Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-01-31

Ellis testify, said he probably woult
be examined next week In Washington
Telegraph operators and others who
had to do with the transmission Of the
message also are to be Intercepted
Other members OF the Connolly firm
Ing already has testified at a Washing
ton hearing that he had nothing to-de
with a Teak" of any kind.
Mr.. Bolling's connection with the Con.
molly firm was the subject Of much in
terrogation by Whipple during his ex.
animation of Hutton. when the broker
first took the stand. Hutton told OF
Connolly calling ON him five or six
months ago. informing him that the
firm Of E. A. Connolly & Co. was to be
partners. and asking if the Hutton firm
would become its New York CORE
spondent.
Hutton said the fact that Boiling was
to be a member of the firm had made nc
impression upon him. He denied that
Connolly had said anything Of an ex-
pectation of getting ''high-class Gus
toners" through Bollings Relationship
to the President. The Connolly account
he said. however, had been very at
tractive."
Messages Are Produced.
Whipple then had Hutton produce
messages which had gone over the
firms private wires during the peace
period" in the stock market and which
he had been commanded to bring I'M
der subpoena The first to be read was
the Clement, Curtis & Co. telegram,
marked CONFIDENTIAL timed 12:4s
O'Clock eastern time, which was about
an hour and a quarter after Secretary
Lansing had told the newspaper men
in Washington that q note was coming
from the President.
Il hear that State Department will is
sue statement today regarding economic
conditions European war as affecting
neutrals. the Clement message said.
Intended to promote peace prospects.
What do you think of this and how
are you on stocks? CLEMENT"
The next was Hutton's reply to this.
timed liza pm. which read:
Our Washington wire gave US similar
message to yours. Others have the same
information. We put 1t out, as 1t was
more or less generally known. Your
message was marked confidential and
we treated it so. E. H"
Some time between the receipt of the
chicago message and Hutton's reply to
1t the now missing message from Con-
molly was received, Hutton testified
passed his message, at 1:54 o'clock,
which follows:
I'VE are confidenrially informed
highly important message to
all belligerents and neutrals has
been issued from Washington. In
terpreted not as pressure on bel
ligerents in behalf of peace, but
as one apparently to put Ameri-
can demands on record to be con-
sidered If there is peace. and
warning neutral rights must not
be further encroached upon. Full
nj
will be looked on as q move of
great moment"
Questioned on the lost message from
Connolly. Hutton said 1t was of a class
his firm seldom saved. Connolly also
had not kept copy Of it, he said, but
row would testify fully before the COM
lnittee.
Other Washington Advices.
Hutton also produced other commune
cations his firm had sent Its corre-
spondents, in which reference was made
to various Washington situations. One
Of them said it twas understood that the
Presidents message Of last December
4. the opening day Of Congress, would
be favorable to railroad Investments
written by Hutton personally,
said that washington adNtces~ were
that increased freight rates probably
would be granted the railroads.
Replying to sharp Questioning by
Mr. Whipple, Hutton said; he did not
recall any particular advices he had In
mind other than general Impression
he had gained from the newspapers
and the ticker. He volunteered the
statement that he had learned nothing
in this connection from Mr.. Boiling or.
Mr.. Connolly. He also asserted that his
firm had no sources of information in
Washington outside Of the Connolly
company.
the Ifnancial district shortly prior to
the Issuance Of the Presidents note,
owing to the topheavy speculative ac-
counts amassed by the public" Hut
ton gave the committee a shock by
announcing that his firms out
counts aggregated $28.000,000. This
he said. was general and was
by bankers as a dangerous
that might result In a
panic. The bankers had begun to call
loans. he said. with the result that he
had issued a notice that his Arm would
not do business except for cash or SO
per cent margin, according to the Sc
curity.
Loans Became Difficult.
Hutton described the participation of
the public" in the market on the bull
side and said that since the war be-
gan his loan account with the banks
had increased from $12.00O,000 to the
twenty eight million figure
I'VE were borrowing SO much money
that L was scared to DEATH" said
Hutton.
whipple asked him when he began
to feel alarmed.
THE latter part OF November" he
replied, I'VE began to experience DIFF
dculty in arranging loans with the
banks. The bankers thought the brok-
ers were overextended. They thought
the participation of the public in the
market was too large and began to call
loans. The general feeling was that
it was situation that might result in
a panic.
''The effect of calling loans meant
higher money rates II the loans were
to be renewed. That meant forced
selling"
and forced selling might mean
panic?"
ut might mean panic"
Hutton read a warning his firm sent
to his correspondents on December 4.
telling them that money rates were
high and that Wall street could carry
no more industrial accounts. and the
public would have to furnish the money
for dealing in them.
The Presidents message, the COM
added. was expected to