El Nuevo mexicano., 1917-02-01
PaOB[Rs BlFFlED
(continued from Page u

Continued from Page II
had no knowledge on December q
that a note was coming from Presi
dent Wilson. Other members of hi.
firm handled the various messages
now In the record. Representative
Bennett, in interrogating Hutton said
the wire Thompson and McKinnor
Of Chicago sent to their Oshkosh
Wis, branch on the afternoon of De
cember 20, advising customers to sell
on account OF the coming Of the peace
note was traceable to Ellis message
Bennett called the attention Of the
witness to testimony by newspaper
men in Washington that Secretary
Lansing In telling them the note was
forthcoming, "had given them an i'm.
preston as to its contents exactly
opposite to what it really was"
"The entire substantially accurate
forecast OF the presidents note which
has come to the attention Of the com
mittee, thus far" said Bennett. lis the
one sent to you by Connolly. How do
you account for THAR"
Il don't account for it., That's up
to Connolly" said Hutton.
No other information known ON
December 20 regarding the presidents
peace note was as accurate as the
Hutton firms message, Representa-
tiuve Bennett brought cut from Hut
ton. In further emphasizing his state
ment that none of his firm proited BY
knowledge Of the notes contents Hut
ton said that If he had been a specu.
lator instead Of a commission man
he certainly would have sold short as
rapidly as possible IN the strength Of
this information.
Bennett desired To know why New
York customers. of the Hutton firm
were not advised of the contents OF
the note as were out-of-town custom.
ers and Hutton replied that this
would have been a physical impossi-
bility.
Replying to Chairman Henry,s
question IL the abolition of short sell
ing would ruin the market. Hutton
said it would very materially affect
it.
Representative Chipperfield then
took up the examination and wanted
to know If the dear public" hadn't
been thrown to the fishes" when the
banks in calling loans Disseminated
against the Industrial stocks in which
the public was interested. He asked
II big banking firms like J. p. Morgan
'& Company, Kuhn, Loeb & Company
and others hadn't influenced the
banks to favor the railroad securities
tn which the big banking firms were
interested.
Hutton said that there was good
reason for discriminating against the
industrials because Of the heavily
overbought condition of the market
liz these securities, thar the situation
was a dangerous one that needed cor
rection. The railroad stocks had not
been speculated in. he explained, The
committee then recessed.
In addition to Connolly & Company
the customers of virtually every one
Of the As brokerage houses in the
west and south who did business
through =. f. Hutton & Company,
suffered big losses as the result OF
the crash in the stock market which
followed the presidents note and the
Lansing statement, Hutton said at
the afternoon session.
lie read a list of the aggregate
losses for some houses without giving
their names. The highest was $717,-
900 for a house in Chicago. The otn-
A. ,.nrn 9oPn nnn 5000 nnn eoET mn
$40, 900. $4,000, $4,000, $4,000, $780,
600 and $4,000. The total Of these
alone approximated $4,000. 900.
n. A.. Connolly was then called to
the stand. Connolly was first asked
as to the organization of his firm. II.
w. Robertson and the witness we're
the original members OF the firm or
ganized In August, 1915, he said.
Connolly arranged, he said, to have
the Hutton firm act as his New York
correspondent in July and he talked
to Hutton Of r, w. Boiling, eventually
entering the firm.
He said he first mot Boiling two
or three. years ago in a social way"
Corncliy said that he preached to
Boiling the matter of entering part
nership with him. He bought his seat
on the stock exchange October Is and
at the same time Boiling entered the
firm.
II was the partner" said the wit
ness. who was in actual charge of
the business Boiling was not so fire.
.alently in the office as he was, the
Witness continued but was probably
on duty 'two or three hours a day"
How same you to shoot my cow
She went moo
"WTell?n