The Birmingham age-herald., 1917-01-31


 ealing on him five or six months ago informing him that the firm of F. A. l Boiling as one of the partners, and ask 1 ing if the Hutton firm would become its New York correspondent.
 MADE NO IMPRESSION Hutton said the fact that Boiling was 1 to be a member of the firm had made Connolly had said anything of any expec- tation of getting high class customers through Bolling's relationship to the President. The Connolly account, he said however, had been "very attractive" Whipple then had Hutton produce mes sages which had gone over the firm private wires during the peace period in the stock market 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 quarter after Sec retary Lansing had told the newspaper men in Washington that note was com ing from the President.
 T hear that state department will issue statements today regarding eco homie condition European war as affect ing neutrals,r the Clement message said, intended to promote peace prospects. What do you think of this and how are you on stocks (Signed). CLEMENT"
 The next was Hutton's reply to this, timed 1.14 p. m., which read
 'Our Washington wire gave us simi- lar message to yours Others have the same information. We put it out as more or less generally known. Your mes- sage was marked confidential, and we treated it SO E. F. Il.
 Sometime between the receipt of the Chicago message and Huttons reply to to the no wmissng message fron Con- nelly was received Hutton testified, This was the message on which Ellis (writing for Connelly) based his mes sage, sent at 1:14 o'clock as follows;
 'We are conffdentially informed of a highly important message to all belliger- ents and neutrals has been issued from Washington. Interpreted not as pressure on bellgerents in behalf of peace, but as one apparently to put American demands on record to be considered if there is peace and warning neutral rights must not be further encroached upon. Full text to be given out tonight, and will be looked on as a move of great moment
 Questioned on the lost message from Connolly, Hutton said it was of a class his firm seldom saved. Connolly also had not kept a copy of it, he said, but added the Washington broker tomorrow would testify fully.
 Ellis an emp1oye who wrote the mes sage for Connolly, is reported to be sick in Georgia and requests have been made to not include him in the hearing. Rep resentative Henry, however, declared he would be called upon to testify.
 While describing the nervous state of the financial district shortly piror to the issuance of the Presidents note, owing to the top-heavy speculative ac- counts amassed by the public Hutton gave the committee a shock by casually announcing that his firms outstanding loans against margined accounts aggre- gated SIS, ,O00, 900. This condition, he said was general, and was regarded by bank CTS as "a dangerous overeXtension that might result in a panic. The bankers had begun to call loans, he said, With the result that he had issued notice that his firm would not do business eX- cept for cash or 50 per cent margin, ac- cording to the security.
 Hutton was preceded on the stand by Bernard Baruch, a large Wall street op.- erator who testified that solely by the use of foresight he had made $476, l6S by selling short between December 10 and December 23. Baruch again declared he had received no advance information re- garding the Presidents peace note.
 WHITE MAKES DENIAL
 When Archibald S. White, the New York financier, took the stand he denied that he had received any advance infor- nation from Ambassador Won Bernstorff, his friend, or any other German official, regarding any of the recent peace move ments
 Direct examination of the witness by Sherman l.. Whipple, counsel for the committee, was concluded, and members of the committee began questioning him. White also denied that he had any ac- counts in which persons in official life were interested,