The Republican. [volume] (Oakland, Md.) 1877-current, 1917-01-25
BROKERS BAIK 1T
showing RECORDS
Stock EGg3aa5} O5Ios1s G33..
tai0 10 U93y Ff0suS
Request i "0ELIGATE OH"

Leak" Committee Continues VIA
It's Work In New York City-Pre5i-
dent OF Stock Exchange Teotifica
That Inatituton is Against Pools 10
Force Down Market Artificially,
"short Sales" Defended.
New York, Jan. 24.-The governors
Of the New York stock exchange post
poned action on request Of the house
leak committee that they ask their
members to deliver to the committee
the brokers' books showing stock
transactions of the week Of Dec. IS.
H. G. S. Noble, president of the
stock exchange, came direct to the
hearing from the first meeting CT the
governors. He was accompanied by
an attorney.
81 have to report" said Noble, that
the board of governors postponed ac-
ton on request. Also that the board
seriously doubts if it has the authority
to enforce such a request of its mem
bers.
81 am also instructed by the board
to request q modification of the com
mittee's demands.
"The board considers this request
would work hardship en- many of its
members-maDy of them were in no
way involved in this natter"
q see no need for a modification"
retcrted Whipplo, the committees
counsel. The whole future of this
committee, as I see it, depends on the
reply Of the governors to the request
for these books"
Walter NJ. Taylor, attorney for the
governors Of the exchange, declared
that the request OF the committee was
one involving such delicate matters
that they hesitated to comply with it,
The relations of a broker and his
client, Taylor said, was a matter Of
such delicacy and OF such a confden,
tial nature that it was serious propo-
sition.
Suppose, he said, "a client suffers
from exposure Of these books, What
defense has the broker?"
Whipple mere read from the bylaws
of the exchange, a rule giving the gov
ernors' board authority to compel sub
mission OF his books for the purposes
of investigation. This, Whipple held,
covered the matter.
President Noble was instructed to
call another meeting of the governors
and again urge them to grant the
committees request. He departed,
saying he would do so.
President Noble on the witness
stand endeavored to make himself
clear concerning the attitude of the
stock exchange regarding 'combina-
lions and pools" He had stated pre-
viously that he personally could see
nothing wrong with combinations so
long as they dealt legally in securi-
| ties.
my mind was dwelling on the right
of selling short, said Noble. "Now
regarding combinations and pools
formed to put the market down arti-
icially, certainly the exchange doesn't
condonc that" he continued at would
be possible to suspend or exbel mem
bers practicing such things"
Have your ever investigated re
ports of such practices?" asked Whip
pie.
NO" replied Noble. 1--WE never
had sufficient evidence to warrant an
| investigation"
"The reports have been quite strong
recently" said Whipple.
"How are you going to find evil
dence if you don't look for ito" he
continued. at can't be done, can it?'
NO" admitted Noble
"Then, Mr.. Noble, would you CON
slider it strange if congress or some
other legislative body would make
this investigation inasmuch as the re.
form activities of the board seem at
low ebb?"
Here the matter was dropped and
Mr. Noble excused.