whipplc said If the board
failed to produce tho records, II
would require the committee to
/ make is own search through the
various Offices for what it can and
VIII pet-who profited, who lost and
perhaps how they aid IT,"
Baruch Brings Papers.
Carrying list Of his transactions
on the exchange during tho period
when leak" information is said to
have affected the market, Bernard
Haruch arrived In the committee
room at the opening of the afternoon
session. II have brought everything
the committee asked me 70 bring" he
said.