Daily capital journal. (Salem, Oregon) 1903-1919, 1917-01-31
CONNOLLY FIRM
(Continued from page One.l

The committee expects to finish its
New York work Friday and its Wash
ington work by the end of next week.
Whether or not it places responsible
ity for leak, the committee feels it
has done a public service by showing
that stocks of the outside public on the
long side are often used as the very
means for short operators to daily-wi
downward drive. And secondly, that
the outside public is practically al
ways "lOng, F" while chiefly profession
ais are the only ones realizing that
! there is a short side to the market.
Hutton was recalled to the stand at
the start of the morning session.
Attorney Whipple sought to find
whether the 12:4s p. m. message from
| Chicago was the first information the
| Hutton house had, but Hutton said he
did not know whether or not Connolly,
up to that time, had transmitted any
word regarding the note.
! Operator Will Be Called.
Whipple produced the text of Hut
ton message dated December 20, 1857
p. m, which said:
"Stock flash:
"Reports have it that the state de-
partment will issue statement today in
tended to promote peace prospects,"
This message was sent out by an
Operator named Toomey, who probably
will be asked to tell of its origin.
The committee will have to subpoena
Ellis from his vacation place, so miles
outside Savannah, but E. F. Hutton
agreed to summon him at once without
subpoena.
The occasion for calling him back
was Hutton s inability to clearup points
about a message put on the company IS
wires by Ellis at 1854 p. m, December
20, giving an Interpretation concerning
/ President Wilson 3 note similar to the
administration construction voiced by
Secretary Lansing the following day.
The committee wanted to know the basis
! for Ellis telegram. Hutton testified
the telegram was based on word from
| +. A. Connolly, Washington associate of
President Wilson's brother-in-law, R.
| W. Boiling.
Relative to the statement in one mes
sage that "others have the same infor
nation" Gas the Hutton house,, Hut
ton said that he could give only an opin-
ion, as he had not personally handled
| the communication.
Messages Are Altered.
| Whipple developed that there had
been some alterations in the messages.
For instance, the l :54 message had been
changed to read "We are confidential
ly informed, and so on about the
note-whereas originally it read "We
are reliably informed"
| Hutton indicated that he had not at
tached extreme significance to the eff
feet the Ellis message would have. Had
he considered that it meant a break in
the market, he said he would have Gre
quested our correspondents to try to get
clients to liquidate their accounts, at
least in part"
Whipple tried to ascertain whether
any of the Hutton concern had profited
! by the information on the slump after
the note information leaked.
Hutton detailed his tradings and re-
vealed he had made $4,000 in all from
December IA to 81, though he is still
short on some stock sold during that
time.
Lansing's Words Caused Selling.
GAS a result of that message, did
| you receive large number of selling
Crders9" Whipple asked.
"No, not as result of that message,
hut there was a big volume of selling
orders when Secretary Lansing said we
weer ON the verge of war; he replied.
Evidence that the public buys gen
orally instead of sells short came when
Hutton said that on the night of the
Goth the house had accounts represent
ing 100000 shares long and less than
| $4,000 shares short.