Arizona republican., 1917-01-24
RECORDS Of
BROKERS To
Be EXHIBITED
IRepubIican A. p. Leased Wirel

| n. +. LedSCu WlTel
NEW YORK, Jan. 23.-Confronted
with a threat by the house rules COM
| mittee in charge of the leak inquiry
to force the production of brokers' rec
ords if not produced voluntarily, the
! board of governors of the New York
Stock exchange tonight requested every
member of the exchange to make avail
able for the committee the desired data.
The records sought cover the period
from December 10 to December %, dur
ing which time, it is alleged persons
in possession of advance information
On the presidents peace note made
huge profits in the stock market.
The action of the board followed
notice given to the rules committee
during its session today that action
on the committees request for the
production of the brokers' accounts, in
cluding the real names" of customers
who dealt in the market during the
period mentioned and the extent of
their operations on either side of the
account, has been postponed.
Surprised and indignant at the ac-
ton of the board, the committee ad-
vised H. G. S. Noble, president of the
exchange, who, accompanied by coun-
sci, brought news of the postponement
that it would not modify its request in
any manner. If the board had any sug
gestions of modification, Noble was
told, the committee would receive them,
but it failed to obtain the production
of desired accounts the committee
would exercise its power and force
each broker individually to produce
them
Noble explained the reasons for the
postponement that the productions of
accounts would prove a great hardship
to many brokers who are not mixed up
in this matter" and that the board
was in doubt as to its power to compel
the members of the exchange TO pro-
Ounce their records Mobiles counsel
Samuel l.. Taylor also explained that
the brokers were greatly averse to sub
hitting their records to the committee
through fear that many innocent
purchasers names would be made pub
lie. Relations between brokers and
client were regarded in Wall Street
he said, quite as confidential as those
of lawyer and client.
Il was explained that it. was not the
committees desire to make public the
names of any one whose transactions
would not tend 70 throw light on the
leak riImors.
An offer to receive tie names in
sealed envelopes apparently appealed
to the board of governors for in a set
of resolutions adopted at .heir hur-
riedly called second meeting the sUg-
gestion virtually was Incorporated.
The resolution asked srecifioally
that the members furnish the chairman
of the clearing 1ouse committee with
statements showing on what stocks
customers were long and short at the
nd of each day between December 10
and December %. the real names of the
customers the stocks they 1ealt in end
the number of shares each. What
clearing house stocks were borrowed
when. ard from whom borrowed and
when returned also are to be included
Members further are requested. in
another resolution to advise the sec
retary of the ,Xcaange if they received
any cable or wireless communication
from abroad with reference to the pres
ident's peace note before it was made
public. The request was in keeping
with . motion adopted by the rules
committee today.
The committee. advised by telephone
OF the action taken by the board of
governors at their second meeting, ex-
pressed satisfaction.
Notwithstanding the action of the
board. doubt still exists in some quar-
ters as to whether the members will
furnish the desired information,
whether the board would have power
to punish members who failed to com
ply is a mooted question. When this
point was raised this afternoon by
Mr. Taylor. Counsel Whipple expressed
the view that the constitution of the
exchange provides for forcing the pro-
duction of books at such an inquiry
as the present one.
Mr.. Noble and Samuel F. STREET
fCOi,finied 0r1 pa 90 Two)